,i  #aafth ,,congress  #b;d ,session    
,h4 ,r4 #fjac  ,,in ,,the ,,house ,,of  
,,representatives  ,february #bh1       
#bjbj,mr4 ,bost 7for himself and ,miss  
,rice of ,new ,york7 introduced the     
following bill2 which was referred to   
the ,committee on ,veterans' ,affairs   
,a ,,bill  ,to amend title #ch1 ,united 
,states ,code1 to modernize             
service-disabled veterans insurance4    
#a4 ,short title ,this ,act may be cited
 as the ,veteran ,families ,financial   
,support ,act4  #b4 ,modernization of   
service-disabled veterans insurance  7a7
 ,establishment of modernized program   
7#a7 ,in general ,chapter #ai of title  
#ch1 ,united ,states ,code1 is amended  
by inserting after section #aibb;,a the 
following new section3  #aibb;,b4       
,service-disabled veterans insurance    
7a7 ,insurance  7#a7 ,beginning ,january
 #a1 #bjbc1 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    
force4  7#b7 ,the ,secretary may only   
issue whole-life policies under the     
insurance program under paragraph 7#a74 
7#c7 ,the ,secretary may not grant      
insurance to a veteran under paragraph  
7#a7 unless-- 7,a7 the veteran submits  
the application for such insurance      
before the veteran attains #ha years of 
age2 or  7,b7 with respect to a veteran 
who has attained #ha years of age-- 7i7 
the veteran filed a claim for           
compensation under chapter #aa of this  
title before attaining such age2  7ii7  
based on such claim1 and after the      
veteran attained such age1 the          
,secretary first determines that the    
veteran has a service-connected         
disability2 and  7iii7 the veteran      
submits the application for such        
insurance during the two-year period    
following the date of such              
determination4  7#d7 7,a7 ,a veteran    

enrolled in the insurance program under 
paragraph 7#a7 may elect to be insured  
in any of the following amounts3 7i7    
#aj1jjj4  7ii7 #bj1jjj4  7iii7 #cj1jjj4 
7iv7 #dj1jjj4  7v7 ,in accordance with  
subparagraph 7,b71 a maximum amount     
greater than #dj1jjj4  7,b7 ,the        
,secretary may establish a maximum      
amount to be insured under paragraph    
7#a7 that is greater than #dj1jjj if the
 ,secretary-- 7i7 determines that such  
maximum amount and the premiums for such
 amount-- 7,i7 are administratively and 
actuarially sound for the insurance     
program under paragraph 7#a72 and       
7,,ii7 will not result in such program  
operating at a loss2 and  7ii7 publishes
 in the ,federal ,register1 and submits 
to the ,committees on ,veterans'        
,affairs of the ,house of               
,representatives and the ,senate1 such  
maximum amount and determination4  7#e7 
,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 ,states1 and any payments on    
such insurance shall be made directly   
from such fund4  7#f7 ,administrative   
support financed by the appropriations  
for ,general ,operating ,expenses1      
,department of ,veterans ,affairs and   
,information ,technology ,systems1      
,department of ,veterans ,affairs for   
the insurance program under paragraph   
7#a7 shall be paid from premiums        
credited to the fund under paragraph    
7#e74  7b7 ,eligibility ,a veteran is   
eligible to enroll in the insurance     
program under subsection 7a77#a7 if the 
veteran has a service-connected         
disability1 without regard to-- 7#a7    
whether such disability is compensable  
under chapter #aa of this title2 or     
7#b7 whether the veteran meets standards
 of good health required for other life 
insurance policies4  7c7 ,enrollment and
 waiting period  7#a7 ,a veteran may    
enroll in the insurance program under   

subsection 7a77#a7 at any time4  7#b7   
,the life insurance policy of a veteran 
who enrolls in the insurance program    
under subsection 7a77#a7 does not go    
into force unless-- 7,a7 a period of two
 years elapses following the date of    
such enrollment2 and  7,b7 the veteran  
pays the premiums required during such  
two-year period4  7#c7 ,if a veteran    
dies during the two-year period         
described in paragraph 7#b71 the        
,secretary shall pay to the beneficiary 
of the veteran the amount of premiums   
paid by the veteran under this section1 
plus interest4 ,the ,secretary shall    
calculate such interest at an annual    
rate equal to the weekly average        
one-year constant maturity ,treasury    
yield1 as published by the ,board of    
,governors of the ,federal ,reserve     
,system1 for the calendar week preceding
 the date of the death4  7d7 ,premiums  
7#a7 ,the ,secretary shall establish a  
schedule of basic premium rates by age  
per #a1jjj of insurance under subsection

