I 
108TH CONGRESS 
1ST SESSION H. R. 1554
To amend title 38, United States Code, to make certain improvements to 
the National Service Life Insurance and United States Government Life 
Insurance programs, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 2, 2003
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 certain 
improvements to the National Service Life Insurance 
and United States Government Life Insurance 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. 
This Act may be cited as the ‘‘Veterans Life Insur-
ance Improvement Act of 2003’’.
SEC. 2. PAYMENT OF INSURANCE PROCEEDS TO AN ALTER-
NATE 
BENEFICIARY 
WHEN 
FIRST 
BENE-
FICIARY CANNOT BE IDENTIFIED. 
(a) NSLI.—Section 1917 of title 38, United States 
Code, is amended by adding at the end the following new 
subsection: 
‘‘(f)(1) Following the death of the insured and in a 
case not covered by subsection (d)—
‘‘(A) if the first beneficiary otherwise entitled to 
payment of the insurance does not make a claim for 
such payment within two years after the death of 
the insured, payment may be made to another bene-
ficiary designated by the insured, in the order of 
precedence as designated by the insured, as if the 
first beneficiary had predeceased the insured; and 
‘‘(B) if within four years after the death of the 
insured, no claim has been filed by a person des-
ignated by the insured as a beneficiary and the Sec-
retary has not received any notice in writing that 
any such claim will be made, payment may (notwith-
standing any other provision of law) be made to 
such person as may in the judgment of the Secretary 
be equitably entitled thereto. 
‘‘(2) Payment of insurance under paragraph (1) shall 
be a bar to recovery by any other person.’’.
(b) USGLI.—Section 1952 of such title is amended 
by adding at the end the following new subsection: 
‘‘(c)(1) Following the death of the insured and in a 
case not covered by section 1950 of this title—
‘‘(A) if the first beneficiary otherwise entitled to 
payment of the insurance does not make a claim for 
such payment within two years after the death of 
the insured, payment may be made to another bene-
ficiary designated by the insured, in the order of 
precedence as designated by the insured, as if the 
first beneficiary had predeceased the insured; and 
‘‘(B) if within four years after the death of the 
insured, no claim has been filed by a person des-
ignated by the insured as a beneficiary and the Sec-
retary has not received any notice in writing that 
any such claim will be made, payment may (notwith-
standing any other provision of law) be made to 
such person as may in the judgment of the Secretary 
be equitably entitled thereto. 
‘‘(2) Payment of insurance under paragraph (1) shall 
be a bar to recovery by any other person.’’. 
(c) TRANSITION PROVISION.—In the case of a person 
insured under subchapter I or II of chapter 19 of title 
38, United States Code, who dies before the date of the 
enactment of this Act, the two-year and four-year periods
specified in subsection (f)(1) of section 1917 of title 38, 
United States Code, as added by subsection (a), and sub-
section (c)(1) of section 1952 of such title, as added by 
subsection (b), as applicable, shall for purposes of the ap-
plicable subsection be treated as being the two-year and 
four-year periods, respectively, beginning on the date of 
the enactment of this Act. 
SEC. 3. REDUCTION IN SERVICE-DISABLED VETERANS IN-
SURANCE PREMIUMS. 
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 Vet-
erans Life Insurance Improvement Act of 2003 
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 
1980 Commissioners Standard Ordinary Basic 
Table of Mortality and interest at the rate of 5 
percent 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 Vet-
erans Life Insurance Improvement Act of 2003 
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 
1980 Commissioners Standard Ordinary Basic 
Table of Mortality and interest at the rate of 5 
percent 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.’’. 
SEC. 4. INCREASE OF VETERANS’ MORTGAGE LIFE INSUR-
ANCE COVERAGE TO $200,000. 
(a) INCREASE.—Section 2106(b) of title 38, United 
States Code, is amended by striking ‘‘$90,000’’ and in-
serting ‘‘$200,000’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply with respect to insurance pay-
able under section 2106 of title 38, United States Code,
in the case of a veteran insured under that section who 
dies on or after the date of the enactment of this Act.
Æ