New Rules to Stop Insurance Deception

Intro: According to the Director of Insurance, Missouri is following a national trend to stop insurance deception on military personnel. Courtney Cox has more from Jefferson City.

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Missouri officials have proposed new rules to stop life insurance companies from deceiving active military members.

These rules come after national complaints of insurance companies recruiting military officials to help sell policies.

Active military members already receive federal benefits, and rarely need the additional coverage.

Doug Ommen is the Director for the Department of Insurance.

Actuality: OMMEN2.WAV

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Description: "That's the issue. If you have a young enlistee, and they're provided insurance, why would they need to buy high priced insurance product that goes above and beyond the federal benefit? There is no need to."

The public will have the option of commenting on the new rules after they are published in the Missouri Register next month.

After the rules take effect, life insurance companies could face a number of penalties if they continue to misled military members.

From the state capitol, I'm Courtney Cox.

Intro:
Missouri officials have proposed new rules to stop life insurance companies from deceiving active military members. Courtney Cox has more from the state capitol.
RunTime:
OutCue: SOC

Missouri's Director of Insurance says military members have been misled into purchasing unnecessary life insurance.

Active military members receive federal benefits, and rarely need the additional coverage.

That's why Doug Ommen and his department have proposed rules to protect soldiers from insurance deception.

Ommen said Missouri is following a national trend.

Actuality: OMMEN4.WAV

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Description: "Nationally there has been complaints involving activities by salespeople who are enlisting military members to sell to our service members."

The new rules don't allow military personnel to work as life insurance representatives and impose penalties on life insurance companies who lure soldiers during scheduled duty hours.

The public will have the option of commenting on the proposal after it is printed in the Missouri Register next month.

From the state capitol, I'm Courtney Cox.