-CITE-

38 USC CHAPTER 19 - INSURANCE 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

-HEAD-

CHAPTER 19 - INSURANCE

-MISC1-

SUBCHAPTER I - NATIONAL SERVICE LIFE INSURANCE

Sec.

1901. Definitions.

1902. Premium rates and policy values.

1903. Amount of insurance.

1904. Plans of insurance.

1905. Renewal.

1906. Policy provisions.

1907. Payment or use of dividends.

1908. Premium payments.

1909. Effective date of insurance.

1910. Incontestability.

1911. Forfeiture.

1912. Total disability waiver.

1913. Death before six months' total disability.

1914. Statutory total disabilities.

1915. Total disability income provision.

1916. Insurance which matured before August 1, 1946.

1917. Insurance maturing on or after August 1, 1946.

1918. Assignments.

1919. National Service Life Insurance appropriation.

1920. National Service Life Insurance Fund.

1921. Extra hazard costs.

1922. Service disabled veterans' insurance.

1922A. Supplemental service disabled veterans' insurance for

totally disabled veterans.

1923. Veterans' Special Life Insurance.

1924. In-service waiver of premiums.

1925. Limited period for acquiring insurance.

1926. Authority for higher interest rates for amounts

payable to beneficiaries.

1927. Authority for higher monthly installments payable to

certain annuitants.

1928. Authority for payment of interest on settlements.

1929. Authority to adjust premium discount rates.

SUBCHAPTER II - UNITED STATES GOVERNMENT LIFE INSURANCE

1940. Definition.

1941. Amount of insurance.

1942. Plans of insurance.

1943. Premiums.

1944. Policy provisions.

1945. Renewal.

1946. Dividends to pay premiums.

1947. Incontestability.

1948. Total disability provision.

1949. Change of beneficiary.

1950. Payment to estates.

1951. Payment of insurance.

1952. Optional settlement.

1953. Assignments.

1954. Forfeiture.

1955. United States Government Life Insurance Fund.

1956. Military and naval insurance appropriation.

1957. Extra hazard costs.

1958. Statutory total permanent disability.

1959. Waiver of disability for reinstatement.

1960. Waiver of premium payments on due date.

1961. Authority for higher interest rates for amounts

payable to beneficiaries.

1962. Authority for higher monthly installments payable to

certain annuitants.

1963. Authority for payment of interest on settlements.

SUBCHAPTER III - SERVICEMEMBERS' GROUP LIFE INSURANCE

1965. Definitions.

1966. Eligible insurance companies.

1967. Persons insured; amount.

1968. Duration and termination of coverage; conversion.

1969. Deductions; payment; investment; expenses.

1970. Beneficiaries; payment of insurance.

1971. Basic tables of premiums; readjustment of rates.

1972. Benefit certificates.

1973. Forfeiture.

1974. Advisory Council on Servicemembers' Group Life

Insurance.

1975. Jurisdiction of District Courts.

1976. Effective date.

1977. Veterans' Group Life Insurance.

1978. Reinstatement.

1979. Incontestability.

1980. Option to receive accelerated death benefit.

SUBCHAPTER IV - GENERAL

1981. Replacement of surrendered and expired insurance.

1982. Administrative cost.

1983. Settlements for minors or incompetents.

1984. Suits on insurance.

1985. Decisions by the Secretary.

1986. Deposits in and disbursements from trust funds.

1987. Penalties.

1988. Savings provision.

AMENDMENTS

1998 - Pub. L. 105-368, title III, Sec. 302(a)(2), Nov. 11, 1998,

112 Stat. 3333, added item 1980.

1996 - Pub. L. 104-275, title IV, Sec. 405(b)(3), Oct. 9, 1996,

110 Stat. 3339, substituted "SERVICEMEMBERS' GROUP" for

"SERVICEMEN'S GROUP" in subchapter III heading and "Servicemembers'

Group" for "Servicemen's Group" in item 1974.

1992 - Pub. L. 102-568, title II, Sec. 203(b), Oct. 29, 1992, 106

Stat. 4325, added item 1922A.

1991 - Pub. L. 102-83, Sec. 5(b)(1), Aug. 6, 1991, 105 Stat. 406,

renumbered items 701 to 788 as 1901 to 1988, respectively.

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat.

404, 405, substituted "Secretary" for "Administrator" in item 785.

1988 - Pub. L. 100-687, div. B, title XIV, Sec. 1401(c), Nov. 18,

1988, 102 Stat. 4129, added items 728, 729, and 763.

Pub. L. 100-322, title III, Sec. 331(a)(2), (b)(2), May 20, 1988,

102 Stat. 536, 537, added items 727 and 762.

1979 - Pub. L. 96-128, title III, Secs. 302(b), 303(b), Nov. 28,

1979, 93 Stat. 986, added items 726 and 761.

1974 - Pub. L. 93-289, Secs. 2(b), 9(b), May 24, 1974, 88 Stat.

165, 172, added items 777, 778, and 779 and substituted "Veterans'

Special Life Insurance" for "Veterans' special term insurance" in

item 723.

1971 - Pub. L. 92-188, Sec. 3, Dec. 15, 1971, 85 Stat. 645,

substituted "Payment or use of dividends" for "Dividends to pay

premiums" in item 707.

1970 - Pub. L. 91-291, Sec. 7, June 25, 1970, 84 Stat. 331,

substituted "Duration and termination of coverage; conversion" for

"Termination of coverage; conversion" in item 768.

1965 - Pub. L. 89-214, Sec. 2, Sept. 29, 1965, 79 Stat. 886,

redesignated "SUBCHAPTER III - GENERAL" as "SUBCHAPTER IV -

GENERAL" and inserted "SUBCHAPTER III - SERVICEMEN'S GROUP LIFE

INSURANCE" comprising items 765 to 776.

1964 - Pub. L. 88-664, Sec. 12(c), Oct. 13, 1964, 78 Stat. 1099,

added item 725.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 101, 106, 5301, 5303A,

5313B of this title.

-End-

-CITE-

38 USC SUBCHAPTER I - NATIONAL SERVICE LIFE INSURANCE 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER I - NATIONAL SERVICE LIFE INSURANCE

-HEAD-

SUBCHAPTER I - NATIONAL SERVICE LIFE INSURANCE

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in title 50 App. section 450.

-End-

-CITE-

38 USC Sec. 1901 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER I - NATIONAL SERVICE LIFE INSURANCE

-HEAD-

Sec. 1901. Definitions

-STATUTE-

For the purposes of this subchapter -

(1) The term "insurance" means National Service Life Insurance.

(2) The terms "widow" or "widower" mean a person who was the

lawful spouse of the insured at the maturity of the insurance.

(3) The term "child" means a legitimate child, an adopted child,

and, if designated as beneficiary by the insured, a stepchild or an

illegitimate child.

(4) The terms "parent", "father", and "mother" mean a father,

mother, father through adoption, mother through adoption, persons

who have stood in loco parentis to a member of the military or

naval forces at any time before entry into active service for a

period of not less than one year, and a stepparent, if designated

as beneficiary by the insured.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1148, Sec. 701; renumbered

Sec. 1901, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.)

-MISC1-

PRIOR PROVISIONS

Prior section 1901 was renumbered section 3901 of this title.

Another prior section 1901, Pub. L. 85-857, Sept. 2, 1958, 72

Stat. 1215, as amended by Pub. L. 90-77, title II, Sec. 204(a),

Aug. 31, 1967, 81 Stat. 184, related to veterans eligible for

assistance, prior to the general revision of chapter 39 of this

title by Pub. L. 91-666. See sections 3901 and 3902 of this title.

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 701 of this title as

this section.

-End-

-CITE-

38 USC Sec. 1902 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER I - NATIONAL SERVICE LIFE INSURANCE

-HEAD-

Sec. 1902. Premium rates and policy values

-STATUTE-

Premium rates for insurance shall be the net rates based upon the

American Experience Table of Mortality and interest at the rate of

3 per centum per annum. All cash, loan, paid-up, and extended

values, and all other calculations in connection with insurance,

shall be based upon said American Experience Table of Mortality and

interest at the rate of 3 per centum per annum.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1148, Sec. 702; renumbered

Sec. 1902, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.)

-MISC1-

PRIOR PROVISIONS

Prior section 1902 was renumbered section 3902 of this title.

Another prior section 1902, Pub. L. 85-857, Sept. 2, 1958, 72

Stat. 1215, related to limitation on types of assistance furnished

and veterans otherwise entitled, prior to the general revision of

chapter 39 of this title by Pub. L. 91-666. See sections 3902 and

3903 of this title.

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 702 of this title as

this section.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1926, 1927, 1929 of this

title.

-End-

-CITE-

38 USC Sec. 1903 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER I - NATIONAL SERVICE LIFE INSURANCE

-HEAD-

Sec. 1903. Amount of insurance

-STATUTE-

Insurance shall be issued in any multiple of $500 and the amount

of insurance with respect to any one person shall be not less than

$1,000 or more than $10,000. No person may carry a combined amount

of National Service Life Insurance and United States Government

life insurance in excess of $10,000 at any one time. The

limitations of this section shall not apply to the additional paid

up insurance the purchase of which is authorized under section 1907

of this title.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1148, Sec. 703; Pub. L.

92-188, Sec. 1, Dec. 15, 1971, 85 Stat. 645; renumbered Sec. 1903

and amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105

Stat. 406.)

-MISC1-

PRIOR PROVISIONS

Prior section 1903 was renumbered section 3903 of this title.

Another prior section 1903, Pub. L. 85-857, Sept. 2, 1958, 72

Stat. 1216, related to limitation on amounts paid by United States,

prior to the general revision of chapter 39 of this title by Pub.

L. 91-666. See section 3902 of this title.

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 703 of this title as

this section and substituted "1907" for "707".

1971 - Pub. L. 92-188 made section limitations inapplicable to

the additional paid up insurance purchase of which is authorized

under section 707 of this title.

EFFECTIVE DATE OF 1971 AMENDMENT

Amendment by Pub. L. 92-188 effective on date established by

Administrator but in no event later than first day of first

calendar month beginning more than six calendar months after Dec.

15, 1971, see section 4 of Pub. L. 92-188, set out as a note under

section 1907 of this title.

-End-

-CITE-

38 USC Sec. 1904 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER I - NATIONAL SERVICE LIFE INSURANCE

-HEAD-

Sec. 1904. Plans of insurance

-STATUTE-

(a) Insurance may be issued on the following plans: Five-year

level premium term, ordinary life, twenty-payment life,

thirty-payment life, twenty-year endowment, endowment at age sixty,

and endowment at age sixty-five. Level premium term insurance may

be converted as of the date when any premium becomes or has become

due, or exchanged as of the date of the original policy, upon

payment of the difference in reserve, at any time while such

insurance is in force and within the term period to any of the

foregoing permanent plans of insurance, except that conversion to

an endowment plan may not be made while the insured is totally

disabled.

(b) Under such regulations as the Secretary may promulgate a

policy of participating insurance may be converted to or exchanged

for insurance issued under this subsection on a modified life plan.

Insurance issued under this subsection shall be on the same terms

and conditions as the insurance which it replaces, except (1) the

premium rates for such insurance shall be based on the 1958

Commissioners Standard Ordinary Basic Table of Mortality and

interest at the rate of 3 per centum per annum; (2) all cash, loan,

paid-up, and extended values shall be based on the 1958

Commissioners Standard Ordinary Basic Table of Mortality and

interest at the rate of 3 per centum per annum; and (3) at the end

of the day preceding the sixty-fifth birthday of the insured the

face value of the modified life insurance policy or the amount of

extended term insurance thereunder shall be automatically reduced

by one-half thereof, without any reduction in premium.

(c) Under such regulations as the Secretary may promulgate, a

policy of nonparticipating insurance may be converted to or

exchanged for insurance issued under this subsection on a modified

life plan. Insurance issued under this subsection shall be on the

same terms and conditions as the insurance which it replaces,

except that (1) term insurance issued under section 621 of the

National Service Life Insurance Act of 1940 shall be deemed for the

purposes of this subsection to have been issued under section

1923(b) of this title; and (2) at the end of the day preceding the

sixty-fifth birthday of the insured the face value of the modified

life insurance policy or the amount of extended term insurance

thereunder shall be automatically reduced by one-half thereof,

without any reduction in premium. Any person eligible for insurance

under section 1922(a), or section 1925 of this title may be granted

a modified life insurance policy under this subsection which,

subject to exception (2) above, shall be issued on the same terms

and conditions specified in section 1922(a) or section 1925,

whichever is applicable.

(d) Any insured whose modified life insurance policy is in force

by payment or waiver of premiums on the day before the insured's

sixty-fifth birthday may upon written application and payment of

premiums made before such birthday be granted National Service Life

Insurance, on an ordinary life plan, without physical examination,

in an amount of not less than $500, in multiples of $250, but not

in excess of one-half of the face amount of the modified life

insurance policy in force on the day before the insured's

sixty-fifth birthday. Insurance issued under this subsection shall

be effective on the sixty-fifth birthday of the insured. The

premium rate, cash, loan, paid-up, and extended values on the

ordinary life insurance issued under this subsection shall be based

on the same mortality tables and interest rates as the insurance

issued under the modified life policy. Settlements on policies

involving annuities on insurance issued under this subsection shall

be based on the same mortality or annuity tables and interest rates

as such settlements on the modified life policy. If the insured is

totally disabled on the day before the insured's sixty-fifth

birthday and premiums on the insured's modified life insurance

policy are being waived under section 1912 of this title or the

insured is entitled on that date to waiver under such section the

insured shall be automatically granted the maximum amount of

insurance authorized under this subsection and premiums on such

insurance shall be waived during the continuous total disability of

the insured.

