Military Personnel Financial Services Protection Act
Latest action · Sep 29, 2006 Became Public Law No: 109-290.
Progress
Where this bill reached, and when. A stage with no date was not reached; one that failed a vote and later carried shows the date it carried.
- IntroducedFeb 17, 2005
- Passed SenateJul 19, 2006
- Passed HouseSep 21, 2006
- To the PresidentSep 25, 2006
- Became lawSep 29, 2006Public Law 109-290
Summary
(This measure has not been amended since it was reported to the Senate on July 13, 2006. The summary of that version is repeated here.)
Military Personnel Financial Services Protection Act - (Sec. 4) Amends the Investment Company Act of 1940 to make it unlawful for any registered investment company to issue or sell any periodic payment plan certificate.
Retains the validity of certain previously issued certificates.
Directs the Securities and Exchange Commission (SEC) to report to certain congressional committees on: (1) measures taken by a registered broker or dealer to refund voluntarily payments made by military service members on any periodic payment plan certificate, and the amounts of such refunds; (2) the sales practices of such brokers or dealers on military installations over the five years preceding submission of the report, and any legislative or regulatory recommendations to improve such practices; and (3) the revenues generated by such brokers or dealers in the sales of periodic payment plan certificates over such five-year period, and the products marketed by them to replace the revenue generated from the sales of prohibited certificates.
(Sec. 5) Amends the Securities Exchange Act of 1934 to require the rules of a registered securities association to: (1) govern the sales, or offers of sales, of securities on the premises of any military installation to any member of the Armed Forces, including absence of referral fees or incentives and conspicuous disclosure that the securities are neither sanctioned, recommended, nor encouraged by the federal government; and (2) establish a system for collecting and retaining registration, disciplinary, and disputed information, as well as a toll-free telephone listing for prompt response to inquiries about member registration information.
(Sec. 7) Amends the Investment Advisers Act of 1940 to authorize the SEC to require an investment adviser to file with the SEC any fee, application, report, or notice required to be filed, and pay associated costs.
Directs the SEC to require such entity to establish and maintain a toll-free telephone listing, or other readily accessible process to receive and promptly respond to inquiries regarding registration, disciplinary, and other information involving investment advisers and associated persons.
(Sec. 8) Declares that any state law, regulation, or order regarding the business of insurance shall apply to insurance activities conducted on federal land or facilities in the United States and abroad, including military installations.
Prescribes the requirements of primary state jurisdiction of insurance or securities activities on federal land or facilities.
(Sec. 9) Expresses the sense of Congress that the National Association of Insurance Commissioners (NAIC) should study and report to certain congressional committees on the extent to which the states have worked collectively with the Secretary of Defense to ensure implementation of appropriate standards to protect members of the Armed Forces from dishonest and predatory insurance sales practices while on a federal military installation.
Expresses the sense of Congress that senior representatives of the Secretary of Defense, the SEC, and the NAIC should meet twice a year to coordinate their activities and monitor enforcement of the sale of financial products on federal military installations.
(Sec. 10) Prohibits an insurer or producer from selling, or offering for sale, any life insurance product to any member of the Armed Forces or a dependent on a federal military installation, unless specified written disclosures have been provided at the time of the sale.
Makes the sale of a life insurance product in violation of this Act voidable from its inception, at the sole option of the member of the Armed Forces or dependent.
Prohibits any person who has intentionally violated, or willfully disregarded, these prohibitions and requirements from further engaging in the business of insurance with respect to federal employees on federal land, except regarding existing policies.
Exempts from these prohibitions and requirements any life insurance product specifically contracted by or through the federal government.
(Sec. 11) Expresses the sense of Congress that the NAIC should study and report to certain congressional committees on ways of improving the quality of and sale of life insurance products sold on federal military installations.
Directs the Comptroller General, if the NAIC does not submit such a report, to study and report to specified congressional committees on any proposals that have been made to improve the quality and sale of life insurance products sold on military installations of the United States.
(Sec. 12) Prohibits any insurer from contracting with any person that sells or solicits the sale of any life insurance product on U.S. military installations unless the insurer has implemented a system to report to certain state insurance commissioners any federal, state, or corporate disciplinary actions taken with respect to such sales or solicitations.
Expresses the sense of Congress that the states should collectively implement a system to: (1) receive reports of such disciplinary actions; and (2) disseminate such information to all other states and to the Secretary of Defense.
(Sec. 13) Requires the Secretary of Defense to: (1) establish a list of insurance agents and financial advisors that have been barred or banned from doing business on federal military installations; and (2) ensure that federal and state regulatory agencies for securities and insurance are promptly notified upon the inclusion in or removal from the list.
