omitted is enclosed in black brackets; new matter is printed in italic, existing law in which no change is proposed is shown in roman):

ACT OF OCTOBER 26, 1949 (63 STAT. 927)

SEC. 3. * [The number of general trustees shall be fixed by the Executive Board of the National Council for Historic Sites and Buildings, a corporation of the District of Columbia, and the general trustees first taking office shall be chosen by a majority vote of the members of the Executive Board from the membership of the National Council. The respective terms of office of the first general trustees so chosen shall be as prescribed by the said Executive Board but in no case shall exceed a period of five years from the date of election. A successor to a general trustee shall be chosen in the same manner as the original trustees and shall have a term expiring five years from the date of the expiration of the term for which his predecessor was chosen, except that a successor chosen to fill a vacancy occurring prior to the expiration of such term shall be chosen only for the remainder of that term.] The number of general trustees shall be fixed by the Board of Trustees of the National Trust and shall be chosen by the members of the National Trust from its members at any regular meeting of said National Trust. The respective terms of office of the general trustees shall be as prescribed by said board of trustees but in no case shall exceed a period of five years from the date of election. A successor to a general trustee shall be chosen in the same manner and shall have a term expiring five years from the date of the expiration of the term for which his predecessor was chosen, ercept that a successor chosen to fill a vacancy occurring prior to the expiration of such term shall be chosen only for the remainder of that term. ***

JULY 15 (legislative day, JULY 6), 1953.-Ordered to be printed

Mr. MILLIKIN, from the Committee on Finance, submitted the following

REPORT

[To accompany H. R. 5705]

The Committee on Finance, to whom was referred the bill (H. R. 5705) to amend the existing law to provide for the automatic renewal of expiring 5-year-level premium-term policies of United States Government and national service life insurance, having considered the same, report favorably thereon without amendment and recommend that the bill do pass.

By virtue of this act, the Committee on Finance accepts the report of the Committee on Ways and Means, which is as follows:

EXPLANATION OF THE BILL

The purpose of this bill is to make automatic the renewal of 5-year-level preruum-term policies of United States Government life insurance (World War I) and national service life insurance (World War II and Korea).

Today, a veteran who has one of these policies receives a notice 60 days prior to the expiration of the term, that the policy will expire on a given date. If he does 30 submit the necessary forms for renewal of the insurance within the next 30 days a second notice is sent to him 30 days prior to the expiration date. If he still fails to comply by making application and tendering the new premium, the nsurance lapses at the end of the term and cannot thereafter be reinstated. This legislation would eliminate all of the paperwork indicated in the above paragraph by providing that a 5-year-level premium-term policy when the term Pred would be automatically renewed and the veteran billed for the higher premium based on the then attained age. This would seem to be not only in The best interests of the Government by reason of the elimination of most of the paperwork involved in the renewal, but it would also provide greater prosection to the veteran by assuring him of the maintenance of his term policy. The bill does not in any way affect the existing authority for successive renewals of term policies which was specifically provided for in Public Laws 101 and 104 of the 82d Congress. Section 3 of the bill merely amends a part of section 621 of the National Service Life Insurance Act to conform with the new general lanCage inserted by the bill in section 602 (f). Thus, automatic renewal will hencerth be a standard provision of all types of national service life insurance on the term plan, including the section 621 postservice insurance.

S. Repts., 83-1, vol. 3- -22

The enactment of this legislation would not result in any additional cost but rather would result in substantial administrative savings to the Government estimated to be at least $600,000 annually in the underwriting service of the Veterans' Administration alone. Further savings would likely accrue in other sections of the Veterans' Administration as well as savings by reduction in postage 'The premium rates applicable to term insurance for the three types of policie now in force are indicated in the tables below:

Special national service life insurance (service on or after June 27, 1950)

The reports of the Veterans' Administration, and the General Accounting Office follow:

Hon. EDITH NOURSE ROGERS,

VETERANS' ADMINISTRATION, Washington 25, D. C., June 23, 1953.

Chairman, Committee on Veterans' Affairs,

House of Representatives, Washington 25, D.C.

DEAR MRS. ROGERS: Reference is made to your request for a report by the Veterans' Administration on H. R. 5705, 83d Congress, a bill to amend the existing law to provide for the automatic renewal of expiring 5-year level premium term policies of United States Government and national service life insurance.

The purpose of the bill is to amend appropriate provisions of the World War Veterans' Act, 1924, as amended, and the National Service Life Insurance Act of 1940, as amended, to provide that at the expiration of any 5-year term period any United States Government life insurance or national service life insurance issued on the 5-year level premium term plan which has not been exchanged or converted to a permanent plan of insurance and which is not lapsed at the expiration of the 5-year term period shall be renewed as level premium term insurance without application for a successive 5-year period at the premium rate for the attained age without medical examination.

Under existing law, with certain limited exceptions, all 5-year level premium term policies cease and terminate at the expiration of the term period unless application for renewal and tender of the required premiums are made prior to expiration of the current term period. Under the bill, term insurance in force at the expiration of the term period,either by payment or waiver of premiums, would be automatically renewed without the need for any action on the part of the insured.

The program of United States Government life insurance originally contemplated the conversion of all yearly renewable term insurance to a permanent plan of insurance. In 1926 the right was granted to convert such insurance to 5-year level-premium term insurance but only 1-term period was authorized. Periodically thereafter, additional 5-year periods were authorized until 1951. In that year the Congress authorized (Public Law 101, Aug. 2, 1951) renewal of term insurance for successive 5-year periods without limitation. In 1940, national service life insurance was authorized on a 5-year level premium-term plan and only 1term period was authorized. This term period was extended 3 years for certain policies in 1945, and in 1948, one additional 5-year period was authorized. By