10 U.S.C. § 992
10 U.S.C. § 992
EDITORIAL NOTES
AMENDMENTS2023-Subsec. (b)(2)(A)(i). Pub. L. 118-31, §524(a)(1)(A), struck out "and" after "installation;". Subsec. (b)(2)(A)(ii). Pub. L. 118-31, §524(a)(1)(B)(i), (ii), in introductory provisions, substituted "shall" for "may" and "installation-" for "installation by any means elected by the Secretary from among the following:".Subsec. (b)(2)(A)(ii)(I). Pub. L. 118-31, §524(a)(1)(B)(iii), substituted "through" for "Through" and "Defense;" for "Defense."Subsec. (b)(2)(A)(ii)(II). Pub. L. 118-31, §524(a)(1)(B)(iv), substituted "by contract" for "By contract" and "Internet; or" for "Internet."Subsec. (b)(2)(A)(ii)(III). Pub. L. 118-31, §524(a)(1)(B)(v), substituted "through" for "Through" and "counseling; and" for "counseling."Subsec. (b)(2)(A)(iii). Pub. L. 118-31, §524(a)(1)(C), added cl. (iii).Subsec. (b)(2)(B). Pub. L. 118-31, §524(a)(2), substituted "installation in accordance with the requirements established under subparagraph (A)(ii) and (iii)." for "installation by any of the means set forth in subparagraph (A)(ii), as elected by the Secretary concerned."Subsec. (b)(4). Pub. L. 118-31, §524(a)(3), designated existing provisions as subpar. (A) and added subpars. (B) to (D). 2015- Pub. L. 114-92, §661(e)(1), substituted "Financial literacy training: financial services" for "Consumer education: financial services" in section catchline.Subsec. (a). Pub. L. 114-92, §661(b)(1), substituted "Financial Literacy Training" for "Consumer Education" in heading.Subsec. (a)(1). Pub. L. 114-92, §661(b)(2), substituted "financial literacy training" for "education" in introductory provisions.Subsec. (a)(2). Pub. L. 114-92, §661(b)(3), added par. (2) and struck out former par. (2) which read as follows: "Training under this subsection shall be provided to members as-"(A) a component of members initial entry orientation training; and"(B) a component of periodically recurring required training that is provided for the members at military installations."Subsec. (a)(3). Pub. L. 114-92, §661(b)(4), substituted "paragraph (2)(J)" for "paragraph (2)(B)".Subsec. (a)(4). Pub. L. 114-92, §661(b)(5), added par. (4).Subsec. (d). Pub. L. 114-92, §661(c)(2), added subsec. (d). Former subsec. (d) redesignated (e). Subsec. (e). Pub. L. 114-92, §661(c)(1), redesignated subsec. (d) as (e).Subsec. (e)(4). Pub. L. 114-92, §661(d), added par. (4).2009-Subsec. (b)(4). Pub. L. 111-84 struck out period after "under this section".
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE OF 2006 AMENDMENT Pub. L. 109-163, div. A, title V, §578(b), Jan. 6, 2006, 119 Stat. 3276, provided that: "The amendments made by this section [enacting 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 [Jan. 6, 2006]."
INCLUSION OF INFORMATION ON FREE CREDIT MONITORING IN ANNUAL FINANCIAL LITERACY BRIEFING Pub. L. 116-92, div. A, title V, §560A, Dec. 20, 2019, 133 Stat. 1393, provided that: "The Secretary of each military department shall ensure that the annual financial literacy education briefing provided to members of the Armed Forces includes information on the availability of free credit monitoring services pursuant to section 605A(k) of the Fair Credit Reporting Act (15 U.S.C. 1681c-1(k))."
IMPLEMENTATIONSPub. L. 114-92, div. A, title VI, §661(f), Nov. 25, 2015, 129 Stat. 859, provided that: "Not later than six months after the date of the enactment of this Act [Nov. 25, 2015], the Secretary of the military department concerned and the Secretary of the Department in which the Coast Guard is operating shall commence providing financial literacy training under section 992 of title 10, United States Code, as amended by subsections (b), (c), and (d) of this section, to members of the Armed Forces."
