[Congressional Record Volume 142, Number 2 (Thursday, January 4, 1996)]
[Extensions of Remarks]
[Page E17]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




           H.R. 2843, VETERANS' INSURANCE REFORM ACT OF 1995

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                             HON. BOB STUMP

                               of arizona

                    in the house of representatives

                       Thursday, January 4, 1996

  Mr. STUMP. Mr. Speaker, today I am introducing legislation which will 
update and make changes to two of the VA insurance programs--the 
Servicemen's Group Life Insurance [SGI] and the Veterans' Group Life 
Insurance [VGLI]. My distinguished colleagues, Sonny Montgomery, Terry 
Everett, Lane Evans, and Chris Smith, join me in introducing this bill.
  The SGLI Program provides group life insurance coverage to persons on 
active duty in the military service, Ready Reservists, members of the 
uniformed services, cadets and midshipmen of the four service academies 
and members of the Reserve Office Training Corps. Although it is a 
program of the Department of Veterans Affairs, this program is actually 
administered by the Prudential Insurance Co.
  The VGLI Program is a program of post-separation insurance which 
provides for the conversion of servicemen's group life insurance to a 
5-year term policy. Like Servicemen's Group, Veterans' Group is 
supervised by the Department of Veterans Affairs but administered by 
the Office of Servicemen's Group Life Insurance.
  This bill would make quite a few changes, including setting the 
automatic coverage under SGLI at $200,000 from the current $100,000; 
allowing the Secretary the authority to terminate an individual's 
insurance if premiums are not paid within 60 days; and renaming the 
Servicemen's Group Life Insurance Program to Servicemember's Group Life 
Insurance.
  Additional provisions include merging the Retired Reserve 
Servicemembers' Group Life Insurance and Veterans' Group Life Insurance 
Programs; extending VGLI lifetime coverage to members of the Ready 
Reserve of a uniformed service; providing for an individual, upon 
separation from the military, to change to the SGLI Program or choose 
as commercial policy; and eliminating the 5-year VGLI renewal period.
  Mr. Speaker, we already know that these are great insurance programs 
and are very popular with veterans and active duty personnel. The 
changes offered in this legislation will improve the programs for 
current policy holders and future participants.
  I urge my colleagues to join me in supporting this legislation.

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