[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6013 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 6013
To amend title 38, United States Code, to modernize service-disabled
veterans insurance.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 28, 2020
Mr. Bost (for himself and Miss Rice of New York) introduced the
following bill; which was referred to the Committee on Veterans'
Affairs
_______________________________________________________________________
A BILL
To amend title 38, United States Code, to modernize service-disabled
veterans insurance.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Veteran Families Financial Support
Act''.
SEC. 2. MODERNIZATION OF SERVICE-DISABLED VETERANS INSURANCE.
(a) Establishment of Modernized Program.--
(1) In general.--Chapter 19 of title 38, United States
Code, is amended by inserting after section 1922A the following
new section:
``Sec. 1922B. Service-disabled veterans insurance
``(a) Insurance.--(1) Beginning January 1, 2023, the Secretary of
Veterans Affairs shall carry out a service-disabled veterans insurance
program under which a veteran is granted insurance by the United States
against the death of such individual occurring while such insurance is
in force.
``(2) The Secretary may only issue whole-life policies under the
insurance program under paragraph (1).
``(3) The Secretary may not grant insurance to a veteran under
paragraph (1) unless--
``(A) the veteran submits the application for such
insurance before the veteran attains 81 years of age; or
``(B) with respect to a veteran who has attained 81 years
of age--
``(i) the veteran filed a claim for compensation
under chapter 11 of this title before attaining such
age;
``(ii) based on such claim, and after the veteran
attained such age, the Secretary first determines that
the veteran has a service-connected disability; and
``(iii) the veteran submits the application for
such insurance during the two-year period following the
date of such determination.
``(4)(A) A veteran enrolled in the insurance program under
paragraph (1) may elect to be insured in any of the following amounts:
``(i) $10,000.
``(ii) $20,000.
``(iii) $30,000.
``(iv) $40,000.
``(v) In accordance with subparagraph (B), a maximum amount
greater than $40,000.
``(B) The Secretary may establish a maximum amount to be insured
under paragraph (1) that is greater than $40,000 if the Secretary--
``(i) determines that such maximum amount and the premiums
for such amount--
``(I) are administratively and actuarially sound
for the insurance program under paragraph (1); and
``(II) will not result in such program operating at
a loss; and
``(ii) publishes in the Federal Register, and submits to
the Committees on Veterans' Affairs of the House of
Representatives and the Senate, such maximum amount and
determination.
``(5) Insurance granted under this section shall be on a
nonparticipating basis and all premiums and other collections therefor
shall be credited directly to a revolving fund in the Treasury of the
United States, and any payments on such insurance shall be made
directly from such fund.
``(6) Administrative support financed by the appropriations for
`General Operating Expenses, Department of Veterans Affairs' and
`Information Technology Systems, Department of Veterans Affairs' for
the insurance program under paragraph (1) shall be paid from premiums
credited to the fund under paragraph (5).
``(b) Eligibility.--A veteran is eligible to enroll in the
insurance program under subsection (a)(1) if the veteran has a service-
connected disability, without regard to--
``(1) whether such disability is compensable under chapter
11 of this title; or
``(2) whether the veteran meets standards of good health
required for other life insurance policies.
``(c) Enrollment and Waiting Period.--(1) A veteran may enroll in
the insurance program under subsection (a)(1) at any time.
``(2) The life insurance policy of a veteran who enrolls in the
insurance program under subsection (a)(1) does not go into force
unless--
``(A) a period of two years elapses following the date of
such enrollment; and
``(B) the veteran pays the premiums required during such
two-year period.
``(3) If a veteran dies during the two-year period described in
paragraph (2), the Secretary shall pay to the beneficiary of the
veteran the amount of premiums paid by the veteran under this section,
plus interest. The Secretary shall calculate such interest at an annual
rate equal to the weekly average one-year constant maturity Treasury
yield, as published by the Board of Governors of the Federal Reserve
System, for the calendar week preceding the date of the death.
``(d) Premiums.--(1) The Secretary shall establish a schedule of
basic premium rates by age per $1,000 of insurance under subsection
(a)(1) consistent with the lowest schedule of basic premium rates
generally charged for guaranteed acceptance life insurance policies by
private life insurance companies. The Secretary may adjust such
schedule after the first policy year in a manner consistent with the
general practice of guaranteed acceptance life insurance policies
issued by private life insurance companies.
``(2) Section 1912 of this title shall not apply to life insurance
policies under subsection (a)(1), and the Secretary may not otherwise
waive premiums for such insurance policies.
