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Fleecing American Soldiers
The NY Times ^ | 072104 | N/A

Posted on 07/21/2004 3:57:48 AM PDT by Archangelsk

When unscrupulous people go after the wallets of underpaid soldiers, it's always offensive, but in a time of war, it stirs special outrage. This week's investigative report by The Times's Diana B. Henriques shows that at least since the Vietnam War, and with increasing intensity since the Iraq war began, insurance salesmen have been fleecing American soldiers, with the tacit - if not explicit - approval of some lawmakers and Pentagon officials.

The abuses center on the sale of complex high-commission, insurance-based investments to recruits. Many of the sales occur on the bases and in the barracks - a direct violation of Defense Department rules. The process is often greased - and tainted - by the presence of retired military officers who have become sales agents or are otherwise associated with the insurers and by the Pentagon's blind eye toward reports that have detailed the abusive practices. Even worse, a sleazy alliance of insurance lobbyists and election-minded lawmakers has consistently blocked Congressional and Pentagon efforts to clamp down on the sales. The cast of characters is so varied that it's difficult to say where a crackdown should focus. A moratorium on these sales pending a Congressional investigation would be a good start.

In 2000, a Pentagon report recommended substantially increased regulation of insurers, or the outright prohibition of life insurance sales on bases. The industry cried foul, and Congress and the Pentagon responded timidly. Ditto last summer. This time, Washington must be moved by the facts, not the lobbyists. These investments are usually wholly inappropriate. Many of the soldiers do not need any more insurance than they receive through the military for a nominal cost. Those who do would probably be better off with something other than the typical tad of coverage offered by these hucksters for $100 or more a month. The men and women in uniform put their lives on the line. They shouldn't be coerced into turning over a chunk of their pay, too.



TOPICS: Crime/Corruption; Editorial; Government
KEYWORDS: airmen; conartists; exsgms; hucksters; insurancescams; marines; sailors; soldiers
These turds are usually invited in through the old-NCO network (ya know, the MSG and SGM who ran the morale fund by selling hot dogs, sodas and coffee 'at cost' to troops but never seemed to have trouble buying a late model Mercedes) and they pitch their scam to impressionable, young troops. Officers and senior NCOs need to run these scumbags out of their units (I ran a couple of Amway distributors out of mine, but that's a different story).
1 posted on 07/21/2004 3:57:49 AM PDT by Archangelsk
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To: Archangelsk
USAA is what the complaint is over. It is the best. And it
has always been offered on Base/Post.
2 posted on 07/21/2004 4:05:37 AM PDT by BellStar (I will not amend my beliefs according to someone else’s politically correct straight jacket.)
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To: BellStar

It is not USAA. USAA is one of the most outstanding companies, not just insurance, in the U.S. They do not use arm twisting tactics.


3 posted on 07/21/2004 4:11:30 AM PDT by Archangelsk (Laura Croft is a geek's wet dream and nothing more.)
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To: Archangelsk
One of my previous trucks was totaled by a customer of USAA. By the time the process was over, I decided I wanted USAA as my provider. They sure treated me well. Much less trouble than I anticipated. I was quite disappointed to find that they only insure veterans.
4 posted on 07/21/2004 4:17:55 AM PDT by SWake ("Estrada was savaged by liars and abandoned by cowards." Mark Davis, WBAP, 09/09/2003)
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To: Archangelsk

Many of the soldiers do not need any more insurance..."

Right, the New York Times knows what's best for them. Let's see, these are the same people who:
-Think Bill & Hillary Clinton are wonderful people.
-Want the military full of gays.
-Are strong abortion enthusiasts.
-Never saw a weapons program they didn't oppose.

Sorry, but the troops are adults who can decide if they want insurance or not and I'll take their judgment over the New York Times almost any day.


