II

104TH CONGRESS

1ST SESSION S. 996

To amend title 38, United States Code, to change the name of Servicemen’s

Group Life Insurance program to Servicemembers’ Group Life Insurance,

to merge the Retired Reservists’ Servicemembers’ Group Life Insurance

program into the Veterans’ Group Life Insurance program, to extend

Veterans’ Group Life Insurance coverage to members of the Ready Reserve of a uniformed service who retire with less than 20 years of

service, to permit an insured to convert a Veterans’ Group Life Insurance

policy to an individual policy of life insurance with a commercial insurance company at any time, and to permit an insured to convert a

Servicemembers’ Group Life Insurance policy to an individual policy

of life insurance with a commercial company upon separation from

service.

IN THE SENATE OF THE UNITED STATES

JUNE 29 (legislative day, JUNE 19), 1995

Mr. SIMPSON (by request) introduced the following bill; which was read twice

and referred to the Committee on Veterans’ Affairs

A BILL

To amend title 38, United States Code, to change the name

of Servicemen’s Group Life Insurance program to

Servicemembers’ Group Life Insurance, to merge the Retired Reservists’ Servicemembers’ Group Life Insurance

program into the Veterans’ Group Life Insurance program, to extend Veterans’ Group Life Insurance coverage

to members of the Ready Reserve of a uniformed service

who retire with less than 20 years of service, to permit

an insured to convert a Veterans’ Group Life Insurance
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S 996 IS

policy to an individual policy of life insurance with a

commercial insurance company at any time, and to permit an insured to convert a Servicemembers’ Group Life

Insurance policy to an individual policy of life insurance

with a commercial company upon separation from

service.

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; REFERENCES TO TITLE 38,

4 UNITED STATES CODE.

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

6 ‘‘Veterans’ Insurance Reform Act of 1995’’.

7 (b) REFERENCES.—Except as otherwise expressly

8 provided, whenever in this Act an amendment is expressed

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

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

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

12 SEC. 2. REMOVAL OF GENDER REFERENCES.

13 (a) IN GENERAL.—

14 (1) Section 1315(f)(1)(F) is amended by strik15 ing out ‘‘servicemen’s’’ in the first place it appears

16 and inserting in lieu thereof ‘‘servicemembers’ ’’.

17 (2) Sections 1967 (a), (c), and (f), 1968(b),

18 1969 (a)–(e), 1970 (a), (f), and (g), 1971(b), 1973,

19 1974, 1977 (a), (d), (e), and (g), 3017(a), and

20 3224(1) are amended by striking out ‘‘Servicemen’s’’
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1 each place it appears and inserting in lieu thereof

2 ‘‘Servicemembers’ ’’.

3 (b) CONFORMING AMENDMENTS.—(1)(A) The head4 ing of subchapter III of chapter 19 is amended to read

5 as follows:

6 ‘‘SUBCHAPTER III—SERVICEMEMBERS’ GROUP

7 LIFE INSURANCE (FORMERLY SERVICE8 MEN’S GROUP LIFE INSURANCE)’’.

9 (B) The item relating to such subchapter in the table

10 of sections at the beginning of such chapter is amended

11 to read as follows:

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

SERVICEMEN’S GROUP LIFE INSURANCE)’’.

12 (2)(A) The heading of section 1974 is amended to

13 read as follows:

14 ‘‘§ 1974. Advisory Council on Servicemembers’ Group

15 Life Insurance (formerly Servicemen’s

16 Group Life Insurance)’’.

17 (B) The item relating to such section in the table of

18 sections at the beginning of chapter 19 is amended to read

19 as follows:

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

Servicemen’s Group Life Insurance)’’.
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1 SEC. 3. MERGER OF RETIRED RESERVIST SERVICE2 MEMBERS’ GROUP LIFE INSURANCE AND

3 VETERANS’ GROUP LIFE INSURANCE AND EX4 TENSION OF VETERANS’ GROUP LIFE INSUR5 ANCE TO MEMBERS OF THE READY RE6 SERVES.

7 (a) Section 1965(5) is amended—

8 (1) in subparagraph (B), by inserting ‘‘and’’ at

9 the end thereof;

10 (2) by striking subparagraphs (C) and (D); and

11 (3) redesignating subparagraph (E) as subpara12 graph (C).

