II 

Calendar No. 218 

109TH CONGRESS 

1ST SESSION S. 1235 

[Report No. 109–139] 

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 

SEPTEMBER 21, 2005 

Reported by Mr. CRAIG, with an amendment and an amendment to the title 

[Strike out all after the enacting clause and insert the part printed in italic] 

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, 
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Veterans’ Benefits Im3 provement Act of 2005’’. 

4 SEC. 2. GROUP LIFE INSURANCE. 

5 (a) SERVICEMEMBERS’ GROUP LIFE INSURANCE.— 

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

7 on October 1, 2005, is amended— 

8 (1) in subsection (a)— 

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

10 the following: 

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

12 an insured member, the Secretary of Defense shall make 

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

14 the member elects, at any time, to— 

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

16 insured member; or 

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

18 member’s spouse. 

19 ‘‘(D) The failure of the Secretary of Defense to pro20 vide timely notification under subparagraph (C) shall not 

21 affect the validity of an election by the member. 

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

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

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

25 election. Elections made after marriage or remarriage are 
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1 subject to the notice requirement under subparagraph 

2 (C).’’; and 

3 (B) in paragraph (3)— 

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

5 clause (i) and inserting the following: 

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

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

8 ‘‘member or spouse’’ and inserting ‘‘mem9 ber, be evenly divisible by $50,000 and, in 

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

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

12 and inserting ‘‘$400,000’’. 

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

14 title 38, United States Code, is amended— 

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

16 and inserting ‘‘2 years’’; and 

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

18 and inserting ‘‘2 years’’. 

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

20 1977(a) of title 38, United States Code, as in effect on 

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

22 place it appears and inserting ‘‘$400,000’’. 
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1 SEC. 3. ADJUSTABLE RATE MORTGAGES. 

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

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

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

5 SEC. 4. EFFECTIVE DATE. 

6 The amendments made by this Act shall take effect 

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

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

9 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

10 (a) SHORT TITLE.—This Act may be cited as the ‘‘Vet11 erans Benefits Improvement Act of 2005’’. 

12 (b) TABLE OF CONTENTS.—The table of contents for 

13 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—INSURANCE MATTERS 

Sec. 101. Group Life Insurance. 

Sec. 102. Treatment of stillborn children as insurable dependents under 

Servicemembers’ Group Life Insurance program. 

TITLE II—HOUSING MATTERS 

Sec. 201. Adjustable rate mortgages. 

Sec. 202. Technical corrections to Veterans Benefits Improvement Act of 2004. 

Sec. 203. Permanent authority for housing loans for Native American veterans. 

TITLE III—OTHER MATTERS 

Sec. 301. Annual plan on outreach activities. 

Sec. 302. Extension of reporting requirements on equitable relief cases. 

Sec. 303. Inclusion of additional diseases and conditions in diseases and disabilities presumed to be associated with prisoner of war status. 

Sec. 304. Post traumatic stress disorder claims. 
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1 TITLE I—INSURANCE MATTERS 

2 SEC. 101. GROUP LIFE INSURANCE. 

3 (a) SERVICEMEMBERS’ GROUP LIFE INSURANCE.— 

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

5 on October 1, 2005, is amended— 

6 (1) in subsection (a)— 

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

8 the following: 

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

10 insured member, the Secretary concerned shall make a good11 faith effort to notify the spouse of the member, at the last 

12 address of the spouse in the records of the Secretary con13 cerned, if the member elects, prior to discharge from the 

14 military, naval, or air service, to— 

15 ‘‘(i) reduce amounts of insurance coverage of the 

16 member; or 

17 ‘‘(ii) name a beneficiary other than the member’s 

18 spouse or child. 

19 ‘‘(D) The failure of the Secretary concerned to provide 

20 timely notification under subparagraph (C) shall not affect 

21 the validity of an election by a member. 

22 ‘‘(E) If an unmarried member marries after having 

23 made one or more elections to reduce or decline insurance 

24 coverage or to name beneficiaries, the Secretary concerned 

25 is not required to notify the spouse of such marriage of such 
6 

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1 elections. Elections made after such marriage are subject 

2 to the notice requirements under subparagraph (C).’’; and 

3 (B) in paragraph (3)— 

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

5 clause (i) and inserting the following: 

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

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

8 ‘‘member or spouse’’ and inserting ‘‘mem9 ber, be evenly divisible by $50,000 and, in 

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

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

12 inserting ‘‘$400,000’’. 