COUNSELING ON MORTGAGE FORECLOSURES FOR MEMBERS OF THE ARMED FORCES RETURNING FROM SERVICE ABROAD Pub. L. 110-289, div. B, title II, §2202, July 30, 2008, 122 Stat. 2849, provided that:"(a) IN GENERAL.-The Secretary of Defense shall develop and implement a program to advise members of the Armed Forces (including members of the National Guard and Reserve) who are returning from service on active duty abroad (including service in Operation Iraqi Freedom and Operation Enduring Freedom) on actions to be taken by such members to prevent or forestall mortgage foreclosures."(b) ELEMENTS.-The program required by subsection (a) shall include the following: "(1) Credit counseling."(2) Home mortgage counseling. "(3) Such other counseling and information as the Secretary considers appropriate for purposes of the program. "(c) TIMING OF PROVISION OF COUNSELING.-Counseling and other information under the program required by subsection (a) shall be provided to a member of the Armed Forces covered by the program as soon as practicable after the return of the member from service as described in subsection (a)."
MILITARY PERSONNEL FINANCIAL SERVICES PROTECTION Pub. L. 109-290, Sept. 29, 2006, 120 Stat. 1317, provided that:
"SECTION 1. SHORT TITLE; TABLE OF CONTENTS."(a) SHORT TITLE.-This Act may be cited as the 'Military Personnel Financial Services Protection Act'."(b) TABLE OF CONTENTS.-[Omitted]
"SEC. 2. CONGRESSIONAL FINDINGS. "Congress finds that-"(1) members of the Armed Forces perform great sacrifices in protecting our Nation in the War on Terror; "(2) the brave men and women in uniform deserve to be offered first-rate financial products in order to provide for their families and to save and invest for retirement;"(3) members of the Armed Forces are being offered high-cost securities and life insurance products by some financial services companies engaging in abusive and misleading sales practices;"(4) one securities product offered to service members, known as the 'mutual fund contractual plan', largely disappeared from the civilian market in the 1980s, due to excessive sales charges; "(5) with respect to a mutual fund contractual plan, a 50 percent sales commission is assessed against the first year of contributions, despite an average commission on other securities products of less than 6 percent on each sale;"(6) excessive sales charges allow abusive and misleading sales practices in connection with mutual fund contractual plan;"(7) certain life insurance products being offered to members of the Armed Forces are improperly marketed as investment products, providing minimal death benefits in exchange for excessive premiums that are front-loaded in the first few years, making them entirely inappropriate for most military personnel; and"(8) the need for regulation of the marketing and sale of securities and life insurance products on military bases necessitates Congressional action.
"SEC. 3. DEFINITIONS."For purposes of this Act, the following definitions shall apply:"(1) LIFE INSURANCE PRODUCT.-"(A) IN GENERAL.-The term 'life insurance product' means any product, including individual and group life insurance, funding agreements, and annuities, that provides insurance for which the probabilities of the duration of human life or the rate of mortality are an element or condition of insurance. "(B) INCLUDED INSURANCE.-The term 'life insurance product' includes the granting of-"(i) endowment benefits; "(ii) additional benefits in the event of death by accident or accidental means;"(iii) disability income benefits;"(iv) additional disability benefits that operate to safeguard the contract from lapse or to provide a special surrender value, or special benefit in the event of total and permanent disability; "(v) benefits that provide payment or reimbursement for long-term home health care, or long-term care in a nursing home or other related facility;"(vi) burial insurance; and "(vii) optional modes of settlement or proceeds of life insurance."(C) EXCLUSIONS.-Such term does not include workers compensation insurance, medical indemnity health insurance, or property and casualty insurance."(2) NAIC.-The term 'NAIC' means the National Association of Insurance Commissioners (or any successor thereto).
"SEC. 4. PROHIBITION ON FUTURE SALES OF PERIODIC PAYMENT PLANS."(a) AMENDMENT.-[Amended section 80a-27 of Title 15, Commerce and Trade.]"(b) TECHNICAL AMENDMENT.-[Amended section 80a-27 of Title 15.]"(c) REPORT ON REFUNDS, SALES PRACTICES, AND REVENUES FROM PERIODIC PAYMENT PLANS.-Not later than 6 months after the date of enactment of this Act [Sept. 29, 2006], the Securities and Exchange Commission shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, a report describing-"(1) any measures taken by a broker or dealer registered with the Securities and Exchange Commission pursuant to section 15(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78o(b)) to voluntarily refund payments made by military service members on any periodic payment plan certificate, and the amounts of such refunds; "(2) after such consultation with the Secretary of Defense, as the Commission considers appropriate, the sales practices of such brokers or dealers on military installations over the 5 years preceding the date of 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 the 5 years preceding the date of submission of the report, and the products marketed by such brokers or dealers to replace the revenue generated from the sales of periodic payment plan certificates prohibited under subsection (a).
