[Congressional Record Volume 148, Number 44 (Thursday, April 18, 2002)]
[Senate]
[Pages S2965-S2966]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ROCKEFELLER:
  S. 2209. A bill to amend title 38, United States Code, to provide an 
additional program of service disabled veterans' insurance for 
veterans, and for other purposes; to the Committee on Veterans' 
Affairs.
  Mr. ROCKEFELLER. Madam President, I am tremendously pleased to 
introduce legislation that would establish a new service-disabled 
veterans life insurance program. Named in honor of Robert Carey, former 
Director of the Philadelphia Regional Office and Insurance Center until 
his untimely death in 1990, this bill will improve enormously the life 
insurance options available to those veterans who are unable to 
purchase commercial policies because they became disabled in service to 
our Nation. I look forward to its swift passage.
  Since 1919, the Department of Veterans Affairs has provided life 
insurance for servicemembers and veterans in various amounts and with 
varying degrees of success, but with the overarching purpose of 
providing them with an insurance benefit comparable to the commercial 
coverage that they are unable to purchase due to their service in the 
Armed Forces. Unfortunately, as described in the Department of Veterans 
Affairs' Program Evaluation of Benefits for Survivors of Veterans with 
Service-connected Disabilities, which was released last May, the 
current Service-Disabled Veterans Insurance, or SDVI, program does not 
sufficiently fulfill this purpose. .
  The SDVI program insures service-disabled veterans who, but for their 
service-connected disability, would be eligible for commercial life 
insurance. The basic policy currently provides up to $10,000 in 
coverage. Veterans who are deemed totally disabled are eligible for an 
additional $20,000 in supplemental coverage and may apply to have the 
premium on their initial $10,000 policy waived.
  However, according to VA's report, the current SDVI program uses 
mortality tables from 1941 to determine the premiums paid by its 
policyholders. This has led to premiums nearly four times greater than 
those paid by non-veterans. While SDVI policyholders would generally 
expect to pay somewhat higher premiums, many veterans still cited this 
extremely high cost as a major reason for not purchasing an SDVI 
policy. In light of this fact, it is not difficult to understand why 
only 3.5 percent of those eligible actually take advantage of the 
current SDVI program.
  Also cited as a reason for non-participation was the limited benefit 
available under the current SDVI program. According to VA's report, the 
typical private sector employee possesses a life insurance policy two 
to three times his or her annual income, and most financial planners 
recommend even more coverage than that. However, half of all SDVI 
beneficiaries report receiving less than $15,000 in total insurance 
benefits from the loss of a loved one. On average, only $9,000 of this 
comes from their SDVI policy. Forty percent of all SDVI beneficiaries 
sole source of income are the benefits provided by VA. Their lack of 
other coverage, combined with the very limited benefit currently 
available through the current SDVI program, leaves disabled veterans 
woefully under-insured. We simply cannot accept this situation.
  This bill would create a new life insurance program for service-
disabled veterans offering as much as $50,000 in coverage at a price 
comparable to that

[[Page S2966]]

of commercial coverage. It would also bring the premiums charged under 
the current SDVI program more in line with commercial policies by 
updating the mortality tables VA uses to set its rates.
  The motto of the Department of Veterans Affairs is ``To care for him 
that has borne the battle and for his widow and orphan.'' By 
introducing the ``Robert Carey Service-Disabled Veterans Insurance Act 
of 2002,'' I propose that we take yet another step toward fulfilling 
the obligation embodied in those words, and I encourage my colleagues 
to join with me in supporting this very important bill.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2209

       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 ``Robert Carey Service 
     Disabled Veterans' Insurance Act of 2002''.

     SEC. 2. ADDITIONAL PROGRAM OF SERVICE DISABLED VETERANS' 
                   INSURANCE FOR VETERANS.

       (a) In General.--(1) Subchapter I of 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: level 
       premium term insurance