(e) After June 30, 1972, and under such regulations as the

Secretary may promulgate, insurance may be converted to or

exchanged for insurance on a modified life plan under the same

terms and conditions as are set forth in subsections (b) and (c) of

this section except that at the end of the day preceding the

seventieth birthday of the insured the face value of the modified

life insurance policy or the amount of extended insurance

thereunder shall be automatically reduced by one-half thereof,

without any reduction in premium. Any insured whose modified life

insurance policy issued under this subsection is in force by

payment or waiver of premiums on the day before the insured's

seventieth birthday may be granted insurance on the ordinary life

plan upon the same terms and conditions as are set forth in

subsection (d) of this section except that in applying such

provisions the seventieth birthday is to be substituted for the

sixty-fifth birthday. Notwithstanding any other provision of law or

regulations the Secretary under such terms and conditions as the

Secretary determines to be reasonable and practicable and upon

written application and payment of the required premiums, reserves,

or other necessary amounts made within one year from the effective

date of this subsection by an insured having in force a modified

life plan issued under subsection (b) or (c) of this section,

including any replacement insurance issued under subsection (d) of

this section or other provision of this title, can exchange such

insurance without proof of good health for an amount of insurance

issued under this subsection equal to the insurance then in force

or which was in force on the day before such insured's sixty-fifth

birthday, whichever is the greater.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1148, Sec. 704; Pub. L.

88-664, Sec. 12(b), Oct. 13, 1964, 78 Stat. 1098; Pub. L. 92-193,

Dec. 15, 1971, 85 Stat. 648; Pub. L. 97-295, Sec. 4(21), Oct. 12,

1982, 96 Stat. 1306; Pub. L. 99-576, title VII, Sec. 701(21), Oct.

28, 1986, 100 Stat. 3292; renumbered Sec. 1904 and amended Pub. L.

102-83, Secs. 4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105

Stat. 404-406.)

-REFTEXT-

REFERENCES IN TEXT

Section 621 of the National Service Life Insurance Act of 1940,

referred to in subsec. (c), is section 621 of act Oct. 8, 1940, ch.

757, title VI, pt. I, as added Apr. 25, 1951, ch. 39, pt. II, Sec.

10, 65 Stat. 36, which was repealed and the provisions thereof

reenacted as section 723 [now 1923] of this title by Pub. L.

85-857, Sept. 2, 1958, 72 Stat. 1105.

-MISC1-

PRIOR PROVISIONS

Prior section 1904 was renumbered section 3904 of this title.

Another prior section 1904, Pub. L. 85-857, Sept. 2, 1958, 72

Stat. 1216, related to prohibition against duplication of benefits,

prior to the general revision of chapter 39 of this title by Pub.

L. 91-666, Sec. 2(a), Jan. 11, 1971, 84 Stat. 1998. See section

3903 of this title.

AMENDMENTS

1991 - Pub. L. 102-83, Sec. 5(a), renumbered section 704 of this

title as this section.

Subsec. (b). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted

"Secretary" for "Administrator".

Subsec. (c). Pub. L. 102-83, Sec. 5(c)(1), substituted "1923(b)"

for "723(b)", "1922(a)" for "722(a)" in two places, and "1925" for

"725" in two places.

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator".

Subsec. (d). Pub. L. 102-83, Sec. 5(c)(1), substituted "1912" for

"712".

Subsec. (e). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted

"Secretary" for "Administrator" wherever appearing.

1986 - Subsec. (d). Pub. L. 99-576, Sec. 701(21)(A), substituted

"the insured's" for "his" in four places, and "the insured" for

"he" in two places.

Subsec. (e). Pub. L. 99-576, Sec. 701(21)(B), substituted "the

insured's" for "his" and "the Administrator" for "he".

1982 - Subsec. (e). Pub. L. 97-295 substituted "After June 30,

1972," for "On and after the effective date of this subsection",

and substituted "subsection" for "subsections" after "plan issued

under".

1971 - Subsec. (e). Pub. L. 92-193 added subsec. (e).

1964 - Pub. L. 88-664 designated existing provisions as subsec.

(a) and added subsecs. (b) to (d).

EFFECTIVE DATE OF 1971 AMENDMENT

Pub. L. 92-193 provided that the amendment made by Pub. L. 92-193

is effective first day of first calendar month which begins more

than six calendar months after Dec. 15, 1971.

EFFECTIVE DATE OF 1964 AMENDMENT

Amendment by Pub. L. 88-664 effective first day of first calendar

month which begins more than six calendar months after Oct. 13,

1964, see section 12(d) of Pub. L. 88-664, set out as an Effective

Date note under section 1925 of this title.

-End-

-CITE-

38 USC Sec. 1905 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER I - NATIONAL SERVICE LIFE INSURANCE

-HEAD-

Sec. 1905. Renewal

-STATUTE-

All level premium term policies, except as otherwise provided in

this section, shall cease and terminate at the expiration of the

term period. At the expiration of any term period any five-year

level premium term policy which has not been exchanged or converted

to a permanent plan of insurance and which is not lapsed shall be

renewed as level premium term insurance without application for a

successive five-year period at the premium rate for the attained

age without medical examination. However, renewal will be effected

in cases where the policy is lapsed only if the insured makes

application for reinstatement and renewal of the term policy within

five years after the date of lapse, and reinstatement in such cases

shall be under the terms and conditions prescribed by the

Secretary. In any case in which the insured is shown by evidence

satisfactory to the Secretary to be totally disabled at the

expiration of the level premium term period of the insurance under

conditions which would entitle the insured to continued insurance

protection but for such expiration, the insurance, if subject to

renewal under this section, shall be automatically renewed for an

additional period of five years at the premium rate for the then

attained age, unless the insured has elected insurance on some

other available plan.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1148, Sec. 705; Pub. L.

91-291, Sec. 8, June 25, 1970, 84 Stat. 331; Pub. L. 99-576, title

VII, Sec. 701(22), Oct. 28, 1986, 100 Stat. 3292; renumbered Sec.

1905 and amended Pub. L. 102-83, Secs. 4(b)(1), (2)(E), 5(a), Aug.

6, 1991, 105 Stat. 404-406.)

-MISC1-

PRIOR PROVISIONS

Prior section 1905, Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1216;

Pub. L. 90-77, title II, Sec. 204(b), Aug. 31, 1967, 81 Stat. 184,

related to applications, prior to the general revision of chapter

39 of this title by Pub. L. 91-666, Sec. 2(a), Jan. 11, 1971, 84

Stat. 1998.

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 705 of this title as

this section and substituted "Secretary" for "Administrator" in two

places.

1986 - Pub. L. 99-576 substituted "the" for "his" in three places

and "the insured" for "him".

1970 - Pub. L. 91-291 made it a requirement for renewal of lapsed

policies that the insured make application for reinstatement and

renewal of his term policy within five years after the date of

lapse and struck out provision that the lapse occur within two

months before the expiration of the term period.

EFFECTIVE DATE OF 1970 AMENDMENT

Amendment by Pub. L. 91-291 effective June 25, 1970, see section

14(a) of Pub. L. 91-291, set out as a note under section 1317 of

this title.

-End-

-CITE-

38 USC Sec. 1906 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER I - NATIONAL SERVICE LIFE INSURANCE

-HEAD-

Sec. 1906. Policy provisions

-STATUTE-

Provisions for cash, loan, paid-up, and extended values,

dividends from gains and savings, refund of unearned premiums, and

such other provisions as may be found to be reasonable and

practicable may be provided for in the policy of insurance from

time to time by regulations promulgated by the Secretary.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1149, Sec. 706; renumbered

Sec. 1906 and amended Pub. L. 102-83, Secs. 4(b)(1), (2)(E), 5(a),

Aug. 6, 1991, 105 Stat. 404-406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 706 of this title as

this section and substituted "Secretary" for "Administrator".

-End-

-CITE-

38 USC Sec. 1907 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER I - NATIONAL SERVICE LIFE INSURANCE

-HEAD-

Sec. 1907. Payment or use of dividends

-STATUTE-

(a) Until and unless the Secretary has received from the insured

a request or directive in writing exercising any other dividend

option allowable under the insured's policy, any dividend

accumulations and unpaid dividends shall be applied in payment of

premiums becoming due on insurance subsequent to the date the

dividend is payable after January 1, 1952.

(b) No claim by an insured for payment in cash of a special

dividend declared prior to January 1, 1952, shall be processed by

the Secretary unless such claim was received within six years after

such dividend was declared. Whenever any claim for payment of a

special dividend, the processing of which is barred by this

subsection, is received by the Secretary, it shall be returned to

the claimant, with a copy of this subsection, and such action shall

be a complete response without further communication.

(c) The Secretary, upon application in writing made by the

insured for insurance under this subsection, and without proof of

good health, is authorized to apply any dividend due and payable on

national service life insurance after the date of such application

to purchase paid up insurance. Also, the Secretary, upon

application in writing made by the insured during the one-year

period beginning September 1, 1991, and without proof of good

health, is authorized to apply any national service life insurance

dividend credits and deposits of such insured existing at the date

of the insured's application to purchase paid up insurance. After

September 1, 1992, the Secretary may, from time to time, provide

for further one-year periods during which insureds may purchase

additional paid up insurance from existing dividend credits and

deposits. Any such period for the purchase of additional paid up

insurance may be allowed only if the Secretary determines in the

case of any such period that it would be actuarially and

administratively sound to do so. Any dividends, dividend credits,

or deposits on endowment policies may be used under this subsection

only to purchase additional paid up endowment insurance which

matures concurrently with the basic policy. Any dividends, dividend

credits, or deposits on policies (other than endowment policies)

may be used under this section only to purchase additional paid up

whole life insurance. The paid up insurance granted under this

subsection shall be in addition to any insurance otherwise

authorized under this title, or under prior provisions of law. The

paid up insurance granted under this subsection shall be issued on

the same terms and conditions as are contained in the standard

policies of national service life insurance except (1) the premium

rates for such insurance and all cash and loan values thereon shall

be based on such table of mortality and rate of interest per annum

as may be prescribed by the Secretary; (2) the total disability

income provision authorized under section 1915 of this title may

not be added to insurance issued under this section; and (3) the

insurance shall include such other changes in terms and conditions

as the Secretary determines to be reasonable and practicable.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1149, Sec. 707; Pub. L.

91-291, Sec. 9, June 25, 1970, 84 Stat. 331; Pub. L. 92-188, Sec.

2, Dec. 15, 1971, 85 Stat. 645; Pub. L. 97-295, Sec. 4(22), Oct.

12, 1982, 96 Stat. 1306; Pub. L. 99-576, title VII, Sec. 701(23),

Oct. 28, 1986, 100 Stat. 3292; renumbered Sec. 1907 and amended

Pub. L. 102-83, Secs. 4(a)(2)(A)(iii)(I), (C)(i), (b)(1), (2)(E),

5(a), (c)(1), Aug. 6, 1991, 105 Stat. 403-406; Pub. L. 102-86,

title II, Sec. 203, Aug. 14, 1991, 105 Stat. 416.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83, Sec. 5(a), renumbered section 707 of this

title as this section.

Subsec. (a). Pub. L. 102-83, Sec. 4(a)(2)(A)(iii)(I), substituted

"Secretary" for "Veterans' Administration".

Subsec. (b). Pub. L. 102-83, Sec. 4(a)(2)(C)(i), substituted "by

the Secretary" for "in the Veterans' Administration" in second

sentence.

Pub. L. 102-83, Sec. 4(a)(2)(A)(iii)(I), substituted "Secretary"

for "Veterans' Administration" in first sentence.

Subsec. (c). Pub. L. 102-86 amended subsec. (c) of this section

as in effect before the redesignations made by Pub. L. 102-83, Sec.

5, by substituting "during the one-year period beginning September

1, 1991" for "before February 1, 1973" and inserting after second

sentence "After September 1, 1992, the Secretary may, from time to

time, provide for further one-year periods during which insureds

may purchase additional paid up insurance from existing dividend

credits and deposits. Any such period for the purchase of

additional paid up insurance may be allowed only if the Secretary

determines in the case of any such period that it would be

actuarially and administratively sound to do so."

Pub. L. 102-83, Sec. 5(c)(1), substituted "1915" for "715" in cl.

(2).

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator" wherever appearing.

1986 - Subsecs. (a), (c). Pub. L. 99-576 substituted "the

insured's" for "his".

1982 - Subsec. (c). Pub. L. 97-295 substituted "before February

1, 1973" for "within six calendar months after the effective date

of this subsection".

1971 - Pub. L. 92-188, Sec. 2(3), substituted "Payment or use of

dividends" for "Dividends to pay premiums" as section catchline.

Subsec. (a). Pub. L. 92-188, Sec. 2(1), substituted "or directive

in writing exercising any other dividend option allowable under his

policy" for "in writing for payment in cash".

Subsec. (c). Pub. L. 92-188, Sec. 2(2), added subsec. (c).

1970 - Pub. L. 91-291 designated existing provisions as subsec.

(a) and added subsec. (b).

EFFECTIVE DATE OF 1971 AMENDMENT

Section 4 of Pub. L. 92-188 provided that: "The amendments made

by this Act [amending this section and sections 703 and 741 [now

1903 and 1941] of this title] shall take effect on a date

established by the Administrator but in no event later than the

first day of the first calendar month which begins more than six

calendar months after the date of enactment of this Act [Dec. 15,

1971]."

EFFECTIVE DATE OF 1970 AMENDMENT

Amendment by Pub. L. 91-291 effective June 25, 1970, see section

14(a) of Pub. L. 91-291, set out as a note under section 1317 of

this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1903, 1941 of this title.

-End-

-CITE-

38 USC Sec. 1908 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER I - NATIONAL SERVICE LIFE INSURANCE

-HEAD-

Sec. 1908. Premium payments

-STATUTE-

The Secretary shall, by regulations, prescribe the time and

method of payment of the premiums on insurance, but payments of

premiums in advance shall not be required for periods of more than

one month each, and may at the election of the insured be deducted

from the insured's active-service pay or be otherwise made. An

amount equal to the first premium due under a National Service Life

Insurance policy may be advanced from current appropriations for

active-service pay to any person in the active service in the Army,

Navy, Air Force, Marine Corps, or Coast Guard, which amount shall

constitute a lien upon any service or other pay accruing to the

person for whom such advance was made and shall be collected

therefrom if not otherwise paid. No disbursing or certifying

officer shall be responsible for any loss incurred by reason of

such advance. Any amount so advanced in excess of available service

or other pay shall constitute a lien on the policy within the

provisions of section 5301(b) of this title.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1149, Sec. 708; Pub. L.

99-576, title VII, Sec. 701(24), Oct. 28, 1986, 100 Stat. 3292;

Pub. L. 102-40, title IV, Sec. 402(d)(1), May 7, 1991, 105 Stat.

