120 STAT. 1318
PUBLIC LAW 109–290—SEPT. 29, 2006 (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.
10 USC 992 note.
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). 10 USC 992 note.
SEC. 4. PROHIBITION ON FUTURE SALES OF PERIODIC PAYMENT PLANS.
(a) AMENDMENT.—Section 27 of the Investment Company Act of 1940 (15 U.S.C. 80a–27) is amended by adding at the end the following new subsection: ‘‘(j) TERMINATION OF SALES.— ‘‘(1) TERMINATION.—Effective 30 days after the date of enactment of the Military Personnel Financial Services Protection Act, it shall be unlawful, subject to subsection (i)— ‘‘(A) for any registered investment company to issue any periodic payment plan certificate; or ‘‘(B) for such company, or any depositor of or underwriter for any such company, or any other person, to sell such a certificate.
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