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Two House committee chairmen have turned their collective gaze upon the Pentagon's alleged mishandling of hundreds of commercial life insurance policies purchased by soldiers deployed to Iraq and Afghanistan.

Government Reform Committee Chairman Tom Davis, R-Va., and Armed Services Committee Chairman Duncan Hunter, R-Calilf., in a Tuesday letter to General Accounting Office chief David Walker, called on the agency to review allegations that the Army failed to process hundreds of supplemental life insurance policies for activated Army personnel deployed to dangerous destinations abroad.

The letter, also signed by Reps. Christopher Shays, R-Conn., and Jim Cooper, D-Tenn., singled out two Army installations -- Ft. Bragg, N.C., and Ft. Lewis, Wash. -- where service members' insurance payment allotments were not processed, saying, "[W]e have learned that hundreds of military personnel who purchased supplemental life insurance policies are, in fact, not covered by these policies because the Army allegedly failed to process the required paperwork."

"We further understand that some of the servicemen and women who purchased these policies, believing they have insurance coverage, have been deployed to 'hot spots' around the world," the letter adds. It also indicates the problem is not limited to the Army and could extend to other military service personnel at other installations.

The lawmakers called on GAO to review the Pentagon's handling of supplemental life insurance policies purchased by all activated military personnel. Specifically, the GAO is to review DOD and military service regulations that govern the marketing and sale of these policies, as well as handling of financial allotments for military personnel.

In addition, GAO is to examine procedures at Ft. Bragg and Ft. Lewis for handling financial allotments for commercial products like insurance policies, as well as any other military installation GAO might suggest. Ultimately, the lawmakers expect the agency to offer suggestions for improving the process related to financial allotments in general, and supplemental life insurance policies specifically.

And in a separate, earlier letter to Defense Secretary Donald Rumsfeld, House Financial Services Chairman Michael Oxley, R-Ohio, questioned the legality of a proposed rule change that would prohibit life insurance companies from selling supplemental insurance policies at military installations.

The existing regulation sets limits on such solicitations and is designed to protect military service members from predatory sale of financial products. But it does allow service members to supplement the government's $250,000 benefit provided through the Servicemembers' Group Life Insurance program.

In addition to Oxley, several members of the House Armed Services Committee, including Cooper and Reps. Ellen Tauscher, D-Calif., and Jim Ryun, R-Kan., questioned the legality and necessity of the Pentagon's plan.

COMMENTS

• This is a very disturbing story of the lack of leadership and accountability of Army Officials to process these Supplemental Life Insurance Policies! It is utterly appalling to think about our military son's and daughters deployed in troubled spots in the world thinking thay have adequately provided for the care of their families! It points to a large cultural ethics problem in leadership! GovExec.com reader Posted April 1, 2004 9:34 AM
• It doesn't take more than a third grade education to evaluate the subject matter. First of all you close Military Bases, cut the working personnel back to the bone, keep the no load upper level managers that add to the bases' overhead to the extent that the subject departments don't have enough working administrative personnel to process these insurance policies for our war fighters, then the government sends in a investigative group to investigate the understaffed work force (that are probably working overtime to catch up) at the aforementioned Military Bases. When will the government the big picture??? You can't possibly do a timely "QUALITY" job with less personnel. To do more with less is just more Bureaucratic Jargon that has gone on since time began. The bottom line is, let's get our military fighting men the insurance coverage they deserve. I suggest, put blame in its rightful place, investigate the Investigators and the Managers that sent them. As an American, I'm sick to death of politics. A dedicated American and Retired Navy CPO... Joe Chandler Sr. Posted April 1, 2004 7:49 AM