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

14 38, United States Code, is amended— 

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

16 and inserting ‘‘2 years’’; and 

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

18 inserting ‘‘2 years’’. 

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

20 1977(a) of title 38, United States Code, is amended by strik21 ing ‘‘$250,000’’ each place it appears and inserting 

22 ‘‘$400,000’’. 

23 (d) CONSTRUCTION OF CERTAIN OTHER AMEND24 MENTS.—Notwithstanding subsection (h) of section 1012 of 

25 Public Law 109–13, the amendments made by subsections 
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1 (a)(1), (c), (d), (e)(2), (f), and (g) of such section shall not 

2 go into effect on September 1, 2005, as otherwise provided 

3 by such subsection (h), and shall not be treated for any pur4 poses as having gone into effect on that date. 

5 (e) EFFECTIVE DATE.—(1) The amendments made by 

6 subsection (a) of this section shall take effect on September 

7 1, 2005. 

8 (2) The amendments made by subsections (b) and (c) 

9 of this section shall take effect on October 1, 2005, imme10 diately after the execution of section 1012(i) of Public Law 

11 109–13. 

12 (3) If the date of the enactment of this Act occurs after 

13 September 1, 2005, and before October 1, 2005, the provi14 sions of paragraph (2) of section 1967(a) of title 38, United 

15 States Code, shall, for purposes of the execution of the 

16 amendments made by subsection (a) of this section, be such 

17 provisions as in effect on May 10, 2005, the day before the 

18 date of the enactment of Public Law 109–13. 

19 SEC. 102. TREATMENT OF STILLBORN CHILDREN AS INSUR20 ABLE DEPENDENTS UNDER 

21 SERVICEMEMBERS’ GROUP LIFE INSURANCE 

22 PROGRAM. 

23 (a) TREATMENT.—Section 1965(10) of title 38, United 

24 States Code, is amended by adding at the end the following 

25 new subparagraph: 
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1 ‘‘(C) The member’s stillborn child.’’. 

2 (b) CONFORMING AMENDMENT.—Section 101(4)(A) of 

3 such title is amended by striking ‘‘section 1965(10)(B)’’ in 

4 the matter preceding clause (i) and inserting ‘‘subpara5 graph (B) or (C) of section 1965(10)’’. 

6 TITLE II—HOUSING MATTERS 

7 SEC. 201. ADJUSTABLE RATE MORTGAGES. 

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

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

10 ‘‘such percentage as the Secretary may prescribe’’. 

11 SEC. 202. TECHNICAL CORRECTIONS TO VETERANS BENE12 FITS IMPROVEMENT ACT OF 2004. 

13 (a) IN GENERAL.—Section 2101 of title 38, United 

14 States Code, as amended by section 401 of the Veterans Ben15 efits Improvement Act of 2004 (Public Law 108–454), is 

16 further amended— 

17 (1) by redesignating subsection (c) as subsection 

18 (d); 

19 (2) by inserting after subsection (b) a new sub20 section (c) consisting of the text of subsection (c) of 

21 such section 2101 as in effect immediately before the 

22 enactment of such Act, modified— 

23 (A) by inserting after ‘‘(c)’’ the following: 

24 ‘‘ASSISTANCE TO MEMBERS OF THE ARMED

25 FORCES.—’’; 
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1 (B) in paragraph (1)— 

2 (i) in the first sentence, by striking 

3 ‘‘paragraph (1), (2), or (3)’’ and inserting 

4 ‘‘subparagraph (A), (B), (C), or (D) of 

5 paragraph (2)’’; and 

6 (ii) in the second sentence, by striking 

7 ‘‘the second sentence’’ and inserting ‘‘para8 graph (3)’’; and 

9 (C) in paragraph (2)— 

10 (i) in the first sentence, by striking 

11 ‘‘paragraph (1)’’ and inserting ‘‘paragraph 

12 (2)’’; and 

13 (ii) in the second sentence, by striking 

14 ‘‘paragraph (2)’’ and inserting ‘‘paragraph 

15 (3)’’; and 

16 (3) in subsection (a)(3), by striking ‘‘subsection 

17 (c)’’ in the matter preceding subparagraph (A) and 

18 inserting ‘‘subsection (d)’’. 

