H. R. 100—15
of not less than 180 days (or who enters military service
under a call or order specifying a period of 180 days or
less and who, without a break in service, receives orders
extending the period of military service to a period of
not less than 180 days); or
‘‘(B) the servicemember, while in military service, exe-
cutes the lease and thereafter receives military orders for
a permanent change of station outside of the continental
United States or to deploy with a military unit for a period
of not less than 180 days.
‘‘(c) MANNER OF TERMINATION.—
‘‘(1) IN GENERAL.—Termination of a lease under subsection
(a) is made—
‘‘(A) by delivery by the lessee of written notice of such
termination, and a copy of the servicemember’s military
orders, to the lessor (or the lessor’s grantee), or to the
lessor’s agent (or the agent’s grantee); and
‘‘(B) in the case of a lease of a motor vehicle, by
return of the motor vehicle by the lessee to the lessor
(or the lessor’s grantee), or to the lessor’s agent (or the
agent’s grantee), not later than 15 days after the date
of the delivery of written notice under subparagraph (A).
‘‘(2) DELIVERY OF NOTICE.—Delivery of notice under para-
graph (1)(A) may be accomplished—
‘‘(A) by hand delivery;
‘‘(B) by private business carrier; or
‘‘(C) by placing the written notice in an envelope with
sufficient postage and with return receipt requested, and
addressed as designated by the lessor (or the lessor’s
grantee) or to the lessor’s agent (or the agent’s grantee),
and depositing the written notice in the United States
mails.
‘‘(d) EFFECTIVE DATE OF LEASE TERMINATION.—
‘‘(1) LEASE OF PREMISES.—In the case of a lease described
in subsection (b)(1) that provides for monthly payment of rent,
termination of the lease under subsection (a) is effective 30
days after the first date on which the next rental payment
is due and payable after the date on which the notice under
subsection (c) is delivered. In the case of any other lease
described in subsection (b)(1), termination of the lease under
subsection (a) is effective on the last day of the month following
the month in which the notice is delivered.
‘‘(2) LEASE OF MOTOR VEHICLES.—In the case of a lease
described in subsection (b)(2), termination of the lease under
subsection (a) is effective on the day on which the requirements
of subsection (c) are met for such termination.
‘‘(e) ARREARAGES AND OTHER OBLIGATIONS AND LIABILITIES.—
Rents or lease amounts unpaid for the period preceding the effective
date of the lease termination shall be paid on a prorated basis.
In the case of the lease of a motor vehicle, the lessor may not
impose an early termination charge, but any taxes, summonses,
and title and registration fees and any other obligation and liability
of the lessee in accordance with the terms of the lease, including
reasonable charges to the lessee for excess wear, use and mileage,
that are due and unpaid at the time of termination of the lease
shall be paid by the lessee.
H. R. 100—16
‘‘(f) RENT PAID
IN ADVANCE.—Rents or lease amounts paid
in advance for a period after the effective date of the termination
of the lease shall be refunded to the lessee by the lessor (or the
lessor’s assignee or the assignee’s agent) within 30 days of the
effective date of the termination of the lease.
‘‘(g) RELIEF
TO LESSOR.—Upon application by the lessor to
a court before the termination date provided in the written notice,
relief granted by this section to a servicemember may be modified
as justice and equity require.
‘‘(h) PENALTIES.—
‘‘(1) MISDEMEANOR.—Any person who knowingly seizes,
holds, or detains the personal effects, security deposit, or other
property of a servicemember or a servicemember’s dependent
who lawfully terminates a lease covered by this section, or
who knowingly interferes with the removal of such property
from premises covered by such lease, for the purpose of sub-
jecting or attempting to subject any of such property to a
claim for rent accruing subsequent to the date of termination
of such lease, or attempts to do so, shall be fined as provided
in title 18, United States Code, or imprisoned for not more
than one year, or both.
‘‘(2) PRESERVATION OF OTHER REMEDIES.—The remedy and
rights provided under this section are in addition to and do
not preclude any remedy for wrongful conversion otherwise
available under law to the person claiming relief under this
section, including any award for consequential or punitive dam-
ages.
‘‘SEC. 306. PROTECTION OF LIFE INSURANCE POLICY.
‘‘(a) ASSIGNMENT OF POLICY PROTECTED.—If a life insurance
policy on the life of a servicemember is assigned before military
service to secure the payment of an obligation, the assignee of
the policy (except the insurer in connection with a policy loan)
may not exercise, during a period of military service of the
servicemember or within one year thereafter, any right or option
obtained under the assignment without a court order.
‘‘(b) EXCEPTION.—The prohibition in subsection (a) shall not
apply—
‘‘(1) if the assignee has the written consent of the insured
made during the period described in subsection (a);
‘‘(2) when the premiums on the policy are due and unpaid;
or
‘‘(3) upon the death of the insured.
‘‘(c) ORDER REFUSED BECAUSE OF MATERIAL AFFECT.—A court
which receives an application for an order required under subsection
(a) may refuse to grant such order if the court determines the
ability of the servicemember to comply with the terms of the obliga-
tion is materially affected by military service.
‘‘(d) TREATMENT OF GUARANTEED PREMIUMS.—For purposes of
this subsection, premiums guaranteed under the provisions of title
IV of this Act shall not be considered due and unpaid.
‘‘(e) PENALTIES.—
‘‘(1) MISDEMEANOR.—A person who knowingly takes an
action contrary to this section, or attempts to do so, shall
be fined as provided in title 18, United States Code, or impris-
oned for not more than one year, or both.
