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, includ-
ing any consequential or punitive damages. 
‘‘SEC. 307. ENFORCEMENT OF STORAGE LIENS. 
‘‘(a) LIENS.—
‘‘(1) LIMITATION
ON
FORECLOSURE
OR
EN-
FORCEMENT.—A person holding a lien on the prop-
erty 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 para-
graph (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 fore-
close 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 materially affected by mili-
tary service—
‘‘(1) stay the proceeding for a period of time as 
justice and equity require; or 
‘‘(2) adjust the obligation to preserve the inter-
ests 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 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, includ-
ing 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 rea-
son 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 con-
tract for whole, endowment, universal, or term life in-
surance, including any benefit in the nature of such 
insurance arising out of membership in any fraternal 
or beneficial association which—
‘‘(A) provides that the insurer may not—
‘‘(i) decrease the amount of coverage or 
increase the amount of premiums if the in-
sured is in military service; or 
‘‘(ii) limit or restrict coverage for any 
activity required by military service; and 
‘‘(B) is in force not less than 180 days be-
fore 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, corporation, partnership, association, or busi-
ness that is chartered or authorized to provide insur-
ance and issue contracts or policies by the laws of a 
State or the United States. 
‘‘SEC. 402. INSURANCE RIGHTS AND PROTECTIONS. 
‘‘(a) RIGHTS AND PROTECTIONS.—The rights and pro-
tections under this title apply to the insured when the in-
sured, the insured’s designee, or the insured’s beneficiary 
applies in writing for protection under this title, unless the 
Secretary of Veterans Affairs determines that the insured’s 
policy is not entitled to protection under this title. 
‘‘(b) NOTIFICATION AND APPLICATION.—The Secretary 
of Veterans Affairs shall notify the Secretary concerned of 
the procedures to be used to apply for the protections pro-
vided 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 insurance 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 max-
imum 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 designee, or the insured’s beneficiary, as the 
case may be; 
‘‘(2) identify the policy and the insurer; and 
‘‘(3) include an acknowledgement that the in-
sured’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 INSURED.—
Upon receipt of the application of the insured, the insurer 
shall furnish a report concerning the policy to the Secretary 
of Veterans Affairs as required by regulations prescribed by 
the Secretary. 
‘‘(d) POLICY MODIFICATION.—Upon application for 
protection under this title, the insured and the insurer shall 
have constructively agreed to any policy modification nec-
essary to give this title full force and effect.
‘‘SEC. 404. POLICIES ENTITLED TO PROTECTION AND LAPSE 
OF POLICIES. 
‘‘(a) DETERMINATION.—The Secretary of Veterans Af-
fairs shall determine whether a policy is entitled to protec-
tion under this title and shall notify the insured and the 
insurer of that determination. 
‘‘(b) LAPSE PROTECTION.—A policy that the Secretary 
determines is entitled to protection under this title shall not 
lapse or otherwise terminate or be forfeited for the non-
payment of a premium, or interest or indebtedness on a 
premium, after the date of the application for protection. 
‘‘(c) TIME APPLICATION.—The protection provided by 
this title applies during the insured’s period of military 
service and for a period of two years thereafter. 
‘‘SEC. 405. POLICY RESTRICTIONS. 
‘‘(a) DIVIDENDS.—While a policy is protected under 
this title, a dividend or other monetary benefit under a pol-
icy may not be paid to an insured or used to purchase divi-
dend additions without the approval of the Secretary of Vet-
erans Affairs. If such approval is not obtained, the divi-
dends or benefits shall be added to the value of the policy 
to be used as a credit when final settlement is made with 
the insurer. 
‘‘(b) SPECIFIC RESTRICTIONS.—While a policy is pro-
tected under this title, cash value, loan value, withdrawal 
of dividend accumulation, unearned premiums, or other