H.R. 5993 (111th): SAVINGS Act of 2010

111th Congress, 2009–2010. Text as of Sep 29, 2010 (Passed the House (Engrossed)).

Status & Summary | PDF | Source: GPO

I

111th CONGRESS

2d Session

H. R. 5993

IN THE HOUSE OF REPRESENTATIVES

AN ACT

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.

1.

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.

2.

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—

(A)

make available, both orally and in writing, 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; and

(B)

at the time that such beneficiary or other person entitled to payment establishes a valid claim under section 1970(a) of this title, provide to such beneficiary or other person the disclosures described in paragraph (2).

(2)

The disclosures provided pursuant to paragraph (1)(B) shall—

(A)

be provided both orally and in writing; and

(B)

include information with respect to the payment of the claim, including—

(i)

an explanation of the methods available to receive such payment, including—

(I)

receipt of a lump-sum payment;

(II)

allowing the insurance company to maintain the lump-sum payment;

(III)

receipt of thirty-six equal monthly installments; and

(IV)

any alternative methods;

(ii)

an explanation that any such payment that is maintained by the life insurance company or paid in thirty-six equal monthly installments by the company is not insured by the Federal Deposit Insurance Corporation;

(iii)

an explanation of the interest rate earned on any such payment that is maintained by the life insurance company or paid in thirty-six equal monthly installments by the company and how such rate compares to the interest rate earned by accounts at financial institutions, including demand accounts; and

(iv)

other relevant information.

(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) of this title for any purpose, including for maintaining such payment with the company.

(4)

The Secretary shall include in each annual performance and accountability report submitted by the Secretary to Congress information concerning—

(A)

the number of individuals who received financial counseling under paragraph (1)(A);

(B)

the number of individuals who received the disclosures under paragraph (1)(B);

(C)

the type of information received by such individuals during such counseling; and

(D)

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

.

(2)

Regulations

The Secretary of Veterans Affairs shall prescribe regulations to carry out section 1966(e) of title 38, United States Code, as added by paragraph (1).

(b)

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:

(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:

(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 paragraph (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.

.

Passed the House of Representatives September 29, 2010.

Lorraine C. Miller,

Clerk.