[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1315 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 1315

   To amend title 38, United States Code, to enhance life insurance 
        benefits for disabled veterans, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 7, 2007

   Mr. Akaka introduced the following bill; which was read twice and 
             referred to the Committee on Veterans' Affairs

_______________________________________________________________________

                                 A BILL


 
   To amend title 38, United States Code, to enhance life insurance 
        benefits for disabled veterans, 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 ``Disabled Veterans Insurance 
Improvement Act of 2007''.

SEC. 2. ENHANCEMENT OF VETERANS' MORTGAGE LIFE INSURANCE.

    Section 2106(b) of title 38, United States Code, is amended by 
striking ``$90,000'' and inserting ``$200,000''.

SEC. 3. LEVEL-PREMIUM TERM LIFE INSURANCE FOR VETERANS WITH SERVICE-
              CONNECTED DISABILITIES.

    (a) In General.--Chapter 19 of title 38, United States Code, is 
amended by inserting after section 1922A the following new section:
``Sec. 1922B. Level-premium term life insurance for veterans with 
              service-connected disabilities
    ``(a) In General.--In accordance with the provisions of this 
section, the Secretary shall grant insurance to each eligible veteran 
who seeks such insurance against the death of such veteran occurring 
while such insurance is in force.
    ``(b) Eligible Veterans.--For purposes of this section, an eligible 
veteran is any veteran less than 65 years of age who has a service-
connected disability.
    ``(c) Amount of Insurance.--(1) Subject to paragraph (2), the 
amount of insurance granted an eligible veteran under this section 
shall be $50,000 or such lesser amount as the veteran shall elect. The 
amount of insurance so elected shall be evenly divisible by $10,000.
    ``(2) The aggregate amount of insurance of an eligible veteran 
under this section, section 1922 of this title, and section 1922A of 
this title may not exceed $50,000.
    ``(d) Reduced Amount for Veterans Age 70 or Older.--In the case of 
a veteran insured under this section who turns age 70, the amount of 
insurance of such veteran under this section after the date such 
veteran turns age 70 shall be the amount equal to 20 percent of the 
amount of insurance of the veteran under this section as of the day 
before such date.
    ``(e) Premiums.--(1) Premium rates for insurance under this section 
shall be based on the 2001 Commissioners Standard Ordinary Basic Table 
of Mortality and interest at the rate of 4.5 per centum per annum.
    ``(2) The amount of the premium charged a veteran for insurance 
under this section may not increase while such insurance is in force 
for such veteran.
    ``(3) The Secretary may not charge a premium for insurance under 
this section for a veteran as follows:
            ``(A) A veteran who has a service-connected disability 
        rated as total and is eligible for a waiver of premiums under 
        section 1912 of this title.
            ``(B) A veteran who is 70 years of age or older.
    ``(4) Insurance granted under this section shall be on a 
nonparticipating basis and all premiums and other collections therefor 
shall be credited directly to a revolving fund in the Treasury of the 
United States, and any payments on such insurance shall be made 
directly from such fund. Appropriations to such fund are hereby 
authorized.
    ``(5) Administrative costs to the Government for the costs of the 
program of insurance under this section shall be paid from premiums 
credited to the fund under paragraph (4), and payments for claims 
against the fund under paragraph (4) for amounts in excess of amounts 
credited to such fund under that paragraph (after such administrative 
costs have been paid) shall be paid from appropriations to the fund.
    ``(f) Application Required.--An eligible veteran seeking insurance 
under this section shall file with the Secretary an application 
therefor. Such application shall be filed not later than the earlier 
of--
            ``(1) the end of the two-year period beginning on the date 
        on which the Secretary notifies the veteran that the veteran 
        has a service-connected disability; and
            ``(2) the end of the 10-year period beginning on the date 
        of the separation of the veteran from the Armed Forces, 
        whichever is earlier.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 19 of such title is amended by inserting after the item related 
to section 1922A the following new item:

``1922B. Level-premium term life insurance for veterans with service-
                            connected disabilities.''.
    (c) Exchange of Service Disabled Veterans' Insurance.--During the 
one-year period beginning on the date of the enactment of this Act, any 
veteran insured under section 1922 of title 38, United States Code, who 
is eligible for insurance under section 1922B of title 38, United 
States Code (as added by subsection (a)), may exchange insurance 
coverage under such section 1922 for insurance coverage under such 
section 1922B.

SEC. 4. ADMINISTRATIVE COSTS OF SERVICE DISABLED VETERANS' INSURANCE.

    Section 1922(a) of title 38, United States Code, is amended by 
striking ``date of such insurance'' and inserting ``date of such 
insurance; (5) administrative costs to the Government for the costs of 
the program of insurance under this section shall be paid from premiums 
credited to the fund under paragraph (4), and payments for claims 
against the fund under paragraph (4) for amounts in excess of amounts 
credited to such fund under that paragraph (after such administrative 
costs have been paid) shall be paid from appropriations to the fund''.

SEC. 5. MODIFICATION OF SERVICEMEMBERS' GROUP LIFE INSURANCE COVERAGE.

    (a) Expansion of Servicemembers' Group Life Insurance To Include 
Certain Members of Individual Ready Reserve.--
            (1) In general.--Paragraph (1)(C) of section 1967(a) of 
        title 38, United States Code, is amended by striking ``section 
        1965(5)(B) of this title'' and inserting ``subparagraph (B) or 
        (C) of section 1965(5) of this title''.
            (2) Conforming amendment.--Paragraph (5)(C) of such section 
        1967(a) is amended by striking ``section 1965(5)(B) of this 
        title'' and inserting ``subparagraph (B) or (C) of section 
        1965(5) of this title''.
    (b) Reduction in Period of Coverage for Dependents After Member 
Separates.--Section 1968(a)(5)(B)(ii) of such title is amended by 
striking ``120 days after''.
                                 <all>