GROUP LIFE INSURANCE FOR THE UNIFORMED SERVICES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP67B00446R000500210008-6
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 14
• Document Creation Date: December 15, 2016
• Document Release Date: October 16, 2003
• Sequence Number: 8
• Publication Date: September 20, 1965
• Content Type: OPEN

ApplattCf fefekeWaSigittl 1 /04 Cgiqierifil1eite446
[Mr. Krim] I asked that this bill be Commission could no
Passed over without prbjudice which re- An act of Congress is
quest was granted. As a matter of policy
T
individual purchase before the Cora- and under a name designated by the Ad-
he NMionel Forest servation Com- mission before finalize ion at each purchase. ministrator.
Mission, established hz Congress under The Commies'= ther fare has a chance to "(c) The Administrator shall arrange with
an act commonly re erred to as the determine whether or
Weeks law, has as its purpose the itpur-
chase and acquisiti of inholdings
within our national forests, providing
these inholdings or quisitions were
useful for the product on of forest prod-
ducts and contribut to the control
of waters on navigable treams.
The National Forest Reservation
Commission has done an outstanding Job
over the years in handling acquisitions
and additions to our national forests.
Following the discussion on the floor
of the House, I ilittoediately contacted
the Secretary of the Commission to de-
termine why the acquisition of this in-
holding had not been referred to that
Commission for consideration. I was
Informed by the Secretary that the
Commission too had been concerned
about this legislation, and the same ques-
tion had been asked by the Secretary of
the Army, who is also ,a Member of the
Commission.
An examination of the land indicates
that while it will be useful for water-
shed protection for the city of Provo,
Utah, it does not drain into a navigable
stream and therefore does not comply
with the requirements pf the Weeks law
to be considered by the Commission.
rel
Therefore, I am pl ed to have had
the House reconsider t is bill under my
unanimous consent est and to have
Passed S. 1764.
(Mr. SAYLOR asked and was given
permission to revise 'and extend his
remarks.)
Mr. ICING of Utah. Mr. Speaker, dur-
ing the consideration 1 S. 1764 on the
Consent Calendar tad y, some question
was raised about the a royal by the Na-
tional Forest Reservati n Commission of
the land-acquisition p ovided for In the
bill.
I am happy to reP
of the Forest Service
that the land coyote
which is identical to
8344, does not come u
don of the National
Commission. The Co
under the Weeks Law
to lands of navigate
Provo Canyon bill doe
tershed lands of a na
The letter to me fro
Ice is as follows:
U.S. DEPARTMENT or MR CULTURE,
EST SERVICE,
/ember 20, 1965.
C2113616016SE 23445
up a purchase unit. "(b) The life insurance company or con-
refore needed. panies issuing such policy or policies shall
e do bring the actual establish an administrative office at a place
t that the chief
s informed me
under S. 1764,
y own bill, H.R.
der the jurisdic-
rest Reservation
mission operates
hich applies only
e streams. The
not involve wa-
atable stream.
he Forest Serv-
Washington, D .C., S
Hon. DAVID S. Ewe,
Rouse of Representatives
DEAR MR. Kula: Refere is made to your
request for information bout the relation-
ship between the Natio ? Forest Reserva-
tion Commission and the proposed DIM pur-
chase under H.R. 8344.
The National Forest R rvation Corrunis-
sion operates under the Weeks Law. This
law applies to lands ne ed for timber pro-
ttqction or protection o watersheds nevi-
graable strearris. The al' included in H.R.
?144 aradas Lino the gre basin; therefore
the regular Weeks Law p.. "ure does not
apply and the National o est Reservation
reasonable and In
chases of land for Na
Sincerely yours,
not the price paid Is the life Insurance company or companies
ation to other pur- issuing any policy or policies under this sub-
onal Forest purposes. chapter to reinsure, under conditions ap-
proved by him, portions of the total amount
of insurance under such policy or policies
with such other life Insurance companies
(which meet qualifying criteria set forth by
the Administrator) as may elect to partici-
pate in such reinsurance.
ARD P. CLIFF)
Chief.
I thank the genti : from Pennsyl-
vania Mr. BAYLOR] or agreeing to with-
draw his objection iter requesting and
receiving similar formation from the
Forest Service. Th people of Provo have
waited a long tim for this bill to be
passed. It will all the Forest Service
to acquire valuabl watershed land and,
through proper ma agement and control,
to keep the water Supply of the city of
Provo safe, and pre ent the dangers from
floods and soil ero n.
GROUP LIFE INSURANCE FOR THE
UNIFORMED SERVICES
Mr. TEAGUE of Texas. Mr. Speaker,
I move to suspend the rules and pass the
bill (H.R. 10873) to amend title 38 of the
United States Code to establish a pro-
gram of group life insurance which shall
be provided by private insurance com-
panies for members of the uniformed
services who are on active duty, as
amended.
The Clerk read as follows:
Be it enacted by the Senate and Rouse of
Representatives of the United States of
America in Congress assembled, That (a)
chapter 19 of title 38, United States Code, is
amended by re-designating "Subchapter III?
General" thereof as "Subchapter IV?Gen-
eral" and by inserting immediately after sub-
chapter II thereof the following new sub-
chapter /II:
?S1TRCHAPTER III--SERVICEMEN'S GROUP LIFE
INSURANCE
"? 765. Definitions
"For the purpose of this subchapter?
"(1) The term 'active duty means full-
time duty as a commissioned or warrant
officer, or as an enlisted member of a uni-
formed service under a call or order to duty
that does not specify a period of thirty days
or less.
'(2) The term 'member' means a person
on active duty In the uniformed services in
a commissioned, warrant, or enlisted rank or
grade.
"(3) The term 'uniformed services' means
the Army, Navy, Air Force, Marine Corps,
Coast Guard, Public Health Service, and En-
vironmental Sciences Services Administra-
tion.
"? 766. Eligible Insurance companies
"(a) The Administrator is authorized,
without regard to section 3709 of the Revised
Statutes, as amended (41 U.S.C. 5), to pur-
chase from one or more life Insurance com-
panies a policy or policies of group life in-
surance to provide the benefits specified in
this subchapter. Each such life insurance
company must (1) be licensed to issue life
insurance in each of the fifty States of the
United States and In the District of Colum-
bia, and (2) as of the most recent December
31 for which information is available to the
Administrator, have in effect at least 1 per
centum of the total amount of group life
insurance which all life insurance companies
have in effect in the United States.
"(d) The Administrator may at any time
discontinue any policy or policies which he
has purchased from any insurance company
under this subchapter.
"? 767. Persons Insured; amount
"(a) Any policy of insurance purchased by
the Administrator under section 768 of this
title shall automatically insure any member
of the uniformed services on active duty
against death in the amount of $10,000 from
the first day of such duty, or from the date
certified by the Administrator to the Secre-
tary concerned as the date Servicemen's
Group Life Insurance under this subchapter
takes erect, whichever date is the later date,
unless such member elects in writing (1) not
to be insured under this subchapter, (2) to
be insured in the amount of $5,000.
"(b) If any member elects not to be in-
sured Under this subchapter or to be insured
in the amount of $5,000, he may thereafter
be insured under this subchapter or insured
in the amount of $10,000 under this sub-
chapter, as the Case may be, upon written
application, proof of SOOO health, and com-
pliance with such other terms and condi-
tions as may be prescribed by the Admin-
istrator.
"? 768. Termination of coverage; conversion
"Each policy purchased under this sub-
chapter shalt contain a provision, in terms
approved by the Administrator, to the effect
that any insurance thereunder on any mem-
ber of the uniformed services shall cease (ex-
cept in the case of members absent without
leave) one hundred and twenty days after his
separation or release from active duty, and
that during the period such insurance is in
force the insured upon request to the admin-
istrative office established under subsection
766(b) of this title shall be furnished a list
of life insurance companies participating in
the program established under this subchap-
ter and upon written application (within
such period) to the participating company
selected by the insured and payment of the
required premiums be granted insurance
without a medical examination on a plan
then currently written by such company
which does not provide for the payment of
any sum less than the face value thereof or
for the payment of an additional amount as
premiums if the insured engages in the mili-
tary service of the united States, to replace
the Servicemen's Group Life Insurance In
effect on the insured's life under this sub-
chapter. In addition to life insurance com-
panies participating in the program estab-
lished under this subchapter, such list shall
include additional life insurance companies
(not so participating) which meet qualifying
criteria, terms, and GOIKSfions established by
the Administrator and agree to sell insur-
ance to members and former members in ac-
cordance with the provisions of the preced-
ing sentence. In the case of any member
who is absent without leave for a period of
more than thirty-one days, insurance under
this subchapter shall cease as of the date
such absence GODUllenCed. Any such mem-
ber so absent without leave, upon return to
duty, may again be insured under this sub-
chapter, but only if he complies with the
Approved For Release 2003111104: CIA-RDP67600446R000500210008-6
higwved For Release 2003/1M/AIMSNEWEcaatipartosebigtrerja_6 .September 20, 1965
almanac aiblicy oi policies purchased under
sectiOn 786 of this title. The Secretary of
the Treasury Is authorized to invest in and
to sell 44 retire special interest-bearing ob-
ligation,/ Of the United States for the account
of the :nvolving fund. Such obligations is-
sued far this purpose shall have maturities
Axed with due regard for the needs of the
fund and, shall bear interest at a rate equal
to the average market yield (computed by
the Secretary of the Treasury on the basis
of mar net quotations as of the end of the
c?alendar Month next preceding the date of
issue) on all marketable interest-bearing
obligatons of the 'United States then form-
ing a ran of the public debt which are not
clue or callable until after the expiration of
lour years front the end of such calendar
month except tha where such average
market yield is not a multiple of one-eighth
of 1 per centum, the rate of interest of such
obligation shall be the multiple of one-eighth
of 1 per centum nearest such market yield.
"(8) Notwithstanding the provisions of
section 782 of this title, the Administrator
shall, I rem time to time, determine the ad-
rainist stye costs to the Veterans' Admin-
istration which in his judgment are
proper yr allocable to insurance issued under
this sabchapter and shall transfer such cost
:from the revolving fund to the appropria-
tion icieneral operating expenses. Veterans'
Admin Istration'.
"? 770, Beneficiaries; payment of insurance
"(a) Any amount of Insurance under this
subchimter in force on any member or former
member on the date of his death shall be
paid, upon the establishment of a valid claim
therefr, to the person or persons surviving
at -the date of his death, in the following
order of precedence:
'Tint, to the beneficiary or beneficiaries
as the member or former member may have
designated by a writing received in the urn-
formal services prior to such death;
"Second, if there be no such beneficiary,
to the widow of widower of such member or
forme: member;
"Third, if none of the above, to the child
or children of such member or former mem-
ber and descendants of deceased children by
representation;
"Fourth, if none of the above, to the par-
ents of such member or former member or
the stirvivor of them;
"Filth, If none of the above, to the duly
a.ppolated executor or administrator of the
estate of such member or former member;
"Stab, if none of the above, to the other
next it kin of such member or former mem-
ber eatitled under the laws of domicile of
such member or former member at the time
of hie; death.
"(11) If any person otherwise entitled to
payment under this section does not make
claim therefor within one year after the
death - of the member of former member, or
if paitnent to such person within that period
is pn >Whited by Federal statute or regula-
tion, payment may be made in the order of
precedence as if such person had predeceased
the nember of former member, and any
such payment shall be a bar to recovery by
any tither person.
"(c) If, within two years after the death
of the Member or former member, no claim
for r aynnent has been filed by any person
cunt ad under the order of precedence set
forth in this section, and neither the Ad-
miniftrator nor the administrative office es-
tablihed by the insurance company or corn-
panics pursuant to section 766(b) of this
title has received any notice that any such
chain Will be made, payment may be made to
a claimant as may in the judgment of the
Administrator be equitably entitled thereto,
and such payment shall be a bar to recov-
ery ay- any other person. If, within four
roan; after the death of the member or for-
reqUirernents set forth In section 787(b) of
this section.
769. DedUctions; payment; investment
v(a) During any period in which a member
is insured under a policy of insurance pur-
chased by the Administrator, under section
766 of this title, there shall be deducted each
month from his basic or Other pay until sep-
aration or release from active duty an
an-Omit -deterrairted by the Administrator
(Which zhall be the same for all such mem-
bers) eel the share of the cost attributable to
Insuring such member under such policy, less
any costs traceable to the extra hazard of
active duty in the uniformed service. Any
amount not deducted from the basic or other
pay at a member insured under this subchap-
ter. while on active duty, if not otherwise
paiR shall be deducted from the proceeds of
any insurance thereafter payable. The initial
monthly amount determined by the Admin-
istrator to be charged Under this subsection
for insurance under this subchapter may be
continued from year to year, except that the
Administrator may redetermine such monthly
e,mount from time to time in accordance
With -anierfence. No refunds will be made
to any member of any such amount prop-
erly deducted from his basic or other pay to
wirer the Insurance granted under this sub-
chapter.
"(b) For each month for which any mem-
ber is so insured, there shall be contributed
from the appropriation made for his pay
faitount determined by the Administra-
tor aid certified to the Secretary concerned
to be the cost of such Insurance which is
traceable to the extra hazard of active duty
in the uniformed services Such cost shall
be determined by the Administrator on the
basis of the excess mortality suffered by
members and former members of the uni-
formed services insured under this sub-
chapter above that incurred by the male
civilian population of the United States of
the same age as the median age of members
of the uniformed services (disregarding a
fronton of a year) as shown by the records of
the uniformed services, the primary insurer
Or insurers, and the Department of Health,
Education, and Welfare, together with the
most current estimates of such mortality.
The Administrator is authorized to make
such adjustments regarding such contribu-
tions from pay appropriations as may be in-
dicated from actual experience.
"(c) An amount equal to the first amount
due on any such insurance rrmy be advanced
from current appropriations for active-serv-
ice pay to any such member, which amount
shall constitute a lien upon any service or
other pay accruing to the person from whom
such advance was made and shall be col-
lected therefrom if not otherwise paid. No
disbursing or certifying officer shall be re-
sponsible for any loss incurred by reason of
such advance.
