II 

110TH CONGRESS 

1ST SESSION S. 1315 

To amend title 38, United States Code, to enhance life insurance benefits 

for disabled veterans, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 7, 2007 

Mr. AKAKA 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 enhance life 

insurance benefits for disabled veterans, 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 ‘‘Disabled Veterans In5 surance Improvement Act of 2007’’. 

6 SEC. 2. ENHANCEMENT OF VETERANS’ MORTGAGE LIFE IN7 SURANCE. 

8 Section 2106(b) of title 38, United States Code, is 

9 amended by striking ‘‘$90,000’’ and inserting 

10 ‘‘$200,000’’. 


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1 SEC. 3. LEVEL-PREMIUM TERM LIFE INSURANCE FOR VET2 ERANS WITH SERVICE-CONNECTED DISABIL3 ITIES. 

4 (a) IN GENERAL.—Chapter 19 of title 38, United 

5 States Code, is amended by inserting after section 1922A 

6 the following new section: 

7 ‘‘§ 1922B. Level-premium term life insurance for vet8 erans with service-connected disabilities 

9 ‘‘(a) IN GENERAL.—In accordance with the provi10 sions of this section, the Secretary shall grant insurance 

11 to each eligible veteran who seeks such insurance against 

12 the death of such veteran occurring while such insurance 

13 is in force. 

14 ‘‘(b) ELIGIBLE VETERANS.—For purposes of this 

15 section, an eligible veteran is any veteran less than 65 

16 years of age who has a service-connected disability. 

17 ‘‘(c) AMOUNT OF INSURANCE.—(1) Subject to para18 graph (2), the amount of insurance granted an eligible vet19 eran under this section shall be $50,000 or such lesser 

20 amount as the veteran shall elect. The amount of insur21 ance so elected shall be evenly divisible by $10,000. 

22 ‘‘(2) The aggregate amount of insurance of an eligible 

23 veteran under this section, section 1922 of this title, and 

24 section 1922A of this title may not exceed $50,000. 

25 ‘‘(d) REDUCED AMOUNT FOR VETERANS AGE 70 OR

26 OLDER.—In the case of a veteran insured under this secVerDate Aug 31 2005 20:29 May 08, 2007 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1315.IS S1315

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1 tion who turns age 70, the amount of insurance of such 

2 veteran under this section after the date such veteran 

3 turns age 70 shall be the amount equal to 20 percent of 

4 the amount of insurance of the veteran under this section 

5 as of the day before such date. 

6 ‘‘(e) PREMIUMS.—(1) Premium rates for insurance 

7 under this section shall be based on the 2001 Commis8 sioners Standard Ordinary Basic Table of Mortality and 

9 interest at the rate of 4.5 per centum per annum. 

10 ‘‘(2) The amount of the premium charged a veteran 

11 for insurance under this section may not increase while 

12 such insurance is in force for such veteran. 

13 ‘‘(3) The Secretary may not charge a premium for 

14 insurance under this section for a veteran as follows: 

15 ‘‘(A) A veteran who has a service-connected dis16 ability rated as total and is eligible for a waiver of 

17 premiums under section 1912 of this title. 

18 ‘‘(B) A veteran who is 70 years of age or older. 

19 ‘‘(4) Insurance granted under this section shall be on 

20 a nonparticipating basis and all premiums and other col21 lections therefor shall be credited directly to a revolving 

22 fund in the Treasury of the United States, and any pay23 ments on such insurance shall be made directly from such 

24 fund. Appropriations to such fund are hereby authorized. 


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1 ‘‘(5) Administrative costs to the Government for the 

2 costs of the program of insurance under this section shall 

3 be paid from premiums credited to the fund under para4 graph (4), and payments for claims against the fund 

5 under paragraph (4) for amounts in excess of amounts 

6 credited to such fund under that paragraph (after such 

7 administrative costs have been paid) shall be paid from 

8 appropriations to the fund. 

9 ‘‘(f) APPLICATION REQUIRED.—An eligible veteran 

10 seeking insurance under this section shall file with the 

11 Secretary an application therefor. Such application shall 

12 be filed not later than the earlier of— 

13 ‘‘(1) the end of the two-year period beginning 

14 on the date on which the Secretary notifies the vet15 eran that the veteran has a service-connected dis16 ability; and 

17 ‘‘(2) the end of the 10-year period beginning on 

18 the date of the separation of the veteran from the 

19 Armed Forces, whichever is earlier.’’. 

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

21 at the beginning of chapter 19 of such title is amended 

22 by inserting after the item related to section 1922A the 

23 following new item: 

‘‘1922B. Level-premium term life insurance for veterans with service-connected 

disabilities.’’. 


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1 (c) EXCHANGE OF SERVICE DISABLED VETERANS’ 

2 INSURANCE.—During the one-year period beginning on 

3 the date of the enactment of this Act, any veteran insured 

4 under section 1922 of title 38, United States Code, who 

5 is eligible for insurance under section 1922B of title 38, 

6 United States Code (as added by subsection (a)), may ex7 change insurance coverage under such section 1922 for 

8 insurance coverage under such section 1922B. 

9 SEC. 4. ADMINISTRATIVE COSTS OF SERVICE DISABLED 

10 VETERANS’ INSURANCE. 

11 Section 1922(a) of title 38, United States Code, is 

12 amended by striking ‘‘date of such insurance’’ and insert13 ing ‘‘date of such insurance; (5) administrative costs to 

14 the Government for the costs of the program of insurance 

15 under this section shall be paid from premiums credited 

16 to the fund under paragraph (4), and payments for claims 

17 against the fund under paragraph (4) for amounts in ex18 cess of amounts credited to such fund under that para19 graph (after such administrative costs have been paid) 

20 shall be paid from appropriations to the fund’’. 

21 SEC. 5. MODIFICATION OF SERVICEMEMBERS’ GROUP LIFE 

22 INSURANCE COVERAGE. 

23 (a) EXPANSION OF SERVICEMEMBERS’ GROUP LIFE

24 INSURANCE TO INCLUDE CERTAIN MEMBERS OF INDI25 VIDUAL READY RESERVE.— 


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1 (1) IN GENERAL.—Paragraph (1)(C) of section 

2 1967(a) of title 38, United States Code, is amended 

3 by striking ‘‘section 1965(5)(B) of this title’’ and in4 serting ‘‘subparagraph (B) or (C) of section 1965(5) 

5 of this title’’. 

6 (2) CONFORMING AMENDMENT.—Paragraph 

7 (5)(C) of such section 1967(a) is amended by strik8 ing ‘‘section 1965(5)(B) of this title’’ and inserting 

9 ‘‘subparagraph (B) or (C) of section 1965(5) of this 

10 title’’. 

11 (b) REDUCTION IN PERIOD OF COVERAGE FOR DE12 PENDENTS AFTER MEMBER SEPARATES.—Section 

13 1968(a)(5)(B)(ii) of such title is amended by striking 

14 ‘‘120 days after’’. 

Æ 


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