IB
Union Calendar No. 281
104TH CONGRESS
2D SESSION
H. R. 3373
[Report No. 104–572]
To amend title 38, United States Code, to improve certain veterans’ benefits
programs, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 1, 1996
Mr. EVERETT (for himself, Mr. EVANS, Mr. STUMP, and Mr. MONTGOMERY)
introduced the following bill; which was referred to the Committee on
Veterans’ Affairs
MAY 10, 1996
Additional sponsors: Mr. BILIRAKIS, Mr. HUTCHINSON, Mr. BUYER, Mr.
STEARNS, Mr. FLANAGAN, Mr. COOLEY of Oregon, Mr. CLEMENT, Mr.
FILNER, Mr. BISHOP, and Mr. MASCARA
MAY 10, 1996
Committed to the Committee of the Whole House on the State of the Union
and ordered to be printed
A BILL
To amend title 38, United States Code, to improve certain
veterans’ benefits programs, 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; REFERENCES TO TITLE 38,
UNITED STATES CODE.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Veterans’ Benefits Amendments of 1996’’.
(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.
TITLE I—INSURANCE REFORM
SEC. 
101. 
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 RE-
SERVE.
(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,’’; and
(2) by striking out subsection (d).
(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. 102. CONVERSION TO COMMERCIAL LIFE INSURANCE
POLICY.
(a) SGLI CONVERSION.—Subsection (b) of section
1968, as amended by section 101(c)(2), is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(b)’’ at the begin-
ning of the subsection;
(2) by striking out ‘‘would cease,’’ in the first
sentence and all that follows through the period at
the end of the sentence and inserting in lieu thereof
‘‘would cease—
‘‘(A) shall be automatically converted to Veter-
ans’ Group Life Insurance, subject to (i) the timely
payment of the initial premium under terms pre-
scribed by the Secretary, and (ii) the terms and con-
ditions set forth in section 1977 of this title; or
‘‘(B) at the election of the member, shall be
converted to an individual policy of insurance as de-
scribed 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.’’; and
(3) by designating the second sentence as para-
graph (2) and in that sentence striking out ‘‘Such
automatic conversion’’ and inserting in lieu thereof
‘‘Automatic conversion to Veterans’ Group Life In-
surance under paragraph (1)’’.
(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)—
(A) in the first sentence, by inserting ‘‘at
any time’’ after ‘‘shall have the right’’; and
(B) 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
individual policy becomes effective.’’.
SEC. 103. INFORMATION TO BE PROVIDED MEMBERS CON-
CERNING AUTOMATIC MAXIMUM COVERAGE
OF $200,000 UNDER SERVICEMEN’S GROUP
LIFE INSURANCE.
Section 1967, as amended by section 101(b), is
amended by inserting after subsection (c) the following
new subsection (d):
‘‘(d) Whenever a member has the opportunity to
make an election under subsection (a) not to be insured
under this subchapter, or to be insured under this sub-
chapter in an amount less than the maximum amount of
$200,000, and at such other times periodically thereafter
as the Secretary concerned considers appropriate, the Sec-
retary concerned shall furnish to the member general in-
formation concerning life insurance. Such information
shall include—
‘‘(1) the purpose and role of life insurance in fi-
nancial planning;
‘‘(2) the difference between term life insurance
and whole life insurance;
‘‘(3) the availability of commercial life insur-
ance; and
‘‘(4) the relationship between Servicemembers’
Group Life Insurance and Veterans’ Group Life In-
surance.’’.
SEC. 104. RENAMING OF SERVICEMEN’S GROUP LIFE IN-
SURANCE 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 (e), 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. 105. 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.
TITLE II—OTHER MATTERS
SEC. 201. ELIGIBILITY OF CERTAIN MINORS FOR BURIAL IN
NATIONAL CEMETERIES.
(a) ELIGIBILITY.—Paragraph (5) of section 2402 is
amended by adding at the end thereof the following: ‘‘For
purposes of this paragraph, a ‘minor child’ is a child under
21 years of age, or under 23 years of age if pursuing a
program of education at an educational institution, and
those terms have the meaning as defined in sections 3452
(b) and (c) of this title.’’.
(b) CONFORMING AMENDMENT.—Section 101(4)(A)
is amended by striking out ‘‘chapter 19’’ and inserting in
lieu thereof ‘‘chapters 19 and 24’’.
SEC. 202. PROGRAMS, PROJECTS, AND ACTIVITIES OF THE
EDUCATION SERVICE, DEPARTMENT OF VET-
ERANS AFFAIRS.
(a) LOCATED IN THE DISTRICT OF COLUMBIA.—
Chapter 77 is amended by inserting after section 7703 the
following new section:
‘‘§ 7705. Management, policy, and operations func-
tions associated with the educational as-
sistance programs of the Education Serv-
ice
‘‘The offices of Education Procedures Systems, Edu-
cation Operations, and Education Policy and Program Ad-
ministration, and any successor to any such office, of the
Education Service of the Veterans Benefit Administration
shall be in the District of Columbia.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
after the item relating to section 7703 the following new
item:
‘‘7705. Management, policy, and operations functions associated with the edu-
cational assistance programs of the Education Service.’’.
Union Calendar No. 281
104TH CONGRESS
2D SESSION
H. R. 3373
[Report No. 104–572]
A BILL
To amend title 38, United States Code, to improve
certain veterans’ benefits programs, and for
other purposes.
MAY 10, 1996
Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed