IIB
107TH CONGRESS
1ST SESSION
H. R. 801
IN THE SENATE OF THE UNITED STATES
MARCH 28, 2001
Received; read twice and referred to the Committee on Veterans’ Affairs
AN ACT
To amend title 38, United States Code, to improve programs
of educational assistance, to expand programs of transi-
tion 
assistance 
and 
outreach 
to 
departing
servicemembers, veterans, and dependents, to increase
burial benefits, to provide for family coverage under
Servicemembers’ Group Life Insurance, and for other
purposes.
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Veterans Opportunities Act of 2001’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. References to title 38, United States Code.
TITLE I—EDUCATIONAL ASSISTANCE PROVISIONS
Sec. 101. Increase in maximum allowable annual Senior ROTC educational as-
sistance for eligibility for benefits under the Montgomery GI
Bill.
Sec. 102. Expansion of work-study opportunities.
Sec. 103. Inclusion of certain private technology entities in the definition of
educational institution.
Sec. 104. Expansion of special restorative training benefit to certain disabled
spouses or surviving spouses.
Sec. 105. Distance education.
Sec. 106. Technical amendments to the Montgomery GI Bill.
TITLE II—TRANSITION AND OUTREACH PROVISIONS
Sec. 201. Authority to establish overseas veterans assistance offices to expand
transition assistance.
Sec. 202. Timing of preseparation counseling.
Sec. 203. Improvement in education and training outreach services for sepa-
rating servicemembers and veterans.
Sec. 204. Expansion of outreach efforts to eligible dependents.
Sec. 205. Improvement of veterans outreach programs.
TITLE III—MEMORIAL AFFAIRS, INSURANCE, AND OTHER
PROVISIONS
Sec. 301. Increase in burial benefits.
Sec. 302. Family coverage under Servicemembers’ Group Life Insurance.
Sec. 303. Retroactive applicability of increase in maximum SGLI benefit for
members dying in performance of duty on or after October 1,
2000.
Sec. 304. Increase in amount of assistance for automobile and adaptive equip-
ment for certain disabled veterans.
Sec. 305. Increase in assistance amount for specially adapted housing.
Sec. 306. Revision of rules with respect to net worth limitation for eligibility
for pensions for veterans who are permanently and totally dis-
abled from a non-service-connected disability.
Sec. 307. Technical amendments.
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SEC. 2. REFERENCES TO TITLE 38, UNITED STATES CODE.
Except as otherwise expressly provided, whenever in
this Act an amendment or repeal is expressed in terms
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a
section or other provision of title 38, United States Code.
TITLE I—EDUCATIONAL
ASSISTANCE PROVISIONS
SEC. 101. INCREASE IN MAXIMUM ALLOWABLE ANNUAL
SENIOR ROTC EDUCATIONAL ASSISTANCE
FOR ELIGIBILITY FOR BENEFITS UNDER THE
MONTGOMERY GI BILL.
(a) IN
GENERAL.—Sections 3011(c)(3)(B) and
3012(d)(3)(B) are each amended by striking ‘‘$2,000’’
and inserting ‘‘$3,400’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect on the date of the enact-
ment of this Act and shall apply with respect to edu-
cational assistance allowances paid under chapter 30 of
title 38, United States Code, for months beginning after
such date.
SEC. 102. EXPANSION OF WORK-STUDY OPPORTUNITIES.
(a) ASSISTING IN OUTREACH SERVICES.—The sec-
ond sentence of section 3485(a)(1) is amended in clause
(A) by inserting before the comma the following: ‘‘or out-
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reach services to servicemembers and veterans furnished
by employees of State approving agencies’’.
(b) WORKING IN MAJOR ACADEMIC DISCIPLINE.—
Such sentence is further amended—
(1) by striking ‘‘or (E)’’ and inserting ‘‘(E)’’;
and
(2) by inserting before the period the following:
‘‘, or (F) in the case of an individual who has de-
clared a major academic discipline, activities within
the department of that academic discipline approved
by the Secretary that complement and reinforce the
program of education pursued by that individual’’.
