Faster Payments to Veterans’ Survivors Act of 2022
Bill: S.4646 | Sponsor: Sen. Brown, Sherrod (D-OH)
Policy area: Armed Forces and National Security

Summary:
Faster Payments to Veterans' Survivors Act of 2022
This bill modifies policies and procedures related to the payment of benefits under certain life insurance programs administered by the Department of Veterans Affairs (VA).
If a primary beneficiary has not made a claim for payment within one year (currently two years) after the death of the insured under the National Service Life Insurance (NSLI) program or the United States Government Life Insurance (USGLI) program, the VA is authorized to make payment to another designated beneficiary as if the primary beneficiary had predeceased the insured. If no designated beneficiary makes a claim within two years (currently four years) after the death of the insured, the VA is authorized to make a payment to a person the VA deems to be equitably entitled to such benefit.
The bill also modifies the beneficiary designation process under NSLI and USGLI. Specifically, if a person does not designate a beneficiary for insurance, or if the designated beneficiary predeceases the insured person, the VA must determine the beneficiary in a specified order of succession.
Additionally, the bill requires the VA to improve its processes and procedures with respect to identifying, locating, and disbursing undisbursed life insurance benefits to hard-to-find beneficiaries, including by improving its website search tools.

To amend title 38, United States Code, to shorten the timeframe for 
claims by beneficiaries and the payment of benefits under Department of 
Veterans Affairs life insurance programs, to improve the management of 
   undisbursed life insurance benefits by the Department of Veterans 
                    Affairs, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Faster Payments to Veterans' 
Survivors Act of 2022''.

SEC. 2. TIMEFRAME FOR CLAIMS BY BENEFICIARIES AND PAYMENT OF BENEFITS 
              UNDER DEPARTMENT OF VETERANS AFFAIRS LIFE INSURANCE 
              PROGRAMS.

    (a) National Service Life Insurance.--Section 1917(f)(1) of title 
38, United States Code, is amended--
            (1) in subparagraph (A), by striking ``two years'' and 
        inserting ``one year''; and
            (2) in subparagraph (B), by striking ``four'' and inserting 
        ``two''.
    (b) United States Government Life Insurance.--Section 1952(c)(1) of 
such title is amended--
            (1) in subparagraph (A), by striking ``two years'' and 
        inserting ``one year''; and
            (2) in subparagraph (B), by striking ``four'' and inserting 
        ``two''.
    (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. 3. PROCESS FOR DESIGNATION OF BENEFICIARIES UNDER DEPARTMENT OF 
              VETERANS AFFAIRS LIFE INSURANCE PROGRAMS.

    (a) National Service Life Insurance.--Section 1917 of title 38, 
United States Code, is amended by striking subsection (a) and inserting 
the following:
    ``(a)(1) The insured may designate a beneficiary or beneficiaries 
of insurance maturing on or after August 1, 1946. The insured shall, 
subject to regulations, at all times have the right to change the 
beneficiary or beneficiaries of such insurance without the consent of 
such beneficiary or beneficiaries.
    ``(2) If the insured does not designate a beneficiary under 
paragraph (1) before the insured dies, or if a designated beneficiary 
predeceases the insured, the Secretary shall determine the beneficiary 
in the following order:
            ``(A) The surviving spouse of the insured.
            ``(B) The children of the insured and descendants of 
        deceased children by representation.
            ``(C) The parents of the insured or the survivors of the 
        parents.
            ``(D) The duly appointed executor or administrator of the 
        estate of the insured.
            ``(E) Other next of kin of the insured entitled under the 
        laws of domicile of the insured at the time of the death of the 
        insured.''.
    (b) United States Government Life Insurance.--
            (1) Change of beneficiary.--Section 1949 of such title is 
        amended by striking ``Subject to regulations'' and all that 
        follows through the period and inserting the following: ``The 
        insured may designate a beneficiary or beneficiaries of a 
        United States Government life insurance policy. Subject to 
        regulations, the insured shall at all times have the right to 
        change the beneficiary or beneficiaries of a United States 
        Government life insurance policy without the consent of such 
        beneficiary or beneficiaries.''.
            (2) Payment to estates.--Section 1950 of such title is 
        amended to read as follows:
``Sec. 1950. Payment to estates
    ``If the insured does not designate a beneficiary under section 
1949 of this title before the insured dies, or if a designated 
beneficiary predeceases the insured, the Secretary shall determine the 
beneficiary in the following order:
            ``(1) The surviving spouse of the insured.
            ``(2) The children of the insured and descendants of 
        deceased children by representation.
            ``(3) The parents of the insured or the survivors of the 
        parents.
            ``(4) The duly appointed executor or administrator of the 
        estate of the insured.
            ``(5) Other next of kin of the insured entitled under the 
        laws of domicile of the insured at the time of the death of the 
        insured.''.
    (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 IMPROVEMENT OF MANAGEMENT OF 
              UNDISBURSED LIFE INSURANCE BENEFITS.

    (a) Improvement of Processes.--The Secretary of Veterans Affairs 
shall improve the processes and procedures of the Department of 
Veterans Affairs with respect to identifying, locating, and disbursing 
undisbursed life insurance benefits to hard-to-find beneficiaries 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 respect to such 
        search tools;
            (3) improving the processes for searching for information 
        relating to potential recipients of undisbursed life insurance 
        benefits 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 
        disbursing undisbursed life insurance benefits to hard-to-find 
        beneficiaries, 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 enactment 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 Congress 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 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 of Veterans Affairs shall submit 
to the Committee on Veterans' Affairs of the Senate and the Committee 
on Veterans' Affairs of the House of Representatives a report on the 
progress of the Secretary in carrying out this section.
    (d) Undisbursed Life Insurance Benefits Defined.--In this section, 
the term ``undisbursed life insurance benefits''--
            (1) means any amount of money that--
                    (A) is owed to a beneficiary of a life insurance 
                policy issued under chapter 19 of title 38, United 
                States Code; and
                    (B) has not been disbursed for a period of two 
                years or longer; and
            (2) does not include any amount of money--
                    (A) that has not been disbursed due to a contested 
                claim; or
                    (B) the entitled beneficiary of which is in dispute 
                by two or more parties.
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