PUBLIC LAW 104-106—FEB. 10, 1996 110 STAT. 301 "(e) INFORMATION TO BE FURNISHED. —The Secretary shall ensure that members referred to in subsection (a) are given a written explanation of the insurance program and are advised that they have the right to decline to be insured and, if not declined, to elect coverage for a reduced benefit or an enhanced benefit under subsection (b). "(f) MEMBERS INELIGIBLE TO ENROLL.— Members of the Ready Reserve serving on active duty (or full-time National Guard duty) are not eligible to enroll for coverage under the insurance program. The Secretary may define any additional category of members of the Ready Reserve to be excluded from eligibility to purchase insurance under this chapter. "§ 12525. Benefit amounts "(a) BASIC BENEFIT. — The basic benefit for an insured member under the insurance program is $1,000 per month (as adjusted under subsection (d)). "(b) REDUCED AND ENHANCED BENEFITS. —Under the regulations prescribed by the Secretary, a person enrolled for coverage under the insurance program may elect— "(1) a reduced coverage benefit equal to one-half the amount of the basic benefit; or "(2) an enhanced benefit in the amount of $1,500, $2,000, $2,500, $3,000, $3,500, $4,000, $4,500, or $5,000 per month (as adjusted under subsection (d)). "(c) AMOUNT FOR PARTIAL MONTH. —The amount of insurance payable to an insured member for any period of covered service that is less than one month shall be determined by multiplying Vso of the monthly benefit rate for the member by the number of days of the covered service served by the member during such period. "(d) ADJUSTMENT OF AMOUNTS.—(1) The Secretary shall determine annually the effect of inflation on benefits and shall adjust the amounts set forth in subsections (a) and (b)(2) to maintain the constant dollar value of the benefit. "(2) If the amount of a benefit as adjusted under paragraph (1) is not evenly divisible by $10, the amount shall be rounded to the nearest multiple of $10, except that an amount evenly divisible by $5 but not by $10 shall be rounded to the next lower amount that is evenly divisible by $10. "§ 12526. Premiums "(a) ESTABLISHMENT OF RATES. —(1) The Secretary, in consultation with the Board of Actuaries, shall prescribe the premium rates for insurance under the insurance program. "(2) The Secretary shall prescribe a fixed premium rate for each $1,000 of monthly insurance benefit. The premium amount shall be equal to the share of the cost attributable to insuring the member and shall be the same for all members of the Ready Reserve who are insured under the insurance program for the same benefit amount. The Secretary shall prescribe the rate on the basis of the best available estimate of risk and financial exposure, levels of subscription by members, and other relevant factors. "(b) LEVEL PREMIUMS.— The premium rate prescribed for the first year of insurance coverage of an insured member shall be continued without change for subsequent years of insurance coverage, except that the Secretary, after consultation with the Board
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