(c) WORKING IN STATE VETERANS HOME.—Such
sentence is amended in clause (C) by inserting after the
comma ‘‘including the provision of such care to veterans
in a State home for which payment is made under section
1741 of this title,’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to agreements entered
into under section 3485 of title 38, United States Code,
on or after the date of the enactment of this Act.
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SEC. 103. INCLUSION OF CERTAIN PRIVATE TECHNOLOGY
ENTITIES 
IN 
THE 
DEFINITION 
OF 
EDU-
CATIONAL INSTITUTION.
(a) IN GENERAL.—Sections 3452(c) and 3501(a)(6)
are each amended by adding at the end the following new
sentence: ‘‘Such term also includes any private entity (that
meets such requirements as the Secretary may establish)
that offers, either directly or under an agreement with an-
other entity (that meets such requirements), a course or
courses to fulfill requirements for the attainment of a li-
cense or certificate generally recognized as necessary to
obtain, maintain, or advance in employment in a profes-
sion or vocation in a technological occupation (as deter-
mined by the Secretary).’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall apply to enrollments in courses occur-
ring on or after the date of the enactment of this Act.
SEC. 104. EXPANSION OF SPECIAL RESTORATIVE TRAINING
BENEFIT TO CERTAIN DISABLED SPOUSES OR
SURVIVING SPOUSES.
(a) IN GENERAL.—Section 3540 is amended by strik-
ing ‘‘section 3501(a)(1)(A) of this title’’ and inserting
‘‘subparagraphs (A), (B), and (D) of section 3501(a)(1)
of this title’’.
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(b) 
CONFORMING
AMENDMENTS.—(1) 
Section
3541(a) is amended in the matter preceding paragraph
(1) by striking ‘‘of the parent or guardian’’.
(2) Section 3542(a) is amended—
(A) by striking ‘‘the parent or guardian shall be
entitled to receive on behalf of such person’’ and in-
serting ‘‘the eligible person shall be entitled to re-
ceive’’; and
(B) by striking ‘‘upon election by the parent or
guardian of the eligible person’’ and inserting ‘‘upon
election by the eligible person’’.
(3) Section 3543(a) is amended by striking ‘‘the par-
ent or guardian for the training provided to an eligible
person’’ and inserting ‘‘for the training provided to the
eligible person’’.
(4) Section 3543 is amended by adding at the end
the following new subsection:
‘‘(c) In a case in which the Secretary determines re-
quires a parent or guardian to make a request under sec-
tion 3541(a) of this title on behalf of an eligible person,
the parent or guardian shall be entitled—
‘‘(1) to receive on behalf of the eligible person
the special training allowance provided for under
section 3542(a) of this title;
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‘‘(2) to elect an increase in the basic monthly
allowance provided for under such section; and
‘‘(3) to agree with the Secretary on the fair and
reasonable amounts which may be charged under
subsection (a).’’.
SEC. 105. DISTANCE EDUCATION.
(a) IN
GENERAL.—Subsection (a)(4) of section
3680A is amended—
(1) by inserting ‘‘(A)’’ after ‘‘leading’’; and
(2) by inserting before the period the following:
‘‘, or (B) to a certificate that reflects educational at-
tainment offered by an institution of higher learn-
ing’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall apply to enrollments in independent
study courses beginning on or after the date of the enact-
ment of this Act.
SEC. 106. TECHNICAL AMENDMENTS TO THE MONTGOMERY
GI BILL.
(a) CLARIFICATION OF ELIGIBILITY REQUIREMENT
FOR MGIB BENEFITS.—
(1) 
IN
GENERAL.—Clause 
(i) 
of 
section
3011(a)(1)(A) is amended to read as follows:
‘‘(i) who (I) in the case of an indi-
vidual whose obligated period of active
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duty is three years or more, serves at least
three years of continuous active duty in
the Armed Forces, or (II) in the case of an
individual whose obligated period of active
duty is less than three years, serves at
least two years of continuous active duty in
the Armed Forces; or’’.
