To provide for consumer education on insurance and other financial services for members of the Armed Forces and their spouses.

1. Adds SEC. 596. CONSUMER EDUCATION FOR MEMBERS OF THE ARMED FORCES AND THEIR SPOUSES ON INSURANCE AND OTHER FINANCIAL SERVICES at the end of subtitle H of title V

   Adds a section

   In S. 1042 · Placed on Calendar Senate

   (b) Effective Date.--The amendment made by subsection (a) shall take effect on October 1, 2005.

   Inserted: SEC. 596. CONSUMER EDUCATION FOR MEMBERS OF THE ARMED FORCES AND THEIR SPOUSES ON INSURANCE AND OTHER FINANCIAL SERVICES.

   Inserted: (a) Education and Counseling Requirements.--

   Inserted: (1) In general.--Chapter 50 of title 10, United States Code, is amended by adding at the end the following new section:

   Inserted: "Sec. 992. Consumer education: financial services

   Inserted: "(a) Requirement for Consumer Education Program for Members.--(1) The Secretary concerned shall carry out a program to provide comprehensive education to members of the armed forces under the jurisdiction of the Secretary on--

   Inserted: "(A) financial services that are available under law to members;

   Inserted: "(B) financial services that are routinely offered by private sector sources to members;

   Inserted: "(C) practices relating to the marketing of private sector financial services to members;

   Inserted: "(D) such other matters relating to financial services available to members, and the marketing of financial services to members, as the Secretary considers appropriate; and

   Inserted: "(E) such other financial practices as the Secretary considers appropriate.

   Inserted: "(2) Training under this subsection shall be provided to members as--

   Inserted: "(A) a component of members initial entry orientation training; and

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   Inserted: "(B) a component of periodically recurring required training that is provided for the members at military installations.

   Inserted: "(3) The training provided at a military installation under paragraph (2)(B) shall include information on any financial services marketing practices that are particularly prevalent at that military installation and in the vicinity.

   Inserted: "(b) Counseling for Members and Spouses.--(1) The Secretary concerned shall, upon request, provide counseling on financial services to each member of the armed forces, and such member's spouse, under the jurisdiction of the Secretary.

   Inserted: "(2)(A) In the case of a military installation at which at least 2,000 members of the armed forces on active duty are assigned, the Secretary concerned--

   Inserted: "(i) shall provide counseling on financial services under this subsection through a full-time financial services counselor at such installation; and

   Inserted: "(ii) may provide such counseling at such installation by any means elected by the Secretary from among the following:

   Inserted: "(I) Through members of the armed forces in grade E-7 or above, or civilians, who provide such counseling as part of their other duties for the armed forces or the Department of Defense.

   Inserted: "(II) By contract, including contract for services by telephone and by the Internet.

   Inserted: "(III) Through qualified representatives of nonprofit organizations and agencies under formal agreements with the Department of Defense to provide such counseling.

   Inserted: "(B) In the case of any military installation not described in subparagraph (A), the Secretary concerned shall provide counseling on financial services under this subsection at such installation by any of the means set forth in subparagraph (A)(ii), as elected by the Secretary concerned.

   Inserted: "(3) Each financial services counselor under paragraph (2)(A)(i), and any other individual providing counseling on financial services under paragraph (2), shall be an individual who, by reason of education, training, or experience, is qualified to provide helpful counseling to members of the armed forces and their spouses on financial services and marketing practices described in subsection (a)(1). Such individual may be a member of the armed forces or an employee of the Federal Government.

   Inserted: "(4) The Secretary concerned shall take such action as is necessary to ensure that each financial services counselor under paragraph (2)(A)(i), and any other individual providing counseling on financial services under paragraphs (2), is free from conflicts of interest relevant to the performance of duty under this section. and, in the performance of that duty, is dedicated to furnishing members of the armed forces and their spouses with helpful information and counseling on financial services and related marketing practices.

   Inserted: "(c) Life Insurance.--(1) In counseling a member of the armed forces, or spouse of a member of the armed forces, under this section regarding life insurance offered by a private sector source, a financial services counselor under subsection (b)(2)(A)(i), or another individual providing counseling on financial services under subsection (b)(2), shall furnish the member or spouse, as the case may be, with information on the availability of Servicemembers' Group Life Insurance under subchapter III of chapter 19 of title 38, including information on the amounts of coverage available and the procedures for electing coverage and the amount of coverage.

   Inserted: "(2)(A) A covered member of the armed forces may not authorize payment to be made for private sector life insurance by means of an allotment of pay to which the member is entitled under chapter 3 of title 37 unless the authorization of allotment is accompanied by a written certification by a commander of the member, a financial services counselor referred to in subsection (b)(2)(A)(i), or another individual providing counseling on financial services under subsection (b)(2), as applicable, that the member has received counseling under paragraph (1) regarding the purchase of coverage under that private sector life insurance.

   Inserted: "(B) Subject to subparagraph (C), a written certification described in subparagraph (A) may not be made with respect to a member's authorization of allotment as described in subparagraph (A) until seven days after the date of the member's authorization of allotment in order to facilitate the provision of counseling to the member under paragraph (1).

   Inserted: "(C) The commander of a member may waive the applicability of subparagraph (B) to a member for good cause, including the member's imminent change of station.

   Inserted: "(D) In this paragraph, the term 'covered member of the armed forces' means an active duty member of the armed forces in grades E-1 through E-4.

   Inserted: "(d) Financial Services Defined.--In this section, the term 'financial services' includes the following:

   Inserted: "(1) Life insurance, casualty insurance, and other insurance.

   Inserted: "(2) Investments in securities or financial instruments.

   Inserted: "(3) Banking, credit, loans, deferred payment plans, and mortgages.".

   Inserted: (2) Clerical amendment.--The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

   Inserted: "992. Consumer education: financial services.".

   Inserted: (b) Continuing Effect of Existing Allotments for Life Insurance.--Paragraph (c)(2) of section 992 of title 10, United States Code (as added by subsection (a)), shall not affect any allotment of pay authorized by a member of the Armed Forces before the effective date of such section.

   Inserted: (c) Effective Date.--The amendments made by 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.

   Original wording

   At the end of subtitle H of title V, add the following:

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As printed