Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 5993) to amend title 38, United States Code, to ensure that beneficiaries of Servicemembers' Group Life Insurance receive financial counseling and disclosure information…
Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 5993) 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, as amended.
Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days to revise and extend their remarks and to include extraneous material on H.R. 5993, as amended.
I yield myself such time as I may consume.
Mr. Speaker, I rise in strong support of H.R. 5993, the Securing America's Veterans Insurance Needs and Goals, or SAVINGS, Act.
This bill was sponsored by one of our esteemed colleagues, Representative Debbie Halvorson of Illinois, to ensure that beneficiaries of the Servicemembers' Group Life Insurance, SGLI, receive financial counseling, greater disclosure information and other needed support concerning the proceeds of their SGLI life insurance benefits. Mrs. Halvorson acted very quickly in response to some of the publicity on this and to some of the pain felt by the survivors.
Mr. Speaker, I yield such time as she may consume to the gentlewoman from Illinois (Mrs. Halvorson).
Mr. Speaker, at this time, I guess I thank the gentlelady. Within a day of the publicity that surrounded Prudential apparently not giving sufficient information, you had this bill. You moved very quickly and very decisively, and it is going to help all of the survivors and their families. Thank you so much for your quick action.
I reserve the balance of my time.
Mr. Speaker, I yield myself such time as I may consume.
By the way, I didn't see a copy of the agreement. What is the date of that agreement, Mr. Buyer?
I yield to the gentleman.
I thank the gentleman from Indiana.
The ranking member and I have no disagreement that this law before us is not about substance. There is an investigation ongoing. Our committee is investigating. We will have hearings on this. But it's not politics over substance. It's accountability transparency over substance. And all of the leading organizations which have to deal with the beneficiaries, with the survivors of those killed in action support this bill. The National Military Family Association, the Gold Star Wives, amongst others.
So this legislation is about transparency. It's about accountability. It's about disclosure. It's about people understanding the process. This bill doesn't condone anything. It just says that those grief- stricken survivors know what's happening to them under the procedure that we have. Whether it's a proper procedure, whether it's based on an illegal account is something that the courts are working out and we're investigating.
Right now everybody just wants to know what is going on and to have the insurance company, Prudential, disclose everything in advance so a decision can be made by the grief-stricken survivors. That is all we are doing in this bill, and it is needed. It is, in fact, demanded by those who represent the survivors that we act quickly to give some measure of accountability and disclosure to those beneficiaries. We need this bill, and we need it now.
I reserve the balance of my time.
Mr. Speaker, how much time does each side have?
The gentleman stands behind Mrs. Halvorson's bill, and we will not withdraw it.
Mr. Speaker, we had a little lecture on the suspension calendar, which is supposed to be items of consensus. This item was discussed and voted on by our committee. If I recall, there was one ``no,'' the ranking member. There were no other ``no'' votes. The ranking member confuses his singular and personal opposition to the fact that, oh, I guess everybody disagrees with it. No, this came out of our committee with one ``no'' vote. So the gentleman just doesn't understand what consensus means. He thinks if he alone is against it-- as I recall, he was the only one in this whole body that voted against a truly interesting new way to approach financing, and that was advanced appropriations.
Mr. Speaker, the gentleman gave us a lecture on suspension calendar and consensus. He was the only ``no'' vote. He was the only ``no'' vote when we had advance appropriations. Everybody else is wrong but the gentleman.
This bill, as I said before, and as Mrs. Halvorson said very distinctly and very eloquently, is about disclosure, accountability, transparency. The survivors need to know what is going on.
We will, as the gentleman requested, have and are pursuing the investigation. We are pursuing whether the so-called retained asset account is the legal structure that should happen. The VA is pursuing that. And we will get to that.
But right now, right now, as men and women are dying in action, their survivors need to know what is going on. We can't wait for this process to go on and on and on and on, especially when they face a huge insurance company.
The gentleman asked what organizations support us. The American Legion has a letter supporting us. I didn't hear any letter that the gentleman had. As Mrs. Halvorson read, the National Military Families Association supports this bill. And the Gold Star Wives of America, the preeminent group that works for the benefit of survivors of those who are killed in action, has sent us the following letter:
``In light of the recent news that insurance companies could potentially use group life insurance policies to profit from accounts it maintains for families of fallen soldiers, Gold Star Wives of America supports H.R. 5993. It would ensure that insurance companies authorized by VA to administer the SGLI accounts are fully open and honest about its practices for those policies on which so many servicemembers rely to ensure financial security for their families.
``The bill, the SAVINGS Act introduced by Representative Debbie Halvorson of Illinois, would mandate that the Secretary of Veterans Affairs require insurance companies that provide coverage through this program to offer financial counseling and improved disclosure of information to family members and survivors.