(2) EFFECTIVE DATE.—The amendment made
by paragraph (1) shall take effect as if included in
the enactment of the Veterans Benefits and Health
Care Improvement Act of 2000 (Public Law 106–
419).
(b) ENTITLEMENT CHARGE FOR OFF-DUTY TRAIN-
ING AND EDUCATION.—
(1) 
IN
GENERAL.—Section 
3014(b)(2) 
is
amended—
(A) in subparagraph (A), by striking
‘‘(without regard to’’ and all that follows
through ‘‘subsection’’; and
(B) by adding at the end the following new
subparagraph:
‘‘(C) The number of months of entitlement charged
under this chapter in the case of an individual who has
been paid a basic educational assistance allowance under
this subsection shall be equal to the number (including any
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fraction) determined by dividing the total amount of such
educational assistance allowance paid the individual by the
full-time monthly institutional rate of educational assist-
ance which such individual would otherwise be paid under
subsection (a)(1), (b)(1), (c)(1), or (e)(1) of section 3015
of this title, as the case may be.’’.
(2) CONFORMING AMENDMENTS.—(A) Section
3015 is amended—
(i) in subsections (a)(1) and (b)(1), by in-
serting ‘‘subsection (g)’’ after ‘‘from time to
time under’’;
(ii) by striking the first subsection (g), as
inserted by section 1602(b)(3)(C) of the Floyd
D. Spence National Defense Authorization Act
for Fiscal Year 2001 (enacted by Public Law
106–398; 114 Stat. 1654A–359); and
(iii) by redesignating subsection (h) as
subsection (g).
(B) Section 3032(b) is amended by inserting
before the period at the end the following: ‘‘, or (3)
the amount of the charges of the educational institu-
tion elected by the individual under section
3014(b)(1) of this title’’.
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(3) EFFECTIVE DATE.—The amendments made
by this subsection shall take effect as if enacted on
November 1, 2000.
(c) INCREMENTAL MGIB INCREASES FOR CONTRIB-
UTING ACTIVE DUTY MEMBERS.—
(1) IN GENERAL.—Section 3011(e), as added
by section 105(a)(1) of the Veterans Benefits and
Health Care Improvement Act of 2000 (Public Law
106–419; 114 Stat. 1828), is amended—
(A) in paragraph (2), by inserting ‘‘, but
not more frequently than monthly’’ before the
period;
(B) in paragraph (3), by striking ‘‘$4’’ and
inserting ‘‘$20’’; and
(C) in paragraph (4)—
(i) by striking ‘‘Secretary. The’’ and
inserting ‘‘Secretary of the military depart-
ment concerned. That’’; and
(ii) by striking ‘‘by the Secretary’’.
(2) CONFORMING AMENDMENTS.—(A) Section
3012(f), as added by section 105(a)(2) of such Act,
is amended—
(i) in paragraph (2), by inserting ‘‘, but
not more frequently than monthly’’ before the
period;
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(ii) in paragraph (3), by striking ‘‘$4’’ and
inserting ‘‘$20’’; and
(iii) in paragraph (4)—
(I) by striking ‘‘Secretary. The’’ and
inserting ‘‘Secretary of the military depart-
ment concerned. That’’; and
(II) by striking ‘‘by the Secretary’’.
