[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6013 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 6013

 To amend title 38, United States Code, to modernize service-disabled 
                          veterans insurance.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 28, 2020

    Mr. Bost (for himself and Miss Rice of New York) introduced the 
   following bill; which was referred to the Committee on Veterans' 
                                Affairs

_______________________________________________________________________

                                 A BILL


 
 To amend title 38, United States Code, to modernize service-disabled 
                          veterans insurance.

    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 ``Veteran Families Financial Support 
Act''.

SEC. 2. MODERNIZATION OF SERVICE-DISABLED VETERANS INSURANCE.

    (a) Establishment of Modernized Program.--
            (1) In general.--Chapter 19 of title 38, United States 
        Code, is amended by inserting after section 1922A the following 
        new section:
``Sec. 1922B. Service-disabled veterans insurance
    ``(a) Insurance.--(1) Beginning January 1, 2023, the Secretary of 
Veterans Affairs shall carry out a service-disabled veterans insurance 
program under which a veteran is granted insurance by the United States 
against the death of such individual occurring while such insurance is 
in force.
    ``(2) The Secretary may only issue whole-life policies under the 
insurance program under paragraph (1).
    ``(3) The Secretary may not grant insurance to a veteran under 
paragraph (1) unless--
            ``(A) the veteran submits the application for such 
        insurance before the veteran attains 81 years of age; or
            ``(B) with respect to a veteran who has attained 81 years 
        of age--
                    ``(i) the veteran filed a claim for compensation 
                under chapter 11 of this title before attaining such 
                age;
                    ``(ii) based on such claim, and after the veteran 
                attained such age, the Secretary first determines that 
                the veteran has a service-connected disability; and
                    ``(iii) the veteran submits the application for 
                such insurance during the two-year period following the 
                date of such determination.
    ``(4)(A) A veteran enrolled in the insurance program under 
paragraph (1) may elect to be insured in any of the following amounts:
            ``(i) $10,000.
            ``(ii) $20,000.
            ``(iii) $30,000.
            ``(iv) $40,000.
            ``(v) In accordance with subparagraph (B), a maximum amount 
        greater than $40,000.
    ``(B) The Secretary may establish a maximum amount to be insured 
under paragraph (1) that is greater than $40,000 if the Secretary--
            ``(i) determines that such maximum amount and the premiums 
        for such amount--
                    ``(I) are administratively and actuarially sound 
                for the insurance program under paragraph (1); and
                    ``(II) will not result in such program operating at 
                a loss; and
            ``(ii) publishes in the Federal Register, and submits to 
        the Committees on Veterans' Affairs of the House of 
        Representatives and the Senate, such maximum amount and 
        determination.
    ``(5) 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.
    ``(6) Administrative support financed by the appropriations for 
`General Operating Expenses, Department of Veterans Affairs' and 
`Information Technology Systems, Department of Veterans Affairs' for 
the insurance program under paragraph (1) shall be paid from premiums 
credited to the fund under paragraph (5).
    ``(b) Eligibility.--A veteran is eligible to enroll in the 
insurance program under subsection (a)(1) if the veteran has a service-
connected disability, without regard to--
            ``(1) whether such disability is compensable under chapter 
        11 of this title; or
            ``(2) whether the veteran meets standards of good health 
        required for other life insurance policies.
    ``(c) Enrollment and Waiting Period.--(1) A veteran may enroll in 
the insurance program under subsection (a)(1) at any time.
    ``(2) The life insurance policy of a veteran who enrolls in the 
insurance program under subsection (a)(1) does not go into force 
unless--
            ``(A) a period of two years elapses following the date of 
        such enrollment; and
            ``(B) the veteran pays the premiums required during such 
        two-year period.
    ``(3) If a veteran dies during the two-year period described in 
paragraph (2), the Secretary shall pay to the beneficiary of the 
veteran the amount of premiums paid by the veteran under this section, 
plus interest. The Secretary shall calculate such interest at an annual 
rate equal to the weekly average one-year constant maturity Treasury 
yield, as published by the Board of Governors of the Federal Reserve 
System, for the calendar week preceding the date of the death.
    ``(d) Premiums.--(1) The Secretary shall establish a schedule of 
basic premium rates by age per $1,000 of insurance under subsection 
(a)(1) consistent with the lowest schedule of basic premium rates 
generally charged for guaranteed acceptance life insurance policies by 
private life insurance companies. The Secretary may adjust such 
schedule after the first policy year in a manner consistent with the 
general practice of guaranteed acceptance life insurance policies 
issued by private life insurance companies.
    ``(2) Section 1912 of this title shall not apply to life insurance 
policies under subsection (a)(1), and the Secretary may not otherwise 
waive premiums for such insurance policies.
    ``(e) Beneficiaries.--(1) A veteran who enrolls in the insurance 
program under subsection (a)(1) may assign a beneficiary of the life 
insurance policy.
    ``(2) If a veteran enrolled in the insurance program under 
subsection (a)(1) does not assign a beneficiary under paragraph (1) 
before the veteran dies, or if an assigned beneficiary predeceases the 
veteran, the Secretary shall determine the beneficiary in the following 
order:
            ``(A) The surviving spouse of the veteran.
            ``(B) The children of the veteran and descendants of 
        deceased children by representation.
            ``(C) The parents of the veteran or the survivors of the 
        parents.
            ``(D) The duly appointed executor or administrator of the 
        estate of the veteran.
            ``(E) Other next of kin of the veteran entitled under the 
        laws of domicile of the veteran at the time of the death of the 
        veteran.
    ``(f) Claims.--(1) If the deceased veteran assigned a beneficiary 
under subsection (e)(1)--
            ``(A) the assigned beneficiary is the only person who may 
        file a claim for payment under subsection (g) during the one-
        year period beginning on the date of the death of the veteran; 
        and
            ``(B) if the assigned beneficiary does not file a claim for 
        the payment during the period described in paragraph (1), or if 
        payment to the assigned beneficiary within that period is 
        prohibited by Federal statute or regulation, a beneficiary 
        described in subsection (e)(2) may file a claim for such 
        payment during the one-year period following the period 
        described in subparagraph (A) as if the assigned beneficiary 
        had predeceased the veteran.
    ``(2) If the deceased veteran did not assign a beneficiary under 
subsection (e)(1), or if the assigned beneficiary predeceased the 
veteran, a beneficiary described in subsection (e)(2) may file a claim 
for payment under subsection (g) during the two-year period beginning 
on the date of the death of the veteran.
    ``(3) If, on the date that is two years after the date of the death 
of the veteran, no claim for payment has been filed by any beneficiary 
pursuant to paragraph (1) or (2), and the Secretary has not received 
notice that any such claim will be so filed during the subsequent one-
year period, the Secretary may make the payment to a claimant whom the 
Secretary determines to be equitably entitled to such payment.
    ``(g) Payments.--(1) In a case described in subsection (f)--
            ``(A) in paragraph (1)(A), the Secretary shall pay the 
        assigned beneficiary not later than 90 days after the assigned 
        beneficiary files a claim for payment; or
            ``(B) in paragraph (1)(B), (2), or (3), the Secretary shall 
        make any payment not later than one year after the end of the 
        period described in the applicable such paragraph.
    ``(2) Notwithstanding section 1917 of this title, the Secretary 
shall make an insurance payment under this section in a lump sum.
    ``(3) Any payment under this subsection shall be a bar to recovery 
by any other person.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by inserting after the 
        item relating to section 1922A the following new item:

