A bill to amend title 38 of the United States Code to provide clarification of eligibility for and issuance of Service Disabled Veterans Insurance under section 722 and Servicemen's Group Life Insurance under section 767.

States that application for service disabled veterans' insurance must be made after separation or release from active duty, and that no such insurance shall be effective until after 120 days following separation or release. Protects the Government from any liability for insurance claims made for deaths occurring before the 121st day following separation or release.

States that any insurance policy purchased by the Administrator of Veterans' Affairs shall not be effective for any National Guardsman or Air National Guardsman until such Guardsman is assigned to a unit or position in which he may be required to perform active duty.