(B) Section 3015(g), as added by section
105(b)(3) of such Act, is amended—
(i) in the matter preceding paragraph (1),
by inserting ‘‘effective as of the first day of the
enrollment period following receipt of such con-
tribution by the Secretary concerned,’’ after ‘‘by
section 3011(e) or 3012(f) of this title,’’; and
(ii) in paragraph (1)—
(I) by striking ‘‘$1’’ and inserting
‘‘$5’’;
(II) by striking ‘‘$4’’ and inserting
‘‘$20’’; and
(III) by inserting ‘‘of this title’’ after
‘‘section 3011(e) or 3012(f)’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall take effect as if included in
the enactment of section 105 of the Veterans Bene-
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fits and Health Care Improvement Act of 2000
(Public Law 106–419; 114 Stat. 1828).
(d) CONFORMING AMENDMENT FOR DEATH BEN-
EFIT.—
(1) IN
GENERAL.—Paragraph (1) of section
3017(b) is amended to read as follows:
‘‘(1) the sum of (A) the total amount reduced
from the individual’s basic pay under section
3011(b), 3012(c), or 3018(c) of this title, and (B)
the total amount of any contributions made by the
individual under section 3011(e) or 3012(f) of this
title, less’’.
(2) EFFECTIVE DATE.—The amendment made
by paragraph (1) shall take effect on May 1, 2001.
(e) CLARIFICATION OF TIME PERIOD FOR ELECTION
OF BEGINNING OF CHAPTER 35 ELIGIBILITY FOR DE-
PENDENTS.—
(1) IN GENERAL.—(A) Section 3512(a)(3)(B),
as amended by section 112 of the Veterans Benefits
and Health Care Improvement Act of 2000 (Public
Law 106–419; 114 Stat. 1831), is amended to read
as follows:
‘‘(B) the eligible person elects that begin-
ning date by not later than the end of the 60-
day period beginning on the date on which the
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Secretary provides written notice to that person
of that person’s opportunity to make such elec-
tion, such notice including a statement of the
deadline for the election imposed under this
subparagraph; and’’.
(B) Section 3512(a)(3)(C), as so amended by
such section, is amended by striking ‘‘between the
dates described in’’ and inserting ‘‘the date deter-
mined pursuant to’’.
(2) EFFECTIVE DATE.—The amendments made
by paragraph (1) shall take effect as if enacted on
November 1, 2000.
TITLE II—TRANSITION AND
OUTREACH PROVISIONS
SEC. 201. AUTHORITY TO ESTABLISH OVERSEAS VETERANS
ASSISTANCE OFFICES TO EXPAND TRANSI-
TION ASSISTANCE.
Section 7723(a) is amended by inserting after the
first sentence the following new sentence: ‘‘The Secretary
may maintain such offices on such military installations
located elsewhere as the Secretary, after consultation with
the Secretary of Defense, determines to be necessary to
carry out such purposes.’’.
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SEC. 202. TIMING OF PRESEPARATION COUNSELING.
(a) IN GENERAL.—(1) The first sentence of section
1142(a)(1) of title 10, United States Code, is amended
to read as follows: ‘‘Within the time periods specified in
paragraph (3), the Secretary concerned shall (except as
provided in paragraph (4)) provide for individual
preseparation counseling of each member of the armed
forces whose discharge or release from active duty is an-
ticipated as of a specific date.’’.
(2) Such section is further amended by adding at the
end the following new paragraphs:
‘‘(3)(A) In the case of an anticipated retirement,
preseparation counseling shall commence as soon as pos-
sible during the 24-month period preceding the anticipated
retirement date. In the case of a separation other than
a retirement, preseparation counseling shall commence as
soon as possible during the 12-month period preceding the
anticipated date. Except as provided in subparagraph (B),
in no event shall preseparation counseling commence later
than 90 days before the date of discharge or release.
‘‘(B) In the event that a retirement or other separa-
tion is unanticipated until there are 90 or fewer days be-
fore the anticipated retirement or separation date,
preseparation counseling shall begin as soon as possible
within the remaining period of service.
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‘‘(4)(A) Subject to subparagraph (B), the Secretary
concerned shall not provide preseparation counseling to a
member who is being discharged or released before the
completion of that member’s first 180 days of active duty.
