Servicemembers’ Group Life Insurance

Servicemembers’ Group Life InsuranceSec. 1012. (a) Increased Maximum Amount of Servicembers’ Group Life Insurance.—Section 1967 of title 38, United States Code, is amended—(1) in subsection (a)(3)(A), by striking clause (i) and inserting the following new clause:“(i) In the case of a member—“(I) $400,000 or such lesser amount as the member may elect as provided in subparagraph (B);“(II) in the case of a member covered by subsection (e), the amount provided for or elected by the member under subclause (I) plus the additional amount of insurance provided for the member by subsection (e); or“(III) in the case of a member covered by subsection (e) who has made an election under paragraph (2)(A) not to be insured under this subchapter, the amount of insurance provided for the member by subsection (e).”; and(2) in subsection (d), by striking “$250,000” and inserting “$400,000”.(b) Increments of Decreased Amounts Electable by Members.—Subsection (a)(3)(B) of such section is amended by striking “member or spouse” in the last sentence and inserting “member, be evenly divisible by $50,000 and, in the case of a member’s spouse”.(c) Additional Amount for Members Serving in Certain Areas or Operations.—(1) Increased amount.—Section 1967 of such title is further amended—119 STAT. 245(A) by redesignating subsection (e) as subsection (f); and(B) by inserting after subsection (d) the following new subsection (e):“(e)(1) A member covered by this subsection is any member as follows:“(A) Any member who dies as a result of one or more wounds, injuries, or illnesses incurred while serving in an operation or area that the Secretary designates, in writing, as a combat operation or a zone of combat, respectively, for purposes of this subsection.“(B) Any member who formerly served in an operation or area so designated and whose death is determined (under regulations prescribed by the Secretary of Defense) to be the direct result of injury or illness incurred or aggravated while so serving.“(2) The additional amount of insurance under this subchapter that is provided for a member by this subsection is $150,000, except that in a case in which the amount provided for or elected by the member under subsection (a)(3)(A)(i)(I) exceeds $250,000, the additional amount of insurance under this subchapter that is provided for the member by this subsection shall be reduced to such amount as is necessary to comply with the limitation in paragraph (3).“(3) The total amount of insurance payable for a member under this subchapter may not exceed $400,000.“(4) While a member is serving in an operation or area designated as described in paragraph (1), the cost of insurance of the member under this subchapter that is attributable to $150,000 of insurance coverage shall, at the election of the Secretary concerned—“(A) be contributed as provided in section 1969(b)(2) of this title, rather through deduction or withholding from the member’s pay; or“(B) if deducted or withheld from the member’s pay, be reimbursed to the member through such mechanism as the Secretary concerned determines appropriate.”.(2) Funding.—Section 1969(b) of such title is amended—(A) by inserting “(1)” after “(b)”; and(B) by adding at the end the following new paragraph:“(2) For each month for which a member insured under this subchapter is serving in an operation or area designated as described by paragraph (1)(A) of section 1967(e) of this title, there may, at the election of the Secretary concerned under paragraph (4)(A) of such section, be contributed from the appropriation made for active duty pay of the uniformed service concerned an amount determined by the Secretary and certified to the Secretary concerned to be the cost of Servicemembers’ Group Life Insurance which is traceable to the cost of providing insurance for the member under section 1967 of this title in the amount of $150,000.”.(d) Conforming Amendment.—Section 1967(a)(2)(A) of such title is amended by inserting before the period at the end the following: “, except with respect to insurance provided under paragraph (3)(A)(i)(III)”.(e) Coordination With VGLI.—Section 1977(a) of such title is amended—119 STAT. 246(1) by striking “$250,000” each place it appears and inserting “$400,000”; and(2) by adding at the end of paragraph (1) the following new sentence: “Any additional amount of insurance provided a member under section 1967(e) of this title may not be treated as an amount for which Veterans’ Group Life Insurance shall be issued under this section.”.(f) Requirements Regarding Elections of Members to Reduce or Decline Insurance.—Section 1967(a) of such title is further amended—(1) in paragraph (2), by adding at the end the following new subparagraph:“(C) Pursuant to regulations prescribed by the Secretary of Defense, notice of an election of a member with a spouse not to be insured under this subchapter, or to be insured under this subchapter in an amount less than the maximum amount provided under paragraph (3)(A)(i)(I), shall be provided to the spouse of the member.”; and(2) in paragraph (3)—(A) in the matter preceding clause (i), by striking “and (C)” and inserting “, (C), and (D)”; and(B) by adding at the end the following new subparagraphs:“(D) A member with a spouse may not elect not to be insured under this subchapter, or to be insured under this subchapter in an amount less than the maximum amount provided under subparagraph (A)(i)(I), without the written consent of the spouse.“(E) Whenever a member who is not married elects not to be insured under this subchapter, or to be insured under this subchapter in an amount less than the maximum amount provided for under subparagraph (A)(i)(I), the Secretary concerned shall provide a notice of such election to any person designated by the member as a beneficiary or designated as the member’s next-of-kin for the purpose of emergency notification, as determined under regulations prescribed by the Secretary of Defense.”.(g) Requirement Regarding Redesignation of Beneficiaries.—Section 1970 of such title is amended by adding at the end the following new subsection:“(j) A member with a spouse may not modify the beneficiary or beneficiaries designated by the member under subsection (a) without providing written notice of such modification to the spouse.”.(h) Effective Date.—This section and the amendments made by this section shall take effect on the first day of the first month that begins more than 90 days after the date of the enactment of this Act.(i) Termination.—The amendments made by this section shall terminate on September 30, 2005. Effective on October 1, 2005, the provisions of sections 1967, 1969, 1970, and 1977 of title 38, United States Code, as in effect on the day before the date of the enactment of this Act shall be revived.