Washington, DC – The Department of Defense Authorization bill approved today includes a measure introduced by Senators Hillary Rodham Clinton (D-NY) and Susan Collins (R-ME), both members of the Senate Armed Services Committee, to help arm our men and women in uniform with the financial knowledge they and their families need to make informed decisions about their future. The Clinton-Collins measure takes direct aim at the growing problem of unscrupulous lending and insurance practices targeting servicemen and women. "Our men and women in uniform who are bravely serving our country and struggling to provide for their families are too often falling victim to unscrupulous lenders and insurance providers that are targeting and preying on them. Previously, I have introduced legislation with Senator Enzi that would help track down unscrupulous companies and eliminate investment schemes that take advantage of our servicemen and women. But we also need to give members of our armed services the financial knowledge they need to make informed decisions about how best to provide for their families. I am proud that the Senate today has taken an important step forward toward meeting this goal," said Senator Clinton. "I am pleased that the Senate has accepted this amendment, which will provide important financial education for members of our armed forces and their spouses. These men and women, who serve our nation proudly, are far too often targets of dishonest or predatory companies that want to sell them expensive life insurance policies, for example, that they might not truly need. In addition, the spouses of service members serving abroad must sometimes make difficult financial decision and would benefit from the services of a professional financial advisor. Our amendment will ensure that service men and women have access to reliable, free-of-charge financial services to help them make informed decisions and to educate them about companies that may want to sell them unnecessary services," said Senator Collins . The Clinton-Collins amendment requires the Department of Defense to provide consumer education for members of the armed forces and their spouses. It instructs the Secretary of Defense to carry out a comprehensive education program for military members regarding public and private financial services available to them and the life insurance and marketing practices to be on guard against. This education will be institutionalized in the initial and recurring training for members of the military. The Clinton-Collins measure approved today also requires that counseling services on financial and insurance issues be made available, upon request, to members of the armed services and their spouses, allowing important financial decisions to be made as a family and allowing spouses access to assistance if they are forced to make decisions while their husband or wife is deployed. The Clinton-Collins measure requires a permanent, trained counselor at military bases with at least 2000 assigned personnel, and a part-time, equally capable counselor available at smaller bases. News reports have exposed a number of companies using misleading sales practices to sell expensive life insurance policies to Iraq-bound recruits and other uniformed personnel. To help protect against predatory insurance practices targeting junior service members, the Clinton-Collins measure requires counselors to advise servicemembers of the availability of Servicemembers' Group Life Insurance (SGLI) as well as other reputable products. The Clinton-Collins measure also requires that junior enlisted members or the armed services provide written confirmation that they have received counseling from their approved counselor or commander before entering into any new contract with a private sector life insurer.
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