‘‘(B) Subparagraph (A) shall not apply in the case
of a member who is being retired or separated for dis-
ability.’’.
(b) CONFORMING AMENDMENT.—The second sen-
tence of section 1144(a)(1) of title 10, United States
Code, is amended by striking ‘‘during the 180-day period’’
and all that follows and inserting ‘‘within the time periods
provided under paragraph (3) of section 1142(a) of this
title, except that the Secretary concerned shall not provide
preseparation counseling to a member described in para-
graph (4)(A) of such section.’’.
SEC. 203. IMPROVEMENT IN EDUCATION AND TRAINING
OUTREACH 
SERVICES 
FOR 
SEPARATING
SERVICEMEMBERS AND VETERANS.
(a) PROVIDING OUTREACH THROUGH STATE AP-
PROVING AGENCIES.—Section 3672(d) is amended by in-
serting ‘‘and State approving agencies’’ before ‘‘shall ac-
tively promote the development of programs of training
on the job’’.
(b) ADDITIONAL DUTY.—Such section is further
amended—
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(1) by inserting ‘‘(1)’’ after ‘‘(d)’’; and
(2) by adding at the end the following new
paragraph:
‘‘(2) In conjunction with outreach services furnished
by the Secretary for education and training benefits under
chapter 77 of this title, each State approving agency shall
conduct outreach programs and provide outreach services
to eligible persons and veterans about education and train-
ing benefits available under applicable Federal and State
law.’’.
SEC. 204. EXPANSION OF OUTREACH EFFORTS TO ELIGIBLE
DEPENDENTS.
(a) AVAILABILITY
OF OUTREACH SERVICES
FOR
CHILDREN, SPOUSES, SURVIVING SPOUSES, AND DE-
PENDENT PARENTS.—Paragraph (2) of section 7721(b)
is amended to read as follows:
‘‘(2) the term ‘eligible dependent’ means a
spouse, surviving spouse, child, or dependent parent
of a person who served in the active military, naval,
or air service.’’.
(b) IMPROVED
OUTREACH
PROGRAM.—(1) Sub-
chapter II of chapter 77 is amended by adding at the end
the following new section:
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‘‘§ 7727. Outreach for eligible dependents
‘‘(a) In carrying out this subchapter, the Secretary
shall ensure that the needs of eligible dependents are fully
addressed.
‘‘(b) The Secretary shall ensure that the availability
of outreach services and assistance for eligible dependents
under this subchapter is made known through a variety
of means, including the Internet, announcements in vet-
erans publications, and announcements to the media.’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 7726 the following new item:
‘‘7727. Outreach for eligible dependents.’’.
SEC. 205. IMPROVEMENT OF VETERANS OUTREACH PRO-
GRAMS.
Section 7722(c) is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(c)’’; and
(2) by adding at the end the following:
‘‘(2) Whenever a veteran or dependent first applies
for any benefit under laws administered by the Secretary
(including a request for burial or related benefits or an
application for life insurance proceeds), the Secretary shall
provide to the veteran or dependent information con-
cerning benefits and health care services under programs
administered by the Secretary.’’.
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TITLE III—MEMORIAL AFFAIRS,
INSURANCE, 
AND 
OTHER
PROVISIONS
SEC. 301. INCREASE IN BURIAL BENEFITS.
(a) BURIAL AND FUNERAL EXPENSES.—(1) Section
2307 is amended by striking ‘‘$1,500’’ and inserting
‘‘$2,000 (as increased from time to time under section
5312 of this title)’’.
(2) Section 2302(a) is amended by striking ‘‘$300’’
and inserting ‘‘$500 (as increased from time to time under
section 5312 of this title)’’.
(3) Section 2303(a)(1)(A) is amended by striking
‘‘$300’’ and inserting ‘‘$500 (as increased from time to
time under section 5312 of this title)’’.
(b) PLOT ALLOWANCE.—Section 2303(b) is amended
by striking ‘‘$150’’ each place it appears and inserting
‘‘$300 (as increased from time to time under section 5312
of this title)’’.
