Military Personnel Abusive Insurance Policies bill

Military Personnel Financial Services Protection Act - Title I: Insurance and Investment Products - (Sec. 102) Amends the Investment Company Act of 1940 to make it unlawful: (1) for any registered investment company to issue any periodic payment plan certificate; or (2) for such a company or any of its depositors or underwriters, or any other person, to sell such a certificate. States that existing certificates are not invalidated.

Directs the Securities and Exchange Commission (SEC) to report to specified congressional committees on: (1) any measures taken by a registered broker or dealer voluntarily to refund payments made by military service members on any periodic payment plan certificate, and the amounts of such refunds; (2) the sales practices of such brokers or dealers on military installations over the past five years and any legislative or regulatory recommendations to improve such practices; and (3) the revenues generated by such brokers or dealers in certificate sales over such period, and what products such brokers or dealers market to replace the revenue generated from those sales which are now prohibited.

(Sec. 103) Amends the Securities Exchange Act of 1934 to require a registered securities association to establish and maintain: (1) a system for collecting and retaining broker/dealer registration information; and (2) a toll-free telephone listing, and a readily accessible process to respond promptly to inquiries regarding registration information on its members and their associated persons, including any such information on any other registered national securities exchange that uses such system for registration of its members.

Requires a registered securities association to adopt rules: (1) governing the process for making such inquiries in consultation with any registered national securities exchange providing such information; and (2) establishing an administrative process for disputing the accuracy of information provided in inquiry responses.

Permits such associations to charge reasonable fees for inquiry responses, except to individual investors.

Shields an association or an exchange reporting information to it from liability for actions taken or omitted in good faith.

(Sec. 104) Amends the Investment Advisers Act of 1940 to authorize the SEC to require an investment adviser to file with the SEC, through any designated entity, any fee, application, report, or notice required to be filed. Directs the SEC to require such entity to establish and maintain a toll–free telephone listing or other readily accessible electronic or other process to receive and promptly respond to inquiries regarding registration, disciplinary, and other information involving investment advisers and associated persons, including whether they are registered with the SEC, or regulated solely by a state.

(Sec. 105) Declares that any state law, regulation, or order regarding the insurance business or the offer and/or sale of securities shall apply to insurance activities conducted on federal land or facilities in the United States and abroad, including military installations, unless it: (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.

(Sec. 106) Declares the intention of Congress that: (1) the states work collectively 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 U.S. military installation (including those located outside of the United States); and (2) each state identify its role in promoting such standards in a uniform manner within 12 months after enactment of this Act.

Expresses the sense of Congress that the National Association of Insurance Commissioners (NAIC) should study and report to certain congressional committees on state progress in fulfilling that intention.

(Sec. 107) Prohibits an insurer or producer from selling or soliciting, in person, any life insurance product to any member of the Armed Forces on a federal military installation, unless written disclosures have been provided before the sale that: (1) subsidized life insurance may be available from the federal government; (2) the federal government has in no way sanctioned, recommended, or encouraged the sale of the product being offered; (3) are in readily understandable language and in a type font at least as large as the font used for the majority of the policy; and (4) list the address and phone number where consumer complaints are received by the state insurance commissioner for the state in which the insurer or producer has been issued a resident license or the entity is domiciled.

Prohibits from further engagement in the insurance business with respect to federal employees on federal land any individual or entity that has intentionally failed to provide these disclosures.

Exempts from such prohibition any insurance activities specifically: (1) contracted by or through the federal or any state government; or (2) exempted from this Act by a federal or state law, regulation, or order that specifically refers to it.

Declares that, if a majority of the states have adopted, in materially identical form, a standard setting forth such required disclosures, after the two-year period beginning on such majority adoption, the standard shall apply with respect to such states in lieu of the requirements of this Act, to the extent that it does not directly conflict with any applicable authorized federal regulation or directive.

(Sec. 108) Expresses the sense of Congress that the NAIC should study and report to certain congressional committees on ways of improving the quality and sale of life insurance products on federal military installations. States that such ways may include limiting sales authority to companies and producers certified as meeting appropriate best practices procedures or creating standards for products specifically designed for members of the Armed Forces regardless of the sales location.

Directs the Comptroller General to study and make such report, if the NAIC does not.

(Sec. 109) Prohibits any insurer from contracting with an insurance producer that solicits or sells life insurance on U.S. military installations unless the insurer has implemented a system to report to the appropriate state insurance commissioner any disciplinary actions taken against the producer regarding such sales or solicitations.

Expresses the sense of Congress that, within two years after enactment of this Act, the states should implement collectively a system to: (1) receive reports of disciplinary actions taken against insurance producers by insurers or government entities with respect to the sale or solicitation of insurance on a military installation; and (2) disseminate such information to all other states and the Secretary of Defense.

(Sec. 110) Requires the Secretary of Defense to: (1) maintain a list of the name, address, and other appropriate information of persons engaged in financial services activities that have been barred, banned, 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 from patronage by military members; and (2) ensure that federal and state agencies responsible for any financial services regulation are promptly notified upon the inclusion or removal of a person under such agencies' jurisdiction.

(Sec. 111) Expresses the sense of Congress that federal and state agencies responsible for insurance and securities regulation should advise the appropriate federal entities to consider: (1) significantly increasing the life insurance coverage made available through the federal government to members of the Armed Forces; (2) implementing appropriate procedures to encourage members of the Armed Forces to improve their financial literacy and obtain objective financial counseling before purchasing additional life insurance coverage or investments beyond those provided by the federal government; and (3) improving the benefits and matching contributions provided under the Thrift Savings Plan to members of the Armed Forces.

Title II: Lending to Armed Forces Personnel - (Sec. 201) Sets forth: (1) prohibitions and requirements governing the loan-collection practices of a military lender who makes a loan to an active duty member of the Armed Forces; and (2) mandatory disclosures in connection with extensions of credit and servicemembers' rights.

Instructs the Federal Trade Commission to prescribe regulations to prevent a military lender from taking any action in connection with a loan to an active duty member of the Armed Forces to structure a loan transaction so as to avoid designation as a covered loan, or otherwise circumvent or evade any requirement of this Act.