A bill to amend title 38, United States Code, to ensure that beneficiaries of Servicemembers' Group Life Insurance receive financial counseling and disclosure information regarding life insurance payments, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Securing America's Veterans 
Insurance Needs and Goals Act of 2010'' or the ``SAVINGS Act of 2010''.

SEC. 2. FINANCIAL COUNSELING AND DISCLOSURE INFORMATION FOR 
              SERVICEMEMBERS' GROUP LIFE INSURANCE BENEFICIARIES.

    (a) Financial Counseling and Disclosure Information.--
            (1) In general.--Section 1966 of title 38, United States 
        Code, is amended by adding at the end the following new 
        subsection:
    ``(e)(1) In order to be an eligible life insurance company under 
this section, a life insurance company shall provide financial 
counseling to a beneficiary or other person otherwise entitled to 
payment upon the establishment of a valid claim under section 1970(a) 
of this title.
    ``(2) The financial counseling provided pursuant to paragraph (1) 
shall--
            ``(A) be provided both orally and in writing; and
            ``(B) include full disclosure with respect to the payment 
        of the claim, including, at a minimum--
                    ``(i) a comparison of the advantages and 
                disadvantages of maintaining such payment with the life 
                insurance company and maintaining such payment with a 
                financial institution, in a format that shows 
                equivalent financial products or product lines with 
                comparable benchmarks, risk factors, or other 
                components the Secretary considers appropriate;
                    ``(ii) a comparison of the rate of interest bearing 
                to such payment if the payment is maintained with the 
                life insurance company and if the payment is maintained 
                with a financial institution;
                    ``(iii) an explanation of whether maintaining such 
                payment with the life insurance company results in the 
                payment not being insured by the Federal Deposit 
                Insurance Corporation;
                    ``(iv) an explanation that the beneficiary may, at 
                the beneficiary's request, receive payment in full as a 
                lump sum;
                    ``(v) an explanation that an account maintained by 
                the insurer does not operate like a traditional 
                checking account; and
                    ``(vi) such other information as the Secretary 
                considers appropriate.
    ``(3) In order to be an eligible life insurance company under this 
section, a life insurance company may not charge any fees to a 
beneficiary or other person otherwise entitled to payment upon the 
establishment of a valid claim under section 1970(a) with respect to 
maintaining such payment with the company.
    ``(4) In each annual performance and accountability report 
submitted by the Secretary to Congress, the Secretary shall include the 
following:
            ``(A) The number of individuals who received financial 
        counseling under paragraph (1).
            ``(B) A description of the information received by such 
        individuals during such counseling.
            ``(C) Such recommendations, complaints, or other 
        information with respect to such counseling that the Secretary 
        considers relevant.''.
            (2) Regulations.--Not later than 90 days after the date of 
        the enactment of this Act, the Secretary of Veterans Affairs 
        shall prescribe regulations to carry out section 1966(e) of 
        such title, as added by paragraph (1).
            (3) Effective date.--Such section shall take effect on the 
        date of the enactment of this Act and shall apply with respect 
        to beneficiaries or other persons otherwise entitled to payment 
        upon the establishment of a valid claim under section 1970(a) 
        of such title after the date described in paragraph (2).
    (b) Specification by Members of the Armed Forces of Preference for 
Manner of Disbursement of Proceeds.--
            (1) In general.--Section 1967(a) of such title is amended 
        by adding at the end the following new paragraph:
    ``(6) Upon the insurance of a member under this subchapter, the 
member shall have the option of specifying a preference for the manner 
of disbursement of proceeds under this subchapter.''.
            (2) Regulations.--Not later than 90 days after the date of 
        the enactment of this Act, the Secretary of Veterans Affairs 
        shall prescribe regulations to carry out section 1967(a)(6) of 
        such title, as added by paragraph (1).
            (3) Effective date.--Such section shall take effect on the 
        date of the enactment of this Act and shall apply with respect 
        to members of the Armed Forces insured under subchapter III of 
        chapter 19 of such title after the date described in paragraph 
        (2).
    (c) Office of Survivors Assistance.--
            (1) Advisory role.--Subsection (b) of section 321 of such 
        title is amended--
                    (A) by striking ``The Office'' and inserting ``(1) 
                The Office''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(2) The Director of the Office shall attend each meeting of the 
Advisory Council on Servicemembers' Group Life Insurance under section 
1974 of this title.''.
            (2) Resources.--Subsection (d) of such section is amended--
                    (A) by striking ``The Secretary'' and inserting 
                ``(1) The Secretary''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(2) In carrying out paragraph (1), the Secretary shall ensure 
that the Office has the personnel necessary to serve as a resource to 
provide individuals described in paragraphs (1) and (2) of subsection 
(a) with information on how to receive the Servicemembers' Group Life 
Insurance financial counseling pursuant to section 1966(e)(1) of this 
title.''.

Summary: Securing America's Veterans Insurance Needs and Goals Act of 2010 or SAVINGS Act of 2010 - Requires a life insurance company, in order to provide life insurance for veterans under the Servicemembers' Group Life Insurance program, to: (1) provide financial counseling to the beneficiary or other person entitled to payment upon the establishment of a valid claim; and (2) include full disclosure with respect to such payment, including advantages and disadvantages of maintaining such payment with the company versus a financial institution. Prohibits a company from charging fees to a payee for maintaining such payment with the company. Requires the insured to be given the option of specifying the manner of disbursement of insurance proceeds.

Requires: (1) the Director of the VA's Office of Survivor Assistance to attend each meeting of the Advisory Council on Servicemembers' Group Life Insurance; and (2) the Secretary to ensure that such Office has the necessary personnel to provide information on the receipt of such counseling.