SEC. 3. BENEFICIARY DESIGNATION PROCESS UNDER DE-
PARTMENT OF VETERANS AFFAIRS LIFE IN-
SURANCE PROGRAMS. 
(a) NSLI.—Section 1917 of title 38, United States 
Code, is amended by striking subsection (a) and inserting 
the following: 
‘‘(a)(1) A person who enrolls in insurance maturing 
on or after August 1, 1946, may designate a beneficiary 
of the insurance policy. The insured shall, subject to regu-
lations, at all times have the right to change the bene-
ficiary or beneficiaries of such insurance without the con-
sent of such beneficiary or beneficiaries. 
‘‘(2) If a person enrolled in insurance maturing on 
or after August 1, 1946, does not designate a beneficiary 
under paragraph (1) before the veteran dies, or if a des-
ignated beneficiary predeceases the veteran, the Secretary 
shall determine the beneficiary in the following order: 
‘‘(A) The surviving spouse of the insured per-
son. 
‘‘(B) The children of the insured person and de-
scendants of deceased children by representation. 
‘‘(C) The parents of the insured person or the 
survivors of the parents. 
‘‘(D) The duly appointed executor or adminis-
trator of the estate of the insured person. 
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‘‘(E) Other next of kin of the insured person 
entitled under the laws of domicile of the insured 
person at the time of the death of the insured per-
son.’’. 
(b) USGLI.— 
(1) IN GENERAL.—Section 1949 of such title is 
amended to read as follows: 
‘‘§ 1949. Beneficiaries 
‘‘(a) DESIGNATION.—A person who enrolls in United 
States Government life insurance may designate a bene-
ficiary of the insurance policy. Subject to regulations, the 
insured person shall at all times have the right to change 
the beneficiary or beneficiaries of a United States Govern-
ment life insurance policy without the consent of such ben-
eficiary or beneficiaries. 
‘‘(b) DETERMINATION IN CASES OF NON-DESIGNA-
TION.—If a person enrolled in United States Government 
life insurance does not designate a beneficiary under sub-
section (a) before the insured person dies, or if a des-
ignated beneficiary predeceases the insured person, the 
Secretary shall determine the beneficiary in the following 
order: 
‘‘(1) The surviving spouse of the insured per-
son. 
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‘‘(2) The children of the insured person and de-
scendants of deceased children by representation. 
‘‘(3) The parents of the insured person or the 
survivors of the parents. 
‘‘(4) The duly appointed executor or adminis-
trator of the estate of the insured person. 
‘‘(5) Other next of kin of the insured person en-
titled under the laws of domicile of the insured per-
son at the time of the death of the insured person.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 19 of such title is 
amended by striking the item relating to section 
1949 and inserting the following new item: 
‘‘1949. Beneficiaries.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to the death of an 
insured person occurring on or after the date that is two 
years before the date of the enactment of this Act. 
SEC. 4. DEPARTMENT OF VETERANS AFFAIRS IMPROVE-
MENT OF TREATMENT OF UNDISBURSED 
LIFE INSURANCE BENEFITS. 
(a) IMPROVEMENT OF PROCESSES.—The Secretary 
of Veterans Affairs shall improve the processes and proce-
dures of the Department of Veterans Affairs with respect 
to identifying, locating, and paying hard-to-find bene-
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ficiaries of life insurance policies issued under chapter 19 
of title 38, United States Code, including by— 
(1) improving the search tools available on the 
website of the Department; 
(2) conducting outreach to veterans, veterans 
service organizations, and the general public with re-
spect to such search tools; 
(3) improving the processes for searching for 
information relating to potential recipients through 
internal Department sources and sources available 
through other Federal agencies, State government 
agencies, and non-government entities; and 
(4) ensuring the Department has sufficient 
dedicated staff whose primary responsibilities are 
identifying, locating, and paying hard-to-find bene-
ficiaries, with the goal of disbursing by not later 
than two years after the date of the enactment of 
this Act, all funds that, as of the date of the enact-
ment of this Act, are owed to a beneficiary of a life 
insurance policy issued under chapter 19 of title 38, 
United States Code. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that the Secretary of Veterans Affairs should work 
with interagency partners to determine the types of 
records, reports, and other materials that may be required 
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to identify, locate, and disburse undisbursed life insurance 
benefits to hard-to-find beneficiaries. 
(c) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary shall submit 
to the Committees on Veterans’ Affairs of the Senate and 
House of Representatives a report on the progress of the 
Secretary in carrying out this section. 
(d) UNDISBURSED FUNDS DEFINED.—The term 
‘‘undisbursed life insurance benefits’’— 
(1) means any amount of money that is owed 
to a beneficiary of a life insurance policy issued 
under chapter 19 of title 38, United States Code, 
and that has not been disbursed for a period of two 
years or longer; and 
(2) does not include any amount of money 
that— 
(A) has not been disbursed due to a con-
tested claim; or 
(B) is in dispute by two or more parties 
over who is the entitled beneficiary. 
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Union Calendar No. 360 
117TH CONGRESS 
2D SESSION 
H. R. 8260 
[Report No. 117–463] 
A BILL 
To amend title 38, United States Code, to shorten 
the timeframe for designation of benefits under 
Department of Veterans Affairs life insurance 
programs, 
to 
improve 
the 
treatment 
of 
undisbursed life insurance benefits by the De-
partment of Veterans Affairs, and for other pur-
poses. 
SEPTEMBER 13, 2022 
Committed to the Committee of the Whole House on the 
State of the Union and ordered to be printed 
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