,i  #aaf? ,,congress  #b;d ,session  ,h4
 ,r4 #fjac  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,febru>y #bh1         
#bjbj,mr4 ,bo/ 7= himself & ,miss ,rice 
( ,new ,york7 introduc$ ! foll[+ bill2  
:i* 0 ref]r$ to ! ,committee on         
,vet]ans' ,affairs  ,a ,,bill  ,to am5d 
title #ch1 ,unit$ ,/ates ,code1 to      
mod]nize s]vice-disabl$ vet]ans         
insurance4  #a4 ,%ort title ,?is ,act   
may be cit$ z ! ,vet]an ,families       
,f9ancial ,support ,act4  #b4           
,mod]nization ( s]vice-disabl$ vet]ans  
insurance  7a7 ,e/abli%m5t ( mod]niz$   
program  7#a7 ,9 g5]al ,*apt] #ai (     
title #ch1 ,unit$ ,/ates ,code1 is am5d$
 by ins]t+ aft] section #aibb;,a !      
foll[+ new section3  #aibb;,b4          
,s]vice-disabl$ vet]ans insurance  7a7  
,insurance  7#a7 ,beg9n+ ,janu>y #a1    
#bjbc1 ! ,secret>y ( ,vet]ans ,affairs  
%all c>ry out a s]vice-disabl$ vet]ans  
insurance program "u :i* a vet]an is    
grant$ insurance by ! ,unit$ ,/ates     
aga9/ ! dea? ( su* individual occurr+   

:ile su* insurance is 9 =ce4  7#b7 ,!   
,secret>y may only issue :ole-life      
policies "u ! insurance program "u      
p>agraph 7#a74  7#c7 ,! ,secret>y may n 
grant insurance to a vet]an "u p>agraph 
7#a7 unless-- 7,a7 ! vet]an submits !   
application = su* insurance be=e !      
vet]an atta9s #ha ye>s ( age2 or  7,b7 )
 respect to a vet]an :o has atta9$ #ha  
ye>s ( age-- 7i7 ! vet]an fil$ a claim =
 comp5sation "u *apt] #aa ( ?is title   
be=e atta9+ su* age2  7ii7 bas$ on su*  
claim1 & aft] ! vet]an atta9$ su* age1 !
 ,secret>y fir/ det]m9es t ! vet]an has 
a s]vice-connect$ disability2 &  7iii7 !
 vet]an submits ! application = su*     
insurance dur+ ! two-ye> p]iod foll[+ ! 
date ( su* det]m9ation4  7#d7 7,a7 ,a   
vet]an enroll$ 9 ! insurance program "u 
p>agraph 7#a7 may elect to be insur$ 9  
any ( ! foll[+ am\nts3 7i7 #aj1jjj4     
7ii7 #bj1jjj4  7iii7 #cj1jjj4  7iv7     
#dj1jjj4  7v7 ,9 accordance )           
subp>agraph 7,b71 a maximum am\nt great]
 ?an #dj1jjj4  7,b7 ,! ,secret>y may    

e/abli% a maximum am\nt to be insur$ "u 
p>agraph 7#a7 t is great] ?an #dj1jjj if
 ! ,secret>y-- 7i7 det]m9es t su*       
maximum am\nt & ! premiums = su* am\nt--
 7,i7 are adm9i/ratively & actu>ially   
s\nd = ! insurance program "u p>agraph  
7#a72 &  7,,ii7 w n result 9 su* program
 op]at+ at a loss2 &  7ii7 publi%es 9 ! 
,f$]al ,regi/]1 & submits to !          
,committees on ,vet]ans' ,affairs ( !   
,h\se ( ,repres5tatives & ! ,s5ate1 su* 
maximum am\nt & det]m9ation4  7#e7      
,insurance grant$ "u ?is section %all be
 on a nonp>ticipat+ basis & all premiums
 & o!r collections !re= %all be cr$it$  
directly to a revolv+ fund 9 ! ,treasury
 ( ! ,unit$ ,/ates1 & any paym5ts on su*
 insurance %all be made directly f su*  
fund4  7#f7 ,adm9i/rative support f9anc$
 by ! appropriations = ,g5]al ,op]at+   
,exp5ses1 ,dep>tm5t ( ,vet]ans ,affairs 
& ,in=mation ,te*nology ,sy/ems1        
,dep>tm5t ( ,vet]ans ,affairs = !       
insurance program "u p>agraph 7#a7 %all 
be paid f premiums cr$it$ to ! fund "u  

