104TH CONGRESS

2D SESSION H. R. 3373

AN ACT

To amend title 38, United States Code, to improve

other purposes.certain veterans’ benefits programs, and for
104TH CONGRESS

2D SESSION H. R. 3373

AN ACT

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

veterans’ benefits 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,
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1 SECTION 1. SHORT TITLE; REFERENCES TO TITLE 38,

2 UNITED STATES CODE.

3 (a) SHORT TITLE.—This Act may be cited as the

4 ‘‘Veterans’ Benefits Amendments of 1996’’.

5 (b) REFERENCES.—Except as otherwise expressly

6 provided, whenever in this Act an amendment is expressed

7 in terms of an amendment to a section or other provision,

8 the reference shall be considered to be made to a section

9 or other provision of title 38, United States Code.

10 TITLE I—INSURANCE REFORM

11 SEC. 101. MERGER OF RETIRED RESERVE

12 SERVICEMEMBERS’ GROUP LIFE INSURANCE

13 AND VETERANS’ GROUP LIFE INSURANCE

14 AND EXTENSION OF VETERANS’ GROUP LIFE

15 INSURANCE TO MEMBERS OF THE READY RE16 SERVE.

17 (a) DEFINITION OF MEMBER.—Section 1965(5) is

18 amended—

19 (1) by inserting ‘‘and’’ at the end of subpara20 graph (B);

21 (2) by striking out subparagraphs (C) and (D);

22 and

23 (3) by redesignating subparagraph (E) as sub24 paragraph (C).

25 (b) PERSONS INSURED.—Section 1967 is amended—

26 (1) in subsection (a)—
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1 (A) by inserting ‘‘and’’ at the end of para2 graph (1);

3 (B) by striking out paragraphs (3) and

4 (4); and

5 (C) by striking out ‘‘or the first day a

6 member of the Reserves, whether or not as7 signed to the Retired Reserve of a uniformed

8 service, meets the qualifications of section

9 1965(5)(C) of this title, or the first day a mem10 ber of the Reserves meets the qualifications of

11 section 1965(5)(D) of this title,’’; and

12 (2) by striking out subsection (d).

13 (c) DURATION AND TERMINATION OF COVERAGE.—

14 Section 1968 is amended—

15 (1) in subsection (a)—

16 (A) by striking out ‘‘subparagraph (B),

17 (C), or (D) of section 1965(5)’’ and inserting in

18 lieu thereof ‘‘section 1965(5)(B)’’;

19 (B) by striking out the period at the end

20 of paragraphs (1) and (2) and inserting in lieu

21 thereof a semicolon;

22 (C) by striking out the period at the end

23 of paragraph (3) and inserting in lieu thereof ‘‘;

24 and’’;

25 (D) in paragraph (4)—
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1 (i) by striking out ‘‘from such’’ in the

2 matter preceding subparagraph (A) and all

3 that follows through ‘‘(A) unless on’’ and

4 inserting in lieu thereof ‘‘from such assign5 ment, unless on’’;

6 (ii) by striking out the semicolon after

7 ‘‘such assignment’’ and inserting in lieu

8 thereof a period; and

9 (iii) by striking out subparagraphs

10 (B) and (C); and

11 (E) by striking out paragraphs (5) and

12 (6); and

13 (2) in subsection (b), by striking out the last

14 two sentences.

15 (d) PREMIUMS.—Section 1969 is amended—

16 (1) in subsection (a)(2), by striking out ‘‘is as17 signed to the Reserve (other than the Retired Re18 serve) and meets the qualifications of section

19 1965(5)(C) of this title, or is assigned to the Retired

20 Reserve and meets the qualifications of section

21 1965(5)(D) of this title,’’;

22 (2) by striking out subsection (e); and

23 (3) by redesignating subsections (f) and (g) as

24 subsections (e) and (f), respectively.
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1 SEC. 102. CONVERSION TO COMMERCIAL LIFE INSURANCE

