SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Veterans Life Insurance Opportunity 
Act of 1998''.

SEC. 2. SPECIAL PERIOD FOR CERTAIN VETERANS TO CONVERT LIFE INSURANCE 
              POLICIES FROM SGLI TO VGLI.

    (a) In General.--Section 1977(g) of title 38, United States Code, 
to read as follows:
    ``(g)(1)(A) Any person whose Servicemembers' Group Life Insurance 
was continued in force after termination of duty or discharge from 
service under the law as in effect prior to the date on which the 
Veterans' Group Life Insurance program (provided for under section 1977 
of this title) became effective, and whose coverage under 
Servicemembers' Group Life Insurance terminated less than four years 
prior to such date, shall be eligible within one year from the 
effective date of the Veterans' Group Life Insurance program to apply 
for and be granted Veterans' Group Life Insurance in an amount equal to 
the amount of the insured's Servicemembers' Group Life Insurance which 
was not converted to an individual policy under prior law.
    ``(B) Veterans' Group Life Insurance issued under subparagraph (A) 
shall be issued for a term period equal to five years, less the time 
elapsing between the termination of the applicant's Servicemembers' 
Group Life Insurance and the effective date on which the Veterans' 
Group Life Insurance program became effective.
    ``(2)(A) Any person, on or after the date of the enactment of this 
paragraph, who did not convert coverage under Servicemembers' Group 
Life Insurance to coverage under this section within the period after 
separation provided for under section 1968(a) of this title may, 
subject to the succeeding provisions of this subsection, apply for 
(within the 20-month period beginning on the last day of such period of 
separation) and be granted coverage under this section in an amount 
equal to the amount of the insured's Servicemembers' Group Life 
Insurance which was not converted to coverage under this section.
    ``(B) any person, on or after the date of the enactment of this 
paragraph, who did not convert coverage under Servicemembers' Group 
Life Insurance to coverage under this section and whose coverage under 
Servicemembers' Group Life Insurance terminated during the 5-year 
period beginning on the date of the expiration of the period of duty or 
travel under section 1967(b) or 1968(a) of this title may, subject to 
the succeeding provisions of this subsection, apply for (within the 90-
day period beginning on the later of such date of enactment or the end 
of such 5-year period to) and be granted coverage under this section in 
an amount equal to the amount of the insured's Servicemembers' Group 
Life Insurance which was not converted to an individual policy under 
prior law.
    ``(C) Veterans' Group Life Insurance issued under this paragraph 
shall be issued for a term period equal to five years.
    ``(3) Veterans' Group Life Insurance under this subsection shall 
only be issued upon application to the administrative office 
established under section 1966(b) of this title, payment of the 
required premium, and proof of good health satisfactory to that office, 
which proof shall be submitted at the applicant's own expense.
    ``(4)(A) Any person who cannot meet the good health requirements 
for insurance under this subsection solely because of a service-
connected disability shall have such disability waived.
    ``(B) For each month for which any eligible veteran, whose service-
connected disabilities are waived, is insured under this subsection 
there shall be contributed to the insurer or insurers issuing the 
policy or policies from the appropriation `Compensation and Pensions, 
Department of Veterans Affairs' an amount necessary to cover the cost 
of the insurance in excess of the premiums established for eligible 
veterans, including the cost of the excess mortality attributable to 
such veteran's service-connected disabilities.
    ``(5) The Secretary may establish, as the Secretary may determine 
to be necessary according to sound actuarial principles, a separate 
premium, age groupings for premium purposes, accounting, and reserves, 
for persons granted insurance under this subsection different from 
those established for other persons granted insurance under this 
section.
    ``(6) Appropriations to carry out the purpose of this section are 
hereby authorized.''.
    (b) Notice.--Not later than 120 days after the date of the 
enactment of this Act, the Secretary of Veterans Affairs shall provide 
for notice to any member of the uniformed services who purchased a 
Servicemembers' Group Life Insurance policy under subchapter III of 
chapter 19 of such title, and who did not convert such policy to a 
Veterans' Group Life Insurance policy under section 1977(g) of such 
title, of the opportunities under paragraph (2) of such section, as 
added by subsection (a), to become insured under a Veterans' Group Life 
Insurance policy during the periods described in such subsection.
    (c) Effective Dates.--(1) Subparagraph (A) of section 1977(g)(2) of 
such title, as added by subsection (a), shall apply with respect to a 
termination of Servicemembers' Group Life Insurance policies under 
subchapter III of title 38, United States Code, occurring on or after 
the date of the enactment of this Act.
    (2) Subparagraph (B) of such section, as added by subsection (a), 
shall apply with respect to such a termination occurring on or after 
the date that is four years before the date of the date of the 
enactment of this Act.
Veterans Life Insurance Opportunity Act of 1998 - Amends Veterans' Group Life Insurance (VGLI) provisions to allow any person whose Servicemembers' Group Life Insurance (SGLI) was continued after termination of duty or discharge from military service before the date on which VGLI became effective, and whose coverage under SGLI terminated less than four years prior to such effective date, to apply for VGLI coverage within one year from the effective date of VGLI, in an amount equal to the insured's SGLI amount which was not converted to an individual policy under prior law.  Provides a coverage period of five years, less the time elapsed between SGLI termination and the effective date of VGLI.  Allows such insurance conversion for certain other individuals who did not convert SGLI coverage. 
Requires a person who cannot meet the good health requirements for VGLI coverage solely because of a service-connected disability to have such disability waived. 
Authorizes appropriations. 
Directs the Secretary of Veterans Affairs to provide due notice to eligible individuals of the opportunity for such conversion.
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