"(d) (1) The stuns withheld from the basic
Or other pay of members under subsection
(a) Of this section, and the sums contributed
from appropriations under subsection (b) of
this section, together with the income
derived from any dividends or premium rate
adjustments received from insurers shall be
deposited to the credit of a revolving fund
established In the Treasury of the United
States, All premium paYrrients and extra
hazard costs on any inturance policy or
policies purchased under section 766 of this
title and the administrative cost to the Vet-
Wane Administration or insurance issued
Under this subchapter shall he paid from the
revolting fund. '
'(9) The Administrator is authorized to
Set aside out of the revolving fund such
aMmints as may be required to meet the
administrative costs to the Veterans' Ad-
intnistre.tion of insurance 'sifted under this
ellbchapter and all current' 'premium pay-
=Outs and extra hazard costs on any in-
Approved For Release 2003/11/04:
pursuant to this section and no claim for
payment by any person entitled under this
section is pending, the amount payable shall
escheat to the credit of the revolving fund
referred to in section 769(d).
"(d) The member May elect settlement
of insurance under this subchapter either
in a lump sum or in thirty-six equal monthly
installments. If no such election is made
by the member the beneficiary or beneficia-
ries may elect settlement either in a lump
sum or in thirty-six equal monthly install-
ments. If the member has elected settle-
ment in a lump sum, the beneficiary or bene-
ficiaries may elect settlement in thirty-six
equal monthly installments.
"I 771, Basic tables of premiums; readjust-
ment of rates
"(a) Each policy or Rendes purchased un-
der section 761 of this title shall include for
the first policy year a schedule of basic pre-
mium rates by age which the Administrator
shall have determined on a basis consistent
with the lowest schedule of 'basic premium
rates generally charged for new group life
Insurance policies issued to large employers,
this schedule of basic premium rates by age
to be applied, except as otherwise provided in
this section, to the distribution by age of the
amount of group life insurance under the
policy at its date of issue to determine an
average basic premium per 61,000 of Insur-
ance. Each policy so purchased shall also
Include provisions whereby the basic rates
of premium determined for the first policy
year shall be continued for subsequent policy
years, except that they may be readjusted
for any subsequent year, based on the experi-
ence under the policy, such readjustment to
he made by the insurance company or com-
panies issuin.g the polity on a basis deter-
mined by the-Administrator in advance of
such year to be consistent with the general
practice of life insurance companies under
policies of group life insurance issued to large
employers.
"(b) The total premiums for the policy or
policies shall be the sum of the amounts
computed according to the provisions of sub-
section (a) above and the estimated costs
traceable to the extra reward of active duty
in the uniformed services as determined by
the Administrator, subject to the provision
that such estimated costs traceable to the
extra hazard shall be retroactively readjusted
annually in accordance with section 769(b).
"(c) Each policy so purchased shall In-
clude a provision that, in the event the Ad-
ministrator determines that ascertaining the
actual age distribution of the amounts of
group life insurance in force at the date of ?
issue of the policy or at the end of the first
or any subsequent year of insurance there-
under would not be possible except at a dis-
proportionately high expense, the Adminis-
trator may approve the determination of a
tentative average group life premium, for the
first or any subsequent policy year, in lieu
of using the actual age distribution. Such
tentative average premium rate shall be re-
determined by the Administrator during any
policy year upon request by the insurance
company or companies issuing the policy, if
experience indicates that the assumptions
made in determining the tentative average
premium rate for that policy year were In-
correct.
"(d) Each policy so purchased shall con-
tain a provision stipulating the maximum
expense and risk charges for the first policy
year, which charges shall have been deter-
mined by the Administrator on a basis con-
sistent with the general level at such charges
made by life insurance companies under
policies of group life insurance issued to
large employers. Such maximum charges
shall be continued from year to year, except
that the Administrator may redetermine such
maximum charges for any year either by
agreement with the Insurance company or
men Member, payment has not been made companies Issuing the policy or upon writ-
CIAIRDP67B00446R000500210008-6
AiNgrfiteedtfor iR141e1S652003/1 I /1113Md4E53PgisBDiFtEgadt119002ibratiii 23447
istrator, and shall review the operations un-
der this subchapter and advise the Admin-
istrator on matters of policy relating to his
activities thereunder.
"5 775. Jurisdiction of District Courts
ten notice given* the Administrator to such
companies at least one year in advance of
the beginning of the year for which such
redetermined maximum eharges will be effec-
tive.
"(e) Each such policy shall provide for
an accounting to the Administrator not
later than ninety days after the end of each
policy year, which shall set forth, in a form
approved by the Administrator, (1) the
amounts of premiums actually accrued under
the policy from its date of issue to the end
of such policy year, (2) the total of all mor-
tality and other claim charges incurred for
that period, and (3) the amounts of the in-
surers' expense and risk charge for that pe-
riod. Any excess of the total of item (1)
over the sum of items (2) and (3) shall be
held by the insurance company or companies
Issuing the policy as a/special contingency
reserve to be used by such insurance com-
pany or companies for charges under such
policy only, such reserve to bear interest at
a rate to be determined in advance of each
policy year by the insurance company or
companies issuing the policy, which rate shall
be approved by the Administrator as being
consistent with the rates generally used by
such company or companies for similar funds
held under other group. life insurance poli-
cies. If and when the Administrator deter-
mines that such special contingency reserve
has attained an amount estimated by the
Administrator to make satisfactory provision
for adverse fluctuations in future charges
under the policy, any further excess shall be
deposited to the credit of the revolving
fund established under section 766 of this
title. If and when such policy is discon-
tinued, and if after all charges have been
made, there is any positive balance remaining
in such special contingency reserve, such
balance shall be deposited to the credit of
the revolving fund, subject to the right of the
insurance company or cOmpanies issuing the
policy to make such deposit in equal monthly
installments over a period of not more than
two years.
"5 5772. Benefit certificates
''The Administrator shall arrange to have
each member insured under a policy pur-
chased under section 760 of this title receive
a certificate setting forth the benefits to
which the member is entitled thereunder, to
whom such benefit shall he payable, to whom
claims should be submitted, and summariz-
ing the provisions of the policy principally
affecting the member. Such certificate shall
be in lieu of the certificate which the insur-
ance company or companies would otherwise
be required to issue.
"I 779. Forfeiture
"Any person guilty of mutiny, treason,
spying, or desertion, or who, because of con-
scientious objections, refuses to perform
service In the Armed Forces of the United
States or refuses to wear the uniform of
such force, shall forfeit all rights to Service-
men's Group Life Insurance Under this sub-
chapter. No such insurance shall be payable
for death inflicted as a lawful punishment
for crime or for military or naval offense,
except when inflicted by an enemy of the
United States.
"5 774. Advisory Connell On Servicemen's
Group Life Insurance
"There is hereby established an Advisory
Council on Servicemen's Group Life Insur-
ance consisting of the Secretary of the
Treasury as Chairman, the Secretary of De-
fense, the Secretary of Commerce, the Secre-
tary of Health, Education, and Welfare, and
tne Director_ of the Bureau of the 15ialget,
eEll of 'Whoin shag sere without additional
?
compensation. The Council shall meet once
a year, or oftener at the cab of the Adrift-
.
No. 173-3
"The district courts of the 'United states
shall have original jurisdiction of any civil
action or claim against the United States
founded upon this subchapter.
"5 776. Effective date
"The insurance provided for in this sub-
chapter and the deductions and contributions
for that purpose shall take effect on the date
designated by the Administrator and certified
by him to each Secretary concerned."
(b) Section 211(a) of title 38. United
States Code, is amended by inserting "775,"
immediately before "781".
Sec. 2. The analysis of Chapter 19 of title
88, United States Code, is amended (1) by
redeSiplating "SUBCHAPTER III?GENERAL" as
"SUBCHAPTER IV?GENERAL" and (2) by in-
serting after
"760. Waiver of premium payment on due
date."
the following:
"SUBCHAPTER ItI?SERVICEMEN'S GROUP LIFE
INSURANCE
"Sec.
"765. Definitions.
"766. Eligible insurance companies.
'767. Persons insured; amount.
"768. Termination of coverage; c,onversion.
"769. Deductions; payment; investment;
expenses.
"770. Beneficiaries; payment of insurance.
"771. Basic tables of premiums; readjust-
ment of rates.
"772. Benefit certificates.
"773. Forfeiture.
"774. Advisory Council on Servicemen's
Group Life Insurance.
"775. Jurisdiction of District Courts.
"776. Effective date."
Sec. B. (a) In the case of each veteran
who died or dies?
(1) as a direct result of actions of hostile
forces;
(2) as a direct result of an accident involv-
ing a military or naval aircraft or an air-
craft Under charter to the Department of
Defense, Army, Navy, or Air Force;
(9) as a direct result of an explosion of
an instrumentality of war; or
(4) while performing service for which
incentive pay for hliP,a.rdOUS duty or special
pay is authorized by section 301, 304, or 310
of title 37, United States Code; While in
the active military, naval, or air service
during the period from January 1, 1957, to
the date immediately preceding the date on
which the Servicemen's Group Life Insur-
ance program is placed in effect pursuant
to section 776 of title 98, United States Code,
both dates inclusive, the Administrator of
Veterans' Affairs shall pay a death gratuity
to the widow or widower, child or children,
or parent or parents of such veteran, as pro-
vided in subsection (b), in an amount not
exceeding $5,000, determined as provided
in subsection (c), but only if (A) applica-
tion is made for such death gratuity within
one year after the date of enactment of this
Act and (B) the person or persons receiving
a death gratuity under this section waive all
future rights to death compensation and
dependency and indemnity compensation,
under title 38. United States Code, on ac-
count of the death of such veteran.
(b) The death gratuity authorized by this
section shall be paid to the following classes
of persons and in the order named?
(1) to the widow or widower of the vet-
eran, if living;
(2) if no widow or widower, to the child
or children of the veteran, if living, in equal
shares;
(3) if no widow, widower, or child, to the
parent or parents of the veteran who last
bore that relationship, if living, in equal
share
(0) (1) The death gratuity authorized by
this section shall be $5,000 reduced by the
aggregate amount of (A) United States Gov-
eminent Life Insurance and National Serv-
ice Life Insurance paid or payable on ac-
cmint of the death of such veteran and (B)
any death compensation or dependency and
indemnity compensation received on account
of the death of such veteran by the person
or persons who receive such death gratuity.
(2) In any case where two or more per-
sons are eligible for a death gratuity under
this section on account of the death of the
same veteran but one or more of such per-
sons do not waive future death compensa-
tion or dependency and indemnity compen-
sation payable under title 38, the Adminis-
trator shall pay his or their share of such
death gratuity to the person or persons
waiving such compensation. However, the
death compensation or dependency and in-
demnity compensation payable to any other
person shall not be increased solely as the
result at an election and waiver under this
section.
(8) The right of any person to payment
of a death gratuity under this section shall
be conditioned upon his being alive to re-
ceive such payment. No person shall have
a vested right to any such payment and any
payment not made during the person's life-
time shall be paid to the person or persons
within the permitted class next entitled to
priority, as provided in subsection (b).
(d) Any terms used in this section which
are defined in section 101 or 102(b) of title
88, United States Code, shall, for the pur-
poses of this section, have the meanings
given to them by such seotion 101 or 102(b),
except that (1) the term "veteran", RS used
in this section, includes a person who dies
while in the active military, naval, or air
service and (2) the term "child" shall not
be limited with respect to age or marital
status.
(e) Appropriations made to the Veterans'
Administration for "Compensation and Pen-
sions" shall be available for the payment of
death gratuities under this section.
The SPEAKER pro tempore. Is a
second demanded?
Mr. 'TEAGUE of California. Mr.
Speaker, I demand a second.
The SPEAKER pro tempore. Without
objection, the second will be considered
as ordered.
There was no objection.
The SPEAKER pro tempore. The
gentleman from Texas [Mr. TEAGUE] Will
be recognized for 20 minutes and the
gentleman from California [Mr. Tnacusl
will be recognized for 20 minutes.
GENERAL LEAVE
Mr. TEAGUE of Texas. Mr. Speaker,
I ask unanimous consent that all Mem-
bers may have 5 legislative days in which
to revise and extend their remarks in
the RECORD in this legislation.
The SPEAKER pro tempore. Without
objection, it laze ordered.
Mr. TEAGUE of Texas. Mr. Speaker,
the bill which we are considering today
has been worked out over a period of
weeks due to the diligent operation and
consideration of the members of the Sub-
committee on Insurance, headed by the
gentleman from Tennessee [Mr. Rosmtr
A. EvERETT]. I wish to commend him
and his group, the gentleman from North
Carolina [Mr. KORNEGAY], the gentleman
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AlgYhd For Release
from Ohio [Mr. SECREST],,t
from California [Mr. Bao
tleman from Wyoming [
the gentleman from Cal
Ts/Load, the gentleman
[Mr. ELLSWORTH] and
from Cihio [Mr. AYRES]. ,
The bill provides for a .roup life in-
surance program and alsq has a retro-
active death gratuity feeure covering
a limited number of dea hs which oc-
curred on and after Janua$r 1, 1957, and
prior to the date that the troup program
becomes effective
This program will be administered by
the Veterans' Administration and under-
written by the private lnsuance industry.
We hope for and expect road industry
Participation. .
The bill empowers the: Administrator
to arrange that the co party or com-
panies writing the "print" or "master"
group policies reinsure i ith other In-
e
surer's. IThe committee's Mention is that
there would be broad participation in
that reinsurance.
In particular?and in this respect I
want to emphasiye what ;the committee's
report shows to be the lnjent of this bill?
the reinsurance should be arranged tak-
ing into account the p oportion of the
participation that the ntry's life in-
surance companies hat been showing
In writing insurance on Jhefr own initia-
tive on the lives of men In the uniformed
services and not restri eel to insurance
companies under the ited formula of
the bill. Participation in this program
should be allocated, tallng into account
the total amount of iqsuiance in force
which the various co panics have al-
ready written on the lives of members of
the uniformed services The Adminis-
trator has latitude un the bill to de-
velop a formula on ad . The necessary
data is readily aye! ble from such
sources as the allotme t records of the
military services.
It is definitely not th intention of this
bill to displace those olflpanles which
have devoted thernselve to the provision
of insurance on the live of military per-
sonnel, and the intent of the reinsurance
provision is that these companies will
..
not be displaced.
It is fully supported by the Depart-
ment of Defense and the Veterans' Ad-
ministration. The only cost will be due
to the extra hazards of the service, esti-
mated at the present time to be $4 mil-
lion a year so long as casualties in Viet-
nam are not increased. Section 3 relates
to the retroactive feature (which has a
one-time cost estimated, at $19,700,000.
Many individuals in the Department of
Defense and the Veterans' Administra-
tion were consulted on this proposal.
Because of their unique contribution and
great amount of effort, I want to com-
mend particularly Mr. Donald C. Knapp,
the Assistant General Counsel of the Vet-
erans' Administration, and his associate,
Mr. Edward Ogle. Mr. William Poissant
Chief Actuary of theveterans' Admin-
istration, was extreme helpful in pre-
senting actuarial data In such a manner
as to make it understa dable to laymen.
