Veterans' Insurance Reform Act of 1995

Summary: Veterans' Insurance Reform Act of 1995 - Redesignates the Servicemen's Group Life Insurance program as the Servicemembers' Group Life Insurance (SGLI) program. 
Merges the Retired Reservists' Servicemembers' Group Life Insurance program into the Veterans' Group Life Insurance (VGLI) program. Extends the VGLI program to members of the Ready Reserve who retire with less than 20 years of service. 
Authorizes an insured under:  (1) the VGLI program to convert such policy to an individual policy of life insurance with a commercial insurance company at any time; and (2) the SGLI program to convert to such an individual policy upon separation from service.

SECTION 1. SHORT TITLE; REFERENCES TO TITLE 38, UNITED STATES CODE.

    (a) Short Title.--This Act may be cited as the ``Veterans' 
Insurance Reform Act of 1995''.
    (b) References.--Except as otherwise expressly provided, whenever 
in this Act an amendment is expressed in terms of an amendment to a 
section or other provision, the reference shall be considered to be 
made to a section or other provision of title 38, United States Code.

SEC. 2. REMOVAL OF GENDER REFERENCES.

    (a) In General.--
            (1) Section 1315(f)(1)(F) is amended by striking out 
        ``servicemen's'' in the first place it appears and inserting in 
        lieu thereof ``servicemembers'''.
            (2) Sections 1967 (a), (c), and (f), 1968(b), 1969 (a)-(e), 
        1970 (a), (f), and (g), 1971(b), 1973, 1974, 1977 (a), (d), 
        (e), and (g), 3017(a), and 3224(1) are amended by striking out 
        ``Servicemen's'' each place it appears and inserting in lieu 
        thereof ``Servicemembers'''.
    (b) Conforming Amendments.--(1)(A) The heading of subchapter III of 
chapter 19 is amended to read as follows:

   ``SUBCHAPTER III--SERVICEMEMBERS' GROUP LIFE INSURANCE (FORMERLY 
                 SERVICEMEN'S GROUP LIFE INSURANCE)''.

    (B) The item relating to such subchapter in the table of sections 
at the beginning of such chapter is amended to read as follows:
   ``Subchapter III--Servicemembers' Group Life Insurance (Formerly 
                 Servicemen's Group Life Insurance)''.
    (2)(A) The heading of section 1974 is amended to read as follows:
``Sec. 1974. Advisory Council on Servicemembers' Group Life Insurance 
              (formerly Servicemen's Group Life Insurance)''.
    (B) The item relating to such section in the table of sections at 
the beginning of chapter 19 is amended to read as follows:

``1974. Advisory Council on Servicemembers' Group Life Insurance 
                            (formerly Servicemen's Group Life 
                            Insurance)''.
SEC. 3. MERGER OF RETIRED RESERVIST SERVICE- MEMBERS' GROUP LIFE 
              INSURANCE AND VETERANS' GROUP LIFE INSURANCE AND 
              EXTENSION OF VETERANS' GROUP LIFE INSURANCE TO MEMBERS OF 
              THE READY RESERVES.
    (a) Section 1965(5) is amended--
            (1) in subparagraph (B), by inserting ``and'' at the end 
        thereof;
            (2) by striking subparagraphs (C) and (D); and
            (3) redesignating subparagraph (E) as subparagraph (C).
    (b) Section 1967 is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1) by inserting ``and'' at the 
                end thereof;
                    (B) by striking paragraphs (3) and (4) in their 
                entirety; and
                    (C) by striking ``or the first day a member of the 
                Reserves, whether or not assigned to the Retired 
                Reserve of a uniformed service, meets the 
                qualifications of section 1965(5)(C) of this title, or 
                the first day a member of the Reserves meets the 
                qualifications of section 1965(5)(D) of this title,''; 
                and
            (2) by striking subsection (d) in its entirety; and
            (3) by redesignating subsections (e) and (f) as subsections 
        (d) and (e) respectively.
    (c) Section 1968 is amended--
            (1) in subsection (a)--
                    (A) by striking ``subparagraph (B), (C), or (D) of 
                section 1965(5)'' and inserting ``section 1965(5)(B)'' 
                in lieu thereof;
                    (B) in paragraph (4) by striking--
                            (i) ``--(A)'' and inserting a comma in lieu 
                        thereof;
                            (ii) subparagraphs (B) and (C) in their 
                        entirety; and
                    (C) by striking paragraphs (5) and (6) in their 
                entirety; and
            (2) in subsection (b) by striking the last two sentences.
    (d) Section 1969 is amended--
            (1) in subsection (a)(2) by striking ``is assigned to the 
        Reserve (other than the Retired Reserve) and meets the 
        qualifications of section 1965(5)(C) of this title, or is 
        assigned to the Retired Reserve and meets the qualifications of 
        section 1965(5)(D) of this title,'';
            (2) by striking subsection (e) in its entirety; and
            (3) by redesignating subsections (f) and (g) as subsections 
        (e) and (f) respectively.

SEC. 4. CONVERSION TO COMMERCIAL LIFE INSURANCE POLICY.

    (a) Section 1968(b) is amended by--
            (1) adding ``(1)'' following ``the date such insurance 
        would cease,'' in the first sentence;
            (2) redesignating clauses (1) and (2) in the first sentence 
        as (A) and (B) respectively;
            (3) striking ``title.'' at the end of the first sentence 
        and inserting in lieu thereof ``title, or, (2) at the election 
        of the member, shall be converted to an individual policy of 
        insurance as described in section 1977(e) of this title upon 
        written application for conversion made to the participating 
        company selected by the member and payment of the required 
        premiums.''; and
            (4) adding ``to Veterans' Group Life Insurance'' following 
        ``automatic conversion'' in the second sentence.
    (b) Section 1977 is amended--
            (1) in paragraph (a) by striking the last two sentences and 
        inserting in lieu thereof the following: ``If any person 
        insured under Veterans' Group Life Insurance again becomes 
        insured under Servicemembers' Group Life Insurance but dies 
        before terminating or converting such person's Veterans' Group 
        Insurance, Veterans' Group Life Insurance will be payable only 
        if such person is insured for less than $200,000 under 
        Servicemembers' Group Life Insurance, and then only in an 
        amount which when added to the amount of Servicemembers' Group 
        Life Insurance payable shall not exceed $200,000.''; and
            (2) in paragraph (e) by striking the third sentence and 
        inserting in lieu thereof the following: ``The Veterans' Group 
        Life Insurance policy will terminate on the day before the date 
        on which the individual policy becomes effective.''.

SEC. 5. EFFECTIVE DATE.

    The Servicemembers' Group Life Insurance of any member of the 
Retired Reserve of a uniform service in force on the date of enactment 
of this Act shall be converted, effective ninety days after that date, 
to Veterans' Group Life Insurance.