2 POLICY.

3 (a) SGLI CONVERSION.—Subsection (b) of section

4 1968, as amended by section 101(c)(2), is amended—

5 (1) by inserting ‘‘(1)’’ after ‘‘(b)’’ at the begin6 ning of the subsection;

7 (2) by striking out ‘‘would cease,’’ in the first

8 sentence and all that follows through the period at

9 the end of the sentence and inserting in lieu thereof

10 ‘‘would cease—

11 ‘‘(A) shall be automatically converted to Veter12 ans’ Group Life Insurance, subject to (i) the timely

13 payment of the initial premium under terms pre14 scribed by the Secretary, and (ii) the terms and con15 ditions set forth in section 1977 of this title; or

16 ‘‘(B) at the election of the member, shall be

17 converted to an individual policy of insurance as de18 scribed in section 1977(e) of this title upon written

19 application for conversion made to the participating

20 company selected by the member and payment of the

21 required premiums.’’; and

22 (3) by designating the second sentence as para23 graph (2) and in that sentence striking out ‘‘Such

24 automatic conversion’’ and inserting in lieu thereof

25 ‘‘Automatic conversion to Veterans’ Group Life In26 surance under paragraph (1)’’.
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1 (b) VGLI CONVERSION.—Section 1977 is amended—

2 (1) in subsection (a)—

3 (A) by inserting ‘‘(1)’’ after ‘‘(a)’’;

4 (B) by striking out the last two sentences;

5 and

6 (C) by adding at the end the following:

7 ‘‘(2) If any person insured under Veterans’ Group

8 Life Insurance again becomes insured under

9 Servicemembers’ Group Life Insurance but dies before ter10 minating or converting such person’s Veterans’ Group In11 surance, Veterans’ Group Life Insurance shall be payable

12 only if such person is insured for less than $200,000

13 under Servicemembers’ Group Life Insurance, and then

14 only in an amount which, when added to the amount of

15 Servicemembers’ Group Life Insurance payable, does not

16 exceed $200,000.’’; and

17 (2) in subsection (e)—

18 (A) in the first sentence, by inserting ‘‘at

19 any time’’ after ‘‘shall have the right’’; and

20 (B) by striking out the third sentence and

21 inserting in lieu thereof the following: ‘‘The

22 Veterans’ Group Life Insurance policy will ter23 minate on the day before the date on which the

24 individual policy becomes effective.’’.
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1 SEC. 103. INFORMATION TO BE PROVIDED MEMBERS CON2 CERNING AUTOMATIC MAXIMUM COVERAGE

3 OF $200,000 UNDER SERVICEMEN’S GROUP

4 LIFE INSURANCE.

5 Section 1967, as amended by section 101(b), is

6 amended by inserting after subsection (c) the following

7 new subsection (d):

8 ‘‘(d) Whenever a member has the opportunity to

9 make an election under subsection (a) not to be insured

10 under this subchapter, or to be insured under this sub11 chapter in an amount less than the maximum amount of

12 $200,000, and at such other times periodically thereafter

13 as the Secretary concerned considers appropriate, the Sec14 retary concerned shall furnish to the member general in15 formation concerning life insurance. Such information

16 shall include—

17 ‘‘(1) the purpose and role of life insurance in fi18 nancial planning;

19 ‘‘(2) the difference between term life insurance

20 and whole life insurance;

21 ‘‘(3) the availability of commercial life insur22 ance; and

23 ‘‘(4) the relationship between Servicemembers’

24 Group Life Insurance and Veterans’ Group Life In25 surance.’’.
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1 SEC. 104. RENAMING OF SERVICEMEN’S GROUP LIFE IN2 SURANCE PROGRAM.

3 (a) IN GENERAL.—The program of insurance oper4 ated by the Secretary of Veterans Affairs under sub5 chapter III of chapter 19 of title 38, United States Code,

6 is hereby redesignated as the Servicemembers’ Group Life

7 Insurance program.

8 (b) AMENDMENTS TO CHAPTER 19.—(1) Sections

9 1967(a), (c), and (e), 1968(b), 1969(a)–(e), 1970(a), (f),

10 and (g), 1971(b), 1973, 1974, and 1977(a), (d), (e), and

11 (g) are amended by striking out ‘‘Servicemen’s Group’’

12 each place it appears and inserting in lieu thereof

13 ‘‘Servicemembers’ Group’’.