As usual, Mr. Robert Guthrie of the Of-
fice of the Legislative Counsel of the
House turned in a sterling performance.
03/11 /C40.11r14300t41310441101M150 02 Roam
e gentleman
NJ, the gen-
. RONCALIOL
fornia [Mr.
rom Kansas
e gentleman
r
To 'these individuals who Made lasting
contributions, the committee and the
House is indeed indebted. 1
I ask unanimous consent to include as
a part of my remarks at this point sev-
eral expressions of support of this legis-
lation from various orgardzations:
WAsnmcroN, D.C.,
. SepteMber 20, 1965.
Ouv.st E. MEADOWS,
Staff ;Director, House commtitee on Veterans'
- Affairs, House of Represtntatives:
The Retired Officers AssoDlation supports
enac ment of H.R. 10873 to provide group life
1.0JSU3 RECO RO uniform services.
JAMES W. CHAPMAN,
Legidlative Counsel.
;
. -- f
SEIIEMBER 20, 1965.
Hon. Ding E. TEAGUE, .
Chatman, Committee on :Veterans' Affairs,
House of Representatives, Washington,
,
H.R. 10879 provides dePendency and in-
cienulty compensation or ',death gratuity to
the unrvivors of decesseiJ( servicemen from
Janu iry 1. 1957, and insi4rance coverage to
present servicemen and fu ure veterans. The
Mat led American Veterai4s support the pro-
visions of H.R. 10873 and iencourages Its en-
actmint-into law. 1
. CLAUDE L. CAWEGART,
National Ontniander,
Disabled A* erican Veterans.
WA BREWTON, D.C. J
? .
i .
WAsticrow, D.C.,
S tember 18, 1965.
Omw E. TEAGUE, .
Chan man, House ComMittee on Veterans'
A ff airs, U.S. House ;of Representatives,
Washington, D.C.: ;
VFW supports H.R. 10E173 to authorize low-
cost insurance for mem rs of armed services
who ;ire carrying on th@ fight against corn-
muni en. Delegates rqpresenting 1,300,000
members to the 66th Yrationa1 Convention
held in Chicago. Ill., Jast August adopted
resolt tion calling forj adequate insurance
proteotion for all in se4vice deaths since end
of K irean war. HR, 10873 substantially
carries out VFW p Rion. Urgently lisre-
quest id that H.R. 1087 be favorably consid-
ered End passed by Ho Use at earliest oppor-
tunity. .
.4.1/07 BORG
-
Commander in hief, Veterans of
.. ,Foreign Waif the United States.
nverox, D.C.,
epteniber 20, 1965.
Hon. ,3rair E. TEAGUE,
Chair/um, House Vete ans. Affairs Commit-
tee, Cannon Offle4 Building, Washing-
ton, D.C. .
DEA. CONGRESSMAN; TEAGUE: AMVETS
unanimously support 11.R. 10873 which will
provic.e group life 1 urance for uniform
servic 'men now on tive duty in South
Vietnam and thro ghout the world.
AMVETS sincerely h ? e that the U.S. Con-
gress 1111 pass this ver important legislation
today.
. , DON SPAGNOLO,
Na Executive Director.
SHINGTON, D.C.,
September 20, 1965.
Hon. Oun E. TEAGUE,
Chairman, Nouse C infttee on Veterans Af-
fairs, !louse ?fit e Building, Washing-
ten, D.C.:
The -Reserve Ofil Association of the
T/niter States is folio Mg with interest the
hearings of your co ittee on H.R. 10873
which would author' e insurance coverage
for all servicemen on ctive duty. This as-
&edam m strongly su ports this bill and
urges your committee to favorably report
September 20, 1965
same with a view toward enactment in this
session of Congress.
JOHN T. CARLTON,
Colonel, U.S. Army Reserve,
Execrative Director.
WASHINGTON, D.C.,
September 20, 1965.
Hon. Otrx E. TEAGUE,
Chairman, Committee on Veterans' Affairs,
House of Representatives, Washington,
As / stated before the President's Cabinet
Committee on Federal Staff Retirement Sys-
tems on Tidy 14, the Air Force Association
supporta a group life insurance program for
the military made available to servicemen on
the same voluntary basis as that provided
for members of the civil service. As a sub-
stitute measure, the Air Force Association
urges the enactment of H.R.. 10873.
JESS LARSON,
President.
I yield such time as he may desire to
the chairrrtan of the subcommittee, the
gentleman from Tennessee [Mr. EVER-
ETT].
(Mr. EVERETT asked and was given
permission to revise and extend his re-
marks and. to include extraneous ma-
terial.)
Mr. EVE:RETT. Mr. Speaker, I ap-
preciate the kind remarks of the chair-
man of the Committee on Veterans'
Affairs, the gentleman from Texas [Mr.
TEAGUE], concerning the activities of the
Subcommittee on Insurance which- were
only possible, of course, through his full
cooperation and support.
I am happy to say that this bill is sup-
Ported by the Department of Defense and
the Veterans' Administration.
The bill sets up a servicemen's group
life insurance program. It provides a
group life insurance program for all
members of the uniformed service who
are on active duty on the effective date
designated by the Administrator of Vet-
erans' Aff airs for the program.
Coverage is automatic, with the serv-
iceman required to take affirmative
action to take himself out of the pro-
gram. The coverage provided is $10,000
or $5,000, no other amounts. If the serv-
iceman elected olt of the program and
later applies for readmission, he must
show good health.
Premium rates, for servicemen, are
expected to be $2 a month for $10,000
of group insurance and $1 per month
for $5,000 of group insurance, including
claim and administrative costs. This
cost may be adjusted, hopefully down-
ward, as experience dictates.
Servicemens' premiums would be de-
ducted from their pay by the Department
of Defense and remitted to the Veterans'
Administration.
The deductions from the pay would
cover the administrative expenses of the
Veterans' Administration.
The extra hazard cost of insuring serv-
icemen would be paid by the United
States after determination on an actu-
arial basis, with total payment for extra
hazard cost estimated at $4 million a
year during periods when casualties are
at present levels. Peacetime costs would
not entail any extra hazard contribution,
or at most a very small one.
The insured may elect settlement in a
lump-sum payment or in 36-month
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period in equal monthly installments. If
the insured fails to make such election,
the beneficiary may do so. ?The insured
may designate any pergon as -a benefici-
ary. If an affirmative designation is not
made, the insurance would be paid in the
following order: widow Or widower; child
or children; parents; if none of the
above, to the executor or administrator
of the estate; if none of the above, to the
next of kin of such Member or former
member under the laws of domicile of
such member at the time of his death.
Upon discharge from the service, the
Individual is protected in the full amount
of his policy for 120 days, the cost for
this being borne by Premiums paid dur-
ing the period of his active service.
While covered by insurance under this
program an individual would have the
right to obtain from a private insurance
company an insurance policy without
medical examination in an amount equal
to the group insurance policy under
which he was protected during the pe-
riod of service.
If the Man has a 'service-connected
disability, he would be eligible for a
commercial policy without medical ex-
amination under this program and, in
addition, would be eligible for a $10,000
service disabled veteran's insurance pol-
icy administered by the Veterans' Ad-
ministration.
'The number of participating com-
panies would be determined by the Ad-
ministrator. The expectation is that
the number of companies Insuring and
reinsuring Under this program will
closely approximate the number under
the existing Federal employees group
life insurance program The primary
insurer or insurers would be required to
be eligible to do insurance business in
all 60 States and the District of Colum-
bia while reinsurers would not be so
limited.
Group life insurance coverage under
this program would be in addition to
any U.S. Government Life Insurance or
National Service Life Insurance which
the serviceman might hold.
The death gratuity program Would
cover death incurred in the active mili-
tary, naval, or air service during the
period from January 1,1957, to the effec-
tive date of the servicemen's group life
insurance program The death must
have-resulted from, first, action of hos-
tile forces; second, an accident involving
a military or naval aircraft; third, an
explosion of an instrumentality of war;
fourth, the performance of service for
which certain incentive or special Pay
for hazardous duty is authorized.
Death gratuity payments would be
made to the widow of the veteran; if
no widow is living, then to his child or
children; and if no widow or child is
living, then to his living parent or par-
ents. No other persons would be eligi-
ble.
Recipients of death gratuity payments
would have to waive all future death
compensation or dependency and in-
13,e4lp4tz compensation on account of
the ?death, of the veteran with respect
to Whom the death gratuity is paid.
The amount of death gratuity pay-
blues
silent ife Mire 16151575i atira - kb 6 7 B 0 0 446 RO 0 0 50 o 2 10008-6
amount of U.S. Government Life Insur-
ance or National Service Life Insurance
Paid Or payable on account of the death
of the veteran and any death compensa-
tion or dependency and indemnity com-
pensation received on account of the
death of such veteran by the recipient
of the death gratuity.
I want to close my remarks by ex-
pressing my appreciation to my col-
leagues on the Subcommittee on Insur-
ance for their understanding and full
support. All of our actions in the sub-
committee and the full committee were
by unanimous vote, and I hope that this
measure may be speedily enacted into
law. -
There Is one other matter I should like
to bring to the attention of the House.
Senator TALMADGE was the leader in pass-
ing the Senate version of this bill. I have
a letter from him. I read it to the House:
SEPTEMBER 16, 1065.
HON. ROBERT A. EVERETT,
Chairman, Subcommittee on Insurance,
Committee on Veterans' Affairs, House of
Representatives, Washington, D.C.
- DEAR CONGRESSMAN: Thank you for your
letters of September 14 and 15, and the en-
closures, regarding the action taken by your
subcommittee on servicemen's insurance.
It is gratifying to see the Veterans' Com-
mittee propose legislation in an area which,
unfortunately, has been ignored for too long
a period of time.
With warm personal regards. I am
Sincerely,
HERMAN E. TALMADGE.
Mr. ROGERS of Colorado. , Mr.
Speaker, will the gentleman yield?
Mr. EVERETI. I yield to the gentle-
man from Colorado.
Mr. ROGERS of Colorado. I thank
the gentleman for yielding, because I am
interested in the statement contained in
item 3 of the blue sheet, which is:
Premium rates, for servicemen are ex-
pected to be $2 a month for $10,000 of group
insurance and $1 per month for $5,000 of
group insurance, including claim and ad-
ministrative costs.
Does the gentleman have any figures to
support the cost of $2 a month for $10,-
000 of insurance, which is $24 a year?
Mr. EVERInt That figure comes
from the Chief Actuary of the Veterans'
Administration. Hopefully it may even
be less.
Mr. ROGERS of Colorado. I find in
paragraph 769, on page 19 of the bill, that
the amount of the premium is going to
be determined by the Veterans' Admin-
istration, by the Administrator.
r. EVERE71 1. That is correct.
r. ROGERS of Colorado. If it can be
ad for $2 a month, and the companies
have agreed that they can do it for $2
month, why do we not write that into
law?
Mr. EVERETT. There is no experi-
ence in this field, at this time. We are
lowing a new field.
Mr. ROGERS of Colorado. That leads
to the next question. This is grout) in-
surance?
Mr. EVERETT. That is correct.
Mr. ROGERS of Colorado. A premium
of $24 a year is exceedingly cheap, we
will all agree. I doubt whether the gen-
tleman or I or any group could go out to
buy it at that rate. However, under tem
stated:heet it Is
The extra hazard cost of insuring service-
men would be paid by the United States after
determination on an actuarial basis, with
the total payment for extra hazard cost esti-
mated at $4 million a year during periods
when casualties are at present levels. Peace-
time costs would not antral any extra hazard
contribution, or at most a very small one.
Now my question is, when it is de-
termined what the extra cost for the haz-
ard may be, is this $4 million then paid
to the insurance company?
Mr. EVERETT. The program will
work in this fashion:
At the end of the year the Veterans'
Administration will have an accounting
and ascertain from the Department of
Defense the average age of the individ-
uals in the service. It will thereafter
obtain from the Bureau of the Census the
latest mortality rate at that age for
the population generally. The prime in-
surer or insurers will, as an example,
present a bill to the Veterans' Admin-
istration saying $50 million has been paid
In death claims. Based on the formula
of the average age and the population
statistics, the Veterans' Administration
will determine, as an example, that the
normal death claims would cost $46 mil-
lion. The VA will therefore pay to the
prime insurer or Insurers $4 million as
the extra-hazard cost, due to the extra-
hazards of military service, and this $4
million will come from the pay appro-
priation available to the various Armed
Forces under the Department of De-
fense
Mr. ROGERS of Colorado. I under-
stand, then, that the $4 million would be
paid into a revolving fund which does
not go to the insurance company at the
time. Is that right?
Mr. EVERETT. I believe my previous
reply answers the point.
Mr. ROGERS of Colorado. And if
there is a death, that leads to further
complications.
Mr. EVERETT. Would the gentleman
please state that again?
Mr. ROGERS of Colorado. There is
$4 million that is estimated will be paid
for this hazardous duty or whatever the
extra premium may be for this haz-
ardous duty in the military, as I under-
stand it, which will be placed into a
separate fund. The individual, as I
understand it from the bill, when he gets
into the service automatically comes in
under the $2 a month premium unless he
declares otherwise.
Mr. EVERETT. That is right. He has
to put in writing that he wishes to get
out of the program.
Mr. ROGERS of Colorado. When the
$2 is collected and turned over to the
Administrator of the Veterans' Adminis-
tration, does he thereafter pay the
premiums direct to the companies that
have come in under this policy?
Mr. EVERETT. The Administrator of
the Veterans' Administration does. That
has been collected by the Department of
Defense from the pay of the serviceman
and remitted to the VA.
Mr. ROGERS of Colorado. And they
keep that premium and pay out accord-
ing to the policy that they issue, which
has been approved by the Administra-
tor?
Mr. EVERETT. That is right, sir.
_ Ala For Release 2003/11/000N191?60B/101141130201902-1 ARV&
? Mr. ROGERS of Colorado. What
.bOthers me is that in this hazardous duty
,Pfainium of $4 million a year, have you
set that up separately in its administm-
tion and, if you do and somebody's death
? results from duty action, is the liability
? then paid by the company that has is-
sued the policy in the first instance?
Mr. EVERETT. This is put into a re-
volving fund, I may say to the gentle-
man from Colorado, and all of these
claims are paid by the insurance com-
pany which has assumed the risk.
