Democrat Nancy Boyda on Friday accused incumbent U.S. Rep. Jim Ryun of running interference for companies that have used devious, hard-pressure tactics to sell American soldiers expensive and unneeded insurance policies and other financial services. Ryun denied the accusation.

“I just feel that our soldiers deserve better,” said Boyda, who is challenging Ryun, a Republican from Jefferson County, for the 2nd Congressional District, which includes western Lawrence.

Boyda noted a July investigative report by The New York Times that said Ryun was one of three members of the House Armed Services Committee who urged the Pentagon to allow insurance companies and agents to continue to sell policies to soldiers despite numerous complaints that agents misled military personnel. The report about predatory sales tactics on service members has sparked political outrage and prompted a congressional hearing.

Currently, soldiers are eligible for $250,000 in life insurance coverage from the military for $16.25 per month.

But the Times examination showed private-sector insurance agents and investment plan salesmen solicited business from soldiers, sometimes during compulsory “personal finance” classes in basic training. They sold expensive policies with low benefits; one insurance plan cost $100 per month in premiums with a death benefit of less than $44,000.

Many of the sales tactics are aimed at new recruits headed for Iraq who have little knowledge about financial planning, are concerned about leaving their families in good financial shape if they should be killed and thought they were buying Army-endorsed plans, the report said.

“I’m deeply concerned that so many of our soldiers are being exposed to such deceptive sales practices,” Boyda said.

‘Remove bad actors’

Since May 2003, Ryun and Reps. Ellen Tauscher, D-Calif., and Jim Cooper, D-Tenn., have written five jointly signed letters to the Pentagon saying they oppose any change of rules governing insurance companies and their agents on military bases, the Times reported.

In a statement issued Friday, Ryun said he supported prohibiting the sale of unscrupulous insurance products, but he didn’t want to put bases off-limits to vendors of all insurance and financial services.

“We should empower base commanders to remove bad actors. And we should give state insurance commissioners the power to prosecute any and all individuals who would prey on our military personnel,” Ryun said. “However, we should not deny our military personnel access to the benefits of a competitive financial services industry by removing all private institutions from our bases.”

The 2nd District includes two Army bases, Fort Riley and Fort Leavenworth. Most of the city of Lawrence west of Iowa Street also is in the central Kansas congressional district, which spans from Nebraska to Oklahoma.

At a congressional hearing Thursday on measures to stop the sales practices, Ryun said the recently reported abuses “have been extremely disturbing” and warranted legislative action.

But he said he would oppose prohibiting outside providers from selling financial services on military bases.

“It would essentially remove all competition, leaving our soldiers with only the on-base institution for financial services,” he said.

Questionable contribution?

The Times report also noted that Ryun received a $4,000 contribution from an organization that opposes tightening Pentagon insurance rules.

“Perhaps my opponent’s votes for insurers over soldiers reflect his honest priorities, but by accepting so much funding from lobbyists, he certainly invites some uncomfortable questions,” Boyda said.

However, Ryun said the group — the National Association of Insurance and Financial Advisors — testified it would support a measure by U.S. Rep. Max Burns, R-Ga. Burns has proposed legislation that would expand the authority of states to regulate insurance sales on military bases and prohibit the sale of expensive mutual funds.

Without mentioning Boyda, Ryun denounced the accusation that he would accept a political contribution and then not support U.S. soldiers.

“I demand an immediate retraction of any such statement or implication which represents nothing short of character assassination,” Ryun said.

Boyda’s campaign wasn’t immediately available for comment responding to Ryun’s demand.