I
104TH CONGRESS
2D SESSION
H. R. 2843
To amend title 38, United States Code, to change the name of the Service-
men’s Group Life Insurance program to Servicemembers’ Group Life
Insurance, to authorize the termination of life insurance under that
program when premiums are not paid, to provide for coverage under
that program to be provided automatically at the maximum level unless
the servicemember elects a lower level, and to make other improvements
to life insurance programs administered by the Secretary of Veterans
Affairs.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 4, 1996
Mr. STUMP (for himself, Mr. MONTGOMERY, Mr. EVERETT, Mr. EVANS, and
Mr. SMITH of New Jersey) introduced the following bill; which was re-
ferred to the Committee on Veterans’ Affairs
A BILL
To amend title 38, United States Code, to change the name
of the Servicemen’s Group Life Insurance program to
Servicemembers’ Group Life Insurance, to authorize the
termination of life insurance under that program when
premiums are not paid, to provide for coverage under
that program to be provided automatically at the maxi-
mum level unless the servicemember elects a lower level,
and to make other improvements to life insurance pro-
grams administered by the Secretary of Veterans Affairs.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; REFERENCES TO TITLE 38,
UNITED STATES CODE.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Veterans’ Insurance Reform Act of 1995’’.
(b) REFERENCES.—Except as otherwise expressly
provided, whenever in this Act an amendment is expressed
in terms of an amendment to a section or other provision,
the reference shall be considered to be made to a section
or other provision of title 38, United States Code.
SEC. 2. AUTHORITY TO TERMINATE SERVICEMEN’S GROUP
LIFE INSURANCE WHEN PREMIUMS ARE NOT
PAID.
(a) AUTHORITY.—Section 1969(a)(2) is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(2)’’; and
(2) by adding at the end the following:
‘‘(B) If an individual who is required pursuant to
subparagraph (A) to make a direct remittance of costs to
the Secretary concerned fails to make the required remit-
tance within 60 days of the date on which such remittance
is due, such individual’s insurance with respect to which
such remittance is required shall be terminated by the Sec-
retary concerned. Such termination shall be made by writ-
ten notice to the individual’s official address and shall be
effective 60 days after the date of such notice. Such termi-
nation of insurance may be vacated if, before the effective
date of termination, the individual remits all amounts past
due for such insurance and demonstrates to the satisfac-
tion of the Secretary concerned that the failure to make
timely remittances was justifiable.’’.
(b) CONFORMING AMENDMENT.—Section 1968(a) is
amended by inserting ‘‘(or discontinued pursuant to sec-
tion 1969(a)(2)(B) of this title)’’ in the matter preceding
paragraph (1) after ‘‘upon the written request of the
insured’’.
SEC. 3. AUTOMATIC MAXIMUM COVERAGE UNDER SERVICE-
MEN’S GROUP LIFE INSURANCE.
(a) AUTOMATIC
MAXIMUM
COVERAGE.—Section
1967 is amended in subsections (a) and (c) by striking
out ‘‘$100,000’’ each place it appears and inserting in lieu
thereof in each instance ‘‘$200,000’’.
(b) INFORMATION TO BE PROVIDED MEMBERS.—
Subsection (e) of such section is amended to read as fol-
lows:
‘‘(e) Whenever a member has the opportunity to
make an election under subsection (a) not to be insured
under this subchapter, or to be insured under this sub-
chapter in an amount less than the maximum amount, and
at such other times periodically thereafter as the Secretary
concerned considers appropriate, the Secretary concerned
shall furnish to the member general information concern-
ing life insurance. Such information shall include—
‘‘(1) the purpose and role of life insurance in fi-
nancial planning;
‘‘(2) the difference between term life insurance
and whole life insurance;
‘‘(3) the availability of commercial life insur-
ance; and
‘‘(4) the relationship between Servicemembers’
Group Life Insurance and Veterans’ Group Life In-
surance.’’.
SEC. 4. RENAMING OF SERVICEMEN’S GROUP LIFE INSUR-
ANCE PROGRAM.
(a) IN GENERAL.—The program of insurance oper-
ated by the Secretary of Veterans Affairs under sub-
chapter III of chapter 19 of title 38, United States Code,
is hereby redesignated as the Servicemembers’ Group Life
Insurance program.
(b) AMENDMENTS TO CHAPTER 19.—(1) Sections
1967(a), (c), and (f), 1968(b), 1969(a)–(e), 1970(a), (f),
and (g), 1971(b), 1973, 1974, and 1977(a), (d), (e), and
(g) are amended by striking out ‘‘Servicemen’s Group’’
each place it appears and inserting in lieu thereof
‘‘Servicemembers’ Group’’.
(2)(A) The heading of subchapter III of chapter 19
is amended to read as follows:
‘‘SUBCHAPTER III—SERVICEMEMBERS’ GROUP
LIFE INSURANCE (FORMERLY SERVICE-
MEN’S GROUP LIFE INSURANCE)’’.
(B) The heading of section 1974 is amended to read
as follows:
‘‘§ 1974. Advisory Council on Servicemembers’ Group
Life Insurance (formerly Servicemen’s
Group Life Insurance)’’.
(3) The table of sections at the beginning of chapter
19 is amended—
(A) by striking out the item relating to sub-
chapter III and inserting in lieu thereof the follow-
ing:
‘‘SUBCHAPTER III—SERVICEMEMBERS’ GROUP LIFE INSURANCE (FORMERLY
SERVICEMEN’S GROUP LIFE INSURANCE)’’; and
(B) by striking out the item relating to section
1974 and inserting in lieu thereof the following:
‘‘1974. Advisory Council on Servicemembers’ Group Life Insurance (formerly
Servicemen’s Group Life Insurance)’’.