19 (b) EFFECTIVE DATE.—The amendments made by sub20 section (a) shall take effect immediately after the enactment 

21 of the Veterans Benefits Improvement Act of 2004 (Public 

22 Law 108–454). 
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1 SEC. 203. PERMANENT AUTHORITY FOR HOUSING LOANS 

2 FOR NATIVE AMERICAN VETERANS. 

3 (a) PERMANENT AUTHORITY.—Section 3761 of title 

4 38, United States Code, is amended to read as follows: 

5 ‘‘§ 3761. Authority for housing loans for Native Amer6 ican veterans 

7 ‘‘(a) The Secretary shall make direct housing loans to 

8 Native American veterans in accordance with the provisions 

9 of this subchapter. 

10 ‘‘(b) The purpose of loans under this subchapter is to 

11 permit Native American veterans to purchase, construct, or 

12 improve dwellings on trust land.’’. 

13 (b) CONFORMING AMENDMENTS.—Section 3762 of such 

14 title is amended— 

15 (1) in subsection (a), by inserting ‘‘under this 

16 subchapter’’ after ‘‘Native American veteran’’ in the 

17 matter preceding paragraph (1); 

18 (2) in subsection (b)(1)(E), by striking ‘‘in order 

19 to ensure’’ and all that follows and inserting a period; 

20 (3) in subsection (c)(1)(B), by striking ‘‘shall be 

21 the amount’’ and all that follows in the second sen22 tence and inserting ‘‘shall be such amount as the Sec23 retary considers appropriate for the purpose of this 

24 subchapter.’’; 

25 (4) in subsection (d)(1), by striking the second 

26 sentence; 
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1 (5) in subsection (i)— 

2 (A) in paragraph (1), by striking ‘‘of the 

3 pilot program’’ and all that follows and insert4 ing ‘‘of the availability of direct housing loans 

5 for Native American veterans under this sub6 chapter.’’; and 

7 (B) in paragraph (2)— 

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

9 ‘‘under the pilot program’’ and all that fol10 lows and inserting ‘‘under this subchapter’’; 

11 and 

12 (ii) in subparagraph (E), by striking 

13 ‘‘in participating in the pilot program’’ 

14 and inserting ‘‘in participating in the mak15 ing of direct loans under this subchapter’’; 

16 and 

17 (6) by striking subsection (j). 

18 (c) CLERICAL AMENDMENTS.—(1) The heading of sub19 chapter V of chapter 37 of such title is amended to read 

20 as follows: 

21 ‘‘Subchapter V—Housing Loans for Native 

22 American Veterans’’. 

23 (2) The table of contents for such chapter is amended— 
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1 (A) by striking the matter relating to the sub2 chapter heading of subchapter V and inserting the fol3 lowing new item: 

‘‘SUBCHAPTER V—HOUSING LOANS FOR NATIVE AMERICAN VETERANS’’; 

4 and 

5 (B) by striking the item relating to section 3761 

6 and inserting the following new item: 

‘‘3761. Authority for housing loans for Native American veterans.’’. 

7 TITLE III—OTHER MATTERS 

8 SEC. 301. ANNUAL PLAN ON OUTREACH ACTIVITIES. 

9 (a) ANNUAL PLAN REQUIRED.—Subchapter II of 

10 chapter 5 of title 38, United States Code, is amended by 

11 inserting after section 523 the following new section: 

12 ‘‘§ 523A. Annual plan on outreach activities 

13 ‘‘(a) ANNUAL PLAN REQUIRED.—The Secretary shall 

14 prepare each year a plan for the outreach activities of the 

15 Department for the following year. 

16 ‘‘(b) ELEMENTS.—Each annual plan under subsection 

17 (a) shall include the following: 

18 ‘‘(1) Plans for efforts to identify veterans who 

19 are not enrolled or registered with the Department for 

20 benefits or services under the programs administered 

21 by the Secretary. 

