Required Reporting of Disciplinary Actions Pursuant to the Military Personnel Financial Services Protection Act

STATE OF NEBRASKA DEPARTMENT OF INSURANCE Ann M. Frohman Director Dave Heineman Governor 941 O Street • Suite 400 • Lincoln, Nebraska 68508-3639 • Phone (402) 471-2201 • Facsimile (402) 471-4610 http://www.doi.ne.gov An Equal Opportunity/Affirmative Action Employer June 25, 2008 CB-119 BULLETIN SUBJECT: REQUIRED REPORTING OF DISCIPLINARY ACTIONS PURSUANT TO THE MILIARY PERSONNEL FINANCIAL SERVICES PROTECTION ACT Subsection 12(a) of the Military Personnel Financial Services Protection Act, Pub. L. No. 109-290 (2006), prohibits an insurer after September 1, 2007, from entering into or renewing a contractual relationship with an insurance producer or other person who sells life insurance on a military installation unless the insurer has implemented a system to report disciplinary actions taken by: (1) the insurer or (2) any Federal or State government entity against its agents for conduct occurring on a military installation. The insurer is required to report such disciplinary actions to both its domiciliary regulator and to the producer’s resident regulator (“The Federal Reporting Requirement”). To simplify the Federal Reporting Requirement for insurers, the National Association of Insurance Commissioners (“NAIC”) has implemented a Military Sales Online Reporting System (“System”) that may be accessed at https://external-apps.naic.org/msors/. The System will, in turn, forward the reported information to all appropriate state insurance departments. We strongly encourage reporting via the System, as this will satisfy the mandate of the Federal law. All insurers doing business in this state must comply with the Federal Reporting Requirement and shall demonstrate to the Director, upon request, that they have complied with the reporting requirements. The Department encourages insurers to make all of their appointed producers aware of this Bulletin. If you have any questions concerning this Bulletin, please contact the Department’s Legal Division at (402) 471-2201. Ann M. Frohman Director WITHDRAWN