I
107TH CONGRESS
1ST SESSION
H. R. 2222
To amend title 38, United States Code, to make certain improvements to
the Servicemembers’ Group Life Insurance life insurance program for
members of the Armed Forces, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 19, 2001
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 certain
improvements to the Servicemembers’ Group Life Insur-
ance life insurance program for members of the Armed
Forces, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Veterans Life Insur-
ance Improvement Act of 2001’’.
SEC. 2. PAYMENT OF INSURANCE PROCEEDS TO AN ALTER-
NATE 
BENEFICIARY 
WHEN 
FIRST 
BENE-
FICIARY CANNOT BE IDENTIFIED.
(a) NSLI—Section 1917 of title 38, United States
Code, is amended by adding at the end the following new
subsection:
‘‘(f)(1) Following the death of the insured and in a
case not covered by subsection (d)—
‘‘(A) if the first beneficiary otherwise entitled to
payment of the insurance does not make a claim for
such payment within two years after the death of
the insured, payment may be made to another bene-
ficiary designated by the insured, in the order of
precedence as designated by the insured, as if the
first beneficiary had predeceased the insured; and
‘‘(B) if within four years after the death of the
insured, no claim has been filed by a person des-
ignated by the insured as a beneficiary and the Sec-
retary has not received any notice in writing that
any such claim will be made, payment may (notwith-
standing any other provision of law) be made to
such person as may in the judgment of the Secretary
be equitably entitled thereto.
‘‘(2) Payment of insurance under paragraph (1) shall
be a bar to recovery by any other person.’’.
(b) USGLI.—Section 1952 of such title is amended
by adding at the end the following new subsection:
‘‘(c)(1) Following the death of the insured and in a
case not covered by section 1950 of this title—
‘‘(A) if the first beneficiary otherwise entitled to
payment of the insurance does not make a claim for
such payment within two years after the death of
the insured, payment may be made to another bene-
ficiary designated by the insured, in the order of
precedence as designated by the insured, as if the
first beneficiary had predeceased the insured; and
‘‘(B) if within four years after the death of the
insured, no claim has been filed by a person des-
ignated by the insured as a beneficiary and the Sec-
retary has not received any notice in writing that
any such claim will be made, payment may (notwith-
standing any other provision of law) be made to
such person as may in the judgment of the Secretary
be equitably entitled thereto.
‘‘(2) Payment of insurance under paragraph (1) shall
be a bar to recovery by any other person.’’.
(c) TRANSITION PROVISION.—In the case of a person
insured under subchapter I or II of title 38, United States
Code, who dies before the date of the enactment of this
Act, the two-year and four-year periods specified in sub-
section (f)(1) of section 1917 of title 38, United States
Code, as added by subsection (a), and subsection (c)(1)
of section 1952 of such title, as added by subsection (b),
as applicable, shall for purposes of the applicable sub-
section be treated as being the two-year and four-year pe-
riods, respectively, beginning on the date of the enactment
of this Act.
SEC. 3. REDUCTION IN SERVICE-DISABLED VETERANS IN-
SURANCE PREMIUMS.
Section 1922(a) of title 38, United States Code, is
amended—
(1) by inserting ‘‘(1)’’ after ‘‘(a)’’; and
(2) by striking the fourth sentence and all that
follows and inserting the following:
‘‘(2) Insurance granted under this section shall be
issued upon the same terms and conditions as are con-
tained in the standard policies of National Service Life
Insurance, except that—
‘‘(A) the premium rates for such insurance—
‘‘(i) for premiums for months beginning
before the date of the enactment of the Vet-
erans Life Insurance Improvement Act of 2001
shall be based on the Commissioners 1941
Standard Ordinary Table of Mortality and in-
terest at the rate of 21⁄4 percent per year; and
‘‘(ii) for premiums for months beginning
on or after that date shall be based upon the
1980 Commissioners Standard Ordinary Basic
Table of Mortality and interest at the rate of 5
percent per year;
‘‘(B) all cash, loan, paid-up, and extended
values—
‘‘(i) for a policy issued under this section
before the date of the enactment of the Vet-
erans Life Insurance Improvement Act of 2001
shall be based upon the Commissioners 1941
Standard ordinary Table of Mortality and inter-
est at the rate of 21⁄4 percent per year; and
‘‘(ii) for a policy issued under this section
on or after that date shall be based upon the
1980 Commissioners Standard Ordinary Basic
Table of Mortality and interest at the rate of 5
percent per year;
‘‘(C) all settlements on policies involving annu-
ities shall be calculated on the basis of The Annuity
Table for 1949, and interest at the rate of 21⁄4 per-
cent per year;
‘‘(D) insurance granted under this section shall
be on a nonparticipating basis;
‘‘(E) all premiums and other collections for in-
surance under this section shall be credited directly
to a revolving fund in the Treasury of the United
States; and
‘‘(F) any payments on such insurance shall be
made directly from such fund.
‘‘(3) Appropriations to the fund referred to in sub-
paragraphs (E) and (F) of paragraph (2) are hereby au-
thorized.
‘‘(4) As to insurance issued under this section, waiver
of premiums pursuant to section 602(n) of the National
Service Life Insurance Act of 1940 and section 1912 of
this title shall not be denied on the ground that the serv-
ice-connected disability became total before the effective
date of such insurance.’’.
SEC. 4. INCREASE OF VETERANS’ MORTGAGE LIFE INSUR-
ANCE COVERAGE TO $200,000.
(a) INCREASE.—Section 2106(b) of title 38, United
States Code, is amended by striking ‘‘$90,000’’ and in-
serting ‘‘$200,000’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply with respect to insurance pay-
able under section 2106 of title 38, United States Code,
in the case of a veteran insured under that section who
dies on or after the date of enactment of this Act.
SEC. 5. AUTHORITY FOR VETERANS’ MORTGAGE LIFE IN-
SURANCE TO BE CARRIED BEYOND AGE 70.
Section 2106 of title 38, United States Code, is
amended—
(1) in subsection (a), by inserting ‘‘age 69 or
younger’’ after ‘‘any eligible veteran’’; and
(2) in subsection (i), by striking paragraph (2)
and redesignating paragraphs (3) and (4) as para-
graphs (2) and (3), respectively.
Æ