13 (b) Section 1967 is amended—

14 (1) in subsection (a)—

15 (A) in paragraph (1) by inserting ‘‘and’’ at

16 the end thereof;

17 (B) by striking paragraphs (3) and (4) in

18 their entirety; and

19 (C) by striking ‘‘or the first day a member

20 of the Reserves, whether or not assigned to the

21 Retired Reserve of a uniformed service, meets

22 the qualifications of section 1965(5)(C) of this

23 title, or the first day a member of the Reserves

24 meets the qualifications of section 1965(5)(D)

25 of this title,’’; and
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1 (2) by striking subsection (d) in its entirety;

2 and

3 (3) by redesignating subsections (e) and (f) as

4 subsections (d) and (e) respectively.

5 (c) Section 1968 is amended—

6 (1) in subsection (a)—

7 (A) by striking ‘‘subparagraph (B), (C), or

8 (D) of section 1965(5)’’ and inserting ‘‘section

9 1965(5)(B)’’ in lieu thereof;

10 (B) in paragraph (4) by striking—

11 (i) ‘‘—(A)’’ and inserting a comma in

12 lieu thereof;

13 (ii) subparagraphs (B) and (C) in

14 their entirety; and

15 (C) by striking paragraphs (5) and (6) in

16 their entirety; and

17 (2) in subsection (b) by striking the last two

18 sentences.

19 (d) Section 1969 is amended—

20 (1) in subsection (a)(2) by striking ‘‘is assigned

21 to the Reserve (other than the Retired Reserve) and

22 meets the qualifications of section 1965(5)(C) of this

23 title, or is assigned to the Retired Reserve and meets

24 the qualifications of section 1965(5)(D) of this

25 title,’’;
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1 (2) by striking subsection (e) in its entirety;

2 and

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

4 subsections (e) and (f) respectively.

5 SEC. 4. CONVERSION TO COMMERCIAL LIFE INSURANCE

6 POLICY.

7 (a) Section 1968(b) is amended by—

8 (1) adding ‘‘(1)’’ following ‘‘the date such in9 surance would cease,’’ in the first sentence;

10 (2) redesignating clauses (1) and (2) in the

11 first sentence as (A) and (B) respectively;

12 (3) striking ‘‘title.’’ at the end of the first sen13 tence and inserting in lieu thereof ‘‘title, or, (2) at

14 the election of the member, shall be converted to an

15 individual policy of insurance as described in section

16 1977(e) of this title upon written application for

17 conversion made to the participating company se18 lected by the member and payment of the required

19 premiums.’’; and

20 (4) adding ‘‘to Veterans’ Group Life Insurance’’

21 following ‘‘automatic conversion’’ in the second sen22 tence.

23 (b) Section 1977 is amended—

24 (1) in paragraph (a) by striking the last two

25 sentences and inserting in lieu thereof the following:
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1 ‘‘If any person insured under Veterans’ Group Life

2 Insurance again becomes insured under

3 Servicemembers’ Group Life Insurance but dies be4 fore terminating or converting such person’s Veter5 ans’ Group Insurance, Veterans’ Group Life Insur6 ance will be payable only if such person is insured

7 for less than $200,000 under Servicemembers’

8 Group Life Insurance, and then only in an amount

9 which when added to the amount of Servicemembers’

10 Group Life Insurance payable shall not exceed

11 $200,000.’’; and

12 (2) in paragraph (e) by striking the third sen13 tence and inserting in lieu thereof the following:

14 ‘‘The Veterans’ Group Life Insurance policy will ter15 minate on the day before the date on which the indi16 vidual policy becomes effective.’’.

17 SEC. 5. EFFECTIVE DATE.

18 The Servicemembers’ Group Life Insurance of any

19 member of the Retired Reserve of a uniform service in

20 force on the date of enactment of this Act shall be con21 verted, effective ninety days after that date, to Veterans’

22 Group Life Insurance.

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