Contestability of certain Department of Veterans Affairs insurance contracts or policies issued due to administrative error

Section 1910 of such title is amended— (1) by inserting (a) In general.— before Subject to; (2) by inserting and subsection (b), after section 1911 of this title; (3) by inserting administrative error, after nonpayment of premium,; and (4) 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..