I
105TH CONGRESS
2D SESSION
H. R. 4115
To amend title 38, United States Code, to provide for a special period
during which a former member of the armed forces may convert a
Servicemembers’ Group Life Insurance policy to a Veterans’ Group Life
Insurance policy, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 23, 1998
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 provide for a
special period during which a former member of the
armed forces may convert a Servicemembers’ Group Life
Insurance policy to a Veterans’ Group Life Insurance
policy, 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 ‘‘Veterans Life Insur-
ance Opportunity Act of 1998’’.
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SEC. 2. SPECIAL PERIOD FOR CERTAIN VETERANS TO CON-
VERT LIFE INSURANCE POLICIES FROM SGLI
TO VGLI.
(a) IN GENERAL.—Section 1977(g) of title 38,
United States Code, to read as follows:
‘‘(g)(1)(A) Any person whose Servicemembers’ Group
Life Insurance was continued in force after termination
of duty or discharge from service under the law as in effect
prior to the date on which the Veterans’ Group Life Insur-
ance program (provided for under section 1977 of this
title) became effective, and whose coverage under
Servicemembers’ Group Life Insurance terminated less
than four years prior to such date, shall be eligible within
one year from the effective date of the Veterans’ Group
Life Insurance program to apply for and be granted Veter-
ans’ Group Life Insurance in an amount equal to the
amount of the insured’s Servicemembers’ Group Life In-
surance which was not converted to an individual policy
under prior law.
‘‘(B) Veterans’ Group Life Insurance issued under
subparagraph (A) shall be issued for a term period equal
to five years, less the time elapsing between the termi-
nation of the applicant’s Servicemembers’ Group Life In-
surance and the effective date on which the Veterans’
Group Life Insurance program became effective.
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‘‘(2)(A) Any person, on or after the date of the enact-
ment of this paragraph, who did not convert coverage
under Servicemembers’ Group Life Insurance to coverage
under this section within the period after separation pro-
vided for under section 1968(a) of this title may, subject
to the succeeding provisions of this subsection, apply for
(within the 20-month period beginning on the last day of
such period of separation) and be granted coverage under
this section in an amount equal to the amount of the in-
sured’s Servicemembers’ Group Life Insurance which was
not converted to coverage under this section.
‘‘(B) any person, on or after the date of the enact-
ment of this paragraph, who did not convert coverage
under Servicemembers’ Group Life Insurance to coverage
under 
this 
section 
and 
whose 
coverage 
under
Servicemembers’ Group Life Insurance terminated during
the 5-year period beginning on the date of the expiration
of the period of duty or travel under section 1967(b) or
1968(a) of this title may, subject to the succeeding provi-
sions of this subsection, apply for (within the 90-day pe-
riod beginning on the later of such date of enactment or
the end of such 5-year period to) and be granted coverage
under this section in an amount equal to the amount of
the insured’s Servicemembers’ Group Life Insurance
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which was not converted to an individual policy under
prior law.
‘‘(C) Veterans’ Group Life Insurance issued under
this paragraph shall be issued for a term period equal to
five years.
‘‘(3) Veterans’ Group Life Insurance under this sub-
section shall only be issued upon application to the admin-
istrative office established under section 1966(b) of this
title, payment of the required premium, and proof of good
health satisfactory to that office, which proof shall be sub-
mitted at the applicant’s own expense.
‘‘(4)(A) Any person who cannot meet the good health
requirements for insurance under this subsection solely be-
cause of a service-connected disability shall have such dis-
ability waived.
‘‘(B) For each month for which any eligible veteran,
whose service-connected disabilities are waived, is insured
under this subsection there shall be contributed to the in-
surer or insurers issuing the policy or policies from the
appropriation ‘Compensation and Pensions, Department
of Veterans Affairs’ an amount necessary to cover the cost
of the insurance in excess of the premiums established for
eligible veterans, including the cost of the excess mortality
attributable to such veteran’s service-connected disabil-
ities.
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‘‘(5) The Secretary may establish, as the Secretary
may determine to be necessary according to sound actuar-
ial principles, a separate premium, age groupings for pre-
mium purposes, accounting, and reserves, for persons
granted insurance under this subsection different from
those established for other persons granted insurance
under this section.
‘‘(6) Appropriations to carry out the purpose of this
section are hereby authorized.’’.
(b) NOTICE.—Not later than 120 days after the date
of the enactment of this Act, the Secretary of Veterans
Affairs shall provide for notice to any member of the uni-
formed services who purchased a Servicemembers’ Group
Life Insurance policy under subchapter III of chapter 19
of such title, and who did not convert such policy to a
Veterans’ Group Life Insurance policy under section
1977(g) of such title, of the opportunities under para-
graph (2) of such section, as added by subsection (a), to
become insured under a Veterans’ Group Life Insurance
policy during the periods described in such subsection.
(c) EFFECTIVE DATES.—(1) Subparagraph (A) of
section 1977(g)(2) of such title, as added by subsection
(a), shall apply with respect to a termination of
Servicemembers’ Group Life Insurance policies under sub-