``(e) Beneficiaries.--(1) A veteran who enrolls in the insurance
program under subsection (a)(1) may assign a beneficiary of the life
insurance policy.
``(2) If a veteran enrolled in the insurance program under
subsection (a)(1) does not assign a beneficiary under paragraph (1)
before the veteran dies, or if an assigned beneficiary predeceases the
veteran, the Secretary shall determine the beneficiary in the following
order:
``(A) The surviving spouse of the veteran.
``(B) The children of the veteran and descendants of
deceased children by representation.
``(C) The parents of the veteran or the survivors of the
parents.
``(D) The duly appointed executor or administrator of the
estate of the veteran.
``(E) Other next of kin of the veteran entitled under the
laws of domicile of the veteran at the time of the death of the
veteran.
``(f) Claims.--(1) If the deceased veteran assigned a beneficiary
under subsection (e)(1)--
``(A) the assigned beneficiary is the only person who may
file a claim for payment under subsection (g) during the one-
year period beginning on the date of the death of the veteran;
and
``(B) if the assigned beneficiary does not file a claim for
the payment during the period described in paragraph (1), or if
payment to the assigned beneficiary within that period is
prohibited by Federal statute or regulation, a beneficiary
described in subsection (e)(2) may file a claim for such
payment during the one-year period following the period
described in subparagraph (A) as if the assigned beneficiary
had predeceased the veteran.
``(2) If the deceased veteran did not assign a beneficiary under
subsection (e)(1), or if the assigned beneficiary predeceased the
veteran, a beneficiary described in subsection (e)(2) may file a claim
for payment under subsection (g) during the two-year period beginning
on the date of the death of the veteran.
``(3) If, on the date that is two years after the date of the death
of the veteran, no claim for payment has been filed by any beneficiary
pursuant to paragraph (1) or (2), and the Secretary has not received
notice that any such claim will be so filed during the subsequent one-
year period, the Secretary may make the payment to a claimant whom the
Secretary determines to be equitably entitled to such payment.
``(g) Payments.--(1) In a case described in subsection (f)--
``(A) in paragraph (1)(A), the Secretary shall pay the
assigned beneficiary not later than 90 days after the assigned
beneficiary files a claim for payment; or
``(B) in paragraph (1)(B), (2), or (3), the Secretary shall
make any payment not later than one year after the end of the
period described in the applicable such paragraph.
``(2) Notwithstanding section 1917 of this title, the Secretary
shall make an insurance payment under this section in a lump sum.
``(3) Any payment under this subsection shall be a bar to recovery
by any other person.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 1922A the following new item:
``1922B. Service-disabled veterans insurance.''.
(b) Sunset of Previous Program and Transition.--
(1) S-DVI.--Section 1922 of such title is amended by adding
at the end the following new subsection:
``(d)(1) The Secretary may not accept any application by a veteran
to be insured under this section after December 31, 2022.
``(2)(A) During the period beginning January 1, 2023, and ending
December 31, 2025, a veteran who is insured under this section may
elect to instead be insured under section 1922B of this title based on
the age of the veteran at the time of such election.
``(B) A veteran who elects under subparagraph (A) to be insured
under section 1922B of this title shall be subject to the two-year
waiting period specified in subsection (c) of such section. If the
veteran dies during such period, the Secretary shall pay the
beneficiary under this section, and, if applicable, under section
1922A, plus the amount of premiums paid by the veteran under such
section 1922B, plus interest.
``(3) Except as provided by paragraph (2)(B), a veteran may not be
insured under this section and section 1922B simultaneously.''.
(2) Supplemental s-dvi.--Section 1922A(b) of such title is
amended by adding after the period the following: ``The
Secretary may not accept any such application after December
31, 2022. Except as provided by section 1922(d)(2)(B), a
veteran may not have supplemental insurance under this section
and be insured under section 1922B simultaneously.''.
(c) Conforming Amendments.--Chapter 19 of such title is amended--
(1) in the section heading of section 1922, by striking
``Service'' and inserting ``Legacy service'';
(2) in the section heading of section 1922A, by striking
``Supplemental'' and inserting ``Legacy supplemental''; and
(3) in the table of sections at the beginning of such
chapter by striking the items relating to sections 1922 and
1922A and inserting the following new items:
``1922. Legacy service disabled veterans' insurance.
``1922A. Legacy supplemental service disabled veterans' insurance for
totally disabled veterans.''.
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