I 

108TH CONGRESS 

1ST SESSION H. R. 1554

To amend title 38, United States Code, to make certain improvements to 

the National Service Life Insurance and United States Government Life 

Insurance programs, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 2, 2003

Mr. FILNER introduced the following bill; which was referred to the 

Committee on Veterans’ Affairs 

A BILL

To amend title 38, United States Code, to make certain 

improvements to the National Service Life Insurance 

and United States Government Life Insurance programs, 

and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Veterans Life Insur5 ance Improvement Act of 2003’’. 
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1 SEC. 2. PAYMENT OF INSURANCE PROCEEDS TO AN ALTER2 NATE BENEFICIARY WHEN FIRST BENE3 FICIARY CANNOT BE IDENTIFIED. 

4 (a) NSLI.—Section 1917 of title 38, United States 

5 Code, is amended by adding at the end the following new 

6 subsection: 

7 ‘‘(f)(1) Following the death of the insured and in a 

8 case not covered by subsection (d)—

9 ‘‘(A) if the first beneficiary otherwise entitled to 

10 payment of the insurance does not make a claim for 

11 such payment within two years after the death of 

12 the insured, payment may be made to another bene13 ficiary designated by the insured, in the order of 

14 precedence as designated by the insured, as if the 

15 first beneficiary had predeceased the insured; and 

16 ‘‘(B) if within four years after the death of the 

17 insured, no claim has been filed by a person des18 ignated by the insured as a beneficiary and the Sec19 retary has not received any notice in writing that 

20 any such claim will be made, payment may (notwith21 standing any other provision of law) be made to 

22 such person as may in the judgment of the Secretary 

23 be equitably entitled thereto. 

24 ‘‘(2) Payment of insurance under paragraph (1) shall 

25 be a bar to recovery by any other person.’’. 
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1 (b) USGLI.—Section 1952 of such title is amended 

2 by adding at the end the following new subsection: 

3 ‘‘(c)(1) Following the death of the insured and in a 

4 case not covered by section 1950 of this title—

5 ‘‘(A) if the first beneficiary otherwise entitled to 

6 payment of the insurance does not make a claim for 

7 such payment within two years after the death of 

8 the insured, payment may be made to another bene9 ficiary designated by the insured, in the order of 

10 precedence as designated by the insured, as if the 

11 first beneficiary had predeceased the insured; and 

12 ‘‘(B) if within four years after the death of the 

13 insured, no claim has been filed by a person des14 ignated by the insured as a beneficiary and the Sec15 retary has not received any notice in writing that 

16 any such claim will be made, payment may (notwith17 standing any other provision of law) be made to 

18 such person as may in the judgment of the Secretary 

19 be equitably entitled thereto. 

20 ‘‘(2) Payment of insurance under paragraph (1) shall 

21 be a bar to recovery by any other person.’’. 

22 (c) TRANSITION PROVISION.—In the case of a person 

23 insured under subchapter I or II of chapter 19 of title 

24 38, United States Code, who dies before the date of the 

25 enactment of this Act, the two-year and four-year periods 
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1 specified in subsection (f)(1) of section 1917 of title 38, 

2 United States Code, as added by subsection (a), and sub3 section (c)(1) of section 1952 of such title, as added by 

4 subsection (b), as applicable, shall for purposes of the ap5 plicable subsection be treated as being the two-year and 

6 four-year periods, respectively, beginning on the date of 

7 the enactment of this Act. 

8 SEC. 3. REDUCTION IN SERVICE-DISABLED VETERANS IN9 SURANCE PREMIUMS. 

10 Section 1922(a) of title 38, United States Code, is 

11 amended—

12 (1) by inserting ‘‘(1)’’ after ‘‘(a)’’; and 

13 (2) by striking the fourth sentence and all that 

14 follows and inserting the following: 

15 ‘‘(2) Insurance granted under this section shall be 

16 issued upon the same terms and conditions as are con17 tained in the standard policies of National Service Life 

18 Insurance, except that—

19 ‘‘(A) the premium rates for such insurance—

20 ‘‘(i) for premiums for months beginning 

21 before the date of the enactment of the Vet22 erans Life Insurance Improvement Act of 2003 

23 shall be based on the Commissioners 1941 

24 Standard Ordinary Table of Mortality and interest at the rate of 21 25 ⁄4 percent per year; and 
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1 ‘‘(ii) for premiums for months beginning 

2 on or after that date shall be based upon the 

3 1980 Commissioners Standard Ordinary Basic 

4 Table of Mortality and interest at the rate of 5 

5 percent per year; 

6 ‘‘(B) all cash, loan, paid-up, and extended val7 ues—

8 ‘‘(i) for a policy issued under this section 

9 before the date of the enactment of the Vet10 erans Life Insurance Improvement Act of 2003 

11 shall be based upon the Commissioners 1941 

12 Standard Ordinary Table of Mortality and interest at the rate of 21 13 ⁄4 percent per year; and 

14 ‘‘(ii) for a policy issued under this section 

15 on or after that date shall be based upon the 

16 1980 Commissioners Standard Ordinary Basic 

17 Table of Mortality and interest at the rate of 5 

18 percent per year; 

19 ‘‘(C) all settlements on policies involving annu20 ities shall be calculated on the basis of The Annuity 

Table for 1949, and interest at the rate of 21 21 ⁄4 per22 cent per year; 

23 ‘‘(D) insurance granted under this section shall 

24 be on a nonparticipating basis; 
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1 ‘‘(E) all premiums and other collections for in2 surance under this section shall be credited directly 

3 to a revolving fund in the Treasury of the United 

4 States; and 

5 ‘‘(F) any payments on such insurance shall be 

6 made directly from such fund. 

7 ‘‘(3) Appropriations to the fund referred to in sub8 paragraphs (E) and (F) of paragraph (2) are hereby au9 thorized. 

10 ‘‘(4) As to insurance issued under this section, waiver 

11 of premiums pursuant to section 602(n) of the National 

12 Service Life Insurance Act of 1940 and section 1912 of 

13 this title shall not be denied on the ground that the serv14 ice-connected disability became total before the effective 

15 date of such insurance.’’. 

16 SEC. 4. INCREASE OF VETERANS’ MORTGAGE LIFE INSUR17 ANCE COVERAGE TO $200,000. 

18 (a) INCREASE.—Section 2106(b) of title 38, United 

19 States Code, is amended by striking ‘‘$90,000’’ and in20 serting ‘‘$200,000’’. 

21 (b) EFFECTIVE DATE.—The amendment made by 

22 subsection (a) shall apply with respect to insurance pay23 able under section 2106 of title 38, United States Code, 
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1 in the case of a veteran insured under that section who 

2 dies on or after the date of the enactment of this Act.

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