239; renumbered Sec. 1908 and amended Pub. L. 102-83, Secs.

4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404-406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 708 of this title as

this section and substituted "Secretary" for "Administrator".

Pub. L. 102-40 substituted "5301(b)" for "3101(b)".

1986 - Pub. L. 99-576 substituted "the insured's" for "his".

-TRANS-

TRANSFER OF FUNCTIONS

For transfer of authorities, functions, personnel, and assets of

the Coast Guard, including the authorities and functions of the

Secretary of Transportation relating thereto, to the Department of

Homeland Security, and for treatment of related references, see

sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic

Security, and the Department of Homeland Security Reorganization

Plan of November 25, 2002, as modified, set out as a note under

section 542 of Title 6.

-End-

-CITE-

38 USC Sec. 1909 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER I - NATIONAL SERVICE LIFE INSURANCE

-HEAD-

Sec. 1909. Effective date of insurance

-STATUTE-

Insurance may be made effective, as specified in the application,

not later than the first day of the calendar month following the

date of application therefor, but the United States shall not be

liable thereunder for death occurring before such effective date.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1149, Sec. 709; renumbered

Sec. 1909, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 709 of this title as

this section.

-End-

-CITE-

38 USC Sec. 1910 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER I - NATIONAL SERVICE LIFE INSURANCE

-HEAD-

Sec. 1910. Incontestability

-STATUTE-

Subject to the provisions of section 1911 of this title all

contracts or policies of insurance heretofore or hereafter issued,

reinstated, or converted shall be incontestable from the date of

issue, reinstatement, or conversion except for fraud, nonpayment of

premium, or on the ground that the applicant was not a member of

the military or naval forces of the United States. However, in any

case in which a contract or policy of insurance is canceled or

voided after March 16, 1954, because of fraud, the Secretary shall

refund to the insured, if living, or, if deceased, to the person

designated as beneficiary (or if none survives, to the estate of

the insured) all money, without interest, paid as premiums on such

contract or policy for any period subsequent to two years after the

date such fraud induced the Secretary to issue, reinstate, or

convert such insurance less any dividends, loan, or other payment

made to the insured under such contract or policy.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1149, Sec. 710; renumbered

Sec. 1910 and amended Pub. L. 102-83, Secs. 4(a)(2)(A)(iii)(II),

(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 403-406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83, Sec. 5(a), renumbered section 710 of this

title as this section.

Pub. L. 102-83, Sec. 5(c)(1), substituted "1911" for "711".

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator" before "shall".

Pub. L. 102-83, Sec. 4(a)(2)(A)(iii)(II), substituted "Secretary"

for "Veterans' Administration" before "to issue".

-End-

-CITE-

38 USC Sec. 1911 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER I - NATIONAL SERVICE LIFE INSURANCE

-HEAD-

Sec. 1911. Forfeiture

-STATUTE-

Any person guilty of mutiny, treason, spying, or desertion, or

who, because of conscientious objections, refuses to perform

service in the Armed Forces of the United States or refuses to wear

the uniform of such force, shall forfeit all rights to National

Service Life Insurance. No insurance shall be payable for death

inflicted as a lawful punishment for crime or for military or naval

offense, except when inflicted by an enemy of the United States;

but the cash surrender value, if any, of such insurance on the date

of such death shall be paid to the designated beneficiary, if

living, or otherwise to the beneficiary or beneficiaries within the

permitted class in accordance with the order specified in section

1916(b) of this title.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1150, Sec. 711; renumbered

Sec. 1911 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6,

1991, 105 Stat. 406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 711 of this title as

this section and substituted "1916(b)" for "716(b)".

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1910 of this title.

-End-

-CITE-

38 USC Sec. 1912 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER I - NATIONAL SERVICE LIFE INSURANCE

-HEAD-

Sec. 1912. Total disability waiver

-STATUTE-

(a) Upon application by the insured and under such regulations as

the Secretary may promulgate, payment of premiums on insurance may

be waived during the continuous total disability of the insured,

which continues or has continued for six or more consecutive

months, if such disability began (1) after the date of the

insured's application for insurance, (2) while the insurance was in

force under premium-paying conditions, and (3) before the insured's

sixty-fifth birthday. Notwithstanding any other provision of this

chapter, in any case in which the total disability of the insured

commenced on or after the insured's sixtieth birthday but before

the insured's sixty-fifth birthday, the Secretary shall not grant

waiver of any premium becoming due prior to January 1, 1965.

(b) The Secretary, upon any application made after August 1,

1947, shall not grant waiver of any premium becoming due more than

one year before the receipt by the Secretary of application for the

same, except as provided in this section. Any premiums paid for

months during which waiver is effective shall be refunded. The

Secretary shall provide by regulations for examination or

reexamination of an insured claiming benefits under this section,

and may deny benefits for failure to cooperate. If it is found that

an insured is no longer totally disabled, the waiver of premiums

shall cease as of the date of such finding and the policy of

insurance may be continued by payment of premiums as provided in

said policy. In any case in which the Secretary finds that the

insured's failure to make timely application for waiver of premiums

or the insured's failure to submit satisfactory evidence of the

existence or continuance of total disability was due to

circumstances beyond the insured's control, the Secretary may grant

waiver or continuance of waiver of premiums.

(c) If the insured dies without filing application for waiver,

the beneficiary, within one year after the death of the insured,

or, if the beneficiary is insane or a minor, within one year after

removal of such legal disability, may file application for waiver

with evidence of the insured's right to waiver under this section.

Premium rates shall be calculated without charge for the cost of

waiver of premiums provided in this section and no deduction from

benefits otherwise payable shall be made on account thereof.

(d) In any case in which an insured has been denied or would have

been denied premium waiver under section 602(n) of the National

Service Life Insurance Act of 1940 or this section solely because

the insured became totally disabled between the date of valid

application for insurance and the subsequent effective date

thereof, and in which it is shown that (1) the total disability was

incurred in line of duty between October 8, 1940, and July 31,

1946, inclusive, or June 27, 1950, and April 30, 1951, inclusive,

and (2) the insured remained continuously so totally disabled to

the date of death or June 8, 1960, whichever is earlier, the

Secretary may grant waiver of premiums from the beginning of and

during the continuous total disability of such insured. Application

for waiver of premiums under this subsection must be filed by the

insured or, in the event of the insured's death, by the beneficiary

within two years after June 8, 1960, except that if the insured or

the beneficiary be insane or a minor within the two-year period,

application for such waiver may be filed within two years after

removal of such legal disability, or if an insane insured shall die

before the removal of the disability, application may be filed by

the beneficiary within two years after the insured's death. No

insurance shall be placed in force under this subsection in any

case in which there was an award of benefits under the Servicemen's

Indemnity Act of 1951 or of gratuitous insurance under section

1922(b) of this title. The amount of insurance placed in force

hereunder together with any other United States Government life

insurance or national service life insurance in force at the time

of death, or at the time of the insured's application for waiver

hereunder, may not exceed $10,000 and shall be reduced by the

amount of any gratuitous insurance awarded under the National

Service Life Insurance Act of 1940. Waiver of premiums under this

subsection shall render the insurance nonparticipating during the

period such premium waiver is in effect. The cost of waiver of

premium and death benefits paid as a result of this subsection

shall be borne by the United States.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1150, Sec. 712; Pub. L.

86-497, June 8, 1960, 74 Stat. 164; Pub. L. 88-364, July 7, 1964,

78 Stat. 302; Pub. L. 97-295, Sec. 4(23), Oct. 12, 1982, 96 Stat.

1306; Pub. L. 99-576, title VII, Sec. 701(25), Oct. 28, 1986, 100

Stat. 3292; renumbered Sec. 1912 and amended Pub. L. 102-83, Secs.

4(a)(2)(C)(ii), (b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105

Stat. 404-406.)

-REFTEXT-

REFERENCES IN TEXT

The Servicemen's Indemnity Act of 1951, referred to in subsec.

(d), is act Apr. 25, 1951, ch. 39, pt. I, 65 Stat. 33, as amended,

which was classified generally to subchapter II (Sec. 851 et seq.)

of chapter 13 of former Title 38, Pensions, Bonuses, and Veterans'

Relief, and was repealed by act Aug. 1, 1956, ch. 873, title V,

Sec. 502(9), 70 Stat. 886.

The National Service Life Insurance Act of 1940, referred to in

subsec. (d), is act Oct. 8, 1940, ch. 757, title VI, pt. I, Secs.

601 to 623, 54 Stat. 1008, as amended, which was classified

generally to subchapter I (Secs. 801 to 824) of chapter 13 of

former Title 38, Pensions, Bonuses, and Veterans' Relief, and which

was repealed by Pub. L. 85-857, Sec. 14(75), Sept. 2, 1958, 72

Stat. 1272, and the provisions thereof reenacted generally as this

subchapter by the first section of Pub. L. 85-857 which enacted

Title 38, Veterans' Benefits. Section 602(n) of the 1940 Act, also

referred to in subsec. (d), is covered by this section.

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83, Sec. 5(a), renumbered section 712 of this

title as this section.

Subsec. (a). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted

"Secretary" for "Administrator" in two places.

Subsec. (b). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted

"Secretary" for "Administrator" in four places.

Pub. L. 102-83, Sec. 4(a)(2)(C)(ii), substituted "by the

Secretary" for "in the Veterans' Administration".

Subsec. (d). Pub. L. 102-83, Sec. 5(c)(1), substituted "1922(b)"

for "722(b)".

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator".

1986 - Subsecs. (a), (b), (d). Pub. L. 99-576 substituted "the

insured's" for "his" wherever appearing, and "the insured" for "he"

in first sentence of subsec. (d).

1982 - Subsec. (d). Pub. L. 97-295 substituted "June 8, 1960" for

"the date of enactment of this subsection" in two places.

1964 - Subsec. (a). Pub. L. 88-364 extended from age 60 to age 65

the age before which a person must become totally disabled to be

eligible for waiver of premiums, and provided that where total

disability commenced on or after the 60th birthday but before the

65th, the Administrator shall not waive premiums becoming due prior

to Jan. 1, 1965.

1960 - Subsec. (d). Pub. L. 86-497 added subsec. (d).

EFFECTIVE DATE OF 1964 AMENDMENT

Pub. L. 88-364 provided that the amendment made by Pub. L. 88-364

is effective Jan. 1, 1965.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1904, 1913, 1922, 1922A

of this title.

-End-

-CITE-

38 USC Sec. 1913 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER I - NATIONAL SERVICE LIFE INSURANCE

-HEAD-

Sec. 1913. Death before six months' total disability

-STATUTE-

Whenever premiums are not waived under section 1912 of this title

solely because the insured died prior to the continuance of total

disability for six months, and proof of such facts, satisfactory to

the Secretary, is filed by the beneficiary with the Department

within one year after the insured's death, the insurance shall be

deemed to be in force at the date of the death, and the unpaid

premiums shall become a lien against the proceeds of the insurance.

If the beneficiary is insane or a minor, proof of such facts may be

filed within one year after removal of such legal disability.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1150, Sec. 713; Pub. L.

99-576, title VII, Sec. 701(26), Oct. 28, 1986, 100 Stat. 3292;

renumbered Sec. 1913 and amended Pub. L. 102-83, Secs. 4(a)(3),

(4), (b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat.

404-406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83, Sec. 5(a), renumbered section 713 of this

title as this section.

Pub. L. 102-83, Sec. 5(c)(1), substituted "1912" for "712".

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator".

Pub. L. 102-83, Sec. 4(a)(3), (4), substituted "Department" for

"Veterans' Administration".

1986 - Pub. L. 99-576 substituted "the" for "his" in three

places.

-End-

-CITE-

38 USC Sec. 1914 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER I - NATIONAL SERVICE LIFE INSURANCE

-HEAD-

Sec. 1914. Statutory total disabilities

-STATUTE-

Without prejudice to any other cause of disability, the permanent

loss of the use of both feet, of both hands, or of both eyes, or of

one foot and one hand, or of one foot and one eye, or of one hand

and one eye, or the total loss of hearing of both ears, or the

organic loss of speech, shall be deemed total disability for

insurance purposes.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1151, Sec. 714; renumbered

Sec. 1914, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 714 of this title as

this section.

-End-

-CITE-

38 USC Sec. 1915 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER I - NATIONAL SERVICE LIFE INSURANCE

-HEAD-

Sec. 1915. Total disability income provision

-STATUTE-

The Secretary shall, except as hereinafter provided, upon

application by the insured and proof of good health satisfactory to

the Secretary and payment of such extra premium as the Secretary

shall prescribe, include in any National Service Life Insurance

policy on the life of the insured (except a policy issued under

section 620 of the National Service Life Insurance Act of 1940, or

section 1922 of this title) provisions whereby an insured who is

shown to have become totally disabled for a period of six

consecutive months or more commencing after the date of such

application and before attaining the age of sixty-five and while

the payment of any premium is not in default, shall be paid monthly

disability benefits from the first day of the seventh consecutive

month of and during the continuance of such total disability of $10

for each $1,000 of such insurance in effect when such benefits

become payable. The total disability provision authorized under

this section shall not be issued unless application therefor is

made either prior to the insured's fifty-fifth birthday, or before

the insured's sixtieth birthday and prior to January 1, 1966. The

total disability provision authorized under this section shall not

be added to a policy containing the total disability coverage

heretofore issued under section 602(v) of the National Service Life

Insurance Act of 1940, or the provisions of this section as in

effect before January 1, 1965, except upon surrender of such total

disability coverage, proof of good health, if required,

satisfactory to the Secretary, and payment of such extra premium as

the Secretary shall determine is required in such cases.

Participating policies containing additional provisions for the

payment of disability benefits may be separately classified for the

purpose of dividend distribution from otherwise similar policies

not containing such benefits.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1151, Sec. 715; Pub. L.

88-355, July 7, 1964, 78 Stat. 272; renumbered Sec. 1915 and

amended Pub. L. 102-83, Secs. 4(b)(1), (2)(E), 5(a), (c)(1), Aug.

6, 1991, 105 Stat. 404-406.)

