[Congressional Record Volume 153, Number 74 (Monday, May 7, 2007)]
[Senate]
[Pages S5657-S5658]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. AKAKA:
  S. 1315. A bill to amend title 38, United States Code, to enhance 
life insurance benefits for disabled veterans, and for other purposes; 
to the Committee on Veterans' Affairs.
  Mr. AKAKA. Mr. President, today I introduce the Disabled Veterans 
Insurance Improvement Act of 2007.
  The purpose of this legislation is to make certain improvements in 
the insurance programs available to service-connected disabled 
veterans. It has two main components.
  First, this legislation would increase the maximum amount of Veterans 
Mortgage Life Insurance, VMLI, that a service-connected disabled 
veteran may purchase from the current maximum of $90,000 to $200,000. 
The VMLI program was established in 1971 and is available to those 
service-connected disabled veterans who have received specially adapted 
housing grants from VA. In the event of the veteran's death, the 
veteran's family is protected because the Department of Veterans 
Affairs will pay the balance of the mortgage owed up to the maximum 
amount of insurance purchased.
  The need for this increase is obvious in today's housing market 
where, during February, the median sale price of a home in the United 
States was estimated by the Bureau of Census to be $250,000. My 
legislation would ensure that this important benefit, which helps 
secure the financial future of many veterans and their families, keeps 
pace with changes in the economy.
  My bill would also establish a new program of insurance for service-
connected disabled veterans that would provide up to a maximum of 
$50,000 in level premium term life insurance coverage. This new program 
would be available to service-connected disabled veterans who are less 
than 65 years of age at the time of application.
  Under the new program, eligible service-connected veterans would be 
able to purchase, in increments of $10,000, up to a maximum amount of 
$50,000 in insurance. Importantly, unlike existing life insurance 
programs, the premium rates for this program would be based on the 2001 
Commissioners Standard Ordinary Basic Table of Mortality rather than 
the 1941 mortality table that the Service-Disabled Veterans Insurance, 
S-DVI, program is based upon.
  When an insured veteran reaches age 70, two things would occur under 
this new program of insurance. First, the amount of insurance would be 
reduced to 20 percent of the amount of insurance in force prior to the 
veteran's 70th birthday. Second, the veteran would cease making premium 
payments. This means that during those years where the family's 
financial obligations would be commensurately higher because of 
children, mortgages, and the potential impact of any loss of income, 
the veteran's family would be able to purchase the maximum amount of 
term life insurance. At age 70, when resources are likely to be most 
restricted and the need for substantial insurance to take care of a 
family's needs after the veteran's death have lessened, the veteran 
would no longer have an obligation to continue to pay any insurance 
premiums.
  My proposal provides that application for this insurance would need 
to be submitted by an eligible veteran within 2 years from the date on 
which VA establishes a service-connected disability to exist but not 
later than 10 years after a veteran's release from active duty. It 
would further provide that during the first year of the program, any 
eligible veteran who is presently insured under the S-DVI program could 
convert that insurance to a policy under this new program.
  Both of the proposals contained in the legislation I am introducing 
today are compatible with the provisions of S. 643, the proposed 
Disabled Veterans Insurance Act of 2007, which I introduced on February 
15 of this year.
  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:

[[Page S5658]]

                                S. 1315

       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''.
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