"SEC. 5. REQUIRED DISCLOSURES REGARDING OFFERS OR SALES OF SECURITIES ON MILITARY INSTALLATIONS.[Amended section 78o-3 of Title 15.]
"SEC. 6. METHOD OF MAINTAINING BROKER AND DEALER REGISTRATION, DISCIPLINARY, AND OTHER DATA.[Amended section 78o-3 of Title 15.]
"SEC. 7. FILING DEPOSITORIES FOR INVESTMENT ADVISERS. "(a) INVESTMENT ADVISERS.-[Amended section 80b-4 of Title 15.]"(b) CONFORMING AMENDMENTS.-"(1) INVESTMENT ADVISERS ACT OF 1940.-[Amended section 80b-3a of Title 15.]"(2) NATIONAL SECURITIES MARKETS IMPROVEMENT ACT OF 1996.-[Repealed provisions set out as a note under section 80b-10 of Title 15.]
"SEC. 8. STATE INSURANCE AND SECURITIES JURISDICTION ON MILITARY INSTALLATIONS."(a) CLARIFICATION OF JURISDICTION.-Any provision of law, regulation, or order of a State with respect to regulating the business of insurance or securities shall apply to insurance or securities activities conducted on Federal land or facilities in the United States and abroad, including military installations, except to the extent that such law, regulation, or order-"(1) directly conflicts with any applicable Federal law, regulation, or authorized directive; or "(2) would not apply if such activity were conducted on State land."(b) PRIMARY STATE JURISDICTION.-To the extent that multiple State laws would otherwise apply pursuant to subsection (a) to an insurance or securities activity of an individual or entity on Federal land or facilities, the State having the primary duty to regulate such activity and the laws of which shall apply to such activity in the case of a conflict shall be-"(1) the State within which the Federal land or facility is located; or"(2) if the Federal land or facility is located outside of the United States, the State in which- "(A) in the case of an individual engaged in the business of insurance, such individual has been issued a resident license; "(B) in the case of an entity engaged in the business of insurance, such entity is domiciled;"(C) in the case of an individual engaged in the offer or sale (or both) of securities, such individual is registered or required to be registered to do business or the person solicited by such individual resides; or"(D) in the case of an entity engaged in the offer or sale (or both) of securities, such entity is registered or is required to be registered to do business or the person solicited by such entity resides.
"SEC. 9. REQUIRED DEVELOPMENT OF MILITARY PERSONNEL PROTECTION STANDARDS REGARDING INSURANCE SALES; ADMINISTRATIVE COORDINATION. "(a) STATE STANDARDS.-Congress intends that- "(1) the States collectively work 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 military installation of the United States (including installations located outside of the United States); and"(2) each State identify its role in promoting the standards described in paragraph (1) in a uniform manner, not later than 12 months after the date of enactment of this Act [Sept. 29, 2006]."(b) STATE REPORT.-It is the sense of Congress that the NAIC should, after consultation with the Secretary of Defense and, not later than 12 months after the date of enactment of this Act, conduct a study to determine the extent to which the States have met the requirement of subsection (a), and report the results of such study to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate."(c) ADMINISTRATIVE COORDINATION; SENSE OF CONGRESS.-It is the sense of the Congress that senior representatives of the Secretary of Defense, the Securities and Exchange Commission, and the NAIC should meet not less frequently than twice a year to coordinate their activities to implement this Act and monitor the enforcement of relevant regulations relating to the sale of financial products on military installations of the United States.