Mr. ROGERS of Colorado. Then,
what happens to the insurance Company
that gets the $2? What I am trying to
emphasize is that in the first instance
you have a policy issued. If there is no
hazard in connection with that, the
money collected from the serviceman is
given to the insurance company. If any-
thing happens to him, that insurance
company pays off that policy.
Mr. EVzithri. That Is right.
Mr. ROGERS of Colorado. But if he
goes into action or gets into a hazardous
Situation and extra premiums are re-
quired to the extent of this estimated $4
million?
r.r
EVERETT. That is right.
. ROGERS of Colorado. Then is
tat $4 million taken by the Administra-
r after he has issued the bonds and
lven to the insurance company or it is
etained in the fund?
Mr. KVERETT. No bonds are issued.
The program works as I have already ex-
lainecl.
Mr. ROGERS of Colorado. If it all
koOs into one fund, how much of it has
been given to these insurance companies
and at what stage?
' Mr. EVERETT. As the Administrator
decides.
Mr. ROGERS of Colorado. If the
Administrator decides that here is a
hazardous situation and the premium of
$2 is not adequate so I deterMine that
In order to be adequate it is going to
take $6 a month, then what happens?
Then can he under this bill take the
$6 a month and give it to the insurance
company?
Mr. EVERET1. If the situation in
Vietnam escalates, of course, the extra-
hazard cost to the Government will in-
crease.
Mr. ROGERS of Colorado. Then you
do not set up a separate fund?
. Mr. EVERETT. No; we do not.
Mr. ROGERS of Colorado. But you
do pay it to the insurance company to
the hazardous duty?
Mr. EVERET1 . Yes, sir.
r. ROGERS of Colorado. There
no limit to what the Administrator m
determine the hazard premiums to be, is
that correct?
Mr. EVERETT. There is no limit
whatsoever?just plain good judgment
and I know we can count on William J.
Driver for that.
Mr. ROGERS of Colorado. I thank
the gentleman for this explanation.
Mr. TEAGUE of California. Mr.
Speaker, I ask unanimous consent to
revise and extend my remarks; and
immediately after My remarks that the
gentleman from Indiana [Mr. ADAIR]
be accorded the same privilege; immedi-
ate W after his, the gentleman from Kan-
sas [Mr. ELLSWoRTIl] and, after that,
tht gentleman from Kansas EMr.
Su anal .
The SPEAKER pro tempore.
out_ objection, it is so ordered.
There was no objection.
Mr. TEAGUE of California. Mr.
Speaker, the gentleman from Tennessee
hat accurately and fully explained this
bill. He pointed out, correctly, of
course, that the measure came out of
the subcommittee and the full commit-
tee by a unanimous vote. I think this
Is a _splendid piece of legislation.
I might point out for the benefit of my
colleagues that if you have *received
wires or messages from throughout the
country, sent by persons engaged in the
life insurance business in opposition to
the bill I am convinced that these per-
sons do not understand the bill. I think
If y u will send them a copy of the com-
mit ae report they will find that they do
not object. This is private enterprise.
Thi; is coverage provided by the com-
mercial insurance companies under
group plan. This is a Splendid exam,p1
of the cooperation between private en-
terT rise and the Government.
I fully endorse the bill and urge its
unanimous adoption by the House.
Tfis bill will provide a program of low-
cost group life insurance protection for
every man and woman in the Armed
Forces of the United States.
Ir. 1957, the insurance or indemnity
rot ection that had been available to
embers of the Armed Forces was ter-
Mated. The need for this type of
rotection was not great at that time
eea use commercial insurance at stand-
rd rates could easily be obtained by
rv. cemen. Today, however, we are
rd rented with a different situation.
With the increasing Participation of
American troops in the combat action in
Vietnam, the insurance industry is con-
iron ad with the necessity of inserting
war exclusion clauses in life insurance
policies. Already, at least one major
comininy in the life underwriting field is
using the war exclusion clause in its pol-
icies. In the case of servicemen who
have been alerted or have received orders
for duty in a combat area, it is almost
impossible for them to obtain insurance.
insurance industry representative
ho spoke for 380 life insurance coin-
panios writing more than 94 percent of
the legal reserve life insurance sold in
the Dation, informed our committee that
19 percent of these 380 CoMpaides
aCwdthig life-InSUranne nolicies
thout a war exelbsion clause on ser-
ten alerted for combat duty.
eeause of the diminishing availabil-
ity ed commercial life insurance to the
servicemen of today, our committee
found, it necessary to explore in depth
the manner in which the Federal Gov-
ernment could best remedy this gap in
sun/Friar benefits. The result is the bill
befor e you today.
H.R. 10873 provides insurance coter-
age in the amounts of $10,000 or $5,000
for every Person in military service who
desiris it. The insurance would be un-
derwritten by the insurance industry
with he Government bearing the costs
With-
September 20, 1965
of deaths due to extra hazardous service.
This cost, based on present levels of extra
hazardous casualties, is estimated at
$4 million annually. The cost of
the insurance to the serviceman is $2
monthly for $10,000 coverage and $1
monthly for $5,000 coverage.
The program would operate in this
manner. Upon entrance into military
service, the serviceman would automati-
cally be insured for $10,000. If he makes
a written request, he may decline the in-
surance or elect the $5,000 coverage.
The insured may designate anyone as his
beneficiary. He may also elect either a
lump sum settlement or 36 equal monthly
installments. The insurance will remain
In force for 120 days after separation.
During this period, the discharged serv-
iceman may be furnished a list of par-
ticipating insurance companies, any of
which will issue a po icy with a similar
amount of coverage without a physical
examination. This provision of the bill
will be of particular value to the seriously
disabled veteran who would otherwise be
uninsurable.
n addition to the insurance program,
. . 0811- offers a lump nun death
gratuity of $5,61/0??ETTffe_next_ofiin of
a stireTTN ceman wigioThrGovernment life
Insurance who died under tertain condi-
tions beaten Jaxnan,J 1957 and the
date this legislationmee_eff.al..*4 ve
Death must have reatd from, first, the
action of hostile forces; second, an acci-
dent involving military or naval aircraft;
third, an explosion of an instrumentality
of war; or, fern-th, the performance of
service for which incentive or hazardous
duty pay is authorized. To be entitled to
the gratuity, recipients would have to
waive any future entitlement to monthly
survivor benefits.
Mr. Speaker, this is a good bill and I
will support it.
It offers a comprehensive insurance
coverage at a reasonable premium rate
and equally important, it permits private
insurance companies to underwrite the
insurance without the Federal Govern-
ment moving even deeper into the in-
surance business.
Mr. ADAIR. Mr. Speaker, I rise in
support of HR. 10873. In so doing. I
want to extend my congratulations and
thanks to the Subcommittee on Insurance
of the Committee on Veterans' Affairs.
This group has labored long and hard to
bring forth a bill that enjoys the support
of the insurance industry as well as most
of the veterans' organizations.
The insurance offered under this bill
will fill a void in the survivor benefit pro-
gram. It will permit every serviceman
to obtain $5,000 or $10,000 of life insur-
ance at the nominal premium rate of $1
or $2 monthly. While the insurance is
not mandatory, the serviceman's affirma-
tive action In writing will be required to
refuse it.
The insurance will be available to all
servicemen. It makes no distinction be-
tween those in a combat zone and those
who are not. It proposes a permanent
program and will be available to career
personnel as well as draftees both now
and in the future when U.S. Armed
Forces may n.o longer be engaged in hos-
tile actions.
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The cost of this program to the Federal
Government today is estimated at $4 mil-
lion annually. In a strictly peacetime
situation, this cost will be reduced con-
siderably because of the decline in deaths
c to extra lazardons causes.
(
One group of survivors in particular,
r. Speaker, should benefit from this bill.
hese are the parents of an unmarried
ervicernan killed in Vietnam. Because
arents must meet an extremely stringent
Income limitation to qtalify for monthly
survivor benefits, many of them receive
no payment front the Federal Govern-
ment upon the death of a son in combat.
I am pleased that HR. 10873 will provide
death benefit for this deserving grout!).
Mr. Speaker, this bill will provide an
Immediate, low-cost group insurance pro-
gram, available to all servicemen at a
minimum cost to. the Federal Govern-
ment. I urge my colleagues to join me
in supporting this measure.
'Mr. ELLSWORTH. Mr. Speaker, at
the outset I want to recognize, and ex-
press my deep appreciation forpthe lead-
ership of the distinguished junior Sena-
tor from Georgia, in this important field
of insurance coverage for our American
boys who are being called daily into
combat in defense of freedom and lib-
erty. The able and courageous junior
Senator from Georgia, together with his
colleagues of the other body who joined
with him in sponsoring legislation in this
field are entitled to the tribute of all
Americans everywhere.
In today's troubled world, American
boys are being asked to risk their lives in
the defense of freedom. When an
American fighting man is killed in the
line of duty in such action spots as Viet-
nam, the Deminican Republic?or even
on our own shores?no amount of legis-
lation can remove the heartbreak and
sorrow of his family and friends. We
can remove some of the financial strain,
and I therefore urge the House of Rep-
resentatives to pass the bill before us,
providing a group life insurance program
for all members of the uniformed service
on active duty.
This bill provides coverage of $10,000
or $5,000 at the serviceman's option, for
a low premium of 20 cents per $1,000 per
month. Coverage is automatic unless
the serviceman takes himself out of the
program. The insured may elect settle-
ment in a lump-sum payment or in 36
monthly installments, and the insurance
is in addition to any U.S. Government
life insurance or national service life
insurance the serviceman may hold. De-
pendents of military men killed in ac-
tion, or performance of service since
1957, when a previous program expired,
are entitled to a $5,000 gratuity, '
.41.tjanngb.,_the_ethinlatratia.at mased
$ I' - r_I s lampleased tha th as
:66: ? ilp10116 ?
in. :46 up-
? ? ttaamene . Such
in Ce is over. tie, but it is gratifying
to note the speedy action being taken by
Congress on a matter of great import-
ance to our servicemen, their wives, and
their clffidren.
It is understa.nda le that many life in-
surance effirtifinies- hare felt that they
could not, as a matter of fairness to ex-
isting policy holders, undertake to insure
large numbers of servicemen alerted for
combat areas. Even though a minority
of the companies have continued to issue
limited amounts of insurance to military
personnel bound for Vietham, such serv-
icemen have often found it difficult to
obtain the insurance on short notice.
The group life insurance program pro-
vided under H.R. 10873 will remedy this
situation without getting the Federal
Government into the life insurance busi-
ness and without providin
s program
s ould also serve as a permanent solu-
tion to the problem of providing addi-
tional coverage whenever this may be
advisable as the cold war waxes and
wanes. Its practicability and flexibility
have been tested by some 10 years' ex-
perience with a similar program for
civilian employees of the Federal Gov-
ernment.
Upon termination of his military serv-
ice, or even while in the service, each
serviceman who takes advantage of the
group insurance program will be entitled
to convert his group insurance, without
a medical examination, to a policy or a
plan issued by a private company in an
amount equal to his group insurance.
He will be able to do so not only with
any company that qualifies as a primary
reinsurer or a reinsurer of the program
but also with any other company that
meets criteria or conditions laid down
by the Administrator of Veterans' Af-
fairs. Companies throughout the coun-
try, regardless of whether or not they
choose to become primary reinsurers of
the program, will be able to offer their
services to veterans when they convert
their group insurance.
The serviceman who has a serviee con-
nected disability will be able to exercise
the right of conversion without a medical
examination and also avail himself of
a $10,000 service disabled veterans in-
surance administered by the Veterans'
Administration. Thus the veteran who
needs life insurance most will be doubly
protected.
I believe firmly that, as result of this
group life insurance program for military
personnel, the life insurance agents of
this country?who have been an indis-
pensable element of good insurance serv-
ice over the years?will have new. and
greater opportunities to help veterans in
the future, if only because the agent can
be of real assistance to the veteran at the
time of conversion of the group insur-
. ance. Furthermore, the veterans' per-
spective of what constitutes an adequate
amount of insurance is likely to be con-
siderably enlarged by his carrying $10,-
000 group life insurance.
Group life insurance was an American
invention and I am glad that by enact-
ing this legislation we can use this
mechanism to provide effectively for the
additional insurance needs of our Armed
Forces through a uniquely American ar-
rangement.
Mr. SHRIVER. Mr. Speaker, I rise in
support of H.R. 10873 which provides a
group life insurance plan for all mem-
bers of the armed services who are on
active duty in the United States and
throughout the world.
23451
At a time when Americans are again
being called to the colors in increasing
numbers to risk their lives in defense
of the freedoms we all enjoy, it is im-
portant that we provide them and their
loved ones with this protection. There
is no way we can remove the sorrow and
heartbreak caused by the death of an
American serviceman who loses his life
in the line of duty. However, this leg-
islation will help ease the financial load
which the survivors always must bear.
Under this bill, servicemen will receive
automatic insurance coverage of either
$10,000 or $5,000. Servicemen may,
however, elect to remove themselves
from the program. A nominal premium
of $2 per month for $10,000 coverage or
$1 per month for $5,000 insurance will be
deducted from the serviceman's pay by
the Department of Defense and remitted
to the Veterans' Administration.
In this Congress we have been con-
cerned with legislation, such as the Mili-
tary Pay Act, which would have the ef-
fect of raising the morale of our armed
services and create greater incentives for
career service. This bill certainly should
also contribute to those aims
Mr. DOLE. Mr. Speaker, will the gen-
tleman yield?
Mr. TEAGUE of California. I yield.
Mr. DOLE. I wonder if the gentleman
could answer a question with reference to
whether or not there is any waiver-of-
premium provision provided in this in-
surance. If a veteran becomes totally
disabled and hospitalized, must he still
continue premium payments or will the
premiums be waived during the period of
total disability?
Mr. TEAGUE of California. Subject
to correction by the chairman of the sub-
committee, my understanding is that
r/ Lire is no waiver of ummilim But I
irciuld point out that when a military man
is in a hospital, his pay continues. The
premium is only $2 a month for the
$10,000 coverage.
Mr. DOLE. I think some of us found
in World War 11, after 6 months of total
disaffility the premiums were waived. I
do recognize that the premium was some-
what higher.
I also have a question about what hap-
pens in the case of those who have al-
ready lost their lives in Vietnam. Are
the widows or children or parents of
these men entitled to any benefits under
this program?
Mr. TEAGUE of California. The an-
swer is "Yes." I think, however, I should
yield to the chairman of the subcommit-
tee for a further explanation.
Mr. EVERETT. Mr. Speaker, I might
say to the gentleman from Kansas, that
they are entitled to death gratuity
benefits. In an amount not to exceed
$5,000. That cost would be around $20
million to be paid out of the Treasury.
