1.This Act may be cited as the
Securing America’s Veterans Insurance
Needs and Goals Act of 2010
or the SAVINGS Act of 2010
.
2.Financial
counseling and disclosure information for Servicemembers’ Group Life Insurance
beneficiaries
(a)Financial
counseling and disclosure information
(1)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)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)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)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)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)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)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)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.
.