I
104TH CONGRESS
1ST SESSION
H. R. 2156
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 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 individ-
ual policy of life insurance with a commercial company upon separation
from service.
IN THE HOUSE OF REPRESENTATIVES
AUGUST 1, 1995
Mr. STUMP (for himself and Mr. MONTGOMERY) (both by request) introduced
the following bill; which was referred 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 merge the Re-
tired Reservists’ Servicemembers’ Group Life Insurance
program into the Veterans’ Group Life Insurance pro-
gram, 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 per-
mit 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.
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. 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. 3. 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. 4. CONVERSION TO COMMERCIAL LIFE INSURANCE
POLICY.
(a) SGLI CONVERSION.—Section 1968(b), as amend-
ed by section 3(c)(2), is amended—
(1) by inserting ‘‘(1)’’ after ‘‘the date such in-
surance would cease,’’;
(2) by redesignating clauses (1) and (2) as
clauses (A) and (B), respectively; and
(3) by striking out ‘‘title.’’ and inserting in lieu
thereof ‘‘title, or (2) at the election of the member,
shall be converted to an individual policy of insur-
ance as described 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.’’.
(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), 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 indi-
vidual policy becomes effective.’’.
SEC. 5. 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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