September 18, 1998
      
      Pentagon Bars Academy Insurance Co.
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      Filed at 12:11 p.m. EDT
     
      By The Associated Press
      
     WASHINGTON (AP) -- Academy Life Insurance Co., one of the largest
     sellers of life insurance to military personnel, has been barred
     from U.S. defense installations after the Pentagon accused the
     insurer of deceptive practices.
     
     In a Sept. 11 letter, a senior Defense Department official said
     Academy Life used its close relationship with the Non-Commissioned
     Officers Association to push policies on troops. The company paid
     the group -- one of the nation's largest military associations -- a
     $1-million-a-year endorsement fee to receive exclusive backing.
     
     A copy of the letter was released by the Pentagon.
     
     Posing as impartial financial advisers for the officers
     association, counselors employed by Academy would market the
     policies to troops, the letter stated.
     
     The Washington Post reported Friday that some personnel received
     the insurance sales pitch during meetings they had been ordered to
     attend. Pentagon regulations prohibit sales to ``captive''
     audiences or on-duty personnel.
     
     ``It is highly deceptive and manipulative for a purportedly
     neutral, professional counselor from a fraternal organization like
     NCOA to use aggressive sales tactics to market insurance products
     to service members as part of what are ostensibly objective
     counseling services,'' Frank Rush, acting assistant secretary of
     defense, wrote in the Sept. 11 letter to Academy.
     
     Rush also said the three-year ban on the company could be lessened
     if it makes efforts to address the Pentagon's concerns.
     
     An attorney for Academy denied the charges but told the Post the
     company has worked over the past year to make its agents more aware
     of Pentagon regulations.
     
     ``We have denied the allegations, but our attitude is, if the
     Defense Department believes there's a better way of doing business,
     we're open to considering it,'' said Michael Skinner.
     
     Defense officials said they do not plan to sanction the NCOA, but
     hope the association will end or alter its relationship with
     Academy, the Post reported.
     
     NCOA, which represents about 148,000 current and retired enlisted
     personnel, won a special charter from Congress 10 years ago
     recognizing its role in promoting financial, education and social
     benefits for military personnel.
     
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