"SEC. 10. REQUIRED DISCLOSURES REGARDING LIFE INSURANCE PRODUCTS."(a) REQUIREMENT.-Except as provided in subsection (e), no person may sell, or offer for sale, any life insurance product to any member of the Armed Forces or a dependent thereof on a military installation of the United States, unless a disclosure in accordance with this section is provided to such member or dependent at the time of the sale or offer. "(b) DISCLOSURE.-A disclosure in accordance with this section is a written disclosure that-"(1) states that subsidized life insurance is available to the member of the Armed Forces from the Federal Government under the Servicemembers' Group Life Insurance program (also referred to as 'SGLI'), under subchapter III of chapter 19 of title 38, United States Code;"(2) states the amount of insurance coverage available under the SGLI program, together with the costs to the member of the Armed Forces for such coverage;"(3) states that the life insurance product that is the subject of the disclosure is not offered or provided by the Federal Government, and that the Federal Government has in no way sanctioned, recommended, or encouraged the sale of the life insurance product being offered;"(4) fully discloses any terms and circumstances under which amounts accumulated in a savings fund or savings feature under the life insurance product that is the subject of the disclosure may be diverted to pay, or reduced to offset, premiums due for continuation of coverage under such product;"(5) states that no person has received any referral fee or incentive compensation in connection with the offer or sale of the life insurance product, unless such person is a licensed agent of the person engaged in the business of insurance that is issuing such product; "(6) is made in plain and readily understandable language and in a type font at least as large as the font used for the majority of the solicitation material used with respect to or relating to the life insurance product; and"(7) with respect to a sale or solicitation on Federal land or facilities located outside of the United States, lists the address and phone number at which consumer complaints are received by the State insurance commissioner for the State having the primary jurisdiction and duty to regulate the sale of such life insurance products pursuant to section 8."(c) VOIDABILITY.-The sale of a life insurance product in violation of this section shall be voidable from its inception, at the sole option of the member of the Armed Forces, or dependent thereof, as applicable, to whom the product was sold."(d) ENFORCEMENT.-If it is determined by a Federal or State agency, or in a final court proceeding, that any person has intentionally violated, or willfully disregarded the provisions of, this section, in addition to any other penalty under applicable Federal or State law, such person shall be prohibited from further engaging in the business of insurance with respect to employees of the Federal Government on Federal land, except-"(1) with respect to existing policies; and"(2) to the extent required by the Federal Government pursuant to previous commitments."(e) EXCEPTIONS.-This section shall not apply to any life insurance product specifically contracted by or through the Federal Government.
"SEC. 11. IMPROVING LIFE INSURANCE PRODUCT STANDARDS. "(a) IN GENERAL.-It is the sense of Congress that the NAIC should, after consultation with the Secretary of Defense, and not later than 6 months after the date of enactment of this Act [Sept. 29, 2006], conduct a study and submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on-"(1) ways of improving the quality of and sale of life insurance products sold on military installations of the United States, which may include- "(A) limiting such sales authority to persons that are certified as meeting appropriate best practices procedures; and"(B) creating standards for products specifically designed to meet the particular needs of members of the Armed Forces, regardless of the sales location; and"(2) the extent to which life insurance products marketed to members of the Armed Forces comply with otherwise applicable provisions of State law."(b) CONDITIONAL GAO REPORT.-If the NAIC does not submit the report as described in subsection (a), the Comptroller General of the United States shall- "(1) study any proposals that have been made to improve the quality of and sale of life insurance products sold on military installations of the United States; and"(2) not later than 6 months after the expiration of the period referred to in subsection (a), submit a report on such proposals to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives.
"SEC. 12. REQUIRED REPORTING OF DISCIPLINARY ACTIONS. "(a) REPORTING BY INSURERS.-Beginning 1 year after the date of enactment of this Act [Sept. 29, 2006], no insurer may enter into or renew a contractual relationship with any other person that sells or solicits the sale of any life insurance product on any military installation of the United States, unless the insurer has implemented a system to report to the State insurance commissioner of the State of domicile of the insurer and the State of residence of that other person-"(1) any disciplinary action taken by any Federal or State government entity with respect to sales or solicitations of life insurance products on a military installation that the insurer knows, or in the exercise of due diligence should have known, to have been taken; and "(2) any significant disciplinary action taken by the insurer with respect to sales or solicitations of life insurance products on a military installation of the United States. "(b) REPORTING BY STATES.-It is the sense of Congress that, not later than 1 year after the date of enactment of this Act, the States should collectively implement a system to-"(1) receive reports of disciplinary actions taken against persons that sell or solicit the sale of any life insurance product on any military installation of the United States by insurers or Federal or State government entities with respect to such sales or solicitations; and "(2) disseminate such information to all other States and to the Secretary of Defense."(c) DEFINITION.-As used in this section, the term 'insurer' means a person engaged in the business of insurance.