Mr. DOLE. I understand, after the
effective date of the legislation, the
parents or the wives or the children of
those insured would be entitled to
$10,000?
Mr. EVERETT. That is right. I might
add another thing. A prisoner of war
comes- under this program. He would
have to elect out to prevent coverage.
If there is no communication, he would
be covered.
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,
Mi. DOLE. But if a veteran signified M1'. EVERETT. That is right; yes,
in writing that he did not want the uncle:, the insurance policy, everyone's
protection and then lost his life in Viet- situation is covered.
natil m some other place, would there be Mi. DOLE. I was confused about the
any benefits? terms. It says "an explosion of an in-
Mr. EVERETT. He would not be strur tentality of war." There are many
covered under group insurance only thing a that could happen that would not
_ under the present laws we now have gov- be related to an explosion of an instru-
i
erning the survivors' benefits?$120 Per mentality of war,
month plus 12 percent of the base pay Mr. EVERETT. Mr. Speaker, I shall
of the person who served?generally a call tpon the gentleman from Ohio [Mr.
minimum of $131 and a maximum of SECRISTI to respond to that question.
$37'7 paid to the widow. Mr, SECREST. Mr. Speaker, will the
Mr. DOLE. Under the death gratuity gentLiman yield?
Prograln, I note that there are certain Mr TEAGUE of California. I yield to
Provisions that if death results from ac- the gentleman from Ohio.
Mon of hostile forces and accidents in- Mr SECREST. I think we are talking
Veiling a military or naval aircraft or an about two different things. You have
explosion of an instrumentality of war, one approach which goes from 1957 until
or in the performance of service for this till goes into effect. That is where
which certain incentive or special pay for we covered the people such as those who
hazardous duty IS authorized, benefits are were 'oat in the submarine Thresher and
payable. Does the gentleman know of those Categories of extra hazardous duty.
any eases which would result in death But, We do not cover a boy who might be
which would not be covered under this killed .at home on leave, because that
section? program was estimated to cost anywhere
Mr. EVERETT. Certain disease cases from $80 million to $90 million. So the
.
driving
would no
of a disease that is common here but ?We would like to have gone the whole to
not while on duty in Vietnam, or off-duty way, but there is a question as how far
to b and m o
cv
dferroemd where a m
work or
o roaf in- d died committee
off-duty
ty wo
could go, had to draw a
f r omlm7 linem somewhere.nowan dIn
I
leave. His family would not be entitled the future in covering anyone by this
to the death gratuity under this program. insurance.
Mr. TEAGUE of California. I believe From the day this goes into effect, no
I still, have some time left and I might matter how he died, whether from dis-
say for the benefit of the gentleman from ease or home on leave, or any place at
Kansas and the other Members present, any time, he is covered with the full
re committee felt we had to draw the amount of the insurance he is carrying,
line somewhere hi the retroactive fea- There Is one more feature. The rate is
tures of the act. very cheap, $2 a month, because you
1 There are no limitations on the cover- have 2.8 minion in the group. It would
age from here on under the insurance probably be the largest group Insurance
and the serviceman will be paying a pre- that has ever been issued by any corn-
mium. But we did provide a death gra- pany. We had a collection of companies
tuity for people who did not pay a pre- that want to participate. Then there is
rainum. We had to arrive at some sort this ftrther treatment: When the serv-
of compromise and we thought this was ice man leaves the service, in about 3 or
a fair and equitable compromise. 4 year;, he can convert this to any other
Mr.. DOLE. In subsection (c) if the type of insurance he wants to without
death were caused by, say, the explosion getting' a physical examination. He
of a grenade or something else, during walks ..n and, says "I want life insurance
basic training or while performing duty, paid 1.1D" of whatever amount he wants.
there would be coverage. But if he fell Mr. DOLE, From the standpoint of
on a bayonet or something qf that kind, the widow, child or parents of a man who
there would not be coverage? may have lost his life on an obstacle
Mr. TEAGUE of California. I would course, the protection is just as as lm-
say that a bayonet is an instrumentality portant to them.
of war, although death resulting from a Mr. EVERETT. From the day this
bayonet wound possibly would not meet group insurance goes into effect, if that
the definition contained in the bill, man h killed on an obstacle course he
Mr. DOLE. I am talking about sub- is covered. This bill permits you to
%paragraph (c), where it says "an explo- leave your insurance to your church, 14
sion of an instrumentality of war." In your college, to your best friend. Th
other words, is this coverage limited to beneficiary provision Is wide open unde
only those cases resulting in death from
an explosion? is or on.
. Mr. :50LE. I am trying to straighten
Mr. EVERETT. Well, explosions out tin benefit geld for deaths occuring
where a man might be killed by an in- betwee a the period of time from 1957
strumentality of war--a mine as an ex- until the effective date of this act.
ample. Ile would be covered but, of Mr. EVERETT. It was strictly a mat-
course, he would not be covered while on ter of giving as much coverage as possi-
off -duty leave driving down the streets ble ale still being sure it could be en-
of Saigon or something like that. I ern acted tato law.
speaking of the death gratuity now. Mr. DOLE. Mr. Speaker, it would ap-
-lir. DOLE. Is the intent of this bill to pear that because of the cost involved,
provide the same coverage and the same widows. children, and parents of some
protection for anyone who is in the serv- servicemen who died as a result of an
Ice if death results from service-con- Injury incurred In the line of duty be-
netted activities? Preen January 1, 1957, and the effective
SO September 20, 1965
date of the serviceman's group life in-
surance program, will be denied death
gratuity benefits. I understand the con-
cern about the cost; however, the widows,
children, and parents of servicemen who
died during this time will be, in efi,...::,
discriminated against if death results
from injury or accident in line of duty
but not resulting from: First, an accident
involving a military or naval aircraft;
second, an explosion of an instrumental-
ity of war; or third, the performance of
service for which certain Incentive or
special pay for hazardous duty is au-
thorized.
I trust that this provision will be lib-
tpendents may as nearly as possible be
rally construed by the Veterans' Ad-
ministration so that those eligible de-
treated equally. It would be equitable,
in my opinion, if eligible dependents of
those servicemen who have died prior to
the effective date of this act as a direct
result of hostile forces, in Vietnam for
example, should receive the full $10,000
death gratuity payment.
I also believe consideration should be
given to waiving Premiums during such
time a serviceman may be completely and
totally disabled as a result of an injury
or wound received in the line of duty.
Mr. BATES. Mr. Speaker, will the
gentleman yield?
Mr. DOLE. I yield to the gentleman
from Massachusetts.
Mr. BATES. I would like to ask a
question of the chairman of the full
committee, the gentleman from Texas.
He will recall I discussed with him on
several occasions the death of a soldier
at Fort Campbell, Ky., as the result of an
accident while riding on a truck. Will
the gentleman advise if that individual
would receive benefits under the pending
bill?
Mr. TEAGUE of Texas. The gentle-
man from Massachusetts, was chairman
of a select Committee on Benefits during
the 83d Congress, which led to Public
Law 84-881 Survivors Benefits Act.
Those benefits are very broad and very
adequate except they do not cover non-
dependent parents. The particular case
the gentleman LS talking about goes back
to the flone we have just discussed. I
)would hope that the Administrator
ould make a very broad interpretation
f the statement "as the result of an
explosion or an instrumentality of war."
I would certainly hope that the Ad-
ministrator would interpret a man riding
on a Government vehicle, a truck, and
was in an accident involving that truck,
that would be considered as an explosion
f an instrumentality of war.
Mr. 'TEAGUE of California. I want
to join in that hope that it would be so
interpreted.
Mr. BATES. I thank the gentleman.
Mr. TEAGUE of California. Mr.
Speaker, I yield 5 minutes to the gentle-
man from Pennsylvanh Mr. SAYL0R1.
(Mr. SAYLOR asked and was given
permission to revise and extend his
remarks.)
Mr. SAYLOR. Mr. Speaker, one of
the committees that gets very little praise
and a great deal of blame is the Commit-
tee on Veterans' .Affairs, and at this time
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I want to pay particular tribute to the
chairman of the Committee on Veterans'
Affairs, the gentleman from Texas [Mr.
TEAGUE) and the members of the sub-
committee, and particularly to the gentle-
man from Tpnneesee? [Mr. 'EVERETT] in
presenting this bill.
This matter has been one that has
been bothering the Veterans' Committee
for a number of years. It was only be-
cause Members of the Committee on
Veterans' Affairs were willing to ask
people in the Insurance industry to come
forward and to discuss what could be
done to cover the men in the service
rather than have the insurance com-
panies write a broad policy which would
prohibit the payment of Insurance for
death of a serviceman in combat. There
have been many cases of this nature
that Mine to our attention, so that we
were able to present this bill to the floor
today.
r1xst to show you the difference be-
ween this bill and the bill that passed
e other body, the one that passed the
ther body covers the period from Janu-
y 1, 1.962, down to date. In that period
here have been 16,060 service-connected
eaths. Yet the bill which the other
jbody passed would only have covered
jl,200 of those deaths. Let me show you
why. We have lost men in Panama. We
ave lost men in the Dominican Republic
and unless the President would take his
pencil and draw a circle and declare those
areas combat areas, the men who lost
their lives there would not get a cent of
insurance.
This bill comes in two categories.
From the day it is signed by the Presi-
dent and becomes law, every member of
the 1.7.5. Armed Forces is covered auto-
matically. Every Member of the Con-
gress I am sure has had veterans write
to him saying that when they got out of
the service someone failed to explain the
situation with regard to insurance. But
to take care of that situation, we have
covered every man in service. If any-
body does not desire this coverage, he
must request in writing that he not
be covered by this insurance. They
can do two things: They can re-
duce the insurance to $5,000 or take
themselves out completely. If they re-
duce it to $5,000, they pay $1 a month.
If they take themselves out completely,
of course, there is no deduction from
their pay.
When the committee was presented
with the facts and figures regarding
deaths in service since 1957, the cost to
pay everyone who has died in the service
would have been astronomical.
Mr. TEAGUE of California. Mr.
Speaker, will the gentleman yield?
Mr. SAYLOR. I yield to the gentle-
man.
Mr. TEAGUE of California. As I re-
call, it would have been close to $100
million had we gone retroactively across
the bon:eh_
Mr, SAnOR. Tha,t is correct The
figure is above $106 million. So what
we did was to take care of certain cate-
gories which the committee felt, after all
the testimony front the Veterans' Ad-
ministration, best represented the pea-
ple who lost their lives in defense of our
country and these are covered.
This is a bill that will enable every-
one?and girls?yes boys and girls, be-
cause we now have girls in the service
who are overseas, and if they lose their
life there will be an insurance policy that
is as broad as any insurance that the
Government has ever provided for peo-
ple in the service.
Under this bill, you can leave your
insurance to anyone you designate be-
cause you are buying it from a commer-
cial insurance fund through the deduc-
tion which is being made from your pay
and the policy will be purchased for you
by the Veterans' Administration.
Mr. Speaker, I urge that the House
suspend the rules and pass the bill
unanimously.
Mr. TEAGUE of Texas. Mr. Speaker,
I yield to the gentleman from Illinois
[Mr. YATES].
(Mr. YATES asked and was given per-
mission to revise and extend his
remarks.)
Mr. YATES. Mr. Speaker, I support
the life insurance program for service-
men contained in H.R. 10873 as a worthy
supplement to the benefits now available
to members of the Armed Forces.
I am the sponsor of a bill to provide
special indemnity insurance in the
amount of $10,000 to members of the
Armed Forces serving in combat zones.
I recognize that the executive branch
did not favor this legislation because of
its belief that the cost of the program
would be too large, and that its ter-
minal nature was not as effective as the
present compensation benefit program
for service-connected disabilities and
the dependency and indemnity com-
pensation.
At a time when our defense appropri-
ations approach the $50 billion mark
and the costs of the Vietnam war might
run as high as $10 billion in 1 year, I did
not feel that the additional burden of a
special indemnity insurance program
was unbearable. /n extending the free
$10,000 insurance for personnel in com-
bat zones, the Veterans' Administration
estimated a total annual cost to the
Government of $13,377,600, including
the interest factor.
After studying the various cost factors
and proposals for extended coverage, the
Committee on Veterans' Affairs arrived
at the group life insurance plan which
will cost the Government an estimated
$4 million a year. This alternative will
thus save the Government more than $9
million annually while it accomplishes
the same purpose: Coverage for person-
nel who could not otherwise obtain it.
I think that is the most important con-
sideration. It was demonstrated that
few private carriers are willing to insure
personnel en route to or already on the
scene in Vietnam. It became imperative
for. the Government to find some means
of providing these individuals with life
insurance.
The question was not therefore wheth-
er or not the Government should assume
the costs of an insurance program, but
the type of program it would assume.
The committee in its wisdom arrived at
the group insurance plan. I am pleased
to note that this plan meets with the ac-
ceptance of the Veterans' Administra-
tion and the Department of Defense.
H.R. 10873 will extend coverage to all
service personnel, with only minimum
costs accruing to the Government.
Servicemen may choose whether they
would like to participate. It appears
that this arrangement is most suitable
for all concerned. Obviously, the De-
partment of Defense recognizes the haz-
ards of combat in its pay increment sys-
tem, but it has not recognized the same
hazards in the schedule for death bene-
fits. This legislation will correct that
imbalance.
This is an equitable plan and it
achieves the same purpose I intended
with my bill. I regret that the condi-
tions of war and its accompanying dan-
ger have imposed the need for such leg-
islation upon us. Yet, in recognizing that
we are engaged in a war, and that some
of our men will die on distant shores, we
have an obligation to offer these men the
protection we have tendered to the men
who have in the past been summoned to
risk their lives on the far frontiers of
freedom. In offering them this protec-
tion, we are able to share their burden
if only in a small way, and to let them
know that we recognize and are grateful
for the service they render for us.
Mr. TEAGUE of Texas. Mr. Speaker,
I yield to the gentleman from North
Carolina [Mr. KORNEGAY] who Is a mem-
ber of the subcommittee.
Mr. KORNEGAY. Mr. Speaker, I rise
in support of this bill. I am privileged to
serve on the insurance subcommittee of
the House Committee on Veterans' Af-
fairs under the dedicated leadership of
the gentleman from Tennessee [Mr.
EVERETT].
In my opinion, Mr. Speaker, this is
one of the finest bills we have ever re-
ported out of our subcommittee for the
reason that it provides benefits in a
vacuum that has recently arisen and
one that will continue and, in fact, in-
crease in size unless this bill is enacted.