 7a77#a7 consistent with the lowest     
schedule of basic premium rates         
generally charged for guaranteed        
acceptance life insurance policies by   
private life insurance companies4 ,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 companies4  7#b7 ,section     
#aiab of this title shall not apply to  
life insurance policies under subsection
 7a77#a71 and the ,secretary may not    
otherwise waive premiums for such       
insurance policies4  7e7 ,beneficiaries 
7#a7 ,a veteran who enrolls in the      
insurance program under subsection      
7a77#a7 may assign a beneficiary of the 
life insurance policy4  7#b7 ,if a      
veteran enrolled in the insurance       
program under subsection 7a77#a7 does   
not assign a beneficiary under paragraph
 7#a7 before the veteran dies1 or if an 
assigned beneficiary predeceases the    

veteran1 the ,secretary shall determine 
the beneficiary in the following order3 
7,a7 ,the surviving spouse of the       
veteran4  7,b7 ,the children of the     
veteran and descendants of deceased     
children by representation4  7,c7 ,the  
parents of the veteran or the survivors 
of the parents4  7,d7 ,the duly         
appointed executor or administrator of  
the estate of the veteran4  7,e7 ,other 
next of kin of the veteran entitled     
under the laws of domicile of the       
veteran at the time of the death of the 
veteran4  7f7 ,claims  7#a7 ,if the     
deceased veteran assigned a beneficiary 
under subsection 7e77#a7-- 7,a7 the     
assigned beneficiary is the only person 
who may file a claim for payment under  
subsection 7g7 during the one-year      
period beginning on the date of the     
death of the veteran2 and  7,b7 if the  
assigned beneficiary does not file a    
claim for the payment during the period 
described in paragraph 7#a71 or if      
payment to the assigned beneficiary     

within that period is prohibited by     
,federal statute or regulation1 a       
beneficiary described in subsection     
7e77#b7 may file a claim for such       
payment during the one-year period      
following the period described in       
subparagraph 7,a7 as if the assigned    
beneficiary had predeceased the veteran4
  7#b7 ,if the deceased veteran did not 
assign a beneficiary under subsection   
7e77#a71 or if the assigned beneficiary 
predeceased the veteran1 a beneficiary  
described in subsection 7e77#b7 may file
 a claim for payment under subsection   
7g7 during the two-year period beginning
 on the date of the death of the        
veteran4  7#c7 ,if1 on the date that is 
two years after the date of the death of
 the veteran1 no claim for payment has  
been filed by any beneficiary pursuant  
to paragraph 7#a7 or 7#b71 and the      
,secretary has not received notice that 
any such claim will be so filed during  
the subsequent one-year period1 the     
,secretary may make the payment to a    

claimant whom the ,secretary determines 
to be equitably entitled to such        
payment4  7g7 ,payments  7#a7 ,in a case
 described in subsection 7f7-- 7,a7 in  
paragraph 7#a77;,a71 the ,secretary     
shall pay the assigned beneficiary not  
later than #ij days after the assigned  
beneficiary files a claim for payment2  
or  7,b7 in paragraph 7#a77;,b71 7#b71  
or 7#c71 the ,secretary shall make any  
payment not later than one year after   
the end of the period described in the  
applicable such paragraph4  7#b7        
,notwithstanding section #aiag of this  
title1 the ,secretary shall make an     
insurance payment under this section in 
a lump sum4  7#c7 ,any payment under    
this subsection shall be a bar to       
recovery by any other person4  4  7#b7  
,clerical amendment ,the table of       
sections at the beginning of such       
chapter is amended by inserting after   
the item relating to section #aibb;,a   
the following new item3  #aibb;,b4      
,service-disabled veterans insurance4  4

  7b7 ,sunset of previous program and   
transition  7#a7 ,s-,,dvi ,section #aibb
 of such title is amended by adding at  
the end the following new subsection3   
7d7 7#a7 ,the ,secretary may not accept 
any application by a veteran to be      
insured under this section after        
,december #ca1 #bjbb4  7#b7 7,a7 ,during
 the period beginning ,january #a1      
#bjbc1 and ending ,december #ca1 #bjbe1 
a veteran who is insured under this     
section may elect to instead be insured 
under section #aibb;,b of this title    
based on the age of the veteran at the  
time of such election4  7,b7 ,a veteran 
who elects under subparagraph 7,a7 to be
 insured under section #aibb;,b of this 
title shall be subject to the two-year  
waiting period specified in subsection  
7c7 of such section4 ,if the veteran    
dies during such period1 the ,secretary 
shall pay the beneficiary under this    
section1 and1 if applicable1 under      
section #aibb;,a1 plus the amount of    
premiums paid by the veteran under such 

section #aibb;,b1 plus interest4  7#c7  
,except as provided by paragraph        
7#b77;,b71 a veteran may not be insured 
under this section and section #aibb;,b 
simultaneously4  4  7#b7 ,supplemental  
,s-,,dvi ,section #aibb;,a7b7 of such   
title is amended by adding after the    
period the following3 ,the ,secretary   
may not accept any such application     
after ,december #ca1 #bjbb4 ,except as  
provided by section #aibb7;d77#b77;,b71 
a veteran may not have supplemental     
insurance under this section and be     
insured under section #aibb;,b          
simultaneously44  7c7 ,conforming       
amendments ,chapter #ai of such title is
 amended-- 7#a7 in the section heading  
of section #aibb1 by striking ,service  
and inserting ,legacy service2  7#b7 in 
the section heading of section #aibb;,a1
 by striking ,supplemental and inserting
 ,legacy supplemental2 and  7#c7 in the 
table of sections at the beginning of   
such chapter by striking the items      
relating to sections #aibb and #aibb;,a 

and inserting the following new items3  
#aibb4 ,legacy service disabled         
veterans' insurance4 #aibb;,a4 ,legacy  
supplemental service disabled veterans' 
insurance for totally disabled veterans4
  4