``1922B. Service-disabled veterans insurance.''.
    (b) Sunset of Previous Program and Transition.--
            (1) S-DVI.--Section 1922 of such title is amended by adding 
        at the end the following new subsection:
    ``(d)(1) The Secretary may not accept any application by a veteran 
to be insured under this section after December 31, 2022.
    ``(2)(A) During the period beginning January 1, 2023, and ending 
December 31, 2025, a veteran who is insured under this section may 
elect to instead be insured under section 1922B of this title based on 
the age of the veteran at the time of such election.
    ``(B) A veteran who elects under subparagraph (A) to be insured 
under section 1922B of this title shall be subject to the two-year 
waiting period specified in subsection (c) of such section. If the 
veteran dies during such period, the Secretary shall pay the 
beneficiary under this section, and, if applicable, under section 
1922A, plus the amount of premiums paid by the veteran under such 
section 1922B, plus interest.
    ``(3) Except as provided by paragraph (2)(B), a veteran may not be 
insured under this section and section 1922B simultaneously.''.
            (2) Supplemental s-dvi.--Section 1922A(b) of such title is 
        amended by adding after the period the following: ``The 
        Secretary may not accept any such application after December 
        31, 2022. Except as provided by section 1922(d)(2)(B), a 
        veteran may not have supplemental insurance under this section 
        and be insured under section 1922B simultaneously.''.
    (c) Conforming Amendments.--Chapter 19 of such title is amended--
            (1) in the section heading of section 1922, by striking 
        ``Service'' and inserting ``Legacy service'';
            (2) in the section heading of section 1922A, by striking 
        ``Supplemental'' and inserting ``Legacy supplemental''; and
            (3) in the table of sections at the beginning of such 
        chapter by striking the items relating to sections 1922 and 
        1922A and inserting the following new items:

``1922. Legacy service disabled veterans' insurance.
``1922A. Legacy supplemental service disabled veterans' insurance for 
                            totally disabled veterans.''.
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