-REFTEXT-

REFERENCES IN TEXT

Section 620 of the National Service Life Insurance Act of 1940,

referred to in text, is section 620 of act Oct. 8, 1940, ch. 757,

title VI, pt. I, as added Apr. 25, 1951, ch. 39, pt. II, Sec. 10,

65 Stat. 36, which enacted section 821 of former Title 38,

Pensions, Bonuses, and Veterans' Relief, and which was repealed and

the provisions thereof reenacted as section 722 [now 1922] of this

title by Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1105.

Section 602(v) of the National Service Life Insurance Act of

1940, referred to in text, is section 602(v) of act Oct. 8, 1940,

ch. 757, title VI, pt. I, 54 Stat. 1009, which enacted section

802(v) of former Title 38, Pensions, Bonuses, and Veterans' Relief,

and which was repealed and the provisions thereof reenacted as this

section and section 721 [now 1921] of this title by Pub. L. 85-857,

Sept. 2, 1958, 72 Stat. 1105.

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83, Sec. 5(a), renumbered section 715 of this

title as this section.

Pub. L. 102-83, Sec. 5(c)(1), substituted "1922" for "722".

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator" wherever appearing.

1964 - Pub. L. 88-355 authorized issuance of total disability

income provisions to provide coverage to age 65 instead of to age

60, provided that said provisions shall not be issued unless

application therefor is made either prior to the insured's 55th

birthday, or before the insured's 60th birthday and prior to Jan.

1, 1966, and inserted "or the provisions of this section as in

effect before January 1, 1965" before "except upon surrender", and

"if required" after "proof of good health."

EFFECTIVE DATE OF 1964 AMENDMENT

Pub. L. 88-355 provided that the amendment made by Pub. L. 88-355

is effective Jan. 1, 1965.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1907 of this title.

-End-

-CITE-

38 USC Sec. 1916 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER I - NATIONAL SERVICE LIFE INSURANCE

-HEAD-

Sec. 1916. Insurance which matured before August 1, 1946

-STATUTE-

(a) Insurance which matured before August 1, 1946, is payable in

the following manner:

(1) If the beneficiary to whom payment is first made was under

thirty years of age at the time of maturity, in two hundred and

forty equal monthly installments.

(2) If the beneficiary to whom payment is first made was thirty

or more years of age at the time of maturity, in equal monthly

installments for one hundred and twenty months certain, with such

payments continuing during the remaining lifetime of such

beneficiary.

(3) If elected by the insured or a beneficiary entitled to make

such an election under prior provisions of law, as a refund life

income in monthly installments payable for such period certain as

may be required in order that the sum of the installments

certain, including a last installment of such reduced amount as

may be necessary, shall equal the face value of the contract,

less any indebtedness, with such payments continuing throughout

the lifetime of the first beneficiary. A refund life income

optional settlement is not available in any case in which such

settlement would result in payments of installments over a

shorter period than one hundred and twenty months. If the mode of

payment is changed to a refund life income in accordance with

prior provisions of law, after payment has commenced, payment of

monthly installments will be adjusted as of the date of maturity

of such policy with credit being allowed for payments previously

made on the insurance.

(b) Such insurance shall be payable only to a widow, widower,

child, parent, brother or sister of the insured. Any installments

certain of such insurance remaining unpaid at the death of any

beneficiary shall be paid in equal monthly installments in an

amount equal to the monthly installments paid to the first

beneficiary, to the person or persons then in being within the

following classes, and in the order named, unless designated by the

insured in a different order:

(1) To the widow or widower of the insured, if living.

(2) If no widow or widower, to the child or children of the

insured, if living, in equal shares.

(3) If no widow, widower, or child, to the parent or parents of

the insured who last bore that relationship, if living, in equal

shares.

(4) If no widow, widower, child, or parent, to the brothers and

sisters of the insured, if living, in equal shares.

(c) The provisions of this section shall not be construed to

enlarge the classes of beneficiaries heretofore authorized under

section 602(d) of the National Service Life Insurance Act of 1940,

for payment of gratuitous insurance.

(d) If no beneficiary of insurance which matured before August 1,

1946, was designated by the insured or if the designated

beneficiary did not survive the insured, the beneficiary shall be

determined in accordance with the order specified in subsection (b)

and the insurance shall be payable in equal monthly installments in

accordance with subsection (a). The right of any beneficiary to

payment of any installments of such insurance shall be conditioned

upon his or her being alive to receive such payments. No person

shall have a vested right to any installment or installments of any

such insurance and any installments not paid to a beneficiary

during such beneficiary's lifetime shall be paid to the beneficiary

or beneficiaries within the permitted class next entitled to

priority, as provided in subsection (b).

(e) No installments of insurance which matured before August 1,

1946, shall be paid to the heirs or legal representatives as such

of the insured or of any beneficiary, and if no person within the

permitted class survives to receive the insurance or any part

thereof no payment of the unpaid installments shall be made, except

that if the reserve of a contract of converted National Service

Life Insurance, together with dividends accumulated thereon, less

any indebtedness under such contract, exceeds the aggregate amount

paid to beneficiaries, the excess shall be paid to the estate of

the insured unless the estate of the insured would escheat under

the laws of the insured's place of residence, in which event no

payment shall be made. When the amount of an individual monthly

payment of such insurance is less than $5, such amount may, in the

discretion of the Secretary, be allowed to accumulate without

interest and be disbursed annually.

(f) Any payments of insurance made to a person, represented by

the insured to be within the permitted class of beneficiaries,

shall be deemed to have been properly made and to satisfy fully the

obligation of the United States under such insurance policy to the

extent of such payments.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1151, Sec. 716; Pub. L.

99-576, title VII, Sec. 701(27), Oct. 28, 1986, 100 Stat. 3292;

renumbered Sec. 1916 and amended Pub. L. 102-83, Secs. 4(b)(1),

(2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404-406; Pub. L. 102-86,

title V, Sec. 506(a)(2), Aug. 14, 1991, 105 Stat. 426.)

-REFTEXT-

REFERENCES IN TEXT

Section 602(d) of the National Service Life Insurance Act of

1940, referred to in subsec. (c), is section 602(d) of act Oct. 8,

1940, ch. 757, title VI, pt. I, 54 Stat. 1009, which enacted

section 802(d) of former Title 38, Pensions, Bonuses, and Veterans'

Relief, and which was omitted in the general revision and

reenactment of this title by Pub. L. 85-857, Sept. 2, 1958, 72

Stat. 1105.

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83, Sec. 5(a), renumbered section 716 of this

title as this section.

Subsec. (b). Pub. L. 102-86 amended subsec. (b) of this section

as in effect before the redesignations made by Pub. L. 102-83, Sec.

5, by substituting "unpaid" for "upaid".

Subsec. (e). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted

"Secretary" for "Administrator".

1986 - Subsec. (e). Pub. L. 99-576 substituted "the insured's"

for "his".

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1911 of this title.

-End-

-CITE-

38 USC Sec. 1917 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER I - NATIONAL SERVICE LIFE INSURANCE

-HEAD-

Sec. 1917. Insurance maturing on or after August 1, 1946

-STATUTE-

(a) The insured shall have the right to designate the beneficiary

or beneficiaries of insurance maturing on or after August 1, 1946,

and shall, subject to regulations, at all times have the right to

change the beneficiary or beneficiaries of such insurance without

the consent of such beneficiary or beneficiaries.

(b) Insurance maturing on or after August 1, 1946, shall be

payable in accordance with the following optional modes of

settlement:

(1) In one sum.

(2) In equal monthly installments of from thirty-six to two

hundred and forty in number, in multiples of twelve.

(3) In equal monthly installments for one hundred and twenty

months certain with such payments continuing during the remaining

lifetime of the first beneficiary.

(4) As a refund life income in monthly installments payable for

such period certain as may be required in order that the sum of

the installments certain, including a last installment of such

reduced amount as may be necessary, shall equal the face value of

the contract, less any indebtedness, with such payments

continuing throughout the lifetime of the first beneficiary;

however, such optional settlement shall not be available in any

case in which such settlement would result in payments of

installments over a shorter period than one hundred and twenty

months.

(c) Except as provided in the second and third sentences of this

subsection, unless the insured elects some other mode of

settlement, such insurance shall be payable to the designated

beneficiary or beneficiaries in thirty-six equal monthly

installments. The first beneficiary may elect to receive payment

under any option which provides for payment over a longer period of

time than the option elected by the insured, or if no option has

been elected by the insured, in excess of thirty-six months. In the

case of insurance maturing after September 30, 1981, and for which

no option has been elected by the insured, the first beneficiary

may elect to receive payment in one sum. If the option selected

requires payment to any one beneficiary of monthly installments of

less than $10, the amount payable to such beneficiary shall be paid

in such maximum number of monthly installments as are a multiple of

twelve as will provide a monthly installment of not less than $10.

If the present value of the amount payable at the time any person

initially becomes entitled to payment thereof is not sufficient to

pay at least twelve monthly installments of not less than $10 each,

such amount shall be payable in one sum. Options (3) and (4) shall

not be available if any firm, corporation, legal entity (including

the estate of the insured), or trustee is beneficiary.

(d) If the beneficiary of such insurance is entitled to a

lump-sum settlement but elects some other mode of settlement and

dies before receiving all the benefits due and payable under such

mode of settlement, the present value of the remaining unpaid

amount shall be payable to the estate of the beneficiary. If no

beneficiary is designated by the insured, or if the designated

beneficiary does not survive the insured, or if a designated

beneficiary not entitled to a lump-sum settlement survives the

insured, and dies before receiving all the benefits due and

payable, then the commuted value of the remaining unpaid insurance

(whether accrued or not) shall be paid in one sum to the estate of

the insured. In no event shall there be any payment to the estate

of the insured or of the beneficiary of any sums unless it is shown

that any sums paid will not escheat.

(e) Under such regulations as the Secretary may promulgate, the

cash surrender value of any policy of insurance or the proceeds of

an endowment contract which matures by reason of completion of the

endowment period may be paid to the insured under option (2) or (4)

of this section. All settlements under option (4), however, shall

be calculated on the basis of The Annuity Table for 1949. If the

option selected requires payment of monthly installments of less

than $10, the amount payable shall be paid in such maximum number

of monthly installments as are a multiple of twelve as will provide

a monthly installment of not less than $10.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1152, Sec. 717; Pub. L.

91-291, Sec. 10, June 25, 1970, 84 Stat. 331; Pub. L. 97-66, title

IV, Sec. 403(a), Oct. 17, 1981, 95 Stat. 1031; renumbered Sec. 1917

and amended Pub. L. 102-83, Secs. 4(b)(1), (2)(E), 5(a), Aug. 6,

1991, 105 Stat. 404-406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 717 of this title as

this section and substituted "Secretary" for "Administrator" in

subsec. (e).

1981 - Subsec. (c). Pub. L. 97-66 substituted "Except as provided

in the second and third sentences of this subsection, unless" for

"Unless" and inserted provision that, in the case of insurance

maturing after September 30, 1981, and for which no option has been

elected by the insured, the first beneficiary may elect to receive

payment in one sum.

1970 - Subsec. (c). Pub. L. 91-291 struck out provision that

options (3) and (4) were not available in cases where the endowment

contract matured by reason of the completion of the endowment

period.

Subsec. (e). Pub. L. 91-291 added subsec. (e).

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-66 effective Oct. 17, 1981, see section

701(b)(1) of Pub. L. 97-66, set out as a note under section 1114 of

this title.

EFFECTIVE DATE OF 1970 AMENDMENT

Amendment by Pub. L. 91-291 effective first day of first calendar

month which begins more than six calendar months after June 25,

1970, see section 14(a) of Pub. L. 91-291, set out as a note under

section 1317 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1922 of this title.

-End-

-CITE-

38 USC Sec. 1918 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER I - NATIONAL SERVICE LIFE INSURANCE

-HEAD-

Sec. 1918. Assignments

-STATUTE-

(a) Assignments of all or any part of the beneficiary's interest

may be made by a designated beneficiary to a widow, widower, child,

father, mother, grandfather, grandmother, brother, or sister of the

insured, when the designated contingent beneficiary, if any, joins

the beneficiary in the assignment, and if the assignment is

delivered to the Secretary before any payments of the insurance

shall have been made to the beneficiary. However, an interest in an

annuity, when assigned, shall be payable in equal monthly

installments in such multiple of twelve as most nearly equals the

number of installments certain under such annuity, or in two

hundred and forty installments, whichever is the lesser. The

provisions of this subsection shall not be applicable to insurance

maturing after July 26, 1962.

(b) Except as to insurance granted under the provisions of

section 1922(b) of this title, any person to whom insurance

maturing after July 26, 1962, is payable may assign all or any

portion of such person's interest in such insurance to a widow,

widower, child, father, mother, grandfather, grandmother, brother,

or sister of the insured when the designated contingent

beneficiary, if any, joins the beneficiary in the assignment. Such

joinder shall not be required in any case in which the insurance

proceeds are payable in a lump sum.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1153, Sec. 718; Pub. L.

87-557, Sec. 1, July 27, 1962, 76 Stat. 245; Pub. L. 96-128, title

III, Sec. 304, Nov. 28, 1979, 93 Stat. 986; Pub. L. 97-295, Sec.

4(24), Oct. 12, 1982, 96 Stat. 1306; renumbered Sec. 1918 and

amended Pub. L. 102-83, Secs. 4(a)(2)(A)(iii)(III), 5(a), (c)(1),

Aug. 6, 1991, 105 Stat. 403, 406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83, Sec. 5(a), renumbered section 718 of this

title as this section.

Subsec. (a). Pub. L. 102-83, Sec. 4(a)(2)(A)(iii)(III),

substituted "Secretary" for "Veterans' Administration".

Subsec. (b). Pub. L. 102-83, Sec. 5(c)(1), substituted "1922(b)"

for "722(b)".

1982 - Subsec. (a). Pub. L. 97-295 substituted "after July 26,

1962" for "on or after the date of enactment of this sentence".

Subsec. (b). Pub. L. 97-295 substituted "after July 26, 1982,"

for "on or after the date of enactment of this sentence".

1979 - Subsec. (b). Pub. L. 96-128 substituted "such person's"

for "his".

1962 - Pub. L. 87-557 designated existing provisions as subsec.

