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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1235 Introduced in Senate (IS)]

109th CONGRESS
  1st Session
                                S. 1235

To amend chapters 19 and 37 of title 38, United States Code, to extend 
the availability of $400,000 in coverage under the servicemembers' life 
 insurance and veterans' group life insurance programs, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             June 14, 2005

   Mr. Craig introduced the following bill; which was read twice and 
             referred to the Committee on Veterans' Affairs

_______________________________________________________________________

                                 A BILL

 
To amend chapters 19 and 37 of title 38, United States Code, to extend 
the availability of $400,000 in coverage under the servicemembers' life 
 insurance and veterans' group life insurance programs, and for other 
                               purposes.

    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 ``Veterans' Benefits Improvement Act 
of 2005''.

SEC. 2. GROUP LIFE INSURANCE.

    (a) Servicemembers' Group Life Insurance.--Section 1967 of title 
38, United States Code, as in effect on October 1, 2005, is amended--
            (1) in subsection (a)--
                    (A) in paragraph (2), by adding at the end the 
                following:
    ``(C) With respect to a policy of insurance covering an insured 
member, the Secretary of Defense shall make a good-faith effort to 
notify the spouse of a member if the member elects, at any time, to--
            ``(i) reduce amounts of insurance coverage of an insured 
        member; or
            ``(ii) name a beneficiary other than the insured member's 
        spouse.
    ``(D) The failure of the Secretary of Defense to provide timely 
notification under subparagraph (C) shall not affect the validity of an 
election by the member.
    ``(E) If a servicemember marries or remarries after making an 
election under subparagraph (C), the Secretary of Defense is not 
required to notify the spouse of such election. Elections made after 
marriage or remarriage are subject to the notice requirement under 
subparagraph (C).''; and
                    (B) in paragraph (3)--
                            (i) in subparagraph (A), by striking clause 
                        (i) and inserting the following:
            ``(i) In the case of a member, $400,000.''; and
                            (ii) in subparagraph (B), by striking 
                        ``member or spouse'' and inserting ``member, be 
                        evenly divisible by $50,000 and, in the case of 
                        a member's spouse''; and
            (2) in subsection (d), by striking ``$250,000'' and 
        inserting ``$400,000''.
    (b) Duration of Coverage.--Section 1968(a) of title 38, United 
States Code, is amended--
            (1) in paragraph (1)(A), by striking ``one year'' and 
        inserting ``2 years''; and
            (2) in paragraph (4), by striking ``one year'' and 
        inserting ``2 years''.
    (c) Veterans' Group Life Insurance.--Section 1977(a) of title 38, 
United States Code, as in effect on October 1, 2005, is amended by 
striking ``$250,000'' each place it appears and inserting ``$400,000''.

SEC. 3. ADJUSTABLE RATE MORTGAGES.

    Section 3707(c)(4) of title 38, United States Code, is amended by 
striking ``1 percentage point'' and inserting ``such percentage as the 
Secretary may prescribe''.

SEC. 4. EFFECTIVE DATE.

    The amendments made by this Act shall take effect on October 1, 
2005, immediately after the execution of section 1012(i) of Public Law 
109-13.
                                 <all>
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