``It is critical that the options and information available for survivors offered under the SGLI program involve more disclosure and greater transparency. H.R. 5993 would do that by guaranteeing that survivors of our fallen heroes have access to oral and written financial counseling. These greater disclosure requirements and counseling would better help survivors to understand their options so that they make sound decisions during a stressful and sorrowful time.
``Gold Star Wives of America supports H.R. 5993 so that we can do everything in our power to protect the families and survivors of our fallen soldiers. Their loved ones have answered the call and their survivors deserve these protections.''
Gold Star Wives of
America, Inc.,
Bellevue, NE, September 26, 2010.
Chairman Bob Filner,
Committee on Veterans' Affairs, Cannon House Office Building,
Washington, DC.
In light of recent news that insurance companies could
potentially use group life insurance policies to profit from
accounts it maintains for the families of fallen soldiers,
Gold Star Wives of America, Inc supports H.R. 5993. H.R. 5993
would ensure that insurance companies authorized by VA to
administer SGLI accounts are fully open and honest about its
practices for these policies on which so many servicemembers
rely to ensure financial security for their families.
H.R. 5993, the Securing America's Veterans Insurance Needs
and Goals (SAVINGS) Act of 2010, introduced by Representative
Debbie Halvorson, would mandate that the Secretary of
Veterans Affairs require insurance companies that provide
coverage through the Sevicemembers' Group Life Insurance
(SGLI) program, to offer financial counseling and improved
disclosure information to family members and survivors of
fallen soldiers. It would also require an annual report to
Congress by VA to ensure that insurance companies are being
responsive to military families and survivors and that the
Office of Survivors Assistance will be a greater resource in
this effort.
It is critical that the options and information available
for survivors offered under the SGLI program involve more
disclosure and greater transparency. H.R. 5993 would do that
by guaranteeing that survivors of our fallen heroes have
access to oral and written financial counseling. This greater
disclosure requirements and counseling would better help
survivors to understand their options so that they can make
sound decisions during a stressful and sorrowful time.
Gold Star Wives of America, Inc supports H.R. 5993 so that
we can do everything in our power to protect the families and
survivors of our fallen soldiers. Their loved ones have
answered the call and their survivors deserve these
protections.
Respectfully,
Martha M. Didamo,
Board Chair,
Mr. Speaker, in support of H.R. 5993, as amended, I am submitting letters of support from The American Legion, Veterans of Foreign Wars of the United States, Gold Star Wives of America, Inc., and the National Military Family Association.
The American Legion,
Office of the National Commander,
Washington, DC, September 27, 2010.
Hon. Debbie Halvorson,
House of Representatives,
Washington, DC.
Dear Representative Halvorson: In light of recent news that
insurance companies contracted by the Department of Veterans
Affairs (VA) to administer the Servicemembers' Group Life
Insurance program (SGLI) could potentially use group life
insurance policies to obtain profits from the families of
fallen soldiers, The American Legion supports proposed
legislation which seeks to ensure that insurance companies
are open and honest about the policies on which so many
military families rely.
The legislation you recently introduced, H.R. 5993,
Securing America's Veterans Insurance Needs and Goals
(SAVINGS) Act, would mandate the VA Secretary to require
those insurance companies offering coverage through the SGLI
program to provide the beneficiaries of fallen soldiers with
financial counseling and disclosure information. In addition,
this Act would obligate the VA to provide a report to
Congress annually to ensure that those insurance companies
are being responsive to military families.
It is critical to insure complete transparency, full
disclosure, and increased information be afforded to military
families on insurance matters. This legislation would
guarantee the families of our fallen heroes have access to
oral and written financial counseling. This counseling would
better help family members understand their options so that
they can make sound fiscal decisions during a stressful and
harrowing period.
The American Legion supports H.R. 5993 as introduced so
that we can protect the military families of our fallen
soldiers. However, The American Legion has additional
concerns not addressed in the original bill which are equally
as important.
This legislation does not address Retained Asset Accounts
(RAA) for disbursement of benefits. This is a common practice
used by many insurers for distribution of benefits. However,
The American Legion is concerned this method of disbursement
may be a violation of Title 38 USC Sec. 1970(d) which
requires payments be in 36 monthly installments or one lump
sum. The practice should be either stopped or the law needs
to be changed. Of further concern to The American Legion is
that this legislation does not address the practice of the
insurance company executing the program making a profit on
the account after the death of a service member and actually
misrepresenting or over representing the ``interest bearing
account,'' benefit of the program to a payee.
It is standard policy of the insurance industry to reinvest
the money not withdrawn by the payee and to collect interest
on that money. The insurer then passes on to the payee a
small amount of the interest. While legal and a common
industry practice, it should be forbidden by law in the case
of military members who have given their lives for the
Nation. Precedence has been made in setting aside veterans
and military in the case of health care insurance and other
entitlements due to military service. The American Legion
feels that ALL interest received on investments after
servicemember's death should be passed on to the payees of
the policy.
Sincerely,
Jimmie L. Foster,
National Commander.L