Documents

• 2005 0629 - GAO, Military Personnel: DOD Needs Better Controls Over Supplemental Life Insurance Solicitation Policies Involving Servicemembers, GAO-05-696 (Washington, D.C.: June 29, 2005). - 71p --- [link]
• ²Richard Buddin and D. Phuong Do, Assessing the Personal Financial Problems of Junior Enlisted Personnel, RAND Corporation, 2002. - [link]
• ³The report’s data on civilians were drawn from the 1996 Panel Study of Income Dynamics, which was a nationally representative sample of 1,465 individuals.
  • The survey is longitudinal and has been conducted annually since 1968. - psidonline.isr.umich.edu/
• ³The report’s data on military members came from two surveys of military personnel.
  • The first survey was a random sample of 6,200 enlisted members with 10 or less years of service conduct in 1997. This survey explored various dimensions of the
    reenlistment decision for junior enlisted personnel.
  • The second survey was a 1999 random sample of enlisted and officer personnel in all service branches. This survey included about 36,000 respondents but this report analyzed the 8,000 respondents who were enlisted personnel with 10 or less years of military service.
• ⁴GAO, Military Personnel: Longer Time between Moves Related to Higher Satisfaction and
  Retention, GAO-01-841 (Washington, D.C.: Aug. 3, 2001). - 35p
• ⁵D.R. Segal and M.W. Segal, “America’s Military Population,” Population Bulletin, vol. 59,
  no. 4 (Dec. 2004).
• ⁹GAO, Military Personnel: More DOD Actions Needed to Address Servicemembers’ Personal Financial Management Issues, GAO-05-348 (Washington, D.C.: Apr. 26, 2005). - 65p --- [link]
• ¹¹Military Personnel Financial Services Protection Act, H.R. 458, 109th Congress (2005).
• ¹²Military Personnel Financial Services Protection Act, S. 418, 109th Congress (2005).
• ¹⁵Information on current rates obtained from The New York Times Business Section. The New York Times uses interest data provided by http://www.bankrate.com.
• ¹⁸Diana B. Henriques,
  • “Basic Training Doesn’t Guard Against Insurance Pitch to G.I.’s,” New York Times, July 20, 2004 - [link]
  • “Insurers Rely on Congress to Keep Access to G.I.’s,” New York Times, July 21, 2004. - [link]
• ¹⁹LIMRA International/Society of Actuaries, Individual Life Insurance Persistency Study: Preliminary Results, (March 2005). - <Wishlist>
  • 2005- U.S. Individual Life Persistency Update -Final - 49p
• ²⁰Section 3(a)(8) of the 1933 Securities Act exempts from securities registration any “insurance policy” or “annuity contract” issued by a corporation subject to the supervision of an insurance commissioner, bank commissioner, or similar state regulatory authority.
• ²²Complaint, United States v. Academy Life Insurance Co., U.S. Dist. Ct., E.D. Pa., Civil Action No. 02-9125 (Dec. 19, 2000).
• ²³Settlement Agreement, United States v. Academy Life Insurance Co., U.S. Dist. Ct., E.D. Pa., Civil Action No. 02-9125 (Dec. 10, 2002).

• ²⁴See http://www.commanderspage.dod.mil/dav/lsn/LSN/BINARY_RESOURCE/

  BINARY_CONTENT/1827481.pdf. <Broken Link>

  • DOD recently began maintaining an online listing of actions taken against insurance companies or their agents by various DOD installations.²⁴
• p30 - ²⁵DOD, Commercial Life Insurance Sales Procedures in DOD, DOD Office of the Inspector General Report, No. 99-106 (Arlington, VA: Mar. 10, 1999). - 54p
• p30 - ²⁶DOD, Final Report: Insurance Solicitation Practices on Department of Defense Installations, Office of the Under Secretary of Defense for Personnel and Readiness (Washington, D.C. May 15, 2000). - 127p
• p34 - ²⁹The study identified 98 companies offering S&P 500 index funds. See Investment Company Institute, “Are S&P 500 Index Mutual Funds Commodities?” Perspective Vol. 11 No. 3 (August 2005).
• p36 - ³⁰SEC, Public Policy Implications of Investment Company Growth, H.R. Rep. No. 2337,
  89th Cong., 2d Sess. (1966). - 10p
• p36 - ³¹Pub. L No. 91-547 §16, codified at 15 USC §80a-27(d).
• p38 - ³²S. 418, Sec. 3, and H.R. 458, Sec. 102.
• p40 - ³³GAO, Insurance Regulation: Common  Standards and Improved Coordination Need to Strengthen Market Regulation, GAO-03-433  (Washington, D.C.: Sept. 30, 2003). - 53p
• p43 - ³⁷S. 418, Sec. 9, and H.R. 458, Sec. 108.
• p45 - ⁴⁰See Maryland Insurance Administration Market Conduct Examination Report of Life
  and Health Business, Report No. 490-01 (Baltimore, MD: Jan. 25, 2002).
• p47 - ⁴¹Tom Lauricella, “Some Military Investors Bear a Heavy Load” The Wall Street Journal, C.1. (New York, N.Y.: Nov 27, 2002). - [link]
• p47 - ⁴²Steven T. Goldberg, “Funds: A Marketer is Selling funds with Sky High Fees to Military Personnel,” Kiplinger’s Personal Finance, Volume 57, No. 9, p. 53 (Sept. 2003).
  • airwarriors.com/community/threads/first-command-financial-planning-their-insurance-and-mutual-funds-are-rip-offs.5619/
• p49 - ⁴³S. 418, Sec. 11, and H.R. 458, Sec. 110.
• p51 - ⁴⁴S. 418, Sec. 10, and H.R. 458, Sec. 109.
• p52 - ⁴⁵GAO, Credit Reporting Literacy: Consumers Understood the Basics but Could Benefit from Targeted Educational Efforts, GAO-05-223, (Washington, D.C.: Mar. 16, 2005). - 128p
• p53 - ⁴⁷S. 418, Sec. 8, and H.R. 458, Sec. 107.
• p54 - ⁴⁸S. 418, Sec. 8(b)(4), and H.R. 458, Sec. 107(b)(4).
• p55 - ⁵¹S. 418, Sec. 6(a), and H.R. 458, Sec. 105(a).
• p60 - We provided a draft of this report to DOD, NAIC, NASD, and SEC for comments.
  • Each of these organizations provided written comments expressing general agreement with our report and its recommendations (these comments appear in appendixes IV through VII).
• p61 - Regarding our recommendation that DOD and regulators work together to develop training materials, NAIC’s letter indicates that they have worked with DOD to develop a consumer brochure and a Web site specifically addressing life insurance information for military personnel and remain committed to developing other materials to fill any financial literacy needs that DOD identifies.
  • NAIC’s letter
  • consumer brochure
  • Web site