Title: Faster Payments to Veterans' Survivors Act of 2022
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 paying hard-to-find beneficiaries of life insurance policies, including by improving its website search tools.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8260 Introduced in House (IH)]

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117th CONGRESS
  2d Session
                                H. R. 8260

  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 Department of Veterans Affairs, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              July 1, 2022

  Mr. Pappas (for himself, Ms. Mace, Mr. Suozzi, Mr. Fitzpatrick, Mr. 
 Grijalva, Mr. Lawson of Florida, Mr. Khanna, Ms. Scanlon, Ms. Newman, 
Mr. Costa, Mr. Cawthorn, Mr. Garamendi, Miss Gonzalez-Colon, Mr. Mrvan, 
  Ms. Titus, Ms. Bourdeaux, Ms. Strickland, Mr. C. Scott Franklin of 
     Florida, Ms. Kuster, Mr. Rutherford, Mrs. Hayes, Mrs. Kim of 
   California, Mr. Trone, Mr. San Nicolas, Mr. Soto, Mrs. Cherfilus-
   McCormick, Mr. Buck, Mr. Hudson, Mr. Garbarino, and Mr. Bishop of 
   Georgia) introduced the following bill; which was referred to the 
                     Committee on Veterans' Affairs

_______________________________________________________________________

                                 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 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 DESIGNATION OF ALTERNATE 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. BENEFICIARY DESIGNATION PROCESS UNDER DEPARTMENT OF VETERANS 
              AFFAIRS LIFE INSURANCE 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 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 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 designated beneficiary predeceases the 
veteran, the Secretary shall determine the beneficiary in the following 
order:
            ``(A) The surviving spouse of the insured person.
            ``(B) The children of the insured person and descendants of 
        deceased children by representation.
            ``(C) The parents of the insured person or the survivors of 
        the parents.
            ``(D) The duly appointed executor or administrator of the 
        estate of the insured person.
            ``(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 person.''.
    (b) USGLI.--
            (1) In general.--Section 1949 of such title is amended to 
        read as follows:
``Sec. 1949. Beneficiaries
    ``(a) Designation.--A person who enrolls in United States 
Government life insurance may designate a beneficiary 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 Government life insurance policy without the consent of such 
beneficiary or beneficiaries.
    ``(b) Determination in Cases of Non-Designation.--If a person 
enrolled in United States Government life insurance does not designate 
a beneficiary under subsection (a) before the insured person dies, or 
if a designated beneficiary predeceases the insured person, the 
Secretary shall determine the beneficiary in the following order:
            ``(1) The surviving spouse of the insured person.
            ``(2) The children of the insured person and descendants of 
        deceased children by representation.
            ``(3) The parents of the insured person or the survivors of 
        the parents.
            ``(4) The duly appointed executor or administrator of the 
        estate of the insured person.
            ``(5) 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 person.''.
            (2) Clerical amendment.--The table of sections 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 IMPROVEMENT OF TREATMENT 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 paying 
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 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 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 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 contested 
                claim; or
                    (B) is in dispute by two or more parties over who 
                is the entitled beneficiary.
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