II 

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. 

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’ Benefits Im5 provement Act of 2005’’. 
2 

•S 1235 IS

1 SEC. 2. GROUP LIFE INSURANCE. 

2 (a) SERVICEMEMBERS’ GROUP LIFE INSURANCE.— 

3 Section 1967 of title 38, United States Code, as in effect 

4 on October 1, 2005, is amended— 

5 (1) in subsection (a)— 

6 (A) in paragraph (2), by adding at the end 

7 the following: 

8 ‘‘(C) With respect to a policy of insurance covering 

9 an insured member, the Secretary of Defense shall make 

10 a good-faith effort to notify the spouse of a member if 

11 the member elects, at any time, to— 

12 ‘‘(i) reduce amounts of insurance coverage of an 

13 insured member; or 

14 ‘‘(ii) name a beneficiary other than the insured 

15 member’s spouse. 

16 ‘‘(D) The failure of the Secretary of Defense to pro17 vide timely notification under subparagraph (C) shall not 

18 affect the validity of an election by the member. 

19 ‘‘(E) If a servicemember marries or remarries after 

20 making an election under subparagraph (C), the Secretary 

21 of Defense is not required to notify the spouse of such 

22 election. Elections made after marriage or remarriage are 

23 subject to the notice requirement under subparagraph 

24 (C).’’; and 

25 (B) in paragraph (3)— 
3 

•S 1235 IS

1 (i) in subparagraph (A), by striking 

2 clause (i) and inserting the following: 

3 ‘‘(i) In the case of a member, $400,000.’’; and 

4 (ii) in subparagraph (B), by striking 

5 ‘‘member or spouse’’ and inserting ‘‘mem6 ber, be evenly divisible by $50,000 and, in 

7 the case of a member’s spouse’’; and 

8 (2) in subsection (d), by striking ‘‘$250,000’’ 

9 and inserting ‘‘$400,000’’. 

10 (b) DURATION OF COVERAGE.—Section 1968(a) of 

11 title 38, United States Code, is amended— 

12 (1) in paragraph (1)(A), by striking ‘‘one year’’ 

13 and inserting ‘‘2 years’’; and 

14 (2) in paragraph (4), by striking ‘‘one year’’ 

15 and inserting ‘‘2 years’’. 

16 (c) VETERANS’ GROUP LIFE INSURANCE.—Section 

17 1977(a) of title 38, United States Code, as in effect on 

18 October 1, 2005, is amended by striking ‘‘$250,000’’ each 

19 place it appears and inserting ‘‘$400,000’’. 

20 SEC. 3. ADJUSTABLE RATE MORTGAGES. 

21 Section 3707(c)(4) of title 38, United States Code, 

22 is amended by striking ‘‘1 percentage point’’ and inserting 

23 ‘‘such percentage as the Secretary may prescribe’’. 
4 

•S 1235 IS

1 SEC. 4. EFFECTIVE DATE. 

2 The amendments made by this Act shall take effect 

3 on October 1, 2005, immediately after the execution of 

4 section 1012(i) of Public Law 109–13. 

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