(a), inserted sentence making subsection inapplicable to insurance

maturing on or after "the date of enactment of this sentence [July

27, 1962]", and added subsec. (b).

EFFECTIVE DATE OF 1979 AMENDMENT

Amendment by Pub. L. 96-128 effective Nov. 28, 1979, see section

601(b) of Pub. L. 96-128, set out as a note under section 1114 of

this title.

-End-

-CITE-

38 USC Sec. 1919 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER I - NATIONAL SERVICE LIFE INSURANCE

-HEAD-

Sec. 1919. National Service Life Insurance appropriation

-STATUTE-

(a) The National Service Life Insurance appropriation is

continued and there is authorized to be appropriated, out of any

money in the Treasury not otherwise appropriated, such sums as may

be necessary to carry out the provisions of this chapter and the

provisions heretofore prescribed in the National Service Life

Insurance Act of 1940, or related Acts, for the payment of

liabilities under National Service Life Insurance. Payment from

this appropriation shall be made upon and in accordance with awards

by the Secretary.

(b) All premiums heretofore and hereafter paid on insurance

issued or reinstated under section 602(v)(1) of the National

Service Life Insurance Act of 1940 where the requirement of good

health was waived under such section because of a service-incurred

injury or disability shall be credited directly to the National

Service Life Insurance appropriation and any payments of benefits

heretofore and hereafter made on such insurance shall be made

directly from such appropriation.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1154, Sec. 719; Pub. L.

98-160, title VII, Sec. 702(5), Nov. 21, 1983, 97 Stat. 1009;

renumbered Sec. 1919 and amended Pub. L. 102-83, Secs. 4(b)(1),

(2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404-406; Pub. L. 105-368,

title III, Sec. 304(a), Nov. 11, 1998, 112 Stat. 3334.)

-REFTEXT-

REFERENCES IN TEXT

The National Service Life Insurance Act of 1940, referred to in

subsec. (a), is act Oct. 8, 1940, ch. 757, title VI, part I, 54

Stat. 1008, as amended, which was classified generally to chapter

13 (Sec. 801 et seq.) of former Title 38, Pensions, Bonuses, and

Veterans' Relief, and which was repealed and the provisions thereof

reenacted as this subchapter by Pub. L. 85-857, Sept. 2, 1958, 72

Stat. 1105.

Section 602(v)(i) of the National Service Life Insurance Act of

1940, referred to in subsec. (b), is section 602(v)(1) of act Oct.

8, 1940, ch. 757, title VI, pt. I, 54 Stat. 1009, which enacted

section 802(v)(1) of former Title 38, Pensions, Bonuses, and

Veterans' Relief, and which was repealed and the provisions thereof

reenacted as section 715 [now 1915] of this title by Pub. L.

85-857, Sept. 2, 1958, 72 Stat. 1105.

-MISC1-

AMENDMENTS

1998 - Subsec. (b). Pub. L. 105-368 substituted "section

602(v)(1)" for "sections 602(c)(2) and 602(v)(1)" and "under such

section" for "under such sections".

1991 - Pub. L. 102-83 renumbered section 719 of this title as

this section and substituted "Secretary" for "Administrator" in

subsec. (a).

1983 - Subsec. (b). Pub. L. 98-160 substituted "sections" for

"subsections" after "issued or reinstated under" and after "waived

under such".

EFFECTIVE DATE OF 1998 AMENDMENT

Pub. L. 105-368, title III, Sec. 304(b), Nov. 11, 1998, 112 Stat.

3334, provided that: "The amendments made by this section [amending

this section] shall take effect at the end of the 90-day period

beginning on the date of the enactment of this Act [Nov. 11,

1998]."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 113 of this title.

-End-

-CITE-

38 USC Sec. 1920 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER I - NATIONAL SERVICE LIFE INSURANCE

-HEAD-

Sec. 1920. National Service Life Insurance Fund

-STATUTE-

(a) The National Service Life Insurance Fund heretofore created

in the Treasury is continued as a permanent trust fund. Except as

otherwise provided in this chapter, all premiums paid on account of

National Service Life Insurance shall be deposited and covered into

the Treasury to the credit of such fund, which, together with

interest earned thereon, shall be available for the payment of

liabilities under such insurance, including payment of dividends

and refunds of unearned premiums, and for the reimbursement of

administrative costs under subsection (c). Payments from this fund

shall be made upon and in accordance with awards by the Secretary.

(b) The Secretary is authorized to set aside out of such fund

such reserve amounts as may be required under accepted actuarial

principles to meet all liabilities under such insurance; and the

Secretary of the Treasury is authorized to invest and reinvest such

fund, or any part thereof, in interest-bearing obligations of the

United States or in obligations guaranteed as to principal and

interest by the United States, and to sell such obligations for the

purposes of such fund.

(c)(1) For each fiscal year for which this subsection is in

effect, the Secretary shall, from the National Service Life

Insurance Fund, reimburse the "General operating expenses" account

of the Department for the amount of administrative costs determined

under paragraph (2) for that fiscal year. Such reimbursement shall

be made from any surplus earnings for that fiscal year that are

available for dividends on such insurance after claims have been

paid and actuarially determined reserves have been set aside.

However, if the amount of such administrative costs exceeds the

amount of such surplus earnings, such reimbursement shall be made

only to the extent of such surplus earnings.

(2) The Secretary shall determine the administrative costs to the

Department for a fiscal year for which this subsection is in effect

which, in the judgment of the Secretary, are properly allocable to

the provision of National Service Life Insurance (and to the

provision of any total disability income insurance added to the

provision of such insurance).

(3) This subsection shall be in effect only with respect to

fiscal year 1996.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1154, Sec. 720; renumbered

Sec. 1920 and amended Pub. L. 102-83, Secs. 4(b)(1), (2)(E), 5(a),

Aug. 6, 1991, 105 Stat. 404-406; Pub. L. 104-99, title II, Sec.

201(b), Jan. 26, 1996, 110 Stat. 36.)

-COD-

CODIFICATION

Amendment by Pub. L. 104-99 is based on section 107(1) of H.R.

2099, One Hundred Fourth Congress, as passed by the House of

Representatives on Dec. 7, 1995, which was enacted into law by Pub.

L. 104-99.

-MISC1-

AMENDMENTS

1996 - Subsec. (a). Pub. L. 104-99 inserted ", and for the

reimbursement of administrative costs under subsection (c)" after

"unearned premiums".

Subsec. (c). Pub. L. 104-99 added subsec. (c).

1991 - Pub. L. 102-83 renumbered section 720 of this title as

this section and substituted "Secretary" for "Administrator" in two

places.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 113, 1982 of this title.

-End-

-CITE-

38 USC Sec. 1921 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER I - NATIONAL SERVICE LIFE INSURANCE

-HEAD-

Sec. 1921. Extra hazard costs

-STATUTE-

(a) The United States shall bear the excess mortality cost and

the cost of waiver of premiums on account of total disability

traceable to the extra hazard of military or naval service, as such

hazard may be determined by the Secretary.

(b) Whenever benefits under insurance become payable because of

the death of the insured as the result of disease or injury

traceable to the extra hazard of military or naval service, as such

hazard may be determined by the Secretary, the liability for

payment of such benefits shall be borne by the United States in an

amount which, when added to the reserve of the policy at the time

of death of the insured will equal the then value of such benefits

under such policy. Where life contingencies are involved in the

calculation of the value of such benefits of insurance heretofore

or hereafter matured, the calculation of such liability or

liabilities shall be based upon such mortality table or tables as

the Secretary may prescribe with interest at the rate of 3 per

centum per annum. The Secretary shall transfer from time to time

from the National Service Life Insurance appropriation to the

National Service Life Insurance Fund such sums as may be necessary

to carry out the provisions of this section.

(c) Whenever the premiums under insurance are waived because of

the total disability of the insured as the result of disease or

injury traceable to the extra hazard of military or naval service,

as such hazard may be determined by the Secretary, the premiums so

waived shall be paid by the United States and the Secretary shall

transfer from time to time an amount equal to the amount of such

premiums from the National Service Life Insurance appropriation to

the National Service Life Insurance Fund.

(d) Whenever benefits under the total disability income provision

become, or have become, payable because of total disability of the

insured as a result of disease or injury traceable to the extra

hazard of the military or naval service, as such hazard may be

determined by the Secretary, the liability shall be borne by the

United States, and the Secretary shall transfer from the National

Service Life Insurance appropriation to the National Service Life

Insurance Fund from time to time any amounts which become, or have

become, payable to the insured on account of such total disability,

and to transfer from the National Service Life Insurance Fund to

the National Service Life Insurance appropriation the amount of the

reserve held on account of the total disability benefit. When a

person receiving such payments on account of total disability

recovers from such disability, and is then entitled to continue

protection under the total disability income provision, the

Secretary shall transfer to the National Service Life Insurance

Fund a sum sufficient to set up the then required reserve on such

total disability benefit.

(e) Any disability for which a waiver was required as a condition

to tendering a person a commission under Public Law 816,

Seventy-seventh Congress, shall be deemed to be a disability

resulting from an injury or disease traceable to the extra hazard

of military or naval service for the purpose of applying this

section.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1154, Sec. 721; renumbered

Sec. 1921 and amended Pub. L. 102-83, Secs. 4(b)(1), (2)(E), 5(a),

Aug. 6, 1991, 105 Stat. 404-406.)

-REFTEXT-

REFERENCES IN TEXT

Public Law 816, Seventy-seventh Congress, referred to in subsec.

(e), is act Dec. 18, 1942, ch. 768, Secs. 1, 2, 56 Stat. 1066.

Section 1 of that Act enacted section 853c-5 of former Title 34,

Navy, and was repealed by act July 9, 1952, ch. 608, pt. VIII, Sec.

803, 66 Stat. 505. Section 2 of that Act enacted section 853c-6 of

former Title 34, and was omitted from the Code in the general

revision and reenactment of Title 10, Armed Forces, by act Aug. 10,

1956, ch. 1041, 70A Stat. 1.

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 721 of this title as

this section and substituted "Secretary" for "Administrator"

wherever appearing in subsecs. (a) to (d).

-End-

-CITE-

38 USC Sec. 1922 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER I - NATIONAL SERVICE LIFE INSURANCE

-HEAD-

Sec. 1922. Service disabled veterans' insurance

-STATUTE-

(a) Any person who is released from active military, naval, or

air service, under other than dishonorable conditions on or after

April 25, 1951, and is found by the Secretary to be suffering from

a disability or disabilities for which compensation would be

payable if 10 per centum or more in degree and except for which

such person would be insurable according to the standards of good

health established by the Secretary, shall, upon application in

writing made within two years from the date service-connection of

such disability is determined by the Secretary and payment of

premiums as provided in this subchapter, be granted insurance by

the United States against the death of such person occurring while

such insurance is in force. If such a person is shown by evidence

satisfactory to the Secretary to have been mentally incompetent

during any part of the two-year period, application for insurance

under this section may be filed within two years after a guardian

is appointed or within two years after the removal of such

disability as determined by the Secretary, whichever is the earlier

date. If the guardian was appointed or the removal of the

disability occurred before January 1, 1959, application for

insurance under this section may be made within two years after

that date. Insurance granted under this section shall be issued

upon the same terms and conditions as are contained in the standard

policies of National Service Life Insurance except (1) the premium

rates for such insurance shall be based on the Commissioners 1941

Standard Ordinary Table of Mortality and interest at the rate of 2

1/4 per centum per annum; (2) all cash, loan, paid-up, and

extended values shall be based upon the Commissioners 1941 Standard

Ordinary Table of Mortality and interest at the rate of 2 1/4 per

centum per annum; (3) all settlements on policies involving

annuities shall be calculated on the basis of The Annuity Table for

1949, and interest at the rate of 2 1/4 per centum per annum; (4)

insurance granted under this section shall be on a nonparticipating

basis and all premiums and other collections therefor shall be

credited directly to a revolving fund in the Treasury of the United

States, and any payments on such insurance shall be made directly

from such fund. Appropriations to such fund are hereby authorized.

As to insurance issued under this section, waiver of premiums

pursuant to section 602(n) of the National Service Life Insurance

Act of 1940 and section 1912 of this title shall not be denied on

the ground that the service-connected disability became total

before the effective date of such insurance.

(b)(1) Any person who, on or after April 25, 1951, was otherwise

qualified for insurance under the provisions of section 620 of the

National Service Life Insurance Act of 1940, or under subsection

(a) of this section, but who did not apply for such insurance and

who is shown by evidence satisfactory to the Secretary (A) to have

been mentally incompetent from a service-connected disability, (i)

at the time of release from active service, or (ii) during any part

of the two-year period from the date the service connection of a

disability is first determined by the Secretary, or (iii) after

release from active service but is not rated service-connected

disabled by the Secretary until after death; and (B) to have

remained continuously so mentally incompetent until date of death;

and (C) to have died before the appointment of a guardian, or

within two years after the appointment of a guardian; shall be

deemed to have applied for and to have been granted such insurance,

as of the date of death, in an amount which, together with any

other United States Government or National Service life insurance

in force, shall aggregate $10,000. The date to be used for

determining whether such person was insurable according to the

standards of good health established by the Secretary, except for

the service-connected disability, shall be the date of release from

active service or the date the person became mentally incompetent,

whichever is the later.

(2) Payments of insurance granted under subsection (b)(1) of this

section shall be made only to the following beneficiaries and in

the order named -

(A) to the widow or widower of the insured, if living and while

unremarried;

(B) if no widow or widower entitled thereto, to the child or

children of the insured, if living, in equal shares;

(C) if no widow or widower or child entitled thereto, to the

parent or parents of the insured who last bore that relationship,

if living, in equal shares.

(3) No application for insurance payments under this subsection

shall be valid unless filed with the Secretary within two years

after the date of death of the insured or before January 1, 1961,

whichever is the later, and the relationship of the applicant shall

be proved as of the date of death of the insured by evidence

satisfactory to the Secretary. Persons shown by evidence

satisfactory to the Secretary to have been mentally or legally

incompetent at the time the right to apply for death benefits

expires, may make such application at any time within one year

after the removal of such disability.

(4) Notwithstanding section 1917 of this title, insurance under

this subsection shall be payable to the beneficiary determined

under paragraph (2) of this subsection in a lump sum.