This bill provides for coverage up to
$10,000 for the members of the armed
services of this country at an extremely
low premium rate. At the same time
it 'does not put the Government back
into the, insurance business but leaves
the business of insuring the servicemen
and servicewomen of the country with
the private insurance companies of this
country.
One of the most important features is
that it is automatic?the serviceman is
fully covered from his first day of serv-
ice through 120 days following discharge
unless he takes positive action to remove
himself from the program. Many World
War II veterans who needed it worst
and should have had it the most were
the very ones who, by reason of ignor-
ance and not understanding the insur-
ance program, failed to take it. The
bill will prevent this deplorable situation
and put them into the program unless
they automatically take themselves out.
I again commend the chairman of our
subcommittee for a splendid Job in
bringing this bill promptly before the
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House and I urge every Member to sup-
port ft. I also wish to express my appre-
ciatiOn_ for the work of the staff of the
Committee on Veterans' Affairs.
Mr. TEAGUE of California. Mr.
Speaker, I yield one-half minute to the
gentleman from Ohio [Mr. LATTA] who
wa,s one of the original sponsors and pro-
posers of this approach to the problem.
Mr: LATTA. I thank the gentleman
for this time.
First of all, I would like to commend
the Veterans' Affairs Committee, the gen-
tleman from Texas [Mr. Tztkous], chair-
man of the committee, and the gentle-
Man from California [Mr. TEAGUE), who
is handling this bill today on the Re-
publican side, for bringing it to the floor
of the House without undue delay. On
August 16, 1965, I introduced H.R. 10473
to provide life insurance coverage for
members of our Armed Forces fighting
and dying in Vietnam. As one of those
who saw the need for this legislation, I
would like to say that I am extremely
pleased with the speed with which the
Veterans' Affairs Committee has brought
this bill to the floor of thp House and
that I support it in its present form
wholeheartedly. It will give the mem-
bers of our Armed Forces every coverage
that I proposed for them in my bill, H.R.
10473.
Briefly, this legislation which is before
the House will provide groan life insur-
ance Up to $10,000 with coverage being
automatic unless the serviceman takes
affirmative action to take himself out of
the program. The cost will be $2 a
month for a $10,000 policy, or if he elects,
he may purchase a $5,000 policy for 11
per month. Premiums would be de-
ducted from the serviceman's pay.
This insurance would differ from
Policies issued under the national service
life insurance program of World War II
In that it would be on a group plan pro-
vided by private insurance companies
with the extra hazard cost of insuring
servicemen being paid by the United
States. The mode of settlement would
be determined by the beneficiary or bene-
ficiaries in the absence of instructions
from the serviceman and would be
limited to a lump sum payment or a
settlement over a 36-month period. The
serviceman would be permitted to desig-
nate any person as a beneficiary but in
the absence of affirmative action by the
serviceman the insurance would be paid
In the following order: widow or widower,
child or children, parents, and if none of
the above, to the executor or adminis-
trator of the estate, dr to other next of
kin under the laws of the domicle of the
insured at time of his death.!
Upon discharge from the service, the
serviceman would be protected for a pe-
riod of 120 days after which he would
have the right to obtain a policy from a
Private insurance company without
medical examination in an amount equal
to that of his service policy. Servicemen
with service-connected disabilities would
likewise be permitted to purchase this in-
surance from private companies without
a physical examination.
The bill, as passed by the House, would
also cover deaths incurred In the military
service from the period of January 1,
1957, to the effective date of the service-
men'i group life insurance program.
Death during this time would have had to
result_ from: First, action of hostile
forces: second, an accident involving a
military or naval aircraft; third, an ex-
plosio a of an instrumentality of war; or
fourth, the performance of service for
whict certain incentive or special pay for
hazardous duty is authorized. The
amou it of the death gratuity payment
under, this provision, however, would be
limited to $5,000.
(Ma. LATTA asked and was given per-
missicm, to revise and extend his re-
marka)
Mr. TEAGUE of California. Mr.
Speaker, I yield one-half minute to the
gentleman from Indiana [Mr. Mean).
Mr. HARVEY of Indiana. Mr. Speak-
er, I rise in support of this legislation.
I commend the committee for bringing
it to tie floor of the House.
Mr. Chairman, at a time when tens of
thous:mds of our men and women in uni-
form Ire stationed all over the world in
the d( dense of freedom, I think those of
us here in the Congress owe our col-
leagm s on the Veterans' Affairs Commit-
tee a :nund of applause for bringing this
bill (E',.R. 10873) to a vote this afternoon.
Many, if not all, of our fighting men and
women in Vietnam cannot get life Insur-
ance ;)olicies to cover them during the
time they are necessarily there( If they
cot?ili get a policy no doubt tile rates
would be prohibitive, but certainly not
withir their meager salary schedules.
For time with life insurance policies
prior going to Vietnam in practically
all instances their policies are voided
durint the time they are stationed in
Vietrum because of so-called war clauses.
As long as the United States has so
much money for all of the giveaway pro-
grams, both foreign and domestic, this is
one Congressman who is pleased to note
that we are doing something really
worthwhile and deserving for our serv-
ice mei} and women in the passage of this
(Mr , HARVEY of Indiana asked and
was given permission to revise and extend
his rezaarks.)
Mr. TEAGUE of California. Mr.
Speaker, I yield one-half minute to the
gentleman from Pennsylvania [Mr.
Kornai] .
[Mr KUNKEL addressed the House.
His re:narks will appear hereafter in the
APPenlix.]
(Mr , KUNKEL asked and was given
permission to revise and extend his re-
marks,?
Mr. TEAGUE of California, Mr.
Speaker, I yield one-half minute to the
gentleinan from Iowa [Mr. ?moss] who
occasionally has some comments to make
on the Pending legislation.
Mr. GROSS. Mr. Speaker, I rise in
supper Of the bill. I trust that the corn-
raitteeif and when the bill goes to con-
ference, will not yield the position of the
House to the other body in view of the
measly '0 which the other body brought
forth czithe subject.
Mr. -TEAGUE of California. Mr.
alpeaker, I should like to express the ap-
preciation of all Members of the HMSO
September 20, 1965
to you for having placed this bill on the
calendar, since the bill is as highly con-
troversial as it is.
Mr. TEAGUE of Texas. Mr. Speaker,
I yield 1 minute to the gentleman from
California [Mr. Baows].
(Mr. BROWN of California asked and
was given permission to revise and ex-
tend his remarks.)
Mr. BROWN of California. Mr.
Speaker, I rise in support of H.R. 10783.
More particularly, I want to add my
voice in support of the principle con-
tained In this bill by our colleague the
Senator from Tennessee [Mr. EVERETT],
which calls for the full participation by
the insurance industry in providing this
vital protection to the men who are de-
fending our country. While the prime
group insurance contract under this leg-
islation will be carried by a relatively
few large companies, those which oper-
ate in all 50 States and which have, in
effect, at least 1 percent of the total
amount of group life insurance in effect
in the United States, the bill specifically
sets forth, In paragraph 766(c), that the)
Administrator of the Veterans' AdmInis-
trettion shall arrange for reinsurance
with all of the other smaller insurance
companies which may _elect to partici-
pate in such reinsurance.
I wish to point out that, the need for
this legislation has arisen, at least in
part, from the fact that servicemen have
been finding it increasingly difficult to
secure life insurance protection when
they are se:rving in a combat zone or
have been alerted for service in such a
zone. This legislation will correct that
problem and will do so in such a way as
to provide maximum protection at min-
imum cost to the serviceman.
However, in making available this:
protection under a group life insurance
policy, the committee did not wish to
Penalize those companies which have
continued to provide policies on an indi-
vidual basis to the men In the armed
service. The committee report, on page
8, suggests that the Administrator tak
into consideration when developing rule
and regulations for reinsurance by the
smaller insurance companies the
amount of ,servicemen's life insurance
now being written by that company.
Other members of the committee hay
commented on this same point. I shoul
like to make it clear for myself that
when the Congress passes a law which
provides a guaranteed income of many
millions of dollars per month to the pri-
vate insurance industry, and which
writes into that law a provision which
automatically includes a half dozen or
more of the largest insurance companies
in the Nation, we must not tolerate the
application of that law in such a fashion
as to be detrimental to those companies
which continued to provide the maxi-
mum protection to the- men in service,
or in such a way as to favor those com-
panies which by their actions made it
necessary to pass this legislation. The
total amount of insurance written on the(
lives of members of the Armed Forces1
by the many small insurance companies'
around the , Nation should be a major
factor in the formula developed by the
Administrater of the Veterans' Adminis-
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Aka:web fiodRaldfiee 2003/11 kiii34:1AIABS1440arfrdagerilii
tration for We allocatien of reinsuranee pated they will run about $2 a month for
to these smaller companies: I know that $10,000 insurance and $1 per month for
this Is what the Congress would desire, $5,000. This cost may be adjusted down-
and I have confidence that the law will ward as experience dictates after the pro-
be administered in this- fashion. gram hai been established. The cover-
Mr. TEAGUE of California. Mr. age under the program is automatic,
Speaker, I yield back the remainder of with the serviceman being required to
ray time, take affirmative action to remove him-
Mr. TEAGUE of Texas. Mr. Speaker, self from the program. Provision is
I yield 30 seconds to the gentleman made for reinstatement should he so
from Delaware [Mr. McDowstx..]. elect.
[Mr. MaDOWELL - addressed the During active service or within 120
House. His remarks will appear here- days after discharge, an individual can
,after.], oofb thentp ianr stri pa nacli c og i nv esruargaen fc reo cmo ma pn ay nio ne se,
(Mr. 1V/cDOWELL asked and was given without medical examination, equal in
Permission to revise and extend his re- amount to the group insurance obtained
marks.) on active duty. In addition, he will be
Mr. TEAGUE of Teias. Mr. Speaker, eligible for such insurance coverage even
I yield 30 seconds to the gentleman from though he had a service-connected dis-
Virginia .[Mr. HARDY]. ability.
Mr. HA1%0Y. Mr. Speaker I coraN.) The insurance coverage will be Pro-
mend the committee for having brought
out this MIL It is a fine bill. I am
especially pleased that it takes care of a
deficiency in the Survivor Benefits Act,
in that it makes possible, some consid-
eration of parents who are not depen-
dent on? service personnel who are killed
overseas
This is a very fine bill, and I congratu-
late the committee.
Mr. BENNETT. Mr. Speaker, the
legislation now before us to establish a
program of group life insurance to be
Provided by private insurance companies
for members of the 1.inifonned services
who are ori active duty is a worthy piece
of legislation, and lam happy to support
it.
My hometown of Jacksonville, Fla., is
a prime center of insurance in the South,
with several major companies operating
their home offices there. I am greatly
concerned that this legislation not be
restricted to a small group of mammoth
companies, leaving out excellent region-
al companies who do riot operate in all
50 States and the District of Columbia.
A regional company which has not
hesitated to underwrite considerable
amounts of military insurance and re-
insurance without Government assist-
ance, must not be left out of this new
program, and should be able to partici-
pate on the basis of what it has already
done in this field.
I have been assured by the distin-
guished chairman of the House Veter-
-_,ans' Affairs Committee that these reg-
iojaal companies will be included in the
gr imp life insurance program as out-
lb in the report of the committee;
d that the criteria in the bill for par-
cipation will not limit or preclude par-
Icipation by these local, smaller com-
enies. Therefore I am not submitting
M amendment which I had prepared to
require this.
Mr. 13ERRY. Mr. Speaker, I rise in
support of H.R. 10873 which will estab-
lish a program of group life insurance
for all members of the uniformed serv-
ices who are pn active duty, against death
from the first day or such duty and for
120 days after separation or release from
active duty.
Premium rates for the serviceman will
be exceedingly reasonable. It is antici-
}To. 1.73--4
vided by private insurance companies.
The number of companies participating
will be determined by qualifying criteria
to be established by the Veterans' Ad-
ministration. It is anticipated that this
aspect of the program will closely parallel
the Federal employees group life In-
Mr. Speaker this action by Congress
will come one step closer to meeting this
country's obligation to its men and
women in our armed services.
Mr. DOER Mr. Speaker, I hope and
believe this bill will have the unani-
mous approval of the House. This bill
is the result of tedious hearings and a
long and careful study by the Committee
on Veterans' Affairs.
The bill now before you will provide a
$10,000 life insurance policy for every
man and woman serving our country to-
day in any branch of the service at home
or abroad. Under the provisions of this
bill, a $10,000 policy will become avail-
able to each person in our Armed Forces
at the very reasonable rate of $2 per
month. When members are discharged
from the service, they can elect to con-
tinue the policy with the private insur-
ance company of their choice. While In
service, a member can elect in writing
to be insured for only $5,000 or not at
all. He can designate any beneficiary.
This bill will also provide payment to
next kin of those deceased while on haz-
ardous duty since the year 1957.
Mr. Speaker, this is a good bill. I rec-
ommend It to the House with all the
earnestness at my command. Our Na-
tion is in war. We are in a nasty, bloody,
filthy war in southeast Asia. Our men
and women are on hazardous duty in
Santo Domingo, in Berlin, and through-
out the world. They need the encour-
agement and sympathy and understand-
ing of the people back home, and they
need the support of the Congress of
the United States.
This legislation will greatly help the
morale of our men and women who are
on the fairy line of freedom today all
over this world?under the sea, in the
air, and in space. This bill will lend
support to the loved ones of those in our
Armed Forces, those back home who
share the hopes and aspirations and sor-
23455
rows and tragedies of our young men
and women in service.
Mr. Speaker, this bill will help the
morale of approximately 3 million
men and women in our Armed Forces. It
will help sustain those back home who
make it possible for our men and women
to stand guard in the cause of free-
dom.
Mr. Speaker, our Committee on Vet-
erans' Affairs is behind this bill, and we
commend it to you for your considera-
tion and approval.
Mr. BOLAND. Mr. Speaker, I rise in
favor of ER. 10873, the group life in-
surance for the uniformed services bill.
This legislation will establish a program
of group life insurance which shall be
provided by private insurance companies
for members of the uniformed services
who are on active duty.
This bill provides one of the best forms
of insurance that has ever been devised
by Congress for servicemen on active
duty. I want to take this opportunity to
commend the members of the Veterans'
Affairs Committee, Subcommittee Chair-
man ROBERT A. EVERETT, of Tennessee,
and Committee Chairman Otrat E.
TEAGUE, of Texas, for bringing this fine
piece of legislation to the floor. As we
all know, Chairman TEAGUE Is one of the
giants in Congress in matters of service-
men and veterans' legislation, and both
he and Congressman EVERETT have come
forth with a good bill.