(c) 
INDEXING
PAYMENT
AMOUNTS.—Section
5312(a) is amended—
(1) by striking ‘‘and each rate of monthly allow-
ance’’ and inserting ‘‘each rate of monthly allow-
ance’’; and
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(2) by inserting ‘‘and each rate of allowance
paid under sections 2302, 2303, and 2307 of this
title,’’ after ‘‘under section 1805 of this title,’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to deaths occurring on or after the
date of the enactment of this Act.
SEC. 302. FAMILY COVERAGE UNDER SERVICEMEMBERS’
GROUP LIFE INSURANCE.
(a) INSURABLE DEPENDENTS.—(1) Section 1965 is
amended by adding at the end the following new para-
graph:
‘‘(10) The term ‘insurable dependent’, with re-
spect to a member, means the following:
‘‘(A) The member’s spouse.
‘‘(B) The member’s child, as defined in the
first sentence of section 101(4)(A) of this
title.’’.
(2) Section 101(4)(A) is amended in the matter pre-
ceding clause (i) by inserting ‘‘(other than with respect
to a child who is an insurable dependent under section
1965(10)(B) of such chapter)’’ after ‘‘except for purposes
of chapter 19 of this title’’.
(b) INSURANCE COVERAGE.—(1) Subsection (a) of
section 1967 is amended to read as follows:
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‘‘(a)(1) Subject to an election under paragraph (2),
any policy of insurance purchased by the Secretary under
section 1966 of this title shall automatically insure the fol-
lowing persons against death:
‘‘(A) In the case of any member of a uniformed
service on active duty (other than active duty for
training)—
‘‘(i) the member; and
‘‘(ii) each insurable dependent of the mem-
ber.
‘‘(B) Any member of a uniformed service on ac-
tive duty for training or inactive duty training
scheduled in advance by competent authority.
‘‘(C) In the case of any member of the Ready
Reserve of a uniformed service who meets the quali-
fications set forth in section 1965(5)(B) of this
title—
‘‘(i) the member; and
‘‘(ii) each insurable dependent of the mem-
ber.
‘‘(2)(A) A member may elect in writing not to be in-
sured under this subchapter.
‘‘(B) A member may elect in writing not to insure
the member’s spouse under this subchapter.
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‘‘(3)(A) Subject to subparagraphs (B) and (C), the
amount for which a person is insured under this sub-
chapter is as follows:
‘‘(i) In the case of a member, $250,000.
‘‘(ii) In the case of a member’s spouse,
$100,000.
‘‘(iii) In the case of a member’s child, $10,000.
‘‘(B) A member may elect in writing to be insured
or to insure the member’s spouse in an amount less than
the amount provided for under subparagraph (A). The
member may not elect to insure the member’s child in an
amount less than $10,000. The amount of insurance so
elected shall, in the case of a member or spouse, be evenly
divisible by $10,000.
‘‘(C) In no case may the amount of insurance cov-
erage under this subsection of a member’s spouse exceed
the amount of insurance coverage of the member.
‘‘(4)(A) An insurable dependent of a member is not
insured under this chapter unless the member is insured
under this subchapter.
‘‘(B) An insurable dependent who is a child may not
be insured at any time by the insurance coverage under
this chapter of more than one member. If an insurable
dependent who is a child is otherwise eligible to be insured
by the coverage of more than one member under this chap-
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ter, the child shall be insured by the coverage of the mem-
ber whose eligibility for insurance under this subchapter
occurred first, except that if that member does not have
legal custody of the child, the child shall be insured by
the coverage of the member who has legal custody of the
child.
‘‘(5) The insurance shall be effective with respect to
a member and the insurable dependents of the member
on the latest of the following dates:
‘‘(A) The first day of active duty or active duty
for training.
‘‘(B) The beginning of a period of inactive duty
training scheduled in advance by competent author-
ity.