p>agraph 7#e74  7b7 ,eligibility ,a     
vet]an is eligible to enroll 9 !        
insurance program "u subsection 7a77#a7 
if ! vet]an has a s]vice-connect$       
disability1 )\t reg>d to-- 7#a7 :e!r su*
 disability is comp5sable "u *apt] #aa (
 ?is title2 or  7#b7 :e!r ! vet]an meets
 /&>ds ( good heal? requir$ = o!r life  
insurance policies4  7c7 ,enrollm5t &   
wait+ p]iod  7#a7 ,a vet]an may enroll 9
 ! insurance program "u subsection      
7a77#a7 at any "t4  7#b7 ,! life        
insurance policy ( a vet]an :o enrolls 9
 ! insurance program "u subsection      
7a77#a7 does n g into =ce unless-- 7,a7 
a p]iod ( two ye>s elapses foll[+ ! date
 ( su* enrollm5t2 &  7,b7 ! vet]an pays 
! premiums requir$ dur+ su* two-ye>     
p]iod4  7#c7 ,if a vet]an dies dur+ !   
two-ye> p]iod describ$ 9 p>agraph 7#b71 
! ,secret>y %all pay to ! b5efici>y ( ! 
vet]an ! am\nt ( premiums paid by !     
vet]an "u ?is section1 plus int]e/4 ,!  
,secret>y %all calculate su* int]e/ at  
an annual rate equal to ! weekly av]age 

"o-ye> con/ant maturity ,treasury yield1
 z publi%$ by ! ,bo>d ( ,gov]nors ( !   
,f$]al ,res]ve ,sy/em1 = ! cal5d> week  
prec$+ ! date ( ! dea?4  7d7 ,premiums  
7#a7 ,! ,secret>y %all e/abli% a s*$ule 
( basic premium rates by age p] #a1jjj (
 insurance "u subsection 7a77#a7        
consi/5t ) ! l[e/ s*$ule ( basic premium
 rates g5]ally *>g$ = gu>ante$          
acceptance life insurance policies by   
private life insurance companies4 ,!    
,secret>y may adju/ su* s*$ule aft] !   
fir/ policy ye> 9 a mann] consi/5t ) !  
g5]al practice ( gu>ante$ acceptance    
life insurance policies issu$ by private
 life insurance companies4  7#b7        
,section #aiab ( ?is title %all n apply 
to life insurance policies "u subsection
 7a77#a71 & ! ,secret>y may n o!rwise   
waive premiums = su* insurance policies4
  7e7 ,b5efici>ies  7#a7 ,a vet]an :o   
enrolls 9 ! insurance program "u        
subsection 7a77#a7 may assign a         
b5efici>y ( ! life insurance policy4    
7#b7 ,if a vet]an enroll$ 9 ! insurance 

program "u subsection 7a77#a7 does n    
assign a b5efici>y "u p>agraph 7#a7 be=e
 ! vet]an dies1 or if an assign$        
b5efici>y pr$eceases ! vet]an1 !        
,secret>y %all det]m9e ! b5efici>y 9 !  
foll[+ ord]3 7,a7 ,! surviv+ sp\se ( !  
vet]an4  7,b7 ,! *ildr5 ( ! vet]an &    
desc5dants ( deceas$ *ildr5 by          
repres5tation4  7,c7 ,! p>5ts ( ! vet]an
 or ! survivors ( ! p>5ts4  7,d7 ,! duly
 appo9t$ executor or adm9i/rator ( !    
e/ate ( ! vet]an4  7,e7 ,o!r next ( k9 (
 ! vet]an entitl$ "u ! laws ( domicile (
 ! vet]an at ! "t ( ! dea? ( ! vet]an4  
7f7 ,claims  7#a7 ,if ! deceas$ vet]an  
assign$ a b5efici>y "u subsection       
7e77#a7-- 7,a7 ! assign$ b5efici>y is ! 
only p]son :o may file a claim = paym5t 
"u subsection 7g7 dur+ ! "o-ye> p]iod   
beg9n+ on ! date ( ! dea? ( ! vet]an2 & 
7,b7 if ! assign$ b5efici>y does n file 
a claim = ! paym5t dur+ ! p]iod describ$
 9 p>agraph 7#a71 or if paym5t to !     
assign$ b5efici>y )9 t p]iod is         
prohibit$ by ,f$]al /atute or           