Mr. Speaker, this is important legisla-
tion at this time because, unfortunately,
the casualty lists are growing as a result
of the fighting in Vietnam. Servicemen
from Massachusetts have been killed
there, as well as fighting men from all
over the United State& These men need
adequate insurance for the protection of
their families. As the committee report
points out, the coverage under this bill is
automatic, with the serviceman required
to take affirmative action to remove him-
self from the program. The coverage
provided is $10,000 or $5,000, no other
amounts. If the serviceman elects to get
out of the program after the automatic
, coverage and later applies for readmis-
sion, he must be able to meet good health
requirements.
The premium rates for men in the
Armed Forces are expected to be $2 a
month for $10,000 and $1 a month for
$5,000, including claim and administra-
tive costs. This cost may be adjusted,
hopefully downward, as experience dic-
tates. Premiums would be deducted
from the pay of a serviceman by the De-
fense Department and turned over to the
Veterans' Administration. The costs
traceable to the extra hazards of service,
such as the fighting in Vietnam, will be
borne by the Government.
Upon discharge from the service, the
individual is protected in the full amount
of his policy for 120 days. At any time
during his service but not later than 120
days following the date of his discharge,
an individual will have the right to ob-
tain from any one of those insurance
companies participating in the Program,
or other companies who can qualify, an
insurance policy without medical exami-
nation in an amount equal to the group
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Aal For Release 2003/11 /0WRICAPkbiant$44/MIOn0Q-210)130,1&56
Insurance policy under which he was
protected during the period of service.
In addition, service-connected disabled
servicemen would be eligible for a $10,000
service-disabled veteran's insurance pol-
icy administered by the Veterans' Admin-
istration.
The servicemen will be covered under
the present death gratuity program un-
til the servicemen's group life insurance
program takes effect. The amount of
the death gratuity payment would be
$5,000.
Mr. Speaker, I hope that this bill
passes overwhelmingly.
Mr. DOM:WM, Mr. Speaker, I rise
In support of this bill, H.R. 10873, es-
tablishing a program of group life insur-
ance, provided by private companies, for
members of our Armed Services on ac-
tive duty.
Although this bill does not go as far
as a good Many of us have reconunended
It is, / believe, a step in the right direc-
tion and it may be hoped that expanded
benefits in Insurance and other areas
will be provided for our veterans and
their dependents as future needs dictate.
Under this particular bill, our service-
men are afforded automatic insurance
coverage in the amotMt of $10,000 or
$5,000. One of the salient features of
the bill, I think, is the automatic cover-
age. The serviceman Is, protected, as
well as his dependents, against any per-
sonal negligence or any other unfortu-
nate happenstance that might otherwise
tragically prevent him from becoming
eligible for the insurance benefits.
The projected premium rates for this
Insurance coverage, of $2 per month for
$10,000 insurance and $1 per month for
$5,000 insurance, are reasonable and the
arrangement for the deduction of the
premiums from serviceman's pay is pru-
dent and protective of the interest of all
Involved.
When the law becomes operative the
serviceman is immediately included un-
til an( unless he takes affirmative action
to remove himself from the program.
It is also pertinent to note that under
the provisions of the bill, the individual,
Upon discharge from the military serv-
ice, is protected in the full amount of
his policy for 120 days. During this
period the serviceman would have the
right to obtain from any one of the in-
surance companies participating in the
program, or other qualified insurance
companies, an insurance policy, without
Medical examination, in an amount equal
to the group insurance policy under
which he was protected while on active
military duty.
Further, than that if the individual
has a service-connected disability he
would be eligible for a commercial policy
without medical examination and, in
addition, would be eligible for a $10,000
service disabled veterans insurance pol-
'Cy administered by the Veterans' Ad-
ministration.
Mr. Speaker, the grave problem of
providing an adequate insurance pro-
gram for those serving in our armed
services, and their dependents, during
this so-called cold war period is one of
major concern to the Members of this
House. This bill permits us to translate
Approved For Release 2003/11/04
.
sozne of our concern into realistic action.
I, a rid I am sure a good many others
here., wish it went a great deal further
but it appears this Is about all we are
going to be permitted to consider at
this time.Therefore I urge the House
to s dopt this bill now and at the same
tint? let us pledge ourselves to improve
and expand it at the earliest possible
datc in the future.
Tie SPEAKER. All time has expired.
The question is on the motion of the
genlleman from Texas that the House
suspend the rules and pass the bill HR.
10813 as amended.
The question was taken; and the
Speaker announced that two-thirds ap-
pealed to have voted in favor thereof.
Mr. SAYLOR. Mr. Speaker, I object
to the vote on the ground that a quorum
Is nit present and make the point of
order that a quorum is not Present.
Tile SPEAKER. Evidently a quorum
Is m t present.
The Doorkeeper will close the doors,
the sergeant at Arms will notify absent
Members, and the Clerk win call the
roll.
The question was taken; and there
wercr-yeas 300, nays 0, not voting 72, as
follcws:
[Roll No. 3091
YEAS--300
Abbil t Cleveland Fuqua
Aber tethy Clevenger Gallagher
Adair a Cohelan Gannets
Adds Mo Collier Clathings
Albert Conable Clettys
Arnie ieon, Conte Malmo
Tenn. Conyers Gibbons
Ands ma, Cooley Gilbert
(lie an Corbett Gilligan
Andrin Gorman Gonzalez
N. Da. Culver Grabowski
Annu nrio Cunningham Gray
Arent is Curtin Omen, Oreg.
Ashla rook Curtis Green, Pa.
Ashley Daddario Greigg
Ashm ore Dague Griffin
Aspin Itll Daniels Griffiths
Ayres Davis, Gs. Gross
Beldrin Davis, Wis. Grover
Band 'tn. Dawson Chubs&
Baring de la Garza Gurney
Bates _ Delaney Hagan, Ga.
Batti I Dent Hagen, Calif.
Beck, mirth Denton Haley
Belcher Derwinski Hall
Ben Dickinson Halleck
13enalitt Dingell Hamilton
Betts Dole Hanley
Bing/ am Donohue Hanna
Math ilt . Dorn Hansen, Idaho
Boggs Dow Hansen, Iowa
Boland Dowdy Matson, Wash.
Bolin g Downing Hardy
Bow-Duleki Moshe
Bradeas Duncan, Oreg. Harvey, Ind.
Bray Duncan, Tenn. Harvey, Mich.
Brook 8 Dwyer Hathaway
Broon Meld DYal Hays
Brown, cant Edmondson Hechler
Been aa, NO. Edwards, Ala. Helstoski
Broyb ill, Va. Edwards, Calif. Henderson
Suety flan Ellsworth Herlong
Burke Ed enhom Hicks
Surto bit Evans, Colo. Holland
Burton,Calif. Everett Horton
Burtoti, 'Utah EvMs, Tenn. Howard
Byrne, Pa. Fallon Hull
1ZatrY- a. Wis. Farb ill stein
stein
Hungate
Mot
Caller. Feighan Hutchinson
Callaway Findley Ichord
Cameron Fisher Irwin
Carey Mood Jacobs
Cartel Flynt Jarman .
Casey Pont Gerald R. Joelson
Ceder,_
Ford.
Hartle
Kaste.nmeler
Keith
Kelly
King, Calif.
King, N.Y.
King, Utah
Kirwan
Kornegay
Krebs
Kunkel
Laird
Landrum
Langen
/Atha
Leggett
Lennon
Lipscomb
Long, Md.
Love
McCarthy
McCLory
McCulloch
McDade
McDowell
McEwen
McFall
McGrath
McMillan
McVlcker
Macdonald
Machen
Mackay
Mackie
Mahon
MallliaM
Marsh
Martin, Ala.
Martin, Nebr.
Mathias
Matsunaga
May
Moods
Michel
Mills
Minish
Mink
Mm shall
Mize
Moeller
Monagan
Moore
Moorhead
Morgan
Morrison
Morse
Morton
Mosher
Moss
Multer
Murphy, BA.
September 20, 1965
Murray
Katcher
Nedzi
Nelsen
O'Hara, Ill.
O'Hara, Mich.
()Monett
Olsen, Mont.
O'Neal. Ga.
O'Neill, Mass,,
Ottinger
Pesearian
Patten
Pelly
Pepper
Perkins
Philbin
Pickle
Pike
Poage
Poff
Pool
Price
Pucinski
Quie
Race
Randall
Rodlin
Reid. DI.
Reid, N.Y,
Reif el
Rome eke
Resnick
Reuss
Rhodes, Ariz.
Rhodes, Pa.
Rivers, S.C.
Rivers, Alaska
Roberts
Robison.
Rodino
Rogers, Cob.
Rogers, Fla.
Ronan
Roncalio
Rooney, N.Y.
Rosenthal
Rostenkowski.
Roush
Rumsfed
Ryan -
Satteelleld
St. Onge
Saylor
Scheuer
Schisler
Schrnidhauser
Schneebell
Schweiker
Scott
Secrest
NAYS-0
NOT V0TING-92
Adair Cirider Pirnie
Anderson, ILL Halpern Powell
Andrews, Harris Purcell
George W. Hawkins Quillen
Barrett Hebert Rogers, Tex.
Berry Holifield Rooney, Pa,
Bolton Hosmer
Bonner Jennings
Brock Kee
Osbert Keogh
Caller KlileZyn,ski
Clawson, Del Lindsay
Calmer Long, La.
Craley MacGregor
Cramer Madden
Devine Martin, Mass.
Diggs Matthews
Fe.rnaley Miller
Fannon Morris
Fine Murphy, N.Y.
Fogarty Nix
Foley O'Brien
Frelinghuysen Olson, Minn.
Goodell Patman
Belden
Shipley
Shriver
Sickles
Bikes
Sisk
Skubits
Slack
Smith, Calif.
Smith. Va.
Stafford
Staggers
Steabaum
Stanton
Steed
Stubblefield
Sweeney
Talcott
Taylor
Teague, Calif.
Teague, Tex.
Tenzer
Thompson, N.J.
Thomson, Wis.
Trimble
Tuck
Tupper
Tutees
Udall
Unman
Utt
Van Deerlin
Vanik
Vigoeito
Walker, Miss.
Walker, N. Mex.
Watkins
Watson
Watts
Woltner
Whalley
White, Idaho
White, Tex.
Whitener
Whitten
Widnall
Williams
Willis
Wilson, Bob
Wilson,
Charles H.
Wolff
Wright
Wyatt
Wither
Yates
Young
Younger
ZabloCki
Roudebush
Roybal
St Germain
Senner
Smith, /owe
Smith, N.Y.
Springer ?
Stephens
Stratton
Sullivan
Thomas
Thompson, T
Todd
Ton
Tunney
Vivian jt
Waggonne4
So two-thirds having voted in fay.
thereof, the rules were suspended ar1.1
the bill, as amended, was passed.
The Clerk announced the followin
pairs:
Mr. Hebert with Mr. Adair.
Mr. Bonner with Mr. Berry
Mr. Keogh with Mr. Goodell.
Chem aerlain William D. Johnson, Okla. Mr. Stratton with Mr. Pirnie.
Choir, , Vountain Johnson, Pa. Mr. Kee with Mr. Lindsay.
Clancy Fraser Jonas
Clark ' Friedel Jones. Ale- Mr. Miller With Mr. Anderson of IBM S.
Clausta. Fulton, Pa. Jones, Mo. Mr. Thompson of Texas with Mr. Br( k.
Don N. Fulton, Term. Kamten Mr. Celler with Mr. Halpern.
: CIARDP67B00446R000500210008-6
Approved For Release 2003/11/04,,kCIA-RDP67500446R000500210_010B-6
23457
September 20, 1965 CONGRESSIONAL RECORD ? HOUSE
Mr. Murphy of New York with Mr. Fino.
Mr, Barrett with Mrs. Bolton.
Mr. Calmer with Mr. Quillen.
Mr. Toll with Mr. MacGregor.
Mr. Thomas with Mr. Martin of Massachu-
atts.
Mr. Jennings with Mr. Roudebush.
Mr. Morris of New Mexico with Ma
Springer.
Mr. Roosevelt with Mr. Smith of New York.
Mr. Fogarty with Mr. Del Clawson.
Mr. Foley with Mr. Devine.
Mr. Kluczynaki with Mr. Freitnghuysen.
Mr. Semler with Mr. Nix.
Mx. Holifield with Mr. Bosmer.
Mr. O'Brien with Mr. Madden.
Mr. Cabell with Mr. Todd.
Mr. Waggonner With Mr. Ceder.
Mr. Purcell with Mr. Cooley.
Mr. Long of Maryland with Mr. Farnum.
Mrs. Sullivan with Mr. Stephens.
Mr. St Germain with Mr. Roybal,
Mr. Rogers of Texas with Mr. George W.
Andrews.
Mr. Matthews with Mr. Parnsley.
Mr. Harris with Mr. Rooney of Pennsyl-
vania.
Mr. Diggs with Mr. Olson of Minnesota,
Mr. Patman with Mr. Wilson.
Mr. Tunney with Mr. Vivian.
The result of the vote was announced
as above recorded.
The doors were opened.
A motion to reconsider was laid on the
table.
Mr. TEAGUE of Texas. Mr. Speaker,
I ask unanimous consist for the immedi-
ate consideration of the bill (S. 2127) to
amend title 38, United States Code, in
order to provide special indemnity insur-
ance for members of the Armed Forces
serving in combat zones, and for other
Purposes, et bill similar to the measure
just passed by the House.
The Clerk read the title of the Senate
bill.
The SPEAKER. Is there objection to
the request of the gentleman from Texas
[Mr. Thieve] ?
There was no objection.
The Clerk read? the Senate bill, as
follows:
Be it enacted by the Senate and House ca'
Representatives 17) the United States of
America in Congress assembled, That (a)
chapter 19 of title 38, United States Code, is
amended by ridding at the end theerof a new
section as follows:
"i 789. Special indemnity insurance for
members of the Armed Forces sen.,
lug in combat zones
"(a) Any person on active duty with the
Armed Forces In a combat zone shall, as pro-
vided in this section, be automatically in
sured by the United States, without cost to
such person, against death in the principal
amount of $10,000. Such person shall be in-
sured during the time that he serves in a
combat zone, and shall be deemed to have
been serving in a combat zone at the time of
his death if he dies outside of a combat zone
and (1) his death is determined by the Ad-
ministrator to have been the direct result
al' an injury or disease incurred while salv-
ing in a combat zone, and (2) the injury or
- disease from which such person died was in-
curred not more than two years prior to
death.
