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 Af-
fairs for veterans with service-connected disabilities, and for other pur-
poses. 
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 improve-
ments to certain life insurance programs, administered 
by the Secretary of Veterans Affairs for veterans with 
service-connected disabilities, 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 ‘‘Fair Insurance Pre-
miums for Disabled Veterans Act’’.
SEC. 2. REDUCTION IN SERVICE-DISABLED VETERANS IN-
SURANCE PREMIUMS. 
(a) IN GENERAL.—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 Fair In-
surance Premiums for Disabled Veterans Act 
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 
2001 Commissioners Standard Ordinary Table 
of Mortality and interest at the rate of 4.5 per-
cent per year; 
‘‘(B) all cash, loan, paid-up, and extended val-
ues—
‘‘(i) for a policy issued under this section 
before the date of the enactment of the Fair In-
surance Premiums for Disabled Veterans Act 
shall be based upon the Commissioners 1941 
Standard Ordinary Table of Mortality and in-
terest 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 
2001 Commissioners Standard Ordinary Table 
of Mortality and interest at the rate of 4.5 per-
cent 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. 
‘‘(5) Administrative costs to the Government for the 
costs of the program of insurance under this section shall 
be paid from amounts credited to the fund under subpara-
graph (E) of paragraph (2), and payments for claims 
against the fund for amounts in excess of amounts cred-
ited to the fund under that subparagraph (after such ad-
ministrative costs have been paid) shall be paid from ap-
propriations to the fund.’’. 
(b) CONFORMING AMENDMENT.—Section 1982 of 
such title is amended by inserting ‘‘1922(a)(5),’’ after 
‘‘1920(c),’’. 
SEC. 3. INCREASE IN MAXIMUM COVERAGE UNDER VET-
ERANS’ MORTGAGE LIFE INSURANCE PRO-
GRAM TO $200,000. 
(a) INCREASE.—Subsection (b) of section 2106 of 
title 38, United States Code, is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(b)’’; 
(2) by designating the second, third, and fourth 
sentences as paragraphs (2), (3), and (4), respec-
tively; 
(3) in paragraph (1), as designated by para-
graph (1) of this subsection, by striking ‘‘may not 
exceed’’ and all that follows through ‘‘on the housing 
unit.’’ and inserting ‘‘shall be the amount of the 
loan outstanding on the housing unit, except that—
‘‘(A) coverage may not exceed $200,000; and 
‘‘(B) a veteran may elect, in writing, to be cov-
ered for less than the maximum coverage available.’’; 
and 
(4) in paragraph (2), as designated by para-
graph (2) of this subsection, by striking ‘‘of such in-
surance’’ and inserting ‘‘of insurance provided a vet-
eran under this section’’. 
(b) CONFORMING AMENDMENT.—Subsection (g) of 
such section is amended by striking ‘‘of this section or’’ 
and inserting ‘‘or an election under that subsection or by’’. 
(c) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect at the end of the 120-day 
period beginning on the date of the enactment of this Act.
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