TERMINATION OF SERVICEMEN’S GROUP LIFE INSURANCE FOR MEMBERS OF THE READY RESERVE WHO FAIL TO PAY PREMIUMS.

SEC. 647. TERMINATION OF SERVICEMEN’S GROUP LIFE INSURANCE FOR MEMBERS OF THE READY RESERVE WHO FAIL TO PAY PREMIUMS. (a) Authority.— Section 1969(a)(2) of title 38, United States Code, is amended— (1) by inserting “(A)” after “(2)”; and (2) by adding at the end the following: “(B) If an individual who is required pursuant to subparagraph (A) to make a direct remittance of costs to the Secretary concerned fails to make the required remittance within 60 days of the date on which such remittance is due, such individual’s insurance with respect to which such remittance is required shall be terminated by the Secretary concerned. Such termination shall be made by written notice to the individual’s official address and shall be effective 60 days after the date of such notice. Such termination of insurance may be vacated if, before the effective date of termination, the individual remits all amounts past due for such insurance and demonstrates to the satisfaction of the Secretary concerned that the failure to make timely remittances was justifiable.”. (b) Conforming Amendment.— Section 1968(a) is amended by inserting “(or discontinued pursuant to section 1969(a)(2)(B) of this title)” in the matter preceding paragraph (1) after “upon the written request of the insured”. (c) Effective Date.— The amendments made by this section shall take effect on April 1, 1996.