'(b) Upon certification by the Secretary of
the military department concerned of the
death of aby person automatically insured
Under this section, the Administrator shall
cause the inderimity to be paid as provided
in subsection (c) only to the surviving
spouse, child or children ,(Including a step-
child, adopted child, or an illegitimate child
if the latter was designated as beneficiary
by the insured), parent (including a step-
parent, parent by adoption, or person who
stood in loco parentis to the insured at any
time prior to entry into the active service
for a period of not less than one year),
brother, or sister of the insured, including
those of the half-blood and those through
adoption. The insured shall have the right
to designate the beneficiary or beneficiaries
of the indemnity within the classes herein
provided; to designate the proportion of the
principal amount to be paid to each; and
to change the beneficiary or beneficiaries
without the consent thereof but only within
the classes herein provided. If the desig-
nated beneficiary or beneficiaries do not sur-
vive the insured, or if none has been desig-
nated, the Administrator shall make pay-
ment of the Indemnity to the first eligible
class of beneficiaries according to the Order
set forth above, and in equal shares "if the
class is composed of more than one person.
Unless designated otherwise by the Insured,
the term 'parent' shall include Only the
mother and father who last bore that rela-
tionship to the insured. Any installments
of an indemnity not paid to a beneficiary
during such beneficiary's lifetime shall be
paid to the named contingent beneficiary,
if any; otherwise, to the beneficiary or bene-
ficiaries within the permitted class next en-
titled to priority, but no payment shalt be
made to the estate of any deceased person.
"(c) The indemnity shall be payable In
equal monthly installments of one hundred
and twenty in number with interest at the
rate of 2% per cent= per annum.
"(d) /n the event any person was covered
at the time of his death by automatic in-
demnity under this section and was also in-
sured against such death under a contract
of national service life insurance or United
States Government life insurance, the in-
demnity authorized to be paid hereunder
shall be a principal amount equal to the dif-
ference between the amount of insurance in
force at the time of death and $10,000.
"(e) The Administrator is authorized to
promulgate such rules and regulations, not
inconsistent with this section, as are neces-
sary or appropriate to carry out Its pur-
poses.
(f) There is hereby authorized to be ap-
propriated, out of any money in the Treasury
not otherwise appropriated, such Stuns as
may be necessary to *Barry out the provisions
of this section for the payment of liabilities
under this section,
"(g) Any person guilty of mutiny, treason,
spying, or desertion shall forfeit all rights
to an indemnity under this section, but res-
toration to active duty after commission of
any such offense shall restore all rights under
this section. No indemnity shall be payable
for death inflicted as a lawful punishment
for crime or for military or naval offense,
except when inflicted by an enemy, as defined
by the President.
"(h) As used in this section the term
'combat zone' means any area outside the
United States determined by the President
to be an area in which units of the Armed
Forces of the United States have engaged
In combat operations on or after January 1,
1962, and before such date as may be deter-
mined by Presidential proclamation."
(b) The analysis of subchapter DI of
chapter 19 of such title is amended by adding
at the end thereof the following:
"789. Special indemnity insurance for mem-
bers of the Armed Forces serving In
combat zones."
Sac. 2. Title 38, United States Code, is
further amended as follows:
(1) Section 417(a) is amended--
(A) By deleting therefrom the wards "un-
der section 724 of this title" and inserting
in lieu thereof the words "in effect on Jan-
uary 1, 1969, and continued in effect under
section 724(a) of this title".
(B) By adding at the end thereof the fol-
lowing: "The prohibition. against the pay-
ment of dependency and indemnity com-
pensation contained In this subsection shall
not apply to insureds who on or after the
effective date of this amendment die while
on active duty in a combat zone as defined
in section 789 of this title, or within 120
days after duty in such a zone, or (1) whose
death is determined by the Administrator
to have been the direct result of an injury
or disease incurred while serving in a combat
zone, and (2) the injury or disease from
which such person died was incurred not
more than two years prior to death."
(2) Delete from the last sentence of sub-
section (c) of section 704 the words "or sec-
tion 725" each time they appear and insert
in lieu thereof the words "section 725, or
section 726".
(3) Subsection (b) of section '724 is re-
pealed and the following new subsections
are added to section 724:
"(b) After the date of enactment of this
subsection any person who is on active duty
with the Armed Forces in a combat zone,
as defined in section 789 of this title, for a
continuous period of 30 days or more and
any person hereafter ordered to such duty
under orders for 30 days or more in such
a combat zone, who is insured under National
Service Life Insurance or United States Gov-
ernment Life Insurance shall be entitled,
upon written application, to a waiver (with
the right to a refund after termination of
such duty) of all premiums paid on term
insurance and that portion of any perma-
nent insurance premiums paid representing
the cost of the pure insurance risk, as deter-
mined by the Administrator. All premiums
due during the period the waiver is In effect
must be timely paid to maintain the in-
surance in force. Such waiver shall apply
to premiums becoming due after the first day
of the first calendar month following the
date of enactment of this subsection, or the
first clay of the first calendar month follow-
ing entry on active duty with the Armed
Forces in such a combat zone, whichever
is the later date, and during the remainder
of such continuous active duty in a combat
zone for 120 days thereafter: however, no
premium becoming due prior to the date of
application for waiver under this subsection
shall be waived or refunded. Any premium
waiver granted under this subsection on a
participating contract of insurance shall
render such insurance nonparticipating dur-
ing the period such premium waiver Is in
effect. Upon certification of the period of
combat zone duty by the Secretary of the
military department concerned, and upon
application by the insured, or in death cases
by the beneficiary of his insurance, the Ad-
ministrator shall refund to the insured or to
the beneficiary the amount of premiums
waived under this subsection. Premiums on
term insurance waived under this subsection
shall be refunded with interest as determined
by the Administrator.
"(c) Whenever benefits become payable
because of the maturity of such Insurance
while under the premium waiver provided
by this section, liability for the payment of
such benefits shall be borne by the United
States In an amount which, when added to
any reserve of the policy at the time of ma-
turity, will equal the then value of such
benefits under such policy. Where life con-
tingencies are involved in the calculation of
the value of such benefits, the calculation of
such liability or liabilities shall be based
upon such mortality table or tables as the
Administrator may prescribe with interest
at the rate of 3 per centum per annum as to
National Service Life Insurance which was
participating before waiver was granted, and
3)/2 per centum per annum as to United
States Government Life Insurance, The Ad-
ministrator shall transfer from time to time
from the National Service Life Insurance ap-
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ropriation te,the National Service Life In-
-6104a bind and from the Military and
Naval insurance appropriation to the United
itatee Government Life Tnsurance Fund such
thine as may be necessary to carry out the
provisions of this section,"
' (4) Subchapter I of chapter 19, of such
'title is amended by adding at the end thereof
a new section as follows:
"i 726. Post-service insurance for persons
Serving in combat zones
"(a) Any person entitled to indemnity
protection under section 789 of this title
who is ordered to active duty with the Armed
Forces in a combat zone as defined in such
section for a period of 90 days or more, or
who served, in such zone for 90 days or more,
shall, upon application in writing made
within 120 days after separation from active
duty and payment of premiums as herein-
!after provided, and without medical exam-
ination, be granted insurance. The insur-
ance granted under this section shall be
issued upon the same terms and conditions
as are contained in standard policies of
National Service Life Insurance except (1)
term insurance may not be renewed on the
term plan after the insured's 50th birthday;
(2) the premium rates for term or permanent
plan insurance shall be based on the 1958
Commissioners Standard Ordinary Mortality
Table; (3) all cash, loan, extended and paid-
Up insurance values shall be based on the
1958 Commissioners Standard Ordinary Mor-
tality Table; (4) all settlements on policies
involving annuities shall be calculated on
the basis of the Annuity Table for 1949; (5)
all calculations in connection with Insurance
issued under this subsection shall be based
on interest at the rate of 3% per centum
per annum; (6) the insurance shall include
such other changes in terms and conditions
as the Administrator determines to be rea-
sonable and practicable; (7) the insurance
and any total disability income provisions
attached thereto shall be on a nonpartici-
pating basis and all premiums and other
collections therefor shall be credited to a
rewiring fund established In the Treasury
of the United States and the payments on
such insurance and total disability provision
shall be made directly from such fund, Ap-
propriations to such fund are hereby
authorized.
"(b) The Administrator is authorized to
Bet aside out of the revolving fund estab-
lished under subsection (a) of this section
such reserve amounts as may be required
Under accepted actuarial principles to meet
all liabilities on Insurance issued thereunder
and any total disability income provision at-
tached thereto. The Secretary of the Treas-
ury is authorized to invest in and to sell and
retire special interest-bearing obligations of
the United States for the account of the re-
volving fund. Such obligations issued for
this purpose shall have maturities fixed with
due regard for the needs of the fund and
shall bear interest at a rate equal to the
average market yield (computed by the Sec-
retary of the Treasury on the basis of market
quotations as of the end of the calendar
month next preceding the date of issue) on
all marketable interest-bearing obligations
of the United States then lemming a part of
the public debt which are not due or callable
until after the expiration of four years from
the end of such calendar month; except that
where such average market yield is not a
multiple of one-eighth of 1 per centum, the
rate of interest of such obligation shall be
the multiple of one-eighth of 1 per centiun
nearest such market yield."
(5) The analysis of subchapter / of chap-
ter 19 of such title is amended by adding at
the end thereof the following:
'726. Post-service Insurance for persons serv-
ing In combat zones."
(6) Section 3107 of such title is amended
ey adding at the end thereof a new SUOSSO-
'ION as follows:
4(d) If the surviving spouse of a deceased
lierson covered by indemnity insurance has
remarried, or if any of such person's children
e (re not in the custody of a surviving spouse,
411 or any part of the indemnity insurance
otherwise payable to such spouse may be ap-
petitioned on behalf of surviving children or
parents as may be prescribed by the Ad-
ministrator."
AMENDMENT OFFERED BY MR. TEAGUE OF TEXAS
Mr. TEAGUE of Texas. Mr. Speaker, I
offer an amendment.
?The Clerk read as follows:
Amendment offered by Mr. TEAGUE Of Texas:
Strike out all after the enacting clause of
S 2127 and insert the provisions of HR.
1/873, as passed.
The amendment was agreed to.
/The bill was ordered to be read a third
me, was read the third time, and
pissed, and a motion to reconsider was
hid on the table.
A similar House bill, HR. 10873, was
laid on the table.
FURTHER MESSAGE FROM THE
SENATE
A further message from the Senate by
Mr. Arlington, one of its clerks, an-
nc unced that the Senate agrees to the
re )ort of the committee of conference
on the disagreeing votes of the two
Houses on the amendments of the
Senate to the bill (H.R. 4750) entitled
"An act to provide an extension of the
interest equalization tax, and for other
Purposes."
The message also announced that the
Se: rate agrees to the report of the corn-
mi ;tee of conference on the disagree-
ing votes of the two Houses on the
amendments of the Senate to the bill
(H R. 5768) entitled "An act to extend
for an additional temporary period the
exitting suspension of duties on certain
claisiflcations of yarn of silk."
I he message also announced that the
Serate agrees to the report of the com-
mittee of conference on the disagreeing
vot is of the two Houses on the amend-
ments of the Senate to the bill (HR.
7961) entitled "An act to correct eer-
tali errors in the Tariff Schedules of the
United States."
SEDBE OF THE HOUSE OF REPRE-
SM4TATIVES RELATIVE TO INTER-
NATIONAL COMMUNISM IN THE
ESTERN HEMISPHERE
Mr. SELDEN. Mr. Speaker, I move to
suspend the rules and adopt the resolu-
tion -(11. Res. 560) to express the sense of
the House of Representatives declaring
the policy of the United States relative to
the intervention of the international
communistic movement in the Western
Hemisphere.
The Clerk read as follows:
H. Ras. 560
Whereas the subversive forces known as in-
tensional coinanmista, operating secretly
September 20, 1961
and openly, directly and Indirectly, 'Wreath]
the sovereignty and political indepenciene
of all the Western Hemisphere nations; an.
Whereas the American Continents, by th
free and independent positions which the
have assumed and maintained, are not sub
Ject to colonization or domination by an
power; and
Whereas the intervention of LESGEOSVOIN
communism, directly or indirectly, howeve
disguised,' in any American state, conflict
with the established policy of the America,
Republics for the protection of the sovereign
ty of the peoples of such states and the pc
litical independence of their governments
and
Whereas such a situation extended to an:
portions of the Western Hemisphere is clan
gerous to the peace and safety of the whol,
of it, including the United States; and
Whereas the ninth meeting of Consultatim
of Ministers of Foreign Affairs Serving as Or
gan of Consultation in Application of thi
Inter-American Treaty of Reciprocal Assist
ance recognized that acts possessing char
eater-Mtn:6 of aggression and interventim
carried out against one Cr more of the mem
her states of the Organization of America]
States may be responded to In either indi
vidual or collective form, which could gi
as far as resort to armed force, until sucl
time as the Organ of Consultation take,
measures to guarantee the peace and secu
rity of the hemisphere: Now, therefore, b,
it
Resolved, That it Is the sense of the Hoes,
of Representatives that (1) any such subver
sive domination or threat of it violates th
principles of the Monroe Doctrine, and o
collective security as set forth in the act
and resolutions heretofore adopted by thi
American Republics; and
(2) /n any such situation any one or mon
of the high contracting parties to the Inter-
American Treaty of Reciprocal Assistance
may. in the exercise of individual or col-
lective self-defense, which could go so fat
as resort to armed force, and in accordance
with the declarations and principles above
stated, take steps to forestall or combat in-
tervention. domination, control, and coloni-
zation in whatever form, by the subversive
forces known as international communism
and its agencies in the Western Hemisphere
The SPEAKER. Is a second
demanded?
Mr. MAILLIARD. Mr. Speaker, I de-
mand a second.
The SPEAKER. Is the gentleman op-
posed to the resolution?
Mr. MAILLIARD. I am not opposed
to the resolution.
The SPEAKER. The gentleman does
not qualify. Does any other Member on
the Minority side who is opposed to the
resolution demand a second?
Mr. HAYS. Mr. Speaker, I demand a
second.
The SPEAKER. Is the gentleman op-
posed to the resolution?
Mr. HAYS. I am,
The SPEAKER. The gentleman
qualifies.
Without objection, a second will be
considered as ordered.
There was no objection.
The SPEAKER The gentleman from
Alabama Mfr. BELDEN] is recognized for
20 minutes.
Mr. SEII)EN. Mr. Speaker, I yield
myself 10 minutes.
Mr. Speaker, the resolution before the
House today breaks no new or contro-
versial policy ground, It does, however,
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