Section 1 Short title
This Act may be cited as the “Veterans’ Life Insurance Expansion and Integrity Act of 2025”.
Veterans’ Life Insurance Expansion and Integrity Act of 2025
A BILL
To amend title 38, United States Code, to make certain improvements to the laws administered by the Secretary of Veterans Affairs relating to life insurance for veterans, and for other purposes.
Sec. 2 Expansion of Department of Veterans Affairs life insurance program
in subsection (a)—
in paragraph (1), by striking “service-disabled”;
by striking paragraph (3); and
by redesignating paragraphs (4) through (6) as paragraphs (3) through (5), respsectively; and
in subsection (b), by striking “the veteran has a service-connected disability” and all that follows through the period at the end of paragraph (2) and inserting the following: “the veteran submits an application for such insurance before the veteran attains 81 years of age”.
Clerical amendment—
Section heading— Such section is further amended by striking the section heading and inserting the following:
“1922B. Veterans life insurance”
Table of sections— The table of sections at the beginning of chapter 19 of such title is amended by striking the item relating to section 1922B and inserting the following new item:
Report— Not later than two years after the date of the enactment of this Act, the Secretary of Veterans Affairs shall complete a study on the veterans life insurance program under section 1922B of such title (as amended by this Act) and submit to the Committees on Veterans Affairs of the House of Representatives and the Senate a report that includes, with respect to the period covered by the report—
the number of—
veterans enrolled in such program;
claims filed pursuant to such program;
insurance payments made by the Secretary to claimants pursuant to such program;
the total amount of insurance payments described in subparagraph (C); and
contracts or policies for insurance under chapter 19 of such title cancelled or voided by the Secretary pursuant to section 1910 of such title (as amended by this Act) due to administrative error (as defined in such section);
an evaluation of—
the solvency and financial stability of such program; and
the sufficiency of premiums under such program; and
a statement of the cost savings to the United States resulting from the cancellation or voiding by the Secretary, pursuant to section 1910 of such title (as amended by this Act), of contracts or policies of insurance due to administrative error (as defined in such section).
Effective date— The amendments made by this section shall take effect on the date that is one year after the date of the enactment of this Act.
Sec. 3 Contestability of certain Department of Veterans Affairs insurance contracts or policies issued due to administrative error
Section 1910 of such title is amended—
by inserting “(a) In general.—” before “Subject to”;
by inserting “and subsection (b),” after “section 1911 of this title”;
by inserting “ administrative error,” after “nonpayment of premium,”; and
by adding at the end the following new subsections:
“(b) Contests due to administrative error
“(1) Prior notice; opportunity to submit evidence—With respect to any decision of the Secretary pursuant to this section to cancel or void a contract or policy of insurance due to administrative error, the Secretary shall provide the insured—
“(A) prior notice of such decision that includes an explanation of the administrative error underlying such cancellation or voiding; and
“(B) a period of not less than 90 days to submit to the Secretary evidence that no administrative error occurred with respect to such contract or policy.
“(2) Evidentiary review—In any case where an insured submits to the Secretary evidence described in paragraph (1)(B), the Secretary shall determine whether such evidence satisfactorily demonstrates that no administrative error occurred with respect to the contract or policy of the insured by not later than 180 days after the date on which the Secretary receives such evidence.
“(3) Limitation—The Secretary may not, pursuant to this section, cancel or void a contract or policy of insurance due to administrative error after the date that is one year after the date of the issuance, reinstatement, or conversion of such contract or policy.
“(4) Applicability—This subsection shall apply with respect to any contract or policy for insurance, regardless of whether such contract became effective before, on, or after the date of the enactment of this subsection.
“(c) Administrative error defined—In this section, the term “administrative error” means a clerical, technical, or processing mistake on the part of the Secretary that caused the issuance, reinstatement, or conversion of a contract or policy of insurance to an individual ineligible for such contract or policy on the date of such issuance, reinstatement, or conversion.”