14 (2)(A) The heading of subchapter III of chapter 19

15 is amended to read as follows:

16 ‘‘SUBCHAPTER III—SERVICEMEMBERS’ GROUP

17 LIFE INSURANCE (FORMERLY SERVICE18 MEN’S GROUP LIFE INSURANCE)’’.

19 (B) The heading of section 1974 is amended to read

20 as follows:

21 ‘‘§ 1974. Advisory Council on Servicemembers’ Group

22 Life Insurance (formerly Servicemen’s

23 Group Life Insurance)’’.

24 (3) The table of sections at the beginning of chapter

25 19 is amended—
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1 (A) by striking out the item relating to sub2 chapter III and inserting in lieu thereof the follow3 ing:

‘‘SUBCHAPTER III—SERVICEMEMBERS’ GROUP LIFE INSURANCE (FORMERLY

SERVICEMEN’S GROUP LIFE INSURANCE)’’

4 and

5 (B) by striking out the item relating to section

6 1974 and inserting in lieu thereof the following:

‘‘1974. Advisory Council on Servicemembers’ Group Life Insurance (formerly

Servicemen’s Group Life Insurance)’’.

7 (c) OTHER CONFORMING AMENDMENTS.—(1) Sec8 tion 1315(f)(1)(F) is amended by striking out ‘‘service9 men’s’’ the first place it appears and inserting in lieu

10 thereof ‘‘servicemembers’’.

11 (2) Sections 3017(a) and 3224(1) are amended by

12 striking out ‘‘Servicemen’s’’ each place it appears and in13 serting in lieu thereof ‘‘Servicemembers’ ’’.

14 SEC. 105. EFFECTIVE DATE.

15 The Servicemembers’ Group Life Insurance of any

16 member of the Retired Reserve of a uniformed service in

17 force on the date of the enactment of this Act shall be

18 converted, effective 90 days after that date, to Veterans’

19 Group Life Insurance.
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1 TITLE II—OTHER MATTERS

2 SEC. 201. ELIGIBILITY OF CERTAIN MINORS FOR BURIAL IN

3 NATIONAL CEMETERIES.

4 (a) ELIGIBILITY.—Paragraph (5) of section 2402 is

5 amended by adding at the end thereof the following: ‘‘For

6 purposes of this paragraph, a ‘minor child’ is a child under

7 21 years of age, or under 23 years of age if pursuing a

8 program of education at an educational institution, and

9 those terms have the meaning as defined in sections 3452

10 (b) and (c) of this title.’’.

11 (b) CONFORMING AMENDMENT.—Section 101(4)(A)

12 is amended by striking out ‘‘chapter 19’’ and inserting in

13 lieu thereof ‘‘chapters 19 and 24’’.

14 SEC. 202. PROGRAMS, PROJECTS, AND ACTIVITIES OF THE

15 EDUCATION SERVICE, DEPARTMENT OF VET16 ERANS AFFAIRS.

17 (a) LOCATED IN THE DISTRICT OF COLUMBIA.—

18 Chapter 77 is amended by inserting after section 7703 the

19 following new section:

20 ‘‘§ 7705. Management, policy, and operations func21 tions associated with the educational as22 sistance programs of the Education Serv23 ice

24 ‘‘The offices of Education Procedures Systems, Edu25 cation Operations, and Education Policy and Program Ad-
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1 ministration, and any successor to any such office, of the

2 Education Service of the Veterans Benefit Administration

3 shall be in the District of Columbia.’’.

4 (b) CLERICAL AMENDMENT.—The table of sections

5 at the beginning of such chapter is amended by inserting

6 after the item relating to section 7703 the following new

7 item:

‘‘7705. Management, policy, and operations functions associated with the educational assistance programs of the Education Service.’’.

Passed the House of Representatives May 21, 1996.

Attest:

Clerk.