H. R. 100—17
‘‘(2) PRESERVATION OF OTHER REMEDIES.—The remedy and
rights provided under this section are in addition to and do
not preclude any remedy for wrongful conversion otherwise
available under law to the person claiming relief under this
section, including any consequential or punitive damages.
‘‘SEC. 307. ENFORCEMENT OF STORAGE LIENS.
‘‘(a) LIENS.—
‘‘(1) LIMITATION
ON
FORECLOSURE
OR
ENFORCEMENT.—A
person holding a lien on the property or effects of a
servicemember may not, during any period of military service
of the servicemember and for 90 days thereafter, foreclose or
enforce any lien on such property or effects without a court
order granted before foreclosure or enforcement.
‘‘(2) LIEN DEFINED.—For the purposes of paragraph (1),
the term ‘lien’ includes a lien for storage, repair, or cleaning
of the property or effects of a servicemember or a lien on
such property or effects for any other reason.
‘‘(b) STAY OF PROCEEDINGS.—In a proceeding to foreclose or
enforce a lien subject to this section, the court may on its own
motion, and shall if requested by a servicemember whose ability
to comply with the obligation resulting in the proceeding is materi-
ally affected by military service—
‘‘(1) stay the proceeding for a period of time as justice
and equity require; or
‘‘(2) adjust the obligation to preserve the interests of all
parties.
The provisions of this subsection do not affect the scope of section
303.
‘‘(c) PENALTIES.—
‘‘(1) MISDEMEANOR.—A person who knowingly takes an
action contrary to this section, or attempts to do so, shall
be fined as provided in title 18, United States Code, or impris-
oned for not more than one year, or both.
‘‘(2) PRESERVATION OF OTHER REMEDIES.—The remedy and
rights provided under this section are in addition to and do
not preclude any remedy for wrongful conversion otherwise
available under law to the person claiming relief under this
section, including any consequential or punitive damages.
‘‘SEC. 308. EXTENSION OF PROTECTIONS TO DEPENDENTS.
‘‘Upon application to a court, a dependent of a servicemember
is entitled to the protections of this title if the dependent’s ability
to comply with a lease, contract, bailment, or other obligation is
materially affected by reason of the servicemember’s military
service.
‘‘TITLE IV—LIFE INSURANCE
‘‘SEC. 401. DEFINITIONS.
‘‘For the purposes of this title:
‘‘(1) POLICY.—The term ‘policy’ means any individual con-
tract for whole, endowment, universal, or term life insurance
(other than group term life insurance coverage), including any
benefit in the nature of such insurance arising out of member-
ship in any fraternal or beneficial association which—
‘‘(A) provides that the insurer may not—
H. R. 100—18
‘‘(i) decrease the amount of coverage or require
the payment of an additional amount as premiums
if the insured engages in military service (except
increases in premiums in individual term insurance
based upon age); or
‘‘(ii) limit or restrict coverage for any activity
required by military service; and
‘‘(B) is in force not less than 180 days before the
date of the insured’s entry into military service and at
the time of application under this title.
‘‘(2) PREMIUM.—The term ‘premium’ means the amount
specified in an insurance policy to be paid to keep the policy
in force.
‘‘(3) INSURED.—The term ‘insured’ means a servicemember
whose life is insured under a policy.
‘‘(4) INSURER.—The term ‘insurer’ includes any firm, cor-
poration, partnership, association, or business that is chartered
or authorized to provide insurance and issue contracts or poli-
cies by the laws of a State or the United States.
‘‘SEC. 402. INSURANCE RIGHTS AND PROTECTIONS.
‘‘(a) RIGHTS
AND PROTECTIONS.—The rights and protections
under this title apply to the insured when—
‘‘(1) the insured,
‘‘(2) the insured’s legal representative, or
‘‘(3) the insured’s beneficiary in the case of an insured
who is outside a State,
applies in writing for protection under this title, unless the Sec-
retary of Veterans Affairs determines that the insured’s policy
is not entitled to protection under this title.
‘‘(b) NOTIFICATION AND APPLICATION.—The Secretary of Vet-
erans Affairs shall notify the Secretary concerned of the procedures
to be used to apply for the protections provided under this title.
The applicant shall send the original application to the insurer
and a copy to the Secretary of Veterans Affairs.
‘‘(c) LIMITATION ON AMOUNT.—The total amount of life insur-
ance coverage protection provided by this title for a servicemember
may 
not 
exceed 
$250,000, 
or 
an 
amount 
equal 
to 
the
Servicemember’s Group Life Insurance maximum limit, whichever
is greater, regardless of the number of policies submitted.
‘‘SEC. 403. APPLICATION FOR INSURANCE PROTECTION.
‘‘(a) APPLICATION PROCEDURE.—An application for protection
under this title shall—
‘‘(1) be in writing and signed by the insured, the insured’s
legal representative, or the insured’s beneficiary, as the case
may be;
‘‘(2) identify the policy and the insurer; and
‘‘(3) include an acknowledgement that the insured’s rights
under the policy are subject to and modified by the provisions
of this title.
‘‘(b) ADDITIONAL REQUIREMENTS.—The Secretary of Veterans
Affairs may require additional information from the applicant, the
insured and the insurer to determine if the policy is entitled to
protection under this title.
‘‘(c) NOTICE TO THE SECRETARY BY THE INSURER.—Upon receipt
of the application of the insured, the insurer shall furnish a report