(c) The premium rate of any term insurance issued under this

section shall not exceed the renewal age 70 premium rate.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1155, Sec. 722; renumbered

Sec. 1922 and amended Pub. L. 102-83, Secs. 4(a)(2)(A)(iii)(IV),

(D)(i), (b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat.

403-406; Pub. L. 102-86, title II, Secs. 201(a), 202(a), Aug. 14,

1991, 105 Stat. 415, 416; Pub. L. 103-446, title XII, Sec.

1201(i)(2), Nov. 2, 1994, 108 Stat. 4688; Pub. L. 106-419, title

III, Sec. 311(a), Nov. 1, 2000, 114 Stat. 1854.)

-REFTEXT-

REFERENCES IN TEXT

Section 602(n) of the National Service Life Insurance Act of

1940, referred to in subsec. (a), is section 602(n) of act Oct. 8,

1940, ch. 757, title VI, pt. I, 54 Stat. 1009, which enacted

section 802(n) of former Title 38, Pensions, Bonuses, and Veterans'

Relief, and which was repealed and the provisions thereof reenacted

as section 712 [now 1912] of this title by Pub. L. 85-857, Sept. 2,

1958, 72 Stat. 1105.

Section 620 of the National Service Life Insurance Act of 1940,

referred to in subsec. (b)(1), is section 620 of act Oct. 8, 1940,

ch. 757, title VI, pt. I, as added Apr. 25, 1951, ch. 39, pt. II,

Sec. 10, 65 Stat. 36, which enacted section 821 of former Title 38,

Pensions, Bonuses, and Veterans' Relief, and which was repealed and

the provisions thereof reenacted as this section by Pub. L. 85-857,

Sept. 2, 1958, 72 Stat. 1105.

-MISC1-

AMENDMENTS

2000 - Subsec. (c). Pub. L. 106-419 added subsec. (c).

1994 - Subsec. (b)(4). Pub. L. 103-446 substituted

"Notwithstanding section 1917 of this title," for "Notwithstanding

the provisions of section 1917 of this title,".

1991 - Pub. L. 102-83, Sec. 5(a), renumbered section 722 of this

title as this section.

Subsec. (a). Pub. L. 102-86, Sec. 201(a), amended subsec. (a) of

this section as in effect before the redesignations made by Pub. L.

102-83, Sec. 5, by substituting "two years" for "one year" wherever

appearing and "two-year" for "one-year".

Pub. L. 102-83, Sec. 5(c)(1), substituted "1912" for "712".

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator" in four places.

Pub. L. 102-83, Sec. 4(a)(2)(A)(iii)(IV), substituted "Secretary"

for "Veterans' Administration" after first reference to "determined

by the".

Subsec. (b)(1). Pub. L. 102-86, Sec. 201(a), amended subsec.

(b)(1) of this section as in effect before the redesignations made

by Pub. L. 102-83, Sec. 5, by substituting "two-year" for

"one-year" and "two years" for "one year".

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator" in two places.

Pub. L. 102-83, Sec. 4(a)(2)(A)(iii)(IV), substituted "Secretary"

for "Veterans' Administration" in two places.

Subsec. (b)(3). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted

"Secretary" for "Administrator" in two places.

Pub. L. 102-83, Sec. 4(a)(2)(D)(i), substituted "with the

Secretary" for "in the Veterans' Administration".

Subsec. (b)(4). Pub. L. 102-86, Sec. 202(a)(1), amended subsec.

(b) of this section as in effect before the redesignations made by

Pub. L. 102-83, Sec. 5, by amending par. (4) generally. Prior to

amendment, par. (4) read as follows: "Notwithstanding the

provisions of section 717 of this title, insurance under this

subsection shall be payable at the election of the first

beneficiary in 240 equal monthly installments or under the options

specified in section 717(b)(3) or (4) of this title. Any

installments certain of insurance remaining unpaid at the death of

any beneficiary shall be paid in equal monthly installments in an

amount equal to the monthly installments paid to the first

beneficiary, to the person or persons then in being within the

classes specified in subsection (b)(2) of this section and in the

order named."

Pub. L. 102-83, Sec. 5(c)(1), amended par. (4) as amended by Pub.

L. 102-86, Sec. 202(a)(1), by substituting "1917" for "717". See

above.

Subsec. (b)(5). Pub. L. 102-86, Sec. 202(a)(2), amended subsec.

(b) of this section as in effect before the redesignations by Pub.

L. 102-83, Sec. 5, by striking out par. (5) which read as follows:

"The right of any beneficiary to payment of any installments shall

be conditioned upon his or her being alive to receive such

payments. No person shall have a vested right to any installment or

installments of any such insurance and any installments not paid to

a beneficiary during such beneficiary's lifetime shall be paid to

the beneficiary or beneficiaries within the permitted class next

entitled to priority, as provided in subsection (b)(2) of this

section. No installments of such insurance shall be paid to the

heirs or legal representatives as such of the insured or of any

beneficiary, and if no person within the permitted class survives

to receive the insurance or any part thereof no payment of the

unpaid installments shall be made."

EFFECTIVE DATE OF 1991 AMENDMENT

Section 201(b) of Pub. L. 102-86 provided that: "The amendments

made by subsection (a) [amending this section] shall apply with

respect to any person who, on or after September 1, 1991, is found

by the Secretary of Veterans Affairs to be eligible for insurance

under section 722 [now 1922] of title 38, United States Code."

Section 202(b) of Pub. L. 102-86 provided that: "The amendments

made by subsection (a) [amending this section] shall apply with

respect to deaths occurring before, on, or after the date of the

enactment of this Act [Aug. 14, 1991]. In the case of insurance

under section 722(b) [now 1922(b)] of title 38, United States Code,

payable by reason of a death before the date of the enactment of

this Act, the Secretary shall pay the remaining balance of such

insurance in a lump sum as soon as practicable after the date of

the enactment of this Act."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 107, 113, 1904, 1912,

1915, 1918, 1922A of this title.

-End-

-CITE-

38 USC Sec. 1922A 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER I - NATIONAL SERVICE LIFE INSURANCE

-HEAD-

Sec. 1922A. Supplemental service disabled veterans' insurance for

totally disabled veterans

-STATUTE-

(a) Any person insured under section 1922(a) of this title who

qualifies for a waiver of premiums under section 1912 of this title

is eligible, as provided in this section, for supplemental

insurance in an amount not to exceed $20,000.

(b) To qualify for supplemental insurance under this section a

person must file with the Secretary an application for such

insurance. Such application must be filed not later than (1)

October 31, 1993, or (2) the end of the one-year period beginning

on the date on which the Secretary notifies the person that the

person is entitled to a waiver of premiums under section 1912 of

this title, whichever is later.

(c) Supplemental insurance granted under this section shall be

granted upon the same terms and conditions as insurance granted

under section 1922(a) of this title, except that such insurance may

not be granted to a person under this section unless the

application is made for such insurance before the person attains 65

years of age.

(d) No waiver of premiums shall be made in the case of any person

for supplemental insurance granted under this section.

-SOURCE-

(Added Pub. L. 102-568, title II, Sec. 203(a), Oct. 29, 1992, 106

Stat. 4324; amended Pub. L. 103-446, title XII, Sec. 1201(f)(1),

Nov. 2, 1994, 108 Stat. 4687.)

-MISC1-

AMENDMENTS

1994 - Subsec. (b). Pub. L. 103-446 substituted "insurance. Such

application must be filed not later than (1) October 31, 1993, or

(2) the end of the one-year period beginning on the date on which

the Secretary" for "insurance not later than the end of (1) the

one-year period beginning on the first day of the first month

following the month in which this section is enacted, or (2) the

one-year period beginning on the date that the Department".

EFFECTIVE DATE

Section 205 of title II of Pub. L. 102-568 provided that: "The

amendments made by this title [enacting this section and amending

sections 1967, 1977, and 2106 of this title] shall take effect on

December 1, 1992."

-End-

-CITE-

38 USC Sec. 1923 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER I - NATIONAL SERVICE LIFE INSURANCE

-HEAD-

Sec. 1923. Veterans' Special Life Insurance

-STATUTE-

(a) Insurance heretofore granted under the provisions of section

621 of the National Service Life Insurance Act of 1940, against the

death of the policyholder occurring while such insurance is in

force, is subject to the same terms and conditions as are contained

in standard policies of National Service Life Insurance on the

five-year level premium term plan except (1) such insurance may not

be exchanged for or converted to insurance on any other plan; (2)

the premium rates for such insurance shall be based on the

Commissioners 1941 Standard Ordinary Table of Mortality and

interest at the rate of 2 1/4 per centum per annum; (3) all

settlements on policies involving annuities shall be calculated on

the basis of The Annuity Table for 1949, and interest at the rate

of 2 1/4 per centum per annum; (4) all premiums and other

collections on such insurance and any total disability provisions

added thereto shall be credited to a revolving fund in the Treasury

of the United States, which, together with interest earned thereon,

shall be available for the payment of liabilities under such

insurance and any total disability provisions added thereto,

including payments of dividends and refunds of unearned premiums,

and for the reimbursement of administrative costs under subsection

(d).

(b) Any term insurance heretofore issued under section 621 of the

National Service Life Insurance Act of 1940, may be converted to a

permanent plan of insurance or exchanged for a policy of limited

convertible five-year level premium term insurance issued under

this subsection. Insurance issued under this subsection shall be

issued upon the same terms and conditions as are contained in the

standard policies of National Service Life Insurance except (1)

after September 1, 1960, limited convertible term insurance may not

be issued or renewed on the term plan after the insured's fiftieth

birthday; (2) the premium rates for such limited convertible term

or permanent plan insurance shall be based on table X-18 (1950-54

Intercompany Table of Mortality) and interest at the rate of 2 1/2

per centum per annum; (3) all settlements on policies involving

annuities on insurance issued under this subsection shall be

calculated on the basis of The Annuity Table for 1949, and interest

at the rate of 2 1/2 per centum per annum; (4) all cash, loan,

paid-up, and extended values, and, except as otherwise provided in

this subsection, all other calculations in connection with

insurance issued under this subsection shall be based on table X-18

(1950-54 Intercompany Table of Mortality) and interest at the rate

of 2 1/2 per centum per annum; (5) all premiums and other

collections on insurance issued under this subsection and any total

disability income provisions added thereto shall be credited

directly to the revolving fund referred to in subsection (a) of

this section, which together with interest earned thereon, shall be

available for the payment of liabilities under such insurance and

any total disability provisions added thereto, including payments

of dividends and refunds of unearned premiums.

(c) The Secretary is authorized to invest in, and the Secretary

of the Treasury is authorized to sell and retire, special

interest-bearing obligations of the United States for the account

of the revolving fund with a maturity date as may be agreed upon by

the two Secretaries. The rate of interest on such obligations shall

be fixed by the Secretary of the Treasury at a rate equal to the

rate of interest, computed as of the end of the month preceding the

date of issue of such obligations, borne by all marketable

interest-bearing obligations of the United States then forming a

part of the public debt that are not due or callable until after

the expiration of five years from the date of original issue;

except that where such average rate is not a multiple of one-eighth

of 1 per centum, the rate of interest of such obligations shall be

the multiple of one-eighth of 1 per centum nearest such average

rate.

(d)(1) For each fiscal year for which this subsection is in

effect, the Secretary shall, from the Veterans' Special Life

Insurance Fund, reimburse the "General operating expenses" account

of the Department for the amount of administrative costs determined

under paragraph (2) for that fiscal year. Such reimbursement shall

be made from any surplus earnings for that fiscal year that are

available for dividends on such insurance after claims have been

paid and actuarially determined reserves have been set aside.

However, if the amount of such administrative costs exceeds the

amount of such surplus earnings, such reimbursement shall be made

only to the extent of such surplus earnings.

(2) The Secretary shall determine the administrative costs to the

Department for a fiscal year for which this subsection is in effect

which, in the judgment of the Secretary, are properly allocable to

the provision of Veterans' Special Life Insurance (and to the

provision of any total disability income insurance added to the

provision of such insurance).

(3) This subsection shall be in effect only with respect to

fiscal year 1996.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1157, Sec. 723; Pub. L.

85-896, Sept. 2, 1958, 72 Stat. 1716; Pub. L. 87-223, Sept. 13,

1961, 75 Stat. 495; Pub. L. 93-289, Sec. 2(a), May 24, 1974, 88

Stat. 165; renumbered Sec. 1923 and amended Pub. L. 102-83, Secs.

4(b)(1), (2)(C), (E), 5(a), Aug. 6, 1991, 105 Stat. 404-406; Pub.

L. 104-99, title II, Sec. 201(b), Jan. 26, 1996, 110 Stat. 36.)

-REFTEXT-

REFERENCES IN TEXT

Section 621 of the National Service Life Insurance Act of 1940,

referred to in subsecs. (a) and (b), is section 621 of act Oct. 8,

1940, ch. 757, title VI, pt. I, as added Apr. 25, 1951, ch. 39, pt.

II, Sec. 10, 65 Stat. 36, which enacted section 822 of former Title

38, Pensions, Bonuses, and Veterans' Relief, and which was repealed

and the provisions thereof reenacted as this section by Pub. L.

85-857, Sept. 2, 1958, 72 Stat. 1105.

-COD-

CODIFICATION

Amendment by Pub. L. 104-99 is based on section 107(2) of H.R.

2099, One Hundred Fourth Congress, as passed by the House of

Representatives on Dec. 7, 1995, which was enacted into law by Pub.

L. 104-99.

-MISC1-

AMENDMENTS

1996 - Subsec. (a). Pub. L. 104-99 inserted ", and for the

reimbursement of administrative costs under subsection (d)" before

period at end.

Subsec. (d). Pub. L. 104-99 added subsec. (d).

1991 - Pub. L. 102-83, Sec. 5(a), renumbered section 723 of this

title as this section.

Subsec. (c). Pub. L. 102-83, Sec. 4(b)(2)(C), substituted "two

Secretaries" for "Administrator and Secretary".

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator" after "The".

1974 - Pub. L. 93-289, Sec. 2(a)(1), substituted "Veterans'

Special Life Insurance" for "Veterans' special term insurance" in

section catchline.

