A bill to amend title 38, United States Code, to provide a traumatic injury protection rider to servicemembers insured under section 1967(a)(1) of such title.

Summary: Amends Federal veterans' benefits provisions to require that a member insured under the Servicemembers' Group Life Insurance (SGLI) program be automatically issued a traumatic injury protection rider that will provide a payment of up to $100,000 per event if the member, while so insured, sustains a traumatic injury that results in: (1) a loss of sight, limbs, movement, speech, or hearing; (2) certain burns; or (3) a coma or the inability to carry out certain daily living activities. Provides coverage exceptions, including attempted suicide or self-inflicted injury, committing or attempting to commit a felony, being legally intoxicated, or willful misconduct. Provides specific payment amounts with respect to each type of injury or loss.

Requires the payment, while a member is serving on active or reserve duty, of premiums for such additional coverage.

Terminates such coverage upon separation from the Armed Forces.

SECTION 1. TRAUMATIC INJURY PROTECTION.

    (a) In General.--Subchapter III of chapter 19 of title 38, United 
States Code, is amended--
            (1) in section 1965, by adding at the end the following:
            ``(11) The term `activities of daily living' means the 
        inability to independently perform 2 of the 6 following 
        functions:
                    ``(A) Bathing.
                    ``(B) Continence.
                    ``(C) Dressing.
                    ``(D) Eating.
                    ``(E) Toileting.
                    ``(F) Transferring.''; and
            (2) by adding at the end the following:
``Sec. 1980A. Traumatic injury protection
    ``(a) A member who is insured under subparagraph (A)(i), (B), or 
(C)(i) of section 1967(a)(1) shall automatically be issued a traumatic 
injury protection rider that will provide for a payment not to exceed 
$100,000 if the member, while so insured, sustains a traumatic injury 
that results in a loss described in subsection (b)(1). The maximum 
amount payable for all injuries resulting from the same traumatic event 
shall be limited to $100,000. If a member suffers more than 1 such loss 
as a result of traumatic injury, payment will be made in accordance 
with the schedule in subsection (d) for the single loss providing the 
highest payment.
    ``(b)(1) A member who is issued a traumatic injury protection rider 
under subsection (a) is insured against--
            ``(A) total and permanent loss of sight;
            ``(B) loss of a hand or foot by severance at or above the 
        wrist or ankle;
            ``(C) total and permanent loss of speech;
            ``(D) total and permanent loss of hearing in both ears;
            ``(E) loss of thumb and index finger of the same hand by 
        severance at or above the metacarpophalangeal joints;
            ``(F) quadriplegia, paraplegia, or hemiplegia;
            ``(G) burns greater than second degree, covering 30 percent 
        of the body or 30 percent of the face; and
            ``(H) coma or the inability to carry out the activities of 
        daily living resulting from traumatic injury to the brain.
    ``(2) For purposes of this subsection--
            ``(A) the term `quadriplegia' means the complete and 
        irreversible paralysis of all 4 limbs;
            ``(B) the term `paraplegia' means the complete and 
        irreversible paralysis of both lower limbs; and
            ``(C) the term `hemiplegia' means the complete and 
        irreversible paralysis of the upper and lower limbs on 1 side 
        of the body.
    ``(3) In no case will a member be covered against loss resulting 
from--
            ``(A) attempted suicide, while sane or insane;
            ``(B) an intentionally self-inflicted injury or any attempt 
        to inflict such an injury;
            ``(C) illness, whether the loss results directly or 
        indirectly;
            ``(D) medical or surgical treatment of illness, whether the 
        loss results directly or indirectly;
            ``(E) any infection other than--
                    ``(i) a pyogenic infection resulting from a cut or 
                wound; or
                    ``(ii) a bacterial infection resulting from 
                ingestion of a contaminated substance;
            ``(F) the commission of or attempt to commit a felony;
            ``(G) being legally intoxicated or under the influence of 
        any narcotic unless administered or consumed on the advice of a 
        physician; or
            ``(H) willful misconduct as determined by a military court, 
        civilian court, or administrative body.
    ``(c) A payment under this section may be made only if--
            ``(1) the member is insured under Servicemembers' Group 
        Life Insurance when the traumatic injury is sustained;
            ``(2) the loss results directly from that traumatic injury 
        and from no other cause; and
            ``(3) the member suffers the loss not later than 90 days 
        after sustaining the traumatic injury, except, if the loss is 
        quadriplegia, paraplegia, or hemiplegia, the member suffers the 
        loss not later than 365 days after sustaining the traumatic 
        injury.
    ``(d) Payments under this section for losses described in 
subsection (b)(1) will be made in accordance with the following 
schedule:
            ``(1) Loss of both hands, $100,000.
            ``(2) Loss of both feet, $100,000.
            ``(3) Inability to carry out activities of daily living 