"SEC. 13. REPORTING BARRED PERSONS SELLING INSURANCE OR SECURITIES."(a) ESTABLISHMENT.-The Secretary of Defense shall maintain a list of the name, address, and other appropriate information relating to persons engaged in the business of securities or insurance that have been barred or otherwise limited in any manner that is not generally applicable to all such type of persons, from any or all military installations of the United States, or that have engaged in any transaction that is prohibited by this Act."(b) NOTICE AND ACCESS.-The Secretary of Defense shall ensure that-"(1) the appropriate Federal and State agencies responsible for securities and insurance regulation are promptly notified upon the inclusion in or removal from the list required by subsection (a) of a person under the jurisdiction of one or more of such agencies; and "(2) the list is kept current and easily accessible- "(A) for use by such agencies; and "(B) for purposes of enforcing or considering any such bar or limitation by the appropriate Federal personnel, including commanders of military installations."(c) REGULATIONS.- "(1) IN GENERAL.-The Secretary of Defense shall issue regulations in accordance with this subsection to provide for the establishment and maintenance of the list required by this section, including appropriate due process considerations."(2) TIMING.-"(A) PROPOSED REGULATIONS.-Not later than the expiration of the 60-day period beginning on the date of enactment of this Act [Sept. 29, 2006], the Secretary of Defense shall prepare and submit to the appropriate Committees of Congress a copy of the regulations required by this subsection that are proposed to be published for comment. The Secretary may not publish such regulations for comment in the Federal Register until the expiration of the 15-day period beginning on the date of such submission to the appropriate Committees of Congress. "(B) FINAL REGULATIONS.-Not later than 90 days after the date of enactment of this Act, the Secretary of Defense shall submit to the appropriate Committees of Congress a copy of the regulations under this section to be published in final form."(C) EFFECTIVE DATE.-Final regulations under this paragraph shall become effective 30 days after the date of their submission to the appropriate Committees of Congress under subparagraph (B)."(d) DEFINITION.-For purposes of this section, the term 'appropriate Committees of Congress' means- "(1) the Committee on Financial Services and the Committee on Armed Services of the House of Representatives; and"(2) the Committee on Banking, Housing, and Urban Affairs and the Committee on Armed Services of the Senate.
"SEC. 14. STUDY AND REPORTS BY INSPECTOR GENERAL OF THE DEPARTMENT OF DEFENSE."(a) STUDY.-The Inspector General of the Department of Defense shall conduct a study on the impact of Department of Defense Instruction 1344.07 (as in effect on the date of enactment of this Act [Sept. 29, 2006]) 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. "(b) REPORTS.-Not later than 12 months after the date of enactment of this Act, the Inspector General of the Department of Defense shall submit an initial report on the results of the study conducted under subsection (a) to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives, and shall submit followup reports to those committees on December 31, 2008 and December 31, 2010."
REQUIREMENT FOR REGULATIONS ON POLICIES AND PROCEDURES ON PERSONAL COMMERCIAL SOLICITATIONS ON DEPARTMENT OF DEFENSE INSTALLATIONS Pub. L. 109-163, div. A, title V, §577(a), Jan. 6, 2006, 119 Stat. 3274, provided that: "As soon as practicable after the date of the enactment of this Act [Jan. 6, 2006], and not later than March 31, 2006, the Secretary of Defense shall prescribe regulations, or modify existing regulations, on the policies and procedures relating to personal commercial solicitations, including the sale of life insurance and securities, on Department of Defense installations."
- includes
- "includes" means "includes but is not limited to"; and
- spouse
- "spouse" means husband or wife, as the case may be.
- National Guard
- The term "National Guard" means the Army National Guard and the Air National Guard.
- Secretary concerned
- The term "Secretary concerned" means-(A) the Secretary of the Army, with respect to matters concerning the Army;(B) the Secretary of the Navy, with respect to matters concerning the Navy, the Marine Corps, and the Coast Guard when it is operating as a service in the Department of the Navy;(C) the Secretary of the Air Force, with respect to matters concerning the Air Force and the Space Force; and(D) the Secretary of Homeland Security, with respect to matters concerning the Coast Guard when it is not operating as a service in the Department of the Navy.
- active duty
- The term "active duty" means full-time duty in the active military service of the United States, including sustained duty in the Space Force. Such term includes full-time training duty, annual training duty, and attendance, while in the active military service, at a school designated as a service school by law or by the Secretary of the military department concerned. Such term does not include full-time National Guard duty.
- armed forces
- The term "armed forces" means the Army, Navy, Air Force, Marine Corps, Space Force, and Coast Guard.
- grade
- The term "grade" means a step or degree, in a graduated scale of office or military rank, that is established and designated as a grade by law or regulation.
- pay
- The term "pay" includes basic pay, special pay, retainer pay, incentive pay, retired pay, and equivalent pay, but does not include allowances.