22 ‘‘(2) Plans for informing veterans and their de23 pendents of modifications of the benefits and services 

24 under the programs administered by the Secretary, 
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1 including eligibility for medical and nursing care 

2 and services. 

3 ‘‘(c) COORDINATION IN DEVELOPMENT.—In developing 

4 an annual plan under subsection (a), the Secretary shall 

5 consult with the following: 

6 ‘‘(1) Directors or other appropriate officials of 

7 organizations approved by the Secretary under sec8 tion 5902 of this title. 

9 ‘‘(2) Directors or other appropriate officials of 

10 State and local education and training programs. 

11 ‘‘(3) Representatives of non-governmental organi12 zations that carry out veterans outreach programs. 

13 ‘‘(4) Representatives of State and local veterans 

14 employment organizations. 

15 ‘‘(5) Businesses and professional organizations. 

16 ‘‘(6) Other individuals and organizations that 

17 assist veterans in adjusting to civilian life. 

18 ‘‘(d) INCORPORATION OF ASSESSMENT OF PREVIOUS

19 ANNUAL PLANS.—In developing an annual plan under sub20 section (a), the Secretary shall take into account the lessons 

21 learned from the implementation of previous annual plans 

22 under such subsection. 

23 ‘‘(e) INCORPORATION OF RECOMMENDATIONS TO IM24 PROVE OUTREACH AND AWARENESS.—In developing an an25 nual plan under subsection (a), the Secretary shall incor-
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1 porate the recommendations for the improvement of vet2 erans outreach and awareness activities included in the re3 port submitted to Congress by the Secretary pursuant to 

4 section 805 of the Veterans Benefits Improvement Act of 

5 2004 (Public Law 108–454).’’. 

6 (b) CLERICAL AMENDMENT.—The table of sections at 

7 the beginning of such chapter is amended by inserting after 

8 the item relating to section 523 the following new item: 

‘‘523A. Annual plan on outreach activities.’’. 

9 SEC. 302. EXTENSION OF REPORTING REQUIREMENTS ON 

10 EQUITABLE RELIEF CASES. 

11 Section 503(c) of title 38, United States Code, is 

12 amended by striking ‘‘December 31, 2004’’ and inserting 

13 ‘‘December 31, 2009’’. 

14 SEC. 303. INCLUSION OF ADDITIONAL DISEASES AND CON15 DITIONS IN DISEASES AND DISABILITIES PRE16 SUMED TO BE ASSOCIATED WITH PRISONER 

17 OF WAR STATUS. 

18 Section 1112(b)(3) of title 38, United States Code, is 

19 amended by adding at the end the following new subpara20 graphs: 

21 ‘‘(L) Atherosclerotic heart disease or hypertensive 

22 vascular disease (including hypertensive heart dis23 ease) and their complications (including myocardial 

24 infarction, congestive heart failure and arrhythmia). 

25 ‘‘(M) Stroke and its complications.’’. 
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1 SEC. 304. POST TRAUMATIC STRESS DISORDER CLAIMS. 

2 The Secretary shall develop and implement policy and 

3 training initiatives to standardize the assessment of post 

4 traumatic stress disorder disability compensation claims. 

Amend the title so as to read: ‘‘To amend title 38, 

United States Code, to extend the availability of 

$400,000 in life insurance coverage to servicemembers 

and veterans, to make a stillborn child an insurable dependent for purposes of the Servicemembers’ Group Life 

Insurance program, to make technical corrections to the 

Veterans Benefits Improvement Act of 2004, to make 

permanent a pilot program for direct housing loans for 

Native American veterans, and to require an annual plan 

on outreach activities of the Department of Veterans Affairs.’’. 
Calendar No. 218 

109TH CONGRESS 

1ST SESSION S. 1235 

[Report No. 109–139] 

A BILL 

To amend chapters 19 and 37 of title 38, United 

programs, and for other purposes. life insurance and veterans’ group life insurance $400,000 in coverage under the servicemembers’ States Code, to extend the availability of 

SEPTEMBER 21, 2005 

Reported with an amendment and an amendment to the 

title