‘‘(C) The first day a member of the Ready Re-
serve meets the qualifications set forth in section
1965(5)(B) of this title.
‘‘(D) The date certified by the Secretary to the
Secretary concerned as the date Servicemembers’
Group Life Insurance under this subchapter for the
class or group concerned takes effect.
‘‘(E) In the case of an insurable dependent who
is a spouse, the date of marriage of the spouse to
the member.
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‘‘(F) In the case of an insurable dependent who
is a child, the date of birth of such child or, if the
child is not the natural child of the member, the
date on which the child acquires status as an insur-
able dependent of the member.’’.
(2) Subsection (c) of such section is amended by
striking the first sentence and inserting the following: ‘‘If
a person eligible for insurance under this subchapter is
not so insured, or is insured for less than the maximum
amount provided for the person under subparagraph (A)
of subsection (a)(3), by reason of an election made by a
member under subparagraph (B) of that subsection, the
person may thereafter be insured under this subchapter
in the maximum amount or any lesser amount elected as
provided in such subparagraph (B) upon written applica-
tion by the member, proof of good health of each person
(other than a child) to be so insured, and compliance with
such other terms and conditions as may be prescribed by
the Secretary.’’.
(c) TERMINATION
OF COVERAGE.—(1) Subsection
(a) of section 1968 is amended—
(A) in the matter preceding paragraph (1), by
inserting ‘‘and any insurance thereunder on any in-
surable dependent of such a member,’’ after ‘‘any in-
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surance thereunder on any member of the uniformed
services,’’; and
(B) by adding at the end the following new
paragraph:
‘‘(5) With respect to an insurable dependent of
the member, insurance under this subchapter shall
cease—
‘‘(A) 120 days after the date of an election
made in writing by the member to terminate
the coverage; or
‘‘(B) on the earliest of—
‘‘(i) 120 days after the date of the
member’s death;
‘‘(ii) 120 days after the date of termi-
nation of the insurance on the member’s
life under this subchapter; or
‘‘(iii) 120 days after the termination
of the dependent’s status as an insurable
dependent of the member.’’.
(2) Such subsection is further amended—
(A) in the matter preceding paragraph (1), by
striking ‘‘, and such insurance shall cease—’’ and
inserting ‘‘and such insurance shall cease as fol-
lows:’’;
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(B) by striking ‘‘with’’ after the paragraph des-
ignation in each of paragraphs (1), (2), (3), and (4)
and inserting ‘‘With’’;
(C) in paragraph (1)—
(i) in the matter preceding subparagraph
(A), by striking ‘‘thirty-one days—’’ and insert-
ing ‘‘31 days, insurance under this subchapter
shall cease—’’;
(ii) in subparagraph (A)—
(I) by striking ‘‘one hundred and
twenty days’’ after ‘‘(A)’’ and inserting
‘‘120 days’’; and
(II) by striking ‘‘prior to the expira-
tion of one hundred and twenty days’’ and
inserting ‘‘before the end of 120 days’’;
and
(iii) by striking the semicolon at the end of
subparagraph (B) and inserting a period;
(D) in paragraph (2)—
(i) by striking ‘‘thirty-one days’’ and in-
serting ‘‘31 days,’’;
(ii) by striking ‘‘one hundred and twenty
days’’ both places it appears and inserting ‘‘120
days’’; and
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(iii) by striking the semicolon at the end
and inserting a period;
(E) in paragraph (3)—
(i) by inserting a comma after ‘‘competent
authority’’;
(ii) by striking ‘‘one hundred and twenty
days’’ both places it appears and inserting ‘‘120
days’’; and
(iii) by striking ‘‘; and’’ at the end and in-
serting a period; and
(F) in paragraph (4), by inserting ‘‘insurance
under this subchapter shall cease’’ before ‘‘120 days
after ’’ the first place it appears.
