Short title

This Act may be cited as the

Servicemembers' Group Life Insurance Enhancement Act of 2005

Repealer

Effective as of August 31, 2005, section 1012 of division A of the Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Tsunami Relief, 2005 (Public Law 109–13; 119 Stat. 244), including the amendments made by that section, are repealed, and sections 1967, 1969, 1970, and 1977 of title 38, United States Code, shall be applied as if that section had not been enacted.

Increase from $250,000 to $400,000 in automatic maximum coverage under Servicemembers' Group Life Insurance and Veterans' Group Life Insurance

(a)

Maximum Under SGLI

Section 1967 of title 38, United States Code, is amended— (1)in subsection (a)(3)(A)(i), by striking $250,000 and inserting $400,000; and (2)in subsection (d), by striking of $250,000 and inserting in effect under paragraph (3)(A)(i) of that subsection. (b)

Maximum Under VGLI

Section 1977(a) of such title is amended by striking $250,000 each place it appears and inserting $400,000. (c)

Effective date

The amendments made by this section shall take effect on September 1, 2005, and shall apply with respect to deaths occurring on or after that date.

Notification to member’s spouse or next of kin of certain elections under Servicemember's Group Life Insurance program

Effective September 1, 2005, section 1967 of title 38, United States Code, is amended by adding at the end the following new subsection:

(f) (1) (A)Whenever a member who is eligible for insurance under this section executes a life insurance option specified in subparagraph (B), the Secretary concerned shall notify the member’s spouse or, if the member is unmarried, the member’s next of kin, in writing, of the execution of that option. (B)A life insurance option referred to in subparagraph (A) is any of the following: (i)An election under subsection (a)(2)(A) not to be insured under this subchapter. (ii)An election under subsection (a)(3)(B) for insurance of the member in an amount that is less than the maximum amount provided under subsection (a)(3)(A)(i). (iii)An application under subsection (c) for insurance coverage under this subchapter or for a change in the amount of such insurance coverage. (iv)In the case of a married member, a designation under section 1970(a) of this title of any person other than the spouse or a child of the member as the beneficiary of the member for any amount of insurance under this subchapter. (2)Whenever an unmarried member who is eligible for insurance under this section marries, the Secretary concerned shall notify the member’s spouse in writing as to whether the member is insured under this subchapter. In the case of a member who is so insured, the Secretary shall include with such notification— (A)if the member has made an election described in paragraph (1)(B)(ii), notice that the amount of such insurance is less than the maximum amount provided under subsection (a)(3)(A)(i); and (B)if the member has designated a beneficiary other than the spouse or a child of the member for any amount of such insurance, notice that such a designation has been made. (3) (A)Notification of a spouse under paragraph (1) or (2), or of any other person under paragraph (1), for purposes of this subsection shall consist of a good faith effort to provide information to the spouse or other person at the last address of the spouse or other person in the records of the Secretary concerned. (B)Failure to provide such notification, or to provide such notification in a timely manner, does not affect the validity of any life insurance option referred to in paragraph (1)(B).

Increments of insurance that may be elected

(a)

Increase in increment amount

Subsection (a)(3)(B) of section 1967 of title 38, United States Code, is amended by striking “member or spouse” in the last sentence and inserting “member, be evenly divisible by $50,000 and, in the case of a member’s spouse,”. (b)

Effective date

The amendment made by subsection (a) shall take effect on September 1, 2005.

Authority to elect new traumatic injury protection

(a)

Opt-out authority

Section 1980A of title 38, United States Code, is amended by adding at the end of subsection (b) the following new paragraph:

(4) (A)A member may elect in writing not to be insured under this section. (B)If a member eligible for insurance under this section is not so insured by reason of an election made under subparagraph (A), the member may thereafter elect to be insured under this section upon written application by the member, proof of good health, and compliance with such other terms and conditions as may be prescribed by the Secretary. Insurance under this section upon such an election is effective upon the date of the receipt by the Secretary of such application and shall apply only with respect to injuries incurred after that date. (C)The Secretary shall prescribe by regulation conditions as to how and when elections under subparagraph (B) shall be made. Such regulations may include limiting the time for such elections to an annual open season, for a duration each year prescribed by the Secretary.

(b)

Effective date

The amendment made by subsection (a) shall take effect immediately after section 1980A of title 38, United States Code, takes effect pursuant to section 1032(d)(1) of division A of the Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Tsunami Relief, 2005 (Public Law 109–13; 119 Stat. 260).