Lawmakers Slam Insurer, Fund Sales to U.S. Soldiers

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Lawmakers Slam Insurer, Fund Sales to U.S. Soldiers

WASHINGTON (Reuters) - The sale of deceptive life insurance and mutual fund products to young, inexperienced U.S. soldiers was condemned by lawmakers on Thursday as "scandalous, shameful and especially so at a time of war."

Amid allegations that military personnel have been exploited for years by insurers and fund companies, lawmakers said they have introduced bills to crack down on abusive sales tactics involving costly and ill-suited products.

Contractual mutual funds with high fees and life insurance policies with high premiums and low benefits have been sold to soldiers, in some cases by retired officers posing as independent financial planners, lawmakers said.

"Congress can no longer pretend this is about a few bad apples. This is a systemic problem that needs to be fixed," said Rep. Michael Oxley at a hearing held by the House of Representatives Capital Markets Subcommittee.

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