(c) OTHER CONFORMING AMENDMENTS.—(1) Sec-
tion 1315(f)(1)(F) is amended by striking out ‘‘service-
men’s’’ the first place it appears and inserting in lieu
thereof ‘‘servicemembers’’.
(2) Sections 3017(a) and 3224(1) are amended by
striking out ‘‘Servicemen’s’’ each place it appears and in-
serting in lieu thereof ‘‘Servicemembers’ ’’.
SEC. 5. MERGER OF RETIRED RESERVE SERVICEMEMBERS’
GROUP LIFE INSURANCE AND VETERANS’
GROUP LIFE INSURANCE AND EXTENSION OF
VETERANS’ 
GROUP 
LIFE 
INSURANCE 
TO
MEMBERS OF THE READY RESERVE.
(a) DEFINITION OF MEMBER.—Section 1965(5) is
amended—
(1) by inserting ‘‘and’’ at the end of subpara-
graph (B);
(2) by striking out subparagraphs (C) and (D);
and
(3) by redesignating subparagraph (E) as sub-
paragraph (C).
(b) PERSONS INSURED.—Section 1967 is amended—
(1) in subsection (a)—
(A) by inserting ‘‘and’’ at the end of para-
graph (1);
(B) by striking out paragraphs (3) and
(4); and
(C) by striking out ‘‘or the first day a
member of the Reserves, whether or not as-
signed to the Retired Reserve of a uniformed
service, meets the qualifications of section
1965(5)(C) of this title, or the first day a mem-
ber of the Reserves meets the qualifications of
section 1965(5)(D) of this title,’’;
(2) by striking out subsection (d); and
(3) by redesignating subsections (e) and (f) as
subsections (d) and (e), respectively.
(c) DURATION AND TERMINATION OF COVERAGE.—
Section 1968 is amended—
(1) in subsection (a)—
(A) by striking out ‘‘subparagraph (B),
(C), or (D) of section 1965(5)’’ and inserting in
lieu thereof ‘‘section 1965(5)(B)’’;
(B) by striking out the period at the end
of paragraphs (1) and (2) and inserting in lieu
thereof a semicolon;
(C) by striking out the period at the end
of paragraph (3) and inserting in lieu thereof ‘‘;
and’’;
(D) in paragraph (4)—
(i) by striking out ‘‘from such’’ in the
matter preceding subparagraph (A) and all
that follows through ‘‘(A) unless on’’ and
inserting in lieu thereof ‘‘from such assign-
ment, unless on’’;
(ii) by striking out the semicolon after
‘‘such assignment’’ and inserting in lieu
thereof a period; and
(iii) by striking out subparagraphs
(B) and (C); and
(E) by striking out paragraphs (5) and
(6); and
(2) in subsection (b), by striking out the last
two sentences.
(d) PREMIUMS.—Section 1969 is amended—
(1) in subsection (a)(2), by striking out ‘‘is as-
signed to the Reserve (other than the Retired Re-
serve) and meets the qualifications of section
1965(5)(C) of this title, or is assigned to the Retired
Reserve and meets the qualifications of section
1965(5)(D) of this title,’’;
(2) by striking out subsection (e); and
(3) by redesignating subsections (f) and (g) as
subsections (e) and (f), respectively.
SEC. 6. CONVERSION TO COMMERCIAL LIFE INSURANCE
POLICY.
(a) SGLI CONVERSION.—Subsection (b) of section
1968, as amended by section 5(c)(2), is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(b)’’ at the begin-
ning of the subsection;
(2) by striking out ‘‘would cease,’’ in the first
sentence and all that follows through the period at
the end of the sentence and inserting in lieu thereof
‘‘would cease—
‘‘(A) shall be automatically converted to Veter-
ans’ Group Life Insurance, subject to (i) the timely
payment of the initial premium under terms pre-
scribed by the Secretary, and (ii) the terms and con-
ditions set forth in section 1977 of this title; or
‘‘(B) at the election of the member, shall be
converted to an individual policy of insurance as de-
scribed in section 1977(e) of this title upon written
application for conversion made to the participating
company selected by the member and payment of the
required premiums.’’; and
(3) by designating the second sentence as para-
graph (2) and in that sentence striking out ‘‘Such
automatic conversion’’ and inserting in lieu thereof
‘‘Automatic conversion to Veterans’ Group Life In-
surance under paragraph (1)’’.
(b) VGLI CONVERSION.—Section 1977 is amended—
(1) in subsection (a)—
(A) by inserting ‘‘(1)’’ after ‘‘(a)’’;
(B) by striking out the last two sentences;
and
(C) by adding at the end the following:
‘‘(2) If any person insured under Veterans’ Group
Life 
Insurance 
again 
becomes 
insured 
under
Servicemembers’ Group Life Insurance but dies before ter-
minating or converting such person’s Veterans’ Group In-
surance, Veterans’ Group Life Insurance shall be payable
only if such person is insured for less than $200,000
under Servicemembers’ Group Life Insurance, and then
only in an amount which, when added to the amount of
Servicemembers’ Group Life Insurance payable, does not
exceed $200,000.’’; and
(2) in subsection (e)—
(A) in the first sentence, by inserting ‘‘at
any time’’ after ‘‘shall have the right’’; and
(B) by striking out the third sentence and
inserting in lieu thereof the following: ‘‘The
Veterans’ Group Life Insurance policy will ter-
minate on the day before the date on which the
individual policy becomes effective.’’.
SEC. 7. EFFECTIVE DATE.
The Servicemembers’ Group Life Insurance of any
member of the Retired Reserve of a uniformed service in
force on the date of the enactment of this Act shall be
converted, effective 90 days after that date, to Veterans’
Group Life Insurance.
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