Update: Added additional details from Illinois case files, 2:45 p.m. EDT, July 29.

Illinois insurance regulators revoked the licenses of a Lake Bluff, Ill., insurance agency and three insurance agents for improperly marketing and selling life insurance policies to members of the military.

The Illinois Department of Insurance said American Mutual of Illinois, Andrew M. Haley of Chicago, Ill., and Joseph J. Haley and Jamie G. Polec of Antioch, Ill., violated numerous life insurance solicitation rules regarding sales to military personnel at Great Lakes Naval Air Station in North Chicago.

Investigator said the agents and company failed to inform the service members that they were purchasing life insurance and misrepresented the life insurance as a “savings plan.”

As a part of the “scheme,” as the department referred to it, the service members were not told that any money deposited into the “savings plan,” which was a life insurance side fund, would be used to pay life insurance premiums.

In American Mutual of Illinois and Andrew Haley’s case, they were accused of offering and paying a “raffle” prize to two military members to induce them to buy insurance, records show. They also sold life insurance policies containing side funds and misrepresented that they were buying life policies with side funds, according to records.

In Joseph Haley’s case, records show that two military men, who said they thought they were buying a savings plan with a small life insurance policy, testified that while buying Trans World Insurance Flexible Dollar Builder Life Insurance Policies that “when they attempted to carefully read multiple insurance forms given to them…for their review, [Haley] distracted them in their efforts by repeatedly directing their attention to a computer screen.” The Navy men also testified that they never answered required medical questions, although the items were recorded in their applications, records show.

In the case of Polec, records show they required the men to place their initials on an “extensive number of pages of documentation in quick succession, thereby preventing [them] from fully reading and understanding the contents of the documents.” They also complied the medical history application questions without asking for responses to each questions, records indicate.

The agents’ activities gained the attention of the Armed Forces Disciplinary Control Board, which issued an emergency temporary off-limits order banning the agents from entering the base, according to the insurance department.

American Mutual of Illinois and Andrew Haley were each fined $100,000, which is the maximum fine allowed under Illinois law. Joseph Haley was fined $60,000 and Polec was ordered to pay a $50,000 fine. All of the revocations are subject to appeal to the department.

To sell life insurance at a military installation, agents must obtain permission from the U.S. Department of Defense to be an authorized solicitor.