S. 3718 – Reading Mode

111th CONGRESS

2d Session

S. 3718

IN THE SENATE OF THE UNITED STATES

August 5, 2010

Mr. Cardin introduced the following bill; which was read twice and referred to the Committee on Veterans' Affairs

A BILL

To amend title 38, United States Code, to ensure that beneficiaries of Servicemembers’ Group Life Insurance receive financial counseling and disclosure information regarding life insurance payments, and for other purposes.

Short title

This Act may be cited as the Securing America’s Veterans Insurance Needs and Goals Act of 2010 or the SAVINGS Act of 2010.

Financial counseling and disclosure information for Servicemembers’ Group Life Insurance beneficiaries

(a)

Financial counseling and disclosure information

(1)

In general

Section 1966 of title 38, United States Code, is amended by adding at the end the following new subsection:

(e)

(1)

In order to be an eligible life insurance company under this section, a life insurance company shall provide financial counseling to a beneficiary or other person otherwise entitled to payment upon the establishment of a valid claim under section 1970(a) of this title.

(2)

The financial counseling provided pursuant to paragraph (1) shall—

(A)

be provided both orally and in writing; and

(B)

include full disclosure with respect to the payment of the claim, including, at a minimum—

(i)

a comparison of the advantages and disadvantages of maintaining such payment with the life insurance company and maintaining such payment with a financial institution, in a format that shows equivalent financial products or product lines with comparable benchmarks, risk factors, or other components the Secretary considers appropriate;

(ii)

a comparison of the rate of interest bearing to such payment if the payment is maintained with the life insurance company and if the payment is maintained with a financial institution;

(iii)

an explanation of whether maintaining such payment with the life insurance company results in the payment not being insured by the Federal Deposit Insurance Corporation;

(iv)

an explanation that the beneficiary may, at the beneficiary's request, receive payment in full as a lump sum;

(v)

an explanation that an account maintained by the insurer does not operate like a traditional checking account; and

(vi)

such other information as the Secretary considers appropriate.

(3)

In order to be an eligible life insurance company under this section, a life insurance company may not charge any fees to a beneficiary or other person otherwise entitled to payment upon the establishment of a valid claim under section 1970(a) with respect to maintaining such payment with the company.

(4)

In each annual performance and accountability report submitted by the Secretary to Congress, the Secretary shall include the following:

(A)

The number of individuals who received financial counseling under paragraph (1).

(B)

A description of the information received by such individuals during such counseling.

(C)

Such recommendations, complaints, or other information with respect to such counseling that the Secretary considers relevant.

(2)

Regulations

Not later than 90 days after the date of the enactment of this Act, the Secretary of Veterans Affairs shall prescribe regulations to carry out section 1966(e) of such title, as added by paragraph (1).

(3)

Effective date

Such section shall take effect on the date of the enactment of this Act and shall apply with respect to beneficiaries or other persons otherwise entitled to payment upon the establishment of a valid claim under section 1970(a) of such title after the date described in paragraph (2).

(b)

Specification by members of the Armed Forces of preference for manner of disbursement of proceeds

(1)

In general

Section 1967(a) of such title is amended by adding at the end the following new paragraph:

(6)

Upon the insurance of a member under this subchapter, the member shall have the option of specifying a preference for the manner of disbursement of proceeds under this subchapter.

(2)

Regulations

Not later than 90 days after the date of the enactment of this Act, the Secretary of Veterans Affairs shall prescribe regulations to carry out section 1967(a)(6) of such title, as added by paragraph (1).

(3)

Effective date

Such section shall take effect on the date of the enactment of this Act and shall apply with respect to members of the Armed Forces insured under subchapter III of chapter 19 of such title after the date described in paragraph (2).

(c)

Office of Survivors Assistance

(1)

Advisory role

Subsection (b) of section 321 of such title is amended—

(A)

by striking The Office and inserting (1) The Office; and

(B)

by adding at the end the following new paragraph:

(2)

The Director of the Office shall attend each meeting of the Advisory Council on Servicemembers’ Group Life Insurance under section 1974 of this title.

(2)

Resources

Subsection (d) of such section is amended—

(A)

by striking The Secretary and inserting (1) The Secretary; and

(B)

by adding at the end the following new paragraph:

(2)

In carrying out paragraph (1), the Secretary shall ensure that the Office has the personnel necessary to serve as a resource to provide individuals described in paragraphs (1) and (2) of subsection (a) with information on how to receive the Servicemembers’ Group Life Insurance financial counseling pursuant to section 1966(e)(1) of this title.