European Stars and Stripes (Newspaper) - September 27, 1990, Darmstadt, Hesse                                Page 24 a a the stars and stripes thursday september 27, 1990 Survey of company requirements f Here s a look at the position held by various insurance companies and military group plans on the Sale of insurance to . Service members particularly those who Are Likely to be sent to the Middle East Prudential service members who have been placed on Alert to deploy to an area of potential conflict cannot get a life insurance policy through Prudential unless they want to buy one with a Quot War clause Quot that stipulates death benefits will not be paid if the policyholder is killed in combat. This Standard has been in Force for some  Hancock John Hancock Mutual life insurance co. Is refusing to sell life insurance to anyone with Quot verbal or written orders Quot to deploy to the Middle  itt life insurance corp. Of Minneapolis has started asking All military personnel who apply for a policy whether they have received desert training in the past six months and whether they Are on Alert to go to saudi Arabia or change their duty station. Robert Dombroski general agent for the company in Europe said anyone who answers Quot yes Quot to those questions runs the risk of being turned  state life insurance co., investors guaranty life insurance both companies recently sent a Field bulletin to agents worldwide stressing the need for careful underwriting standards in this time of potential conflict. Military and civilian personnel Quot who have plans or who Are under orders to travel to areas with a High incidence of infectious disease or political instability Quot will be turned Down for coverage the bulletin  National american National insurance co. Of Galveston Texas is putting a limit of $100,000 to $150,000 on the amount of insurance that service members can buy. This limit applies to All military  general corp. This Houston based company markets policies under several names in Europe including american amicable life insurance Pioneer american and National Public service. In general the firm will still sell insurance to army air Force and Navy personnel but policy size is restricted. Service members in ranks e-5 and above can get no More than $100,000 Worth of coverage. E-4s Are limited to $65,000 and e-3s to $60,000 Worth of insurance. Academy life insurance pension life insurance co. Of America these companies have made no change in insurance sales to service members according to officials who represent them in Europe metropolitan life insurance co. Metropolitan has no restrictions in place caused by the Middle East crisis. First Penn Pacific insurance Western life insurance co. Both companies Are accepting new applications with no restrictions. Armed forces Benefit association this Low Cost group plan with Headquarters near Washington d.c., continues to Market life insurance to Active duty service members including those with orders to deploy to saudi Arabia. Bob Mcdonald an association vice president said insurance sales will continue even in the event of War. Military Benefit association this military group plan has recently imposed limits on life insurance coverage for new members. Prior to iraqis invasion of Kuwait members were eligible for up to $250,000 Worth of insurance. The new limits Are $100,000 for service members in ranks e-5 and above and Only $50,000 for those in ranks e-4 and below. Insurance from Page 1 said anyone who answers Quot yes to those questions runs the risk of being turned Down for insurance. A american National insurance co. Of Galveston Texas is putting a limit of $100,000 to $150,000 on the amount of insurance that service members can buy depending on their rank. The company is also exercising caution before writing policies for soldiers with orders for the Gulf. Quot if a Guy is getting on an air plane to head for the Gulf and he a going to be in a very combative position the company might say a lets wait a Little while on this one a a said Raymond Marshall the company a european Agency director. A John Hancock Mutual life insurance co. Is refusing to sell life insurance to anyone with a verbal or written orders Quot to deploy to the Middle East Charles Wooley a general agent for the company in West Germany Turkey Spain Italy Iceland and the United kingdom said the new guidelines Haven to Hurt sales in Europe so far. No one heading for the Gulf from Europe has applied for a Hancock policy since Iraq invaded Kuwait last month he said. Insurance agents in West Germany England and Italy said Many companies began tightening their underwriting standards for military personnel about three weeks ago. And agents predict that policies will get even More difficult to obtain if a shooting War starts with Iraq. Quot As things escalate insurance will get lighter. That a just the natural course of events Quot said Jan Hudson who represents Prudential insurance in Schict Zingen West Germany. Quot if War broke out it would be a whole new ballgame Quot Dombroski said. A the insurance companies  close Down but they would put stricter limits on. Its common sense. People Are going to  David Smith a financial adviser in Aviano Italy said insurance companies arc wary of writing policies for service members heading to the front lines who want to Load up on insurance Only for the duration of Battle a the i equivalent of travel insurance. Insurance companies make Money by collecting monthly premiums from policyholders Over time and investing the proceeds. Profits arc made when Premium income and investment income Are More than the insurance company pays out in death benefits. Quot companies done to want to write insurance for Guys who Are going to go to saudi for three months and then drop the policies As soon As they get Back Home Quot Smith said. Herbert of american general said his company a restrictions on new insurance policies took effect in Early september