Military Personnel Financial Services Education Act of 2005 - Provides financial services and life insurance consumer education for members of the Armed Forces and their spouses, which shall be provided as a component of initial entry and recurring training. (Such training shall include information on financial services marketing practices that are particularly prevalent at a military installation and vicinity.)
Provides financial services counseling for members of the Armed Forces, and upon request, for their spouses. Requires a full-time trained counselor at installations with at least 750 assigned personnel, and other counseling at smaller installations.
Requires counselors to provide members or spouses with information on Servicemembers' Group Life Insurance when providing information on private sector life insurance. Prohibits junior enlisted members (members of the Armed Forces in pay grades E-1 through E-4) from paying for private sector insurance through pay allotments without a written certification of counseling.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3472 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 3472
To amend title 10, United States Code, to enhance the protection of
members of the Armed Forces and their spouses from unscrupulous
financial services sales practices through increased consumer
education, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 27, 2005
Mr. Emanuel (for himself, Mr. Edwards, Mr. Rangel, Mr. Pallone, Mr.
McGovern, Ms. DeLauro, Mr. Davis of Illinois, and Ms. Wasserman
Schultz) introduced the following bill; which was referred to the
Committee on Armed Services
_______________________________________________________________________
A BILL
To amend title 10, United States Code, to enhance the protection of
members of the Armed Forces and their spouses from unscrupulous
financial services sales practices through increased consumer
education, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Military Personnel Financial
Services Education Act of 2005''.
SEC. 2. CONSUMER EDUCATION FOR MEMBERS OF THE ARMED FORCES AND THEIR
SPOUSES ON INSURANCE AND OTHER FINANCIAL SERVICES.
(a) Education and Counseling Requirements.--
(1) In general.--Chapter 50 of title 10, United States
Code, is amended by adding at the end the following new
section:
``Sec. 992. Consumer education: financial services
``(a) Requirement for Consumer Education Program for Members.--(1)
The Secretary concerned shall carry out a program to provide
comprehensive education to members of the armed forces under the
jurisdiction of the Secretary on--
``(A) financial services that are available under law to
members;
``(B) financial services that are routinely offered by
private-sector sources to members;
``(C) practices relating to the marketing of private-sector
financial services to members;
``(D) such other matters relating to financial services
available to members, and the marketing of financial services
to members, as the Secretary considers appropriate; and
``(E) such other financial practices as the Secretary
considers appropriate.
``(2) Training under this subsection shall be provided to members--
``(A) as a component of the members' initial entry
training;
``(B) as a component of each level of the members'
professional development training that is required for
promotion; and
``(C) as a component of periodically recurring required
training that is provided for the members at military
installations.
``(3) The training provided at a military installation under
paragraph (2)(C) shall include information on any financial services
marketing practices that are particularly prevalent at that military
installation and in the vicinity.
``(b) Counseling for Members and Spouses.--(1) The Secretary
concerned shall provide counseling on financial services to each member
of the armed forces under the jurisdiction of the Secretary.
``(2) The Secretary concerned shall, upon request, provide
counseling on financial services to the spouse of any member of the
armed forces under the jurisdiction of the Secretary.
``(3) The Secretary concerned shall provide counseling on financial
services under this subsection as follows:
``(A) In the case of members, and the spouses of members,
assigned to a military installation to which at least 750
members of the armed forces are assigned, through a full-time
financial services counselor at such installation.
``(B) In the case of members, and the spouses of members,
assigned to a military installation other than an installation
described in subparagraph (A), through such mechanisms as the
Secretary considers appropriate, including through the
provision of counseling by a member of the armed forces in pay
grade E-7 or above, or a civilian, at such installation who
provides such counseling as a part of the other duties
performed by such member or civilian, as the case may be, at
such installation.
``(4) Each financial services counselor under paragraph (2)(A), and
each individual providing counseling on financial services under
paragraph (2)(B), shall be an individual who, by reason of education,
training, or experience, is qualified to provide helpful counseling to
members of the armed forces and their spouses on financial services and
marketing practices described in subsection (a)(1). Such individual may
be a member of the armed forces or an employee of the Federal
Government.
``(5) The Secretary concerned shall take such action as is
necessary to ensure that each financial services counselor under
paragraph (2)(A), and each individual providing counseling on financial
services under paragraph (2)(B), is free from conflicts of interest
relevant to the performance of duty under this section and, in the
performance of that duty, is dedicated to furnishing members of the
armed forces and their spouses with helpful information and counseling
on financial services and related marketing practices.
``(6) The Secretary concerned may authorize financial services
counseling to be provided to members of a unit of the armed forces by
unit personnel under the guidance and with the assistance of a
financial services counselor under paragraph (2)(A) or an individual
providing counseling on financial services under paragraph (2)(B), as
applicable.
``(c) Life Insurance.--(1) In counseling a member of the armed
forces, or the spouse of a member of the armed forces, under this
section regarding life insurance offered by a private-sector source, a
financial services counselor under subsection (b)(2)(A), or an
individual providing counseling on financial services under subsection
(b)(2)(B), shall furnish the member or spouse, as the case may be, with
information on the availability of Servicemembers' Group Life Insurance
under subchapter III of chapter 19 of title 38, including information
on the amounts of coverage available and the procedures for electing
coverage and the amount of coverage.
``(2)(A) A junior enlisted member may not authorize payment to be
made for private-sector life insurance by means of an allotment of pay
to which the member is entitled under chapter 3 of title 37 unless the
authorization of allotment is accompanied by a written certification by
a commander of the member, or by a financial services counselor
referred to in subsection (b)(2)(A) or an individual providing
counseling on financial services under subsection (b)(2)(B), as
applicable, that the member has received counseling under paragraph (1)
regarding the purchase of coverage under that private-sector life
insurance.
``(B) Subject to subparagraph (C), a written certification
described in subparagraph (A) may not be made with respect to a
member's authorization of allotment as described in subparagraph (A)
until 7 days after the date of the member's authorization of allotment
in order to facilitate the provision of counseling to the member under
paragraph (1).
``(C) The commander of a member may waive the applicability of
subparagraph (B) to a member for good cause, including the member's
imminent change of station.
``(D) In this paragraph, the term `junior enlisted member' means a
member of the armed forces in any of pay grades E-1 through E-4.
``(d) Financial Services Defined.--In this section, the term
`financial services' includes the following:
``(1) Life insurance, casualty insurance, and other
insurance.
``(2) Investments in securities or financial
instruments.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:
``992. Consumer education: financial services.''.
(b) Continuing Effect of Existing Allotments for Life Insurance.--
Subsection (c)(2) of section 992 of title 10, United States Code (as
added by subsection (a)), shall not affect any allotment of pay
authorized by a member of the Armed Forces before the effective date of
such section.
(c) Effective Date.--The amendments made by this section shall take
effect on the first day of the first month that begins more than 120
days after the date of the enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Armed Services.
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