        resulting from traumatic brain injury, $100,000.
            ``(4) Burns greater than second degree, covering 30 percent 
        of the body or 30 percent of the face, $100,000.
            ``(5) Loss of sight in both eyes, $100,000.
            ``(6) Loss of 1 hand and 1 foot, $100,000.
            ``(7) Loss of 1 hand and sight of 1 eye, $100,000.
            ``(8) Loss of 1 foot and sight of 1 eye, $100,000.
            ``(9) Loss of speech and hearing in 1 ear, $100,000.
            ``(10) Total and permanent loss of hearing in both ears, 
        $100,000.
            ``(11) Quadriplegia, $100,000.
            ``(12) Paraplegia, $75,000.
            ``(13) Loss of 1 hand, $50,000.
            ``(14) Loss of 1 foot, $50,000.
            ``(15) Loss of sight one eye, $50,000.
            ``(16) Total and permanent loss of speech, $50,000.
            ``(17) Loss of hearing in 1 ear, $50,000.
            ``(18) Hemiplegia, $50,000.
            ``(19) Loss of thumb and index finger of the same hand, 
        $25,000.
            ``(20) Coma resulting from traumatic brain injury, $50,000 
        at time of claim and $50,000 at end of 6-month period.
    ``(e)(1) During any period in which a member is insured under this 
section and the member is on active duty, there shall be deducted each 
month from the member's basic or other pay until separation or release 
from active duty an amount determined by the Secretary of Veterans 
Affairs as the premium allocable to the pay period for providing 
traumatic injury protection under this section (which shall be the same 
for all such members) as the share of the cost attributable to provided 
coverage under this section, less any costs traceable to the extra 
hazards of such duty in the uniformed services.
    ``(2) During any month in which a member is assigned to the Ready 
Reserve of a uniformed service under conditions which meet the 
qualifications set forth in section 1965(5)(B) of this title and is 
insured under a policy of insurance purchased by the Secretary of 
Veterans Affairs under section 1966 of this title, there shall be 
contributed from the appropriation made for active duty pay of the 
uniformed service concerned an amount determined by the Secretary of 
Veterans Affairs (which shall be the same for all such members) as the 
share of the cost attributable to provided coverage under this section, 
less any costs traceable to the extra hazards of such duty in the 
uniformed services. Any amounts so contributed on behalf of any member 
shall be collected by the Secretary of the concerned service from such 
member (by deduction from pay or otherwise) and shall be credited to 
the appropriation from which such contribution was made in advance on a 
monthly basis.
    ``(3) The Secretary of Veterans Affairs shall determine the premium 
amounts to be charged for traumatic injury protection coverage provided 
under this section.
    ``(4) The premium amounts shall be determined on the basis of sound 
actuarial principles and shall include an amount necessary to cover the 
administrative costs to the insurer or insurers providing such 
insurance.
    ``(5) Each premium rate for the first policy year shall be 
continued for subsequent policy years, except that the rate may be 
adjusted for any such subsequent policy year on the basis of the 
experience under the policy, as determined by the Secretary of Veterans 
Affairs in advance of that policy year.
    ``(6) The cost attributable to insuring such member under this 
section, less the premiums deducted from the pay of the member's 
uniformed service, shall be paid by the Secretary of Defense to the 
Secretary of Veterans Affairs. This amount shall be paid on a monthly 
basis, and shall be due within 10 days of the notice provided by the 
Secretary of Veterans Affairs to the Secretary of the concerned 
uniformed service.
    ``(7) The Secretary of Defense shall provide the amount of 
appropriations required to pay expected claims in a policy year, as 
determined according to sound actuarial principles by the Secretary of 
Veterans Affairs.
    ``(8) The Secretary of Defense shall forward an amount to the 
Secretary of Veterans Affairs that is equivalent to half the 
anticipated cost of claims for the current fiscal year, upon the 
effective date of this legislation.
    ``(f) The Secretary of Defense shall certify whether any member 
claiming the benefit under this section is eligible.
    ``(g) Payment for a loss resulting from traumatic injury will not 
be made if the member dies not more than 7 days after the date of the 
injury. If the member dies before payment to the member can be made, 
the payment will be made according to the member's most current 
beneficiary designation under Servicemembers' Group Life Insurance, or 
a by law designation, if applicable.
    ``(h) Coverage for loss resulting from traumatic injury provided 
under this section shall cease at midnight on the date of the member's 
separation from the uniformed service. Payment will not be made for any 
loss resulting from injury incurred after the date a member is 
separated from the uniformed services.
    ``(i) Insurance coverage provided under this section is not 
convertible to Veterans' Group Life Insurance.''.
    (b) Clerical Amendment.--The table of sections for chapter 19 of 
title 38, United States Code, is amended by adding after the item 
relating to section 1980 the following:

        ``1980A. Traumatic injury protection.''.

SEC. 2. EFFECTIVE DATE.

    The amendments made by section 1 shall take effect on the first day 
of the first month beginning more than 180 days after the date of 
enactment of this Act.