5 posted on 07/21/2004 4:31:13 AM PDT by libertylover (The Constitution is a road-map to liberty. Let's start following it again.)
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To: SWake
USAA and NCOA are garbage. I retired as a 1SG with 21 years continuous active duty - all Infantry, mostly Airborne.
I witness strongarming, bullying BS on the part of political CSMs and commanders attempting, (usually successfully), to force soldiers who could not afford it to join these worthless organizations, as well as divisional associations and the most vile of them all, AUSA.
I was very unpopular with my CSM and battalion commander because I stood up and refused to push my underpaid soldiers to join these types of organizations.

This kind of hogwash is typical of why I decided to retire at 21 years.

I can vividly remember the battalion CSM coming up on the tactical (radio) net to demand the AUSA membership numbers for my company while we were engaged in "battle" at the so-called NTC, (which is another overhyped, political sacred cow all by itself).

I despise those who condone these schemes to get in soldiers' pockets while the liberal politicians hedge on military pay raises.

AUSA, NCOA and USAA are completely despicable and beneath contempt.
6 posted on 07/21/2004 4:38:13 AM PDT by Nathaniel
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To: Nathaniel
WTFO! Obviously you have not been introduced properly to USAA because they have no reps that twist your arm, unless they can do it over a phone line. I have been a USAA member for five years, I do my banking, investing, and insurance through them. The others you listed I have no clue about, but I can honestly say I have never heard of anyone being done wrong by USAA and my own personal experience is that their insurance is hundreds cheaper and provides better coverage(if you don't have numerous tickets or DUI's) than anyone out there.
7 posted on 07/21/2004 5:04:31 AM PDT by lt.america (Captain was already taken)
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To: lt.america

America, you better be an O-3 at the five year mark. :-)


8 posted on 07/21/2004 5:09:59 AM PDT by Archangelsk (Laura Croft is a geek's wet dream and nothing more.)
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To: Nathaniel

I remember those days myself, when I was a junior NCO...incredible pressure by the senior Non-coms's...for everything...I used to buy groups of raffle tickets for my squad leaders that had less money than me just to get the hounds off their backs...roger on the overhyped battles at Erwin. The real "battle" starts in the RUFMA, during turn-in...'course, if you were there with the 18th Airborne, you went light, and probably didn't draw too much, and if you were there in the mid '80's, you brought your own stuff...


9 posted on 07/21/2004 5:27:07 AM PDT by nicko (CW3 Ret.-"Lt., you need to just unass the AO-I know what I'm doing-that goes for you too, Major...")
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To: Archangelsk

I lobbied the administrator for a promotion to no avail. So unless the original Capt America gives up his name (I may even throw in a few adult beverages to spice up the deal!) I am terminal rank.


10 posted on 07/21/2004 7:00:48 AM PDT by lt.america (Captain was already taken)
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To: lt.america
You're right about USAA. No pressure. I've had them for 24 years.

I think the article is referring to these guys. Used to be called USPA and IRA. Typically hired retired military as salesmen. They would hang out at the O' Club at lunch and solicit for "Financial Planning" seminars which were nothing more than high pressure sales pitches.

11 posted on 07/21/2004 7:11:10 AM PDT by CholeraJoe (Roger Ailes said it. I believe it. That settles it.)
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To: nicko
CW3 Ret.-"Lt., you need to just unass the AO-I know what I'm doing-that goes for you too, Major..."

"On the other Colonel, you may stay."

12 posted on 07/21/2004 7:37:28 AM PDT by Archangelsk (Laura Croft is a geek's wet dream and nothing more.)
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To: Archangelsk

absolutely...some of my favorite drinkin' partners were COL's...


13 posted on 07/21/2004 3:27:03 PM PDT by nicko (CW3 Ret.-"Lt., you need to just unass the AO-I know what I'm doing-that goes for you too, Major...")
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To: CholeraJoe

Ah, yes... USAA... It used to be strictly for commissioned, (and warrant), types. Then, because their client base was badly dwindling, they admitted enlisted members.

It'll be a very cold day in Hades before I give my money to an organization that does or did discriminate against the enlisted ranks in any way.

I get my insurance cheaper through the totally civilian market.


14 posted on 06/09/2005 8:07:47 AM PDT by Nathaniel
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