HR3576-119

1. Short title This Act may be cited as the Veterans’ Life Insurance Expansion and Integrity Act of 2025.

2. Expansion of Department of Veterans Affairs life insurance program Section 1922B of title 38, United States Code, is amended— in subsection (a)— in paragraph (1), by striking service-disabled; by striking paragraph (3); and by redesignating paragraphs (4) through (6) as paragraphs (3) through (5), respsectively; and in subsection (b), by striking the veteran has a service-connected disability and all that follows through the period at the end of paragraph (2) and inserting the following: the veteran submits an application for such insurance before the veteran attains 81 years of age. Such section is further amended by striking the section heading and inserting the following: The table of sections at the beginning of chapter 19 of such title is amended by striking the item relating to section 1922B and inserting the following new item: Not later than two years after the date of the enactment of this Act, the Secretary of Veterans Affairs shall complete a study on the veterans life insurance program under section 1922B of such title (as amended by this Act) and submit to the Committees on Veterans Affairs of the House of Representatives and the Senate a report that includes, with respect to the period covered by the report— the number of— veterans enrolled in such program; claims filed pursuant to such program; insurance payments made by the Secretary to claimants pursuant to such program; the total amount of insurance payments described in subparagraph (C); and contracts or policies for insurance under chapter 19 of such title cancelled or voided by the Secretary pursuant to section 1910 of such title (as amended by this Act) due to administrative error (as defined in such section); an evaluation of— the solvency and financial stability of such program; and the sufficiency of premiums under such program; and a statement of the cost savings to the United States resulting from the cancellation or voiding by the Secretary, pursuant to section 1910 of such title (as amended by this Act), of contracts or policies of insurance due to administrative error (as defined in such section). The amendments made by this section shall take effect on the date that is one year after the date of the enactment of this Act. 1922B.Veterans life insurance. 1922B. Veterans life insurance..

1922B. Veterans life insurance

3. Contestability of certain Department of Veterans Affairs insurance contracts or policies issued due to administrative error Section 1910 of such title is amended— by inserting (a) In general.— before Subject to; by inserting and subsection (b), after section 1911 of this title; by inserting administrative error, after nonpayment of premium,; and by adding at the end the following new subsections: With respect to any decision of the Secretary pursuant to this section to cancel or void a contract or policy of insurance due to administrative error, the Secretary shall provide the insured— prior notice of such decision that includes an explanation of the administrative error underlying such cancellation or voiding; and a period of not less than 90 days to submit to the Secretary evidence that no administrative error occurred with respect to such contract or policy. In any case where an insured submits to the Secretary evidence described in paragraph (1)(B), the Secretary shall determine whether such evidence satisfactorily demonstrates that no administrative error occurred with respect to the contract or policy of the insured by not later than 180 days after the date on which the Secretary receives such evidence. The Secretary may not, pursuant to this section, cancel or void a contract or policy of insurance due to administrative error after the date that is one year after the date of the issuance, reinstatement, or conversion of such contract or policy. This subsection shall apply with respect to any contract or policy for insurance, regardless of whether such contract became effective before, on, or after the date of the enactment of this subsection. In this section, the term administrative error means a clerical, technical, or processing mistake on the part of the Secretary that caused the issuance, reinstatement, or conversion of a contract or policy of insurance to an individual ineligible for such contract or policy on the date of such issuance, reinstatement, or conversion. (b)Contests due to administrative error (1)Prior notice; opportunity to submit evidenceWith respect to any decision of the Secretary pursuant to this section to cancel or void a contract or policy of insurance due to administrative error, the Secretary shall provide the insured— (A)prior notice of such decision that includes an explanation of the administrative error underlying such cancellation or voiding; and (B)a period of not less than 90 days to submit to the Secretary evidence that no administrative error occurred with respect to such contract or policy. (2)Evidentiary reviewIn any case where an insured submits to the Secretary evidence described in paragraph (1)(B), the Secretary shall determine whether such evidence satisfactorily demonstrates that no administrative error occurred with respect to the contract or policy of the insured by not later than 180 days after the date on which the Secretary receives such evidence. (3)LimitationThe Secretary may not, pursuant to this section, cancel or void a contract or policy of insurance due to administrative error after the date that is one year after the date of the issuance, reinstatement, or conversion of such contract or policy. (4)ApplicabilityThis subsection shall apply with respect to any contract or policy for insurance, regardless of whether such contract became effective before, on, or after the date of the enactment of this subsection. (c)Administrative error definedIn this section, the term administrative error means a clerical, technical, or processing mistake on the part of the Secretary that caused the issuance, reinstatement, or conversion of a contract or policy of insurance to an individual ineligible for such contract or policy on the date of such issuance, reinstatement, or conversion..