I 

108TH CONGRESS 

2D SESSION H. R. 4229

To amend title 38, United States Code, to make improvements to certain 

life insurance programs, administered by the Secretary of Veterans Affairs for veterans with service-connected disabilities, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 28, 2004

Mr. FILNER introduced the following bill; which was referred to the 

Committee on Veterans’ Affairs 

A BILL

To amend title 38, United States Code, to make improvements to certain life insurance programs, administered 

by the Secretary of Veterans Affairs for veterans with 

service-connected disabilities, 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 ‘‘Fair Insurance Pre5 miums for Disabled Veterans Act’’. 
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1 SEC. 2. REDUCTION IN SERVICE-DISABLED VETERANS IN2 SURANCE PREMIUMS. 

3 (a) IN GENERAL.—Section 1922(a) of title 38, 

4 United States Code, is amended—

5 (1) by inserting ‘‘(1)’’ after ‘‘(a)’’; and 

6 (2) by striking the fourth sentence and all that 

7 follows and inserting the following: 

8 ‘‘(2) Insurance granted under this section shall be 

9 issued upon the same terms and conditions as are con10 tained in the standard policies of National Service Life 

11 Insurance, except that—

12 ‘‘(A) the premium rates for such insurance—

13 ‘‘(i) for premiums for months beginning 

14 before the date of the enactment of the Fair In15 surance Premiums for Disabled Veterans Act 

16 shall be based on the Commissioners 1941 

17 Standard Ordinary Table of Mortality and interest at the rate of 21 18 ⁄4 percent per year; and 

19 ‘‘(ii) for premiums for months beginning 

20 on or after that date shall be based upon the 

21 2001 Commissioners Standard Ordinary Table 

22 of Mortality and interest at the rate of 4.5 per23 cent per year; 

24 ‘‘(B) all cash, loan, paid-up, and extended val25 ues—
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1 ‘‘(i) for a policy issued under this section 

2 before the date of the enactment of the Fair In3 surance Premiums for Disabled Veterans Act 

4 shall be based upon the Commissioners 1941 

5 Standard Ordinary Table of Mortality and interest at the rate of 21 6 ⁄4 percent per year; and 

7 ‘‘(ii) for a policy issued under this section 

8 on or after that date shall be based upon the 

9 2001 Commissioners Standard Ordinary Table 

10 of Mortality and interest at the rate of 4.5 per11 cent per year; 

12 ‘‘(C) all settlements on policies involving annu13 ities shall be calculated on the basis of the Annuity 

Table for 1949, and interest at the rate of 21 14 ⁄4 per15 cent per year; 

16 ‘‘(D) insurance granted under this section shall 

17 be on a nonparticipating basis; 

18 ‘‘(E) all premiums and other collections for in19 surance under this section shall be credited directly 

20 to a revolving fund in the Treasury of the United 

21 States; and 

22 ‘‘(F) any payments on such insurance shall be 

23 made directly from such fund. 
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1 ‘‘(3) Appropriations to the fund referred to in sub2 paragraphs (E) and (F) of paragraph (2) are hereby au3 thorized. 

4 ‘‘(4) As to insurance issued under this section, waiver 

5 of premiums pursuant to section 602(n) of the National 

6 Service Life Insurance Act of 1940 and section 1912 of 

7 this title shall not be denied on the ground that the serv8 ice-connected disability became total before the effective 

9 date of such insurance. 

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

11 costs of the program of insurance under this section shall 

12 be paid from amounts credited to the fund under subpara13 graph (E) of paragraph (2), and payments for claims 

14 against the fund for amounts in excess of amounts cred15 ited to the fund under that subparagraph (after such ad16 ministrative costs have been paid) shall be paid from ap17 propriations to the fund.’’. 

18 (b) CONFORMING AMENDMENT.—Section 1982 of 

19 such title is amended by inserting ‘‘1922(a)(5),’’ after 

20 ‘‘1920(c),’’. 

21 SEC. 3. INCREASE IN MAXIMUM COVERAGE UNDER VET22 ERANS’ MORTGAGE LIFE INSURANCE PRO23 GRAM TO $200,000. 

24 (a) INCREASE.—Subsection (b) of section 2106 of 

25 title 38, United States Code, is amended—
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1 (1) by inserting ‘‘(1)’’ after ‘‘(b)’’; 

2 (2) by designating the second, third, and fourth 

3 sentences as paragraphs (2), (3), and (4), respec4 tively; 

5 (3) in paragraph (1), as designated by para6 graph (1) of this subsection, by striking ‘‘may not 

7 exceed’’ and all that follows through ‘‘on the housing 

8 unit.’’ and inserting ‘‘shall be the amount of the 

9 loan outstanding on the housing unit, except that—

10 ‘‘(A) coverage may not exceed $200,000; and 

11 ‘‘(B) a veteran may elect, in writing, to be cov12 ered for less than the maximum coverage available.’’; 

13 and 

14 (4) in paragraph (2), as designated by para15 graph (2) of this subsection, by striking ‘‘of such in16 surance’’ and inserting ‘‘of insurance provided a vet17 eran under this section’’. 

18 (b) CONFORMING AMENDMENT.—Subsection (g) of 

19 such section is amended by striking ‘‘of this section or’’ 

20 and inserting ‘‘or an election under that subsection or by’’. 

21 (c) EFFECTIVE DATE.—The amendments made by 

22 subsection (a) shall take effect at the end of the 120-day 

23 period beginning on the date of the enactment of this Act.

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