regulation1 a b5efici>y describ$ 9      
subsection 7e77#b7 may file a claim =   
su* paym5t dur+ ! "o-ye> p]iod foll[+ ! 
p]iod describ$ 9 subp>agraph 7,a7 z if !
 assign$ b5efici>y _h pr$eceas$ !       
vet]an4  7#b7 ,if ! deceas$ vet]an did n
 assign a b5efici>y "u subsection       
7e77#a71 or if ! assign$ b5efici>y      
pr$eceas$ ! vet]an1 a b5efici>y describ$
 9 subsection 7e77#b7 may file a claim =
 paym5t "u subsection 7g7 dur+ ! two-ye>
 p]iod beg9n+ on ! date ( ! dea? ( !    
vet]an4  7#c7 ,if1 on ! date t is two   
ye>s aft] ! date ( ! dea? ( ! vet]an1 no
 claim = paym5t has be5 fil$ by any     
b5efici>y pursuant to p>agraph 7#a7 or  
7#b71 & ! ,secret>y has n receiv$ notice
 t any su* claim w be s fil$ dur+ !     
subsequ5t "o-ye> p]iod1 ! ,secret>y may 
make ! paym5t to a claimant :om !       
,secret>y det]m9es to be equitably      
entitl$ to su* paym5t4  7g7 ,paym5ts    
7#a7 ,9 a case describ$ 9 subsection    
7f7-- 7,a7 9 p>agraph 7#a77;,a71 !      
,secret>y %all pay ! assign$ b5efici>y n

 lat] ?an #ij days aft] ! assign$       
b5efici>y files a claim = paym5t2 or    
7,b7 9 p>agraph 7#a77;,b71 7#b71 or     
7#c71 ! ,secret>y %all make any paym5t n
 lat] ?an "o ye> aft] ! end ( ! p]iod   
describ$ 9 ! applicable su* p>agraph4   
7#b7 ,not)/&+ section #aiag ( ?is title1
 ! ,secret>y %all make an insurance     
paym5t "u ?is section 9 a lump sum4     
7#c7 ,any paym5t "u ?is subsection %all 
be a b> to recov]y by any o!r p]son4  4 
7#b7 ,cl]ical am5dm5t ,! table (        
sections at ! beg9n+ ( su* *apt] is     
am5d$ by ins]t+ aft] ! item relat+ to   
section #aibb;,a ! foll[+ new item3     
#aibb;,b4 ,s]vice-disabl$ vet]ans       
insurance4  4  7b7 ,sunset ( previ\s    
program & transition  7#a7 ,s-,,dvi     
,section #aibb ( su* title is am5d$ by  
add+ at ! end ! foll[+ new subsection3  
7d7 7#a7 ,! ,secret>y may n accept any  
application by a vet]an to be insur$ "u 
?is section aft] ,decemb] #ca1 #bjbb4   
7#b7 7,a7 ,dur+ ! p]iod beg9n+ ,janu>y  
#a1 #bjbc1 & end+ ,decemb] #ca1 #bjbe1 a

 vet]an :o is insur$ "u ?is section may 
elect to in/ead be insur$ "u section    
#aibb;,b ( ?is title bas$ on ! age ( !  
vet]an at ! "t ( su* election4  7,b7 ,a 
vet]an :o elects "u subp>agraph 7,a7 to 
be insur$ "u section #aibb;,b ( ?is     
title %all be subject to ! two-ye> wait+
 p]iod specifi$ 9 subsection 7c7 ( su*  
section4 ,if ! vet]an dies dur+ su*     
p]iod1 ! ,secret>y %all pay ! b5efici>y 
"u ?is section1 &1 if applicable1 "u    
section #aibb;,a1 plus ! am\nt (        
premiums paid by ! vet]an "u su* section
 #aibb;,b1 plus int]e/4  7#c7 ,except z 
provid$ by p>agraph 7#b77;,b71 a vet]an 
may n be insur$ "u ?is section & section
 #aibb;,b simultane\sly4  4  7#b7       
,supplem5tal ,s-,,dvi ,section          
#aibb;,a7b7 ( su* title is am5d$ by add+
 aft] ! p]iod ! foll[+3 ,! ,secret>y may
 n accept any su* application aft]      
,decemb] #ca1 #bjbb4 ,except z provid$  
by section #aibb7;d77#b77;,b71 a vet]an 
may n h supplem5tal insurance "u ?is    
section & be insur$ "u section #aibb;,b 

simultane\sly44  7c7 ,con=m+ am5dm5ts   
,*apt] #ai ( su* title is am5d$-- 7#a7 9
 ! section head+ ( section #aibb1 by    
/rik+ ,s]vice & ins]t+ ,legacy s]vice2  
7#b7 9 ! section head+ ( section        
#aibb;,a1 by /rik+ ,supplem5tal & ins]t+
 ,legacy supplem5tal2 &  7#c7 9 ! table 
( sections at ! beg9n+ ( su* *apt] by   
/rik+ ! items relat+ to sections #aibb &
 #aibb;,a & ins]t+ ! foll[+ new items3  
#aibb4 ,legacy s]vice disabl$ vet]ans'  
insurance4 #aibb;,a4 ,legacy supplem5tal
 s]vice disabl$ vet]ans' insurance =    
totally disabl$ vet]ans4  4