roughly one month after iraqis army invaded Kuwait. Policies marketed under the names american amicable National Public service and Pioneer american Are among those affected by the new rules. If shooting starts Herbert said he would expect certain combat military specialities to be placed off limits for new policies by insurers. Other insurance specialists said similar Steps were taken during the buildup by american forces during the Vietnam War. Dombroski who represents itt life insurance in Europe said that company is worried primarily about members of Reserve and National guard units in the United states trying to take out new life insurance policies and add benefits to old ones. He added that itt agents in Europe so far Haven to turned Down anyone for new life insurance policies. But he said no customers have acknowledged receiving orders for the persian Gulf. Dan Walseth general counsel with itt life in Minneapolis said the company a general Rule is that a military individuals who have orders to go to a hot spot will have their applications postponed until they  they wont necessarily be turned Down for a policy after they return the lawyer said. Service members who try to Bluff their Way into getting additional insurance by lying about being sent to the Gulf run the risk that their families will be denied death benefits insurance specialists said. Hudson of Prudential said service members in the Market for new life insurance also should be careful about the companies they buy from. If the Middle East conflict widens into War a few companies May be willing to write insurance policies for All Comers. But Hudson said the question then becomes whether those companies will be Able to pay death benefits As the casualties mount. It May seem heartless of insurance companies to balk at providing policies for american fighting troops but Marshall of american National insurance said its a matter of fiscal responsibility to All policyholders. Quot if half of Podunk Mutual a clients Are wiped out in the initial invasion Podunk Mutual just might go Down the tubes Quot he said. One postscript service members have the option of taking up to $50,000 Worth of life insurance coverage for just a few dollars per month via the servicemen a group life insurance program sponsored by the government. But Many service members especially those with families feel the need to add to that  from Page 1 management reviews and streamlining Worley said. That number includes about 300 positions at Safe Headquarters and roughly 700 communications slots throughout the command. The rest represents Quot just scaling Back and getting smaller Quot in various support capacities Worley said. Pentagon spokesman Pete Williams said final decisions on what will happen to personnel Cut from Europe have not yet been made. Some May be deactivated As part of a military personnel Cut agreed upon by the Bush administration and Congress while others could be reassigned to stateside units he said. Williams said some service members could also be rotated to the Middle East As replacements for units deployed in operation desert shield although military officials have said they Are leaning toward rotating whole units to the persian Gulf rather than individual service members. The Pentagon had recommended an Active duty troop Cut of 38,000 personnel for fiscal 1991. The Senate a defense authorization Bill called for a Cut of 100,000 troops while the House lawmakers approved a reduction of 129,500 in their Bill. Although the troop withdrawal from Europe will begin in october no unit deactivation will occur before Jan. 1, to give the affected units planning time and to avoid straining logistics systems Cheney said. Getting a jump on the withdrawal process now will allow the army and air Force to spread the reductions Over the fiscal year which begins monday Williams said. Military units normally require three to four months to shut Down once a deactivation order is Given he said. A we know we re going to take Down our forces in Europe under an agreement Between the United states and soviet Union that is expected to be signed by the end of the year he said if military planners wait until the agreement is reached before starting the process a a we be lost half the fiscal year a Williams said. Under current proposals both sides would eventually be limited to 195,000 military personnel in Central Europe. The United states would be allowed to keep another 30.000 troops in areas outside the Central Region such As great Britain and Turkey. The United states has about 334,000 servicemen Western Europe including 215,000 army and 85.000 air Force personnel 30,000 Navy personnel and about 3,700 marines. Contributing to thl Rop Orl Slat or few Road my Wetr in Darmstadt and Daad Arrington Doka in Kamatra autom what  from Page 1 ply fully with the embargo and halt passenger flights to and from Iraq including Freedom nights for westerners stranded in Iraq and Kuwait. The . Resolution does not mention passenger u Sas panes travelling to and from Iraq should be checked to make sure they Are not carrying cargo prohibited by the . Trade sanctions. The Resolution prohibits the use of Force to Stop planes but allows for the detention of aircraft. Iraqis official news Agency accused the soviet Union a former ally of being bribed by the United mates and Gulf sheiks to oppose Iraq. It said the tone or a Tough . Speech tuesday by soviet foreign minister Eduard Shevardnadze a clearly shows the babe Given by America and its allies the Oil . In Washington Cheney said the growing Impact of the sanctions might prompt Saddam to attack. A we May have seen in the last 48 or 72 hours the beginning commentary from him that would indicate that the sanctions Are beginning to bite a Cheney told a conference of economists. We May have seen with his threats in the past couple of Days that he May resort to military Force in response to the sanctions a Cheney said. Re