       ``(a) Subject to the provisions of this section, any person 
     described in subsection (b) shall, upon payment of premiums 
     as provided in subsection (f), be granted insurance by the 
     United States against the death of such person occurring 
     while such insurance is in force.
       ``(b) A person described in this subsection is any person 
     as follows:
       ``(1) A person insured under section 1922(a) of this title 
     if such person applies for insurance under this section 
     within the times provided for under paragraphs (2) and (3) of 
     subsection (e).
       ``(2) A person (other than a person described in paragraph 
     (1)) who--
       ``(A) is released from active military, naval, or air 
     service, under other than dishonorable conditions;
       ``(B) is found by the Secretary to be suffering from a 
     disability or disabilities for which compensation would be 
     payable if 10 per cent or more in degree;
       ``(C) except for the disability or disabilities referred to 
     in subparagraph (B), would be insurable according to 
     standards of good health established by the Secretary; and
       ``(D) has not attained the age of 65 years as of the date 
     of application for insurance under this section.
       ``(c)(1) Insurance under this section for a person 
     described in subsection (b)(1) is in addition to the 
     insurance of such person under section 1922(a) of this title 
     and the insurance, if any, of such person under section 1922A 
     of this title.
       ``(2) A person deemed insured under section 1922(b) of this 
     title is not eligible for or entitled to insurance under this 
     section.
       ``(d)(1)(A) Subject to subparagraph (B) and except as 
     provided in paragraph (3), the amount for which a person 
     described by subsection (b)(1) is insured under this section 
     shall, at the election of the person, be--
       ``(i) $45,000; or
       ``(ii) an amount less than $45,000, but more than $5,000, 
     that is evenly divisible by $5,000.
       ``(B) The amount of insurance elected under this paragraph 
     by a person described by subsection (b)(1) may not cause the 
     aggregate amount of insurance of the person under this 
     section and sections 1922(a) and 1922A of this title to 
     exceed $50,000.
       ``(2) Except as provided in paragraph (3), the amount for 
     which a person described by subsection (b)(2) is insured 
     under this section shall, at the election of the person, be--
       ``(A) $50,000; or
       ``(B) an amount less than $50,000, but more than $5,000, 
     that is evenly divisible by $5,000.
       ``(3) Upon attaining the age of 70 years, the amount for 
     which a person is insured under this section shall be the 
     amount equal to 20 percent of the amount otherwise elected by 
     the person under paragraph (1) or (2), as applicable.
       ``(e)(1) A person seeking insurance under this section 
     shall submit to the Secretary an application in writing for 
     such insurance.
       ``(2) The application of a person under paragraph (1) shall 
     be submitted not later than 10 years after the date of the 
     release of the person from active military, naval, or air 
     service.
       ``(3)(A) Except as provided in subparagraph (B), the 
     application of a person under paragraph (1) shall be 
     submitted not later than two years after the date on which 
     the Secretary finds the service-connection for the disability 
     or disabilities of the person on which the application is 
     based.
       ``(B) In the case of a person shown by evidence 
     satisfactory to the Secretary to have been mentally 
     incompetent during any part of the two-year period otherwise 
     applicable to the person under subparagraph (A), an 
     application for insurance under this section shall be filed 
     not later than the earlier of--
       ``(i) two years after a guardian for the person is 
     appointed; or
       ``(ii) two years after the removal of such disability or 
     disabilities, as determined by the Secretary.
       ``(f)(1) Except as provided in paragraphs (2) and (3), a 
     person insured under this section shall pay premiums for such 
     insurance as determined under paragraph (4).
       ``(2) The provisions of section 1912 of this title shall 
     apply with respect to payment of premiums for insurance under 
     this section.
       ``(3) A person shall not be required to pay premiums for 
     insurance under this section after attaining the age of 70 
     years.
       ``(4) The premium rates for insurance under this section 
     shall be level, and shall be based on the Commissioners 1980 
     Standard Ordinary Basic Table of Mortality and interest at 
     the rate of 5 per cent per annum.
       ``(5) All premiums and other collections for insurance 
     under this section shall be credited directly to a revolving 
     fund in the Treasury established for purposes of this 
     section, and any payments on such insurance shall be made 
     directly from such fund.
       ``(g)(1) Except as otherwise provided in this section, 
     insurance under this section shall be issued on the same 
     terms and conditions as are contained in standard policies of 
     National Service Life Insurance, except that insurance issued 
     under this section shall have no loan value or extended 
     values.
       ``(2) All settlements on insurance under this section shall 
     be paid in a lump sum.
       ``(h) Insurance under this section may be referred to as 
     `Robert Carey Service Disabled Veterans' Insurance'.''.
       (2) The table of sections at the beginning of chapter 19 of 
     that title is amended by inserting after the item relating to 
     section 1922A the following new item:

``1922B. Service disabled veterans' insurance: level premium term 
              insurance.''.

       (b) Coordination With Current Service Disabled Veterans' 
     Insurance Program.--Section 1922 of title 38, United States 
     Code, is amended--
       (1) in subsection (b), by adding at the end the following 
     new paragraph:
       ``(5) A person deemed insured under this subsection is not 
     eligible for or entitled to insurance under section 1922B of 
     this title.''; and
       (2) by adding at the end the following new subsection:
       ``(d) A person insured under subsection (a) may also be 
     eligible for insurance under section 1922B of this title in 
     accordance with the provisions of that section.''.
       (c) Other Amendments to Current Service Disabled Veterans' 
     Insurance Program.--Subsection (a) of such section 1922 is 
     amended by striking ``Commissioners 1941 Standard Ordinary 
     Table of Mortality and interest at the rate of 2\1/4\ per 
     centum per annum'' each place it appears in paragraphs (1) 
     and (2) and inserting ``Commissioners 1980 Standard Ordinary 
     Basic Table of Mortality and interest at the rate of 5 per 
     cent per annum''.
       (d) Review of Applicability of Mortality Tables.--(1) The 
     Secretary of Veterans Affairs shall, from time to time, 
     evaluate the standard ordinary table of mortality being used 
     for purposes of service disabled veterans' insurance under 
     sections 1922 and 1922B of title 38, United States Code, in 
     order to determine whether such table of mortality continues 
     to be suitable for such purposes.
       (2) If as the result of an evaluation under paragraph (1) 
     the Secretary determines that the standard ordinary table of 
     mortality being used for purposes of insurance referred to in 
     that paragraph is no longer suitable for such purposes, the 
     Secretary shall submit to the Committees on Veterans' Affairs 
     of the Senate and the House of Representatives a report 
     setting forth that determination and including a 
     recommendation for an alternative standard ordinary table of 
     mortality to be used for such purposes.
       (e) Regulations.--The Secretary of Veterans Affairs shall 
     prescribe regulations for purposes of administering section 
     1922B of title 38, United States Code (as added by subsection 
     (a)), and for purposes of administering the amendments to 
     section 1922 of that title made by subsections (b) and (c). 
     Such regulations shall take effect on October 1, 2003.
       (f) Authorization of Appropriations for Revolving Fund.--
     There is hereby authorized to be appropriated for the 
     Department of Veterans Affairs for the revolving fund 
     established pursuant to subsection (f)(5) of section 1922B of 
     title 38, United States Code (as added by subsection (a) of 
     this section), such sums as may be necessary for purposes of 
     that section.
       (g) Effective Date.--The amendments made by subsections (a) 
     through (c) shall take effect on October 1, 2003.
                                 ______