Subsec. (a). Pub. L. 93-289, Sec. 2(a)(2), substituted "all

premiums and other collections on such insurance and any total

disability provisions added thereto shall be credited to a

revolving fund in the Treasury of the United States, which,

together with interest earned thereof, shall be available for the

payment of liabilities under such insurance and any total

disability provisions added thereto, including payments of

dividends and refunds of unearned premiums" for "such insurance and

any total disability provision added thereto shall be on a

nonparticipating basis and all premiums and other collections

therefor shall be credited to a revolving fund in the Treasury of

the United States and the payments on such term insurance and any

total disability provision added thereto shall be made directly

from such fund" in cl. (4).

Subsec. (b). Pub. L. 93-289, Sec. 2(a)(3), substituted "all

premiums and other collections on insurance issued under this

subsection and any total disability income provisions added thereto

shall be credited directly to the revolving fund referred to in

subsection (a) of this section, which together with interest earned

thereon, shall be available for the payment of liabilities under

such insurance and any total disability provisions added thereto,

including payments of dividends and refunds of unearned premiums"

for "insurance and any total disability provision added thereto

issued under this subsection shall be on a nonparticipating basis

and all premiums and other collections therefor shall be credited

directly to the revolving fund referred to in subsection (a) and

payments on such insurance and any total disability provision added

thereto shall be made directly from such fund" in cl. (5).

Subsecs. (d), (e). Pub. L. 93-289, Sec. 2(a)(4), repealed

subsecs. (d) and (e) which related to the payment of dividends from

the excess funds in the revolving fund, and to the transfer of

funds from the revolving fund to general fund receipts in the

Treasury.

1961 - Subsecs. (d), (e). Pub. L. 87-223 added subsecs. (d) and

(e).

1958 - Subsec. (b). Pub. L. 85-896, Sec. 1(2), added subsec. (b).

Former subsec. (b) redesignated (c).

Subsec. (c). Pub. L. 85-896, Sec. 1(1), redesignated former

subsec. (b) as (c) and substituted "equal to the rate of interest,

computed as of the end of the month preceding the date of issue of

such obligations, borne by all marketable interest-bearing

obligations of the United States then forming a part of the public

debt that are not due or callable until after the expiration of

five years from the date of original issue; except that where such

average rate is not a multiple of one-eighth of 1 per centum, the

rate of interest of such obligations shall be the multiple of

one-eighth of 1 per centum nearest such average rate" for "not

exceeding the average interest rate on all marketable obligations

of the United States Treasury outstanding as of the end of the

month preceding the date of issue of this special obligation".

EFFECTIVE DATE OF 1974 AMENDMENT

Section 12(1) of Pub. L. 93-289 provided that: "The amendments

made by section 2 [amending this section], relating to Veterans'

Special Life Insurance, shall become effective upon the date of

enactment of this Act [May 24, 1974] except that no dividend on

such insurance shall be paid prior to January 1, 1974."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 113, 1904, 1926, 1927,

1929, 1982 of this title.

-End-

-CITE-

38 USC Sec. 1924 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER I - NATIONAL SERVICE LIFE INSURANCE

-HEAD-

Sec. 1924. In-service waiver of premiums

-STATUTE-

(a) Waiver of all premiums on five-year level premium term

insurance and that portion of any permanent insurance premiums

representing the cost of the pure insurance risk, as determined by

the Secretary, granted on National Service Life Insurance or United

States Government life insurance under section 622 of the National

Service Life Insurance Act of 1940 and in effect on January 1,

1959, shall, unless canceled, continue in effect according to the

provisions of such section for the remainder of the insured's

continuous active service and for one hundred and twenty days

thereafter. Such premium waiver renders the contract of insurance

nonparticipating during the period the waiver is in effect.

(b) Whenever benefits become payable because of the maturity of

such insurance while under the premium waiver continued by this

section, liability for payment of such benefits shall be borne by

the United States in an amount which, when added to any reserve of

the policy at the time of maturity, will equal the then value of

such benefits under such policy. Where life contingencies are

involved in the calculation of the value of such benefits, the

calculation of such liability or liabilities shall be based upon

such mortality table or tables as the Secretary may prescribe with

interest at the rate of 2 1/4 per centum per annum as to insurance

issued under sections 620 and 621 of the National Service Life

Insurance Act of 1940, at the rate of 3 per centum per annum as to

other National Service Life Insurance, and 3 1/2 per centum per

annum as to United States Government life insurance. The Secretary

shall transfer from time to time from the National Service Life

Insurance appropriation to the National Service Life Insurance Fund

and from the military and naval insurance appropriation to the

United States Government Life Insurance Fund such sums as may be

necessary to carry out the provisions of this section.

(c) In any case in which insurance continued in force under this

section matures on or after January 1, 1972, an amount equal to the

amount of premiums, less dividends, waived on and after that date

shall be placed as an indebtedness against the insurance and,

unless otherwise paid, shall be deducted from the proceeds. In such

case, the liability of the Government under subsection (b) of this

section shall be reduced by the amount so deducted from the

proceeds.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1157, Sec. 724; Pub. L.

92-197, Sec. 7, Dec. 15, 1971, 85 Stat. 662; renumbered Sec. 1924

and amended Pub. L. 102-83, Secs. 4(b)(1), (2)(E), 5(a), Aug. 6,

1991, 105 Stat. 404-406.)

-REFTEXT-

REFERENCES IN TEXT

Section 622 of the National Service Life Insurance Act of 1940,

referred to in subsec. (a), is section 622 of act Oct. 8, 1940, ch.

757, title VI, pt. I, as added Apr. 25, 1951, ch. 39, pt. II, Sec.

10, 65 Stat. 36, which enacted section 823 of former Title 38,

Pensions, Bonuses, and Veterans' Relief, and which was repealed and

the provisions thereof reenacted as this section by Pub. L. 85-857,

Sept. 2, 1958, 72 Stat. 1105.

Sections 620 and 621 of the National Service Life Insurance Act

of 1940, referred to in subsec. (b), are sections 620 and 621 of

act Oct. 8, 1940, ch. 757, title VI, pt. I, as added Apr. 25, 1951,

ch. 39, pt. II, Sec. 10, 65 Stat. 36, which enacted sections 821

and 822 of former Title 38, Pensions, Bonuses, and Veterans'

Relief, and which were repealed and reenacted as sections 722 and

723 [now 1922 and 1923], respectively, of this title by Pub. L.

85-857, Sept. 2, 1958, 72 Stat. 1105.

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 724 of this title as

this section and substituted "Secretary" for "Administrator"

wherever appearing in subsecs. (a) and (b).

1971 - Subsec. (c). Pub. L. 92-197 added subsec. (c).

EFFECTIVE DATE OF 1971 AMENDMENT

Amendment by Pub. L. 92-197 effective Jan. 1, 1972, see section

10 of Pub. L. 92-197, set out as a note under section 1311 of this

title.

-End-

-CITE-

38 USC Sec. 1925 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER I - NATIONAL SERVICE LIFE INSURANCE

-HEAD-

Sec. 1925. Limited period for acquiring insurance

-STATUTE-

(a) Any person (other than a person referred to in subsection (f)

of this section) heretofore eligible to apply for National Service

Life Insurance after October 7, 1940, and before January 1, 1957,

who is found by the Secretary to be suffering (1) from a

service-connected disability or disabilities for which compensation

would be payable if 10 percent or more in degree and except for

which such person would be insurable according to the standards of

good health established by the Secretary; or (2) from a

non-service-connected disability which renders such person

uninsurable according to the standards of good health established

by the Secretary and such person establishes to the satisfaction of

the Secretary that such person is unable to obtain commercial life

insurance at a substandard rate, shall, upon application in writing

made before May 2, 1966, compliance with the health requirements of

this section and payment of the required premiums, be granted

insurance under this section.

(b) If, notwithstanding the applicant's service-connected

disability, such person is insurable according to the standards of

good health established by the Secretary, the insurance granted

under this section shall be issued upon the same terms and

conditions as are contained in the standard policies of National

Service Life Insurance except (1) five-year level premium term

insurance may not be issued; (2) the net premium rates shall be

based on the 1958 Commissioners Standard Ordinary Basic Mortality

Table, increased at the time of issue by such an amount as the

Secretary determines to be necessary for sound actuarial

operations, and thereafter such premiums may be adjusted as the

Secretary determines to be so necessary but at intervals of not

less than two years; (3) an additional premium to cover

administrative costs to the Government as determined by the

Secretary at times of issue shall be charged for insurance issued

under this subsection and for any total disability income provision

attached thereto, and thereafter such costs may be adjusted as the

Secretary determines to be necessary but at intervals of not less

than five years; (4) all cash, loan, extended and paid-up insurance

values shall be based on the 1958 Commissioners Standard Ordinary

Basic Mortality Table; (5) all settlements on policies involving

annuities shall be calculated on the basis of The Annuity Table for

1949; (6) all calculations in connection with insurance issued

under this subsection shall be based on interest at the rate of 3

1/2 percent per annum; and (7) the insurance shall include such

other changes in terms and conditions as the Secretary determines

to be reasonable and practicable.

(c) If the applicant's service-connected disability or

disabilities render the applicant uninsurable according to the

standards of good health established by the Secretary, or if the

applicant has a non-service-connected disability which renders the

applicant uninsurable according to the standards of good health

established by the Secretary and such person establishes to the

satisfaction of the Secretary that such person is unable to obtain

commercial life insurance at a substandard rate and such

uninsurability existed as of the date of approval of this section,

the insurance granted under this section shall be issued upon the

same terms and conditions as are contained in standard policies of

National Service Life Insurance, except (1) five-year level premium

term insurance may not be issued; (2) the premiums charged for the

insurance issued under this subsection shall be increased at the

time of issue by such an amount as the Secretary determines to be

necessary for sound actuarial operations and thereafter such

premiums may be adjusted from time to time as the Secretary

determines to be necessary; for the purpose of any increase at time

of issue or later adjustment the service-connected group and the

non-service-connected group may be separately classified; (3) an

additional premium to cover administrative costs to the Government

as determined by the Secretary at the time of issue shall be

charged for insurance issued under this subsection and for any

total disability income provision attached thereto (for which the

insured may subsequently become eligible) and thereafter such costs

may be adjusted as the Secretary determines to be necessary but at

intervals of not less than five years and for this purpose the

service-connected and non-service-connected can be separately

classified; (4) all settlements on policies involving annuities

shall be calculated on the basis of The Annuity Table for 1949; (5)

all calculations in connection with insurance issued under this

subsection shall be based on interest at the rate of 3 1/2 percent

per annum; and (6) the insurance shall include such other changes

in terms and conditions as the Secretary determines to be

reasonable and practicable.

(d)(1) All premiums and collections on insurance issued pursuant

to this section and any total disability income provision attached

thereto shall be credited to the Veterans Reopened Insurance Fund,

a revolving fund established in the Treasury of the United States,

and all payments on such insurance and any total disability

provision attached thereto, including payments of dividends and

refunds of unearned premiums, shall be made from that fund and the

interest earned on the assets of that fund. For actuarial and

accounting purposes, the assets and liabilities (including

liabilities for repayment of advances hereinafter authorized, and

adjustment of premiums) attributable to the insured groups

established under this section shall be separately determined. Such

amounts in the Veterans Special Term Insurance Fund in the

Treasury, not exceeding $1,650,000 in the aggregate, as may

hereafter be determined by the Secretary to be in excess of the

actuarial liabilities of that fund, including contingency reserves,

shall be available for transfer to the Veterans Reopened Insurance

Fund as needed to provide initial capital. Any amounts so

transferred shall be repaid to the Treasury over a reasonable

period of time with interest as determined by the Secretary of the

Treasury taking into consideration the average yield on all

marketable interest-bearing obligations of the United States of

comparable maturities then forming a part of the public debt.

(2) The Secretary is authorized to set aside out of the revolving

fund established under this section such reserve amounts as may be

required under accepted actuarial principles to meet all

liabilities on insurance issued under this section and any total

disability income provision attached thereto. The Secretary of the

Treasury is authorized to invest in and to sell and retire special

interest-bearing obligations of the United States for the account

of the revolving fund. Such obligations issued for this purpose

shall have maturities fixed with due regard for the needs of the

fund and shall bear interest at a rate equal to the average market

yield (computed by the Secretary of the Treasury on the basis of

market quotations as of the end of the calendar month next

preceding the date of issue) on all marketable interest-bearing

obligations of the United States then forming a part of the public

debt which are not due or callable until after the expiration of

four years from the end of such calendar month; except that where

such average market yield is not a multiple of one-eighth of 1

percent, the rate of interest of such obligation shall be the

multiple of one-eighth of 1 percent nearest such market yield.

(3) Notwithstanding the provisions of section 1982 of this title,

the Secretary shall, from time to time, determine the

administrative costs to the Government which in the Secretary's

judgment are properly allocable to insurance issued under this

section and any total disability income provision attached thereto,

and shall transfer from the revolving fund, the amount of such cost

allocable to the Department to the appropriation "General Operating

Expenses, Department of Veterans Affairs", and the remainder of

such cost to the general fund receipts in the Treasury. The initial

administrative costs of issuing insurance under this section and

any total disability income provision attached thereto shall be so

transferred over such period of time as the Secretary determines to

be reasonable and practicable.

(e) Notwithstanding the provisions of section 1982 of this title,

a medical examination (including any supplemental examination or

tests) when required of an applicant for issuance of insurance

under this section or any total disability income provisions

attached thereto shall be at the applicant's own expense by a duly

licensed physician.

(f) No insurance shall be granted under this section to any

person referred to in section 107 of this title or to any person

while on active duty or active duty for training under a call or

order to such duty for a period of thirty-one days or more.

-SOURCE-

(Added Pub. L. 88-664, Sec. 12(a), Oct. 13, 1964, 78 Stat. 1096,

Sec. 725; amended Pub. L. 89-40, June 14, 1965, 79 Stat. 130; Pub.

L. 96-128, title III, Sec. 301, Nov. 28, 1979, 93 Stat. 985; Pub.

L. 97-295, Sec. 4(25), Oct. 12, 1982, 96 Stat. 1306; Pub. L.

99-576, title VII, Sec. 701(28), Oct. 28, 1986, 100 Stat. 3292;

renumbered Sec. 1925 and amended Pub. L. 102-83, Secs.