(3) Subsection (b)(1)(A) of such section is amended
by inserting ‘‘(to insure against death of the member
only)’’ after ‘‘converted to Veterans’ Group Life Insur-
ance’’.
(d) PREMIUMS.—Section 1969 is amended by adding
at the end the following new subsections:
‘‘(g)(1)(A) During any period in which a spouse of
a member is insured under this subchapter and the mem-
ber is on active duty, there shall be deducted each month
from the member’s basic or other pay until separation or
release from active duty an amount determined by the Sec-
retary as the premium allocable to the pay period for pro-
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viding that insurance coverage. No premium may be
charged for providing insurance coverage for a child.
‘‘(B) During any month in which a member is as-
signed to the Ready Reserve of a uniformed service under
conditions which meet the qualifications set forth in sec-
tion 1965(5)(B) of this title and the spouse of the member
is insured under a policy of insurance purchased by the
Secretary under section 1966 of this title, there shall be
contributed from the appropriation made for active duty
pay of the uniformed service concerned an amount deter-
mined by the Secretary (which shall be the same for all
such members) as the share of the cost attributable to in-
suring the spouse of such member under this policy, less
any costs traceable to the extra hazards of such duty in
the uniformed services. Any amounts so contributed on be-
half of any individual shall be collected by the Secretary
concerned from such individual (by deduction from pay or
otherwise) and shall be credited to the appropriation from
which such contribution was made.
‘‘(2)(A) The Secretary shall determine the premium
amounts to be charged for life insurance coverage for
spouses of members under this subchapter.
‘‘(B) The premium amounts shall be determined on
the basis of sound actuarial principles and shall include
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an amount necessary to cover the administrative costs to
the insurer or insurers providing such insurance.
‘‘(C) Each premium rate for the first policy year shall
be continued for subsequent policy years, except that the
rate may be adjusted for any such subsequent policy year
on the basis of the experience under the policy, as deter-
mined by the Secretary in advance of that policy year.
‘‘(h) Any overpayment of a premium for insurance
coverage for an insurable dependent of a member that is
terminated under section 1968(a)(5) of this title shall be
refunded to the member.’’.
(e) PAYMENTS OF INSURANCE PROCEEDS.—Section
1970 is amended by adding at the end the following new
subsection:
‘‘(i) Any amount of insurance in force on an insurable
dependent of a member under this subchapter on the date
of the dependent’s death shall be paid, upon the establish-
ment of a valid claim therefor, to the member or, in the
event of the member’s death before payment to the mem-
ber can be made, then to the person or persons entitled
to receive payment of the proceeds of insurance on the
member’s life under this subchapter.’’.
(f) CONVERSION OF SGLI TO PRIVATE LIFE INSUR-
ANCE.—Section 1968(b) is amended by adding at the end
the following new paragraph:
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‘‘(3)(A) In the case of a policy purchased under this
subchapter for an insurable dependent who is a spouse,
upon election of the spouse, the policy may be converted
to an individual policy of insurance under the same condi-
tions as described in section 1977(e) of this title (with re-
spect to conversion of a Veterans’ Group Life Insurance
policy to such an individual policy) upon written applica-
tion for conversion made to the participating company se-
lected by the spouse and payment of the required pre-
miums. Conversion of such policy to Veterans’ Group Life
Insurance is prohibited.
‘‘(B) In the case of a policy purchased under this sub-
chapter for an insurable dependent who is a child, such
policy may not be converted under this subsection.’’.
(g) EFFECTIVE DATE AND INITIAL IMPLEMENTA-
TION.—(1) The amendments made by this section shall
take effect on the first day of the first month that begins
more than 120 days after the date of the enactment of
this Act.
(2) Each Secretary concerned, acting in consultation
with the Secretary of Veterans Affairs, shall take such ac-
tion as is necessary to ensure that during the period be-
tween the date of the enactment of this Act and the effec-
tive date determined under paragraph (1) each eligible
member—