H.R. 5993: Securing America''s Veterans Insurance Needs and Goals (''SAVINGS'') Act of 2010

H.R. 5993

Securing America''s Veterans Insurance Needs and Goals (''SAVINGS'') Act of 2010

Date
September 28, 2010 (111th Congress, 2nd Session)

Staff Contact
Communications

Floor Situation

H.R. 5993 is expected to be considered on the floor of the House on Tuesday, Septemer 28, 2010, under a motion to suspend the rules, requiring a two-thirds majority vote for passage.  The legislation was introduced on July 30, 2010 by Rep. Deborah Halvorson (D-IL) and referred to the Committee on Veterans’ Affairs.

Bill Summary

H.R. 5993 would attempt to ensure that beneficiaries of Servicemembers' Group Life Insurance receive financial counseling and disclosure information regarding life insurance payments, and for other purposes.

Background

This bill would make technical and clarifying corrections to Section 1966 of title 38, United States Code.  The bill would require life insurance companies to provide both oral and written financial counseling to beneficiaries or other persons otherwise entitled to payment under Servicemembers’ Group Life Insurance (SGLI).  According to the bill, full disclosure requirements would include the following:

(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;

(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; and

(iv) other relevant information.

Some members may be concerned that this bill does not address the VA’s use of “retained asset accounts” as a method of payment authorized by current law. 

Cost

CBO estimates that implementing the bill would have no net budgetary impact.  H.R. 5993 would not affect direct spending or revenues; therefore, pay-as-you-go procedures do not apply.