The state insurance department proposes rules to protect Missouri’s military personnel from shady insurance practices. State insurance director Doug Ommer says Missouri has no significant record of insurance salesmen using false, misleading, or deceptive practices to sell insurance to members of the military. And the department doesn’t want the problems that some other states have had.

But the division has recommended new rules banning certain insurance sales practices. They could become effective next May. He says the new rules go after one of the worst abuses identified in a national study—the practice of hiring Staff Sergeants and paying them commission to sell life insurance to those they supervise. The policies also ban insurance sales people from claiming their life insurance products are endorsed by the military. Other sales practices the new rules would prohibit: –soliciting service members in group meetings that those members must attend; –knowingly making appointments with service members during normal duty hours or in places not approved by the installation commander; –misleading use of military direct deposit devices to pay premiums; –and recommending any life insurance product that is not suitable for the particular needs of the service member. The rules will be published in the Missouri Register of Regulations next month. The public will have 30 days to comment. The department expects the rules to become effective, with the force of law, next May.  


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