(Sec. 14) Instructs the Inspector General of the Department of Defense to study and report to certain congressional committees on the impact of a certain Department of Defense Instruction and the reforms included in this Act on the quality and suitability of sales of securities and insurance products marketed or otherwise offered to members of the Armed Forces.
Recorded votes 1
Newest first. Open one to see how every member voted.
| Roll call | Question | Result | Date |
|---|---|---|---|
| House 463 | On Motion to Suspend the Rules and Pass | Passed418–3 | Sep 21, 2006 |
Cosponsors 12
Members who signed on, in the order they did. Signatures ran from Feb 17, 2005 to Jul 18, 2006; 3 are original cosponsors, there from the day it was introduced.
| Seat | Cosponsor | Signed on | |
|---|---|---|---|
| D-NY | Charles E. Schumer | Original | Feb 17, 2005 |
| R-NE | Chuck Hagel | Original | Feb 17, 2005 |
| D-NY | Hillary Rodham Clinton | Original | Feb 17, 2005 |
| D-MA | Edward M. Kennedy | Apr 25, 2005 | |
| D-NM | Jeff Bingaman | Apr 27, 2005 | |
| D-OR | Ron Wyden | May 16, 2005 | |
| D-IL | Richard J. Durbin | May 26, 2005 | |
| R-KY | Jim Bunning | Nov 18, 2005 | |
| D-FL | Bill Nelson | Mar 27, 2006 | |
| D-RI | Jack Reed | Jun 13, 2006 | |
| D-CT | Christopher J. Dodd | Jun 20, 2006 | |
| R-MT | Conrad R. Burns | Jul 18, 2006 |
Committees 1
Where it was sent and what each committee and subcommittee did with it, in order.
| Chamber | Committee | What it did |
|---|---|---|
| Senate | Banking, Housing, and Urban Affairs Committee | Referred Feb 17, 2005Markup Jun 14, 2006Reported Jul 13, 2006 |
Actions 22
Everything that happened, newest first.
- Sep 29, 2006Signed by President.
- Sep 29, 2006Became Public Law No: 109-290.
- Sep 25, 2006Presented to President.
- Sep 21, 2006Considered as unfinished business. (consideration: CR H6861-6862)
- Sep 21, 2006Passed/agreed to in House: On motion to suspend the rules and pass the bill Agreed to by the Yeas and Nays: (2/3 required): 418 - 3 (Roll no. 463). (text: CR 9/20/2006 H6786-6789)
- Sep 21, 2006Motion to reconsider laid on the table Agreed to without objection.
- Sep 20, 2006Mr. Davis (KY) moved to suspend the rules and pass the bill.
- Sep 20, 2006Considered under suspension of the rules. (consideration: CR H6786-6792)
- Sep 20, 2006DEBATE - The House proceeded with forty minutes of debate on S. 418.
- Sep 20, 2006At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
- Jul 20, 2006Received in the House.
- Jul 20, 2006Message on Senate action sent to the House.
- Jul 20, 2006Held at the desk.
- Jul 19, 2006Measure laid before Senate by unanimous consent. (consideration: CR S7941-7944)
- Jul 19, 2006The committee substitute agreed to by Unanimous Consent.
- Jul 19, 2006Passed/agreed to in Senate: Passed Senate with an amendment by Unanimous Consent. (text: CR S7944)
- Jul 13, 2006Committee on Banking, Housing, and Urban Affairs. Reported by Senator Shelby with an amendment in the nature of a substitute. With written report No. 109-282.
- Jul 13, 2006Placed on Senate Legislative Calendar under General Orders. Calendar No. 518.
- Jun 14, 2006Committee on Banking, Housing, and Urban Affairs. Ordered to be reported with an amendment in the nature of a substitute favorably.
- Feb 17, 2005Introduced in Senate
- Feb 17, 2005Sponsor introductory remarks on measure. (CR S1632)
- Feb 17, 2005Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
In the Congressional Record 1
Days the Record’s own index lists this bill, newest first, with the pages and the members it names. Pages starting H are the House, S the Senate, E Extensions of Remarks.
| Where | In the Record | Members | Date |
|---|---|---|---|
| Senate | Debate and remarks S1632 | Michael B. Enzi R-WY | Feb 17, 2005 |
Research
What has been written about this bill: committee reports, cost estimates, the sponsor’s authority statement, printed hearings and the Congressional Research Service’s work.
Committee report
Congressional Budget Office cost estimates 2
- Jun 23, 2006S. 418, Military Personnel Financial Services Protection Act<p>Cost estimate for the bill as ordered reported by the Senate Committee on Banking, Housing, and Urban Affairs on June 14, 2006</p>
- Jun 23, 2006S. 418, Military Personnel Financial Services Protection ActCost estimate for the bill as ordered reported by the Senate Committee on Banking, Housing, and Urban Affairs on June 14, 2006
Printed hearings 3
Hearings whose printed record names this bill, newest first: hearings on it, and wider hearings where it came up.
| Number | Hearing | Committee | Held |
|---|---|---|---|
| S. Hrg. 109-1081 | A REVIEW OF THE DEPARTMENT OF DEFENSE'S REPORT ON PREDATORY LENDING PRACTICES DIRECTED AT MEMBERS OF THE ARMED FORCES AND THEIR DEPENDENTS405 pages | Banking, Housing, and Urban Affairs Committee | Sep 14, 2006 |
| S. Hrg. 109-993 | CONSIDERATION OF REGULATORY RELIEF PROPOSALS337 pages | Banking, Housing, and Urban Affairs Committee | Mar 1, 2006 |
| S. Hrg. 109-892 | A REVIEW OF THE GAO REPORT ON THE SALE OF FINANCIAL PRODUCTS TO MILITARY PERSONNEL89 pages | Banking, Housing, and Urban Affairs Committee | Nov 17, 2005 |
CRS reports 3
Congressional Research Service work that CRS links to this bill or the law it became, newest first.
Cite it 3
Products on other subjects that cite it, usually among other measures.
| Product | Title | Kind | Published |
|---|---|---|---|
| IF11159 | The Retirement Savings Contribution Credit and the Saver’s Match | Resource | Sep 4, 2025 |
| R46983 | Military Families and Financial Readiness | Report | Jan 12, 2022 |
| RL33414 | Corporate-Owned Life Insurance (COLI): Insurance and Tax Issues Archived | Report | Jan 21, 2011 |
Related bills 3
Companion bills and other measures the record links to this one.
| Bill | Title | Relationship | Latest action |
|---|---|---|---|
| HR 458 | Military Personnel Financial Services Protection Act | Related bill | Jun 28, 2005 |
| HR 461 | Military Personnel Financial Services Protection Act | Related bill | Feb 1, 2005 |
| HR 1077 | Realtime Investor Protection Act | Related bill | Apr 7, 2005 |
Titles 6
Every title it has carried, official and short, at each stage.
- Official Title as Introduced
- A bill to protect members of the Armed Forces from unscrupulous practices regarding sales of insurance, financial, and investment products.
- Short Titles as Introduced
- Military Personnel Financial Services Protection Act
- Short Titles as Passed House
- Military Personnel Financial Services Protection Act
- Short Titles as Passed Senate
- Military Personnel Financial Services Protection Act
- Short Titles as Enacted
- Military Personnel Financial Services Protection Act
- Popular Titles
- Servicemembers' Group Life Insurance bill
Subjects
Assigned by the Library of Congress. Policy area: Finance and Financial Sector.
- Administrative procedure
- Administrative remedies
- Armed Forces and National Security
- Brokers
- Choice of law
- Civil service retirement
- Commerce
- Congress
- Congressional investigations
- Congressional reporting requirements
- Consumer education
- Department of Defense
- Disciplining of employees
- Families
- Federal-state relations
- Finance and Financial Sector
- Financial services
- Fraud
- Government life insurance
- Government Operations and Politics
- Government paperwork
- Independent regulatory commissions
- Insurance agents
- Insurance companies
- Investment advisers
- Investments
- Labor and Employment
- Law
- Legislation
- Life insurance
- Military bases
- Military dependents
- Military pensions
- Military personnel
- Mutual funds
- Restrictive trade practices
- Sales promotion
- Science, Technology, Communications
- Securities and Exchange Commission
- Securities industry
- Securities regulation
- Standards
- State laws
- Tax-deferred compensation plans
- Telephone
Text 4
Each version as it was printed, newest first.
- —Enrolled Bill
- Jul 19, 2006Engrossed in Senate
- Jul 13, 2006Reported to Senate
- Feb 17, 2005Introduced in Senate
Everything here is as published by Congress: the summary is the Congressional Research Service's, the action wording is the clerks', and the subjects are the Library of Congress's. How far it got is read from the actions themselves, taking the most recent one of each kind, so a bill that failed a vote and later passed is shown as having passed. Records come from this bill on Congress.gov and govinfo.gov; cost estimates are the Congressional Budget Office's, and the hearings are the printed hearings GovInfo publishes, which can appear months after the hearing.