4(a)(2)(B)(ii), (3), (4), (b)(1), (2)(E), 5(a), (c)(1), Aug. 6,

1991, 105 Stat. 403-406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83, Sec. 5(a), renumbered section 725 of this

title as this section.

Subsecs. (a) to (c). Pub. L. 102-83, Sec. 4(b)(1), (2)(E),

substituted "Secretary" for "Administrator" wherever appearing.

Subsec. (d). Pub. L. 102-83, Sec. 5(c)(1), substituted "1982" for

"782" in par. (3).

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator" and "Secretary's" for "Administrator's" wherever

appearing in pars. (1) to (3).

Pub. L. 102-83, Sec. 4(a)(3), (4), substituted "Department" for

first reference to "Veterans' Administration" in par. (3).

Pub. L. 102-83, Sec. 4(a)(2)(B)(ii), substituted "Department of

Veterans Affairs" for second reference to "Veterans'

Administration" in par. (3).

Subsec. (e). Pub. L. 102-83, Sec. 5(c)(1), substituted "1982" for

"782".

1986 - Subsecs. (a), (b). Pub. L. 99-576, Sec. 701(28)(A),

substituted "such person" for "he".

Subsec. (c). Pub. L. 99-576, Sec. 701(28)(A), (B), substituted

"the applicant" for "him" in two places, and "such person" for

"he".

Subsec. (d)(3). Pub. L. 99-576, Sec. 701(28)(C), substituted "the

Administrator's" for "his".

1982 - Subsec. (a). Pub. L. 97-295, Sec. 4(25), substituted

"percent" for "per centum", and substituted "before May 2, 1966"

for "within one year after the effective date of this section".

Subsecs. (b), (c), (d)(2). Pub. L. 97-295, Sec. 4(25)(A),

substituted "percent" for "per centum" wherever appearing.

1979 - Subsec. (b). Pub. L. 96-128, Sec. 301(a), struck out cl.

(8) which required the insurance and any attached total disability

income provision to be on a nonparticipatory basis.

Subsec. (c). Pub. L. 96-128, Sec. 301(b), struck out cl. (4)

which required the insurance and any attached total disability

income provision to be on a nonparticipatory basis, and

redesignated former cls. (5) to (7) as (4) to (6), respectively.

Subsec. (d)(1). Pub. L. 96-128, Sec. 301(c), inserted provisions

respecting payments of dividends and refunds of unearned premiums

from the fund, and interest earned on the assets of the fund.

1965 - Subsec. (b). Pub. L. 89-40, Sec. 1(1), struck out

provision from cl. (8) which called for all premiums and other

collections for insurance granted under this section to be credited

to a revolving fund established in the Treasury of the United

States and for payment on such insurance or total disability income

provisions to be made directly from that fund.

Subsec. (c). Pub. L. 89-40, Sec. 1(2), struck out cl. (8) which

provided that all premiums and other collections on the insurance

and any total disability income provision attached thereto should

be credited to the National Service Life Insurance appropriation,

and the payments on such insurance and total disability income

provisions should be made directly from such appropriations, and

struck out sentence which authorized necessary appropriations.

Subsec. (d)(1). Pub. L. 89-40, Sec. 1(3), struck out provisions

authorizing appropriations to carry out the purposes of subsec. (b)

of this section by adding to the revolving fund as needed at

interest to be determined by the Secretary of the Treasury, and

substituted therefor provisions requiring credit to Veterans

Reopened Insurance Fund of all premiums and collections on

insurance issued pursuant to this section and disbursements from

that fund of all payments on insurance and total disability

provisions attached thereto, separate determination for actuarial

purposes of the various insured groups under this section, transfer

to fund from Veterans Special Term Insurance Fund to provide

initial capital of excess funds not exceeding $1,650,000, and

repayment over a reasonable time at interest to be determined by

the Secretary of the Treasury.

Subsec. (d)(2). Pub. L. 89-40, Sec. 1(4), struck out reference to

subsec. (b) of this section.

Subsec. (d)(3). Pub. L. 89-40, Sec. 1(5), struck out reference to

National Service Life Insurance appropriation.

EFFECTIVE DATE OF 1979 AMENDMENT

Amendment by Pub. L. 96-128 effective Nov. 28, 1979, see section

601(b) of Pub. L. 96-128, set out as a note under section 1114 of

this title.

EFFECTIVE DATE OF 1965 AMENDMENT

Pub. L. 89-40 provided that the amendment made by Pub. L. 89-40

is effective May 1, 1965.

EFFECTIVE DATE

Section 12(d) of Pub. L. 88-664 provided that: "The amendments

made by this section [enacting this section and amending section

704 [now 1904] of this title] shall take effect as of the first day

of the first calendar month which begins more than six calendar

months after the date of enactment of this Act [Oct. 13, 1964]."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 113, 1904, 1926, 1927,

1929 of this title.

-End-

-CITE-

38 USC Sec. 1926 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER I - NATIONAL SERVICE LIFE INSURANCE

-HEAD-

Sec. 1926. Authority for higher interest rates for amounts payable

to beneficiaries

-STATUTE-

Notwithstanding sections 1902, 1923, and 1925 of this title, if

the beneficiary of an insurance policy receives the proceeds of

such policy under a settlement option under which such proceeds are

paid in equal monthly installments over a limited period of months,

the interest that may be added to each such installment may be at a

rate that is higher than the interest rate prescribed in the

appropriate section of this subchapter. The Secretary may from time

to time establish a higher interest rate under the preceding

sentence only in accordance with a determination that such higher

rate is administratively and actuarially sound for the program of

insurance concerned. Any such higher interest rate shall be paid on

the unpaid balance of such monthly installments.

-SOURCE-

(Added Pub. L. 96-128, title III, Sec. 302(a), Nov. 28, 1979, 93

Stat. 986, Sec. 726; renumbered Sec. 1926 and amended Pub. L.

102-83, Secs. 4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105

Stat. 404-406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83, Sec. 5(a), renumbered section 726 of this

title as this section.

Pub. L. 102-83, Sec. 5(c)(1), substituted "1902, 1923, and 1925"

for "702, 723, and 725".

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator".

EFFECTIVE DATE

Section effective Nov. 28, 1979, see section 601(b) of Pub. L.

96-128, set out as an Effective Date of 1979 Amendment note under

section 1114 of this title.

-End-

-CITE-

38 USC Sec. 1927 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER I - NATIONAL SERVICE LIFE INSURANCE

-HEAD-

Sec. 1927. Authority for higher monthly installments payable to

certain annuitants

-STATUTE-

(a) Subject to subsections (b) and (c) of this section, the

Secretary may from time to time adjust the dollar amount of the

monthly installments payable to a beneficiary of National Service

Life Insurance, Veterans Special Life Insurance, or Veterans

Reopened Insurance who is receiving the proceeds of such insurance

under a life annuity settlement option. The Secretary may make such

an adjustment only if the Secretary determines that the adjustment

is administratively and actuarially sound for the program of

insurance concerned. The Secretary may make such an adjustment

without regard to the provisions of sections 1902, 1923, and 1925

of this title with respect to interest rates and the use of

mortality tables.

(b) The Secretary shall determine the amount in the trust funds

in the Treasury held for payment of proceeds to National Service

Life Insurance, Veterans Special Life Insurance, and Veterans

Reopened Insurance beneficiaries attributable to interest and

mortality gains on the reserves held for annuity accounts. Such

amount shall be available for distribution to the life annuitants

referred to in subsection (a) of this section as a fixed percentage

of, and in addition to, the monthly installment amount to which the

annuitants are entitled under this subchapter. For the purposes of

this section, gains on the reserves are defined as funds

attributable solely to annuity accounts that are in excess of

actuarial liabilities.

(c) The monthly amount of an annuity authorized in sections 1902,

1923, and 1925 of this title, as adjusted under this section, may

not be less than the monthly amount of such annuity that would

otherwise be applicable without regard to this section.

-SOURCE-

(Added Pub. L. 100-322, title III, Sec. 331(a)(1), May 20, 1988,

102 Stat. 536, Sec. 727; renumbered Sec. 1927 and amended Pub. L.

102-83, Secs. 4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105

Stat. 404-406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83, Sec. 5(a), renumbered section 727 of this

title as this section.

Subsec. (a). Pub. L. 102-83, Sec. 5(c)(1), substituted "1902,

1923, and 1925" for "702, 723, and 725".

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator" wherever appearing.

Subsec. (b). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted

"Secretary" for "Administrator".

Subsec. (c). Pub. L. 102-83, Sec. 5(c)(1), substituted "1902,

1923, and 1925" for "702, 723, and 725".

-End-

-CITE-

38 USC Sec. 1928 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER I - NATIONAL SERVICE LIFE INSURANCE

-HEAD-

Sec. 1928. Authority for payment of interest on settlements

-STATUTE-

(a) Subject to subsection (b) of this section, the Secretary may

pay interest on the proceeds of a participating National Service

Life Insurance, Veterans' Special Life Insurance, and Veterans

Reopened Insurance policy from the date the policy matures to the

date of payment of the proceeds to the beneficiary or, in the case

of an endowment policy, to the policyholder.

(b)(1) The Secretary may pay interest under subsection (a) of

this section only if the Secretary determines that the payment of

such interest is administratively and actuarially sound for the

settlement option involved.

(2) Interest paid under subsection (a) of this section shall be

at the rate that is established by the Secretary for dividends held

on credit or deposit in policyholders' accounts under the insurance

program involved.

-SOURCE-

(Added Pub. L. 100-687, div. B, title XIV, Sec. 1401(a)(1), Nov.

18, 1988, 102 Stat. 4128, Sec. 728; renumbered Sec. 1928 and

amended Pub. L. 102-83, Secs. 4(b)(1), (2)(E), 5(a), Aug. 6, 1991,

105 Stat. 404-406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 728 of this title as

this section and substituted "Secretary" for "Administrator"

wherever appearing.

EFFECTIVE DATE

Section 1401(a)(3) of Pub. L. 100-687 provided that: "The

amendments made by this subsection [enacting this section and

section 763 [now 1963] of this title] shall take effect with

respect to insurance policies maturing after the date of the

enactment of this Act [Nov. 18, 1988]."

-End-

-CITE-

38 USC Sec. 1929 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER I - NATIONAL SERVICE LIFE INSURANCE

-HEAD-

Sec. 1929. Authority to adjust premium discount rates

-STATUTE-

(a) Notwithstanding sections 1902, 1923, and 1925 of this title

and subject to subsection (b) of this section, the Secretary may

from time to time adjust the discount rates for premiums paid in

advance on National Service Life Insurance, Veterans' Special Life

Insurance, and Veterans Reopened Insurance.

(b)(1) In adjusting a discount rate pursuant to subsection (a) of

this section, the Secretary may not set such rate at a rate lower

than the rate authorized for the program of insurance involved

under section 1902, 1923, or 1925 of this title.

(2) The Secretary may make an adjustment under subsection (a) of

this section only if the Secretary determines that the adjustment

is administratively and actuarially sound for the program of

insurance involved.

-SOURCE-

(Added Pub. L. 100-687, div. B, title XIV, Sec. 1401(b)(1), Nov.

18, 1988, 102 Stat. 4129, Sec. 729; renumbered Sec. 1929 and

amended Pub. L. 102-83, Secs. 4(b)(1), (2)(E), 5(a), (c)(1), Aug.

6, 1991, 105 Stat. 404-406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83, Sec. 5(a), renumbered section 729 of this

title as this section.

Pub. L. 102-83, Sec. 5(c)(1), substituted "1902, 1923, and 1925"

for "702, 723, and 725" in subsec. (a) and "1902, 1923, or 1925"

for "702, 723, or 725" in subsec. (b)(1).

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator" wherever appearing.

EFFECTIVE DATE

Section 1401(b)(2) of Pub. L. 100-687 provided that: "The

amendment made by paragraph (1) [enacting this section] shall take

effect with respect to premiums paid after the date of the

enactment of this Act [Nov. 18, 1988]."

-End-

-CITE-

38 USC SUBCHAPTER II - UNITED STATES GOVERNMENT LIFE

INSURANCE 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER II - UNITED STATES GOVERNMENT LIFE INSURANCE

-HEAD-

SUBCHAPTER II - UNITED STATES GOVERNMENT LIFE INSURANCE

-End-

-CITE-

38 USC Sec. 1940 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER II - UNITED STATES GOVERNMENT LIFE INSURANCE

-HEAD-

Sec. 1940. Definition

-STATUTE-

For the purposes of this subchapter, the term "insurance" means

United States Government life insurance.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1158, Sec. 740; renumbered

Sec. 1940, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 740 of this title as

this section.

-End-

-CITE-

38 USC Sec. 1941 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER II - UNITED STATES GOVERNMENT LIFE INSURANCE

-HEAD-

Sec. 1941. Amount of insurance

-STATUTE-

United States Government life insurance shall be issued against

death or total permanent disability in any multiple of $500 and not

less than $1,000 or more than $10,000. No person may carry a

combined amount of National Service Life Insurance and United

States Government life insurance in excess of $10,000 at any one

time. The limitations of this section shall not apply to the

additional paid up insurance the purchase of which is authorized

under section 1907 of this title.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1158, Sec. 741; Pub. L.

92-188, Sec. 1, Dec. 15, 1971, 85 Stat. 645; renumbered Sec. 1941

and amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105

Stat. 406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 741 of this title as

this section and substituted "1907" for "707".

1971 - Pub. L. 92-188 made section limitations inapplicable to

the additional paid up insurance purchase of which is authorized

under section 707 of this title.

EFFECTIVE DATE OF 1971 AMENDMENT

Amendment by Pub. L. 92-188 effective on date established by

Administrator but in no event later than first day of first

calendar month beginning more than six calendar months after Dec.

15, 1971, see section 4 of Pub. L. 92-188, set out as a note under

section 1907 of this title.

-End-

-CITE-

38 USC Sec. 1942 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER II - UNITED STATES GOVERNMENT LIFE INSURANCE

-HEAD-

Sec. 1942. Plans of insurance

-STATUTE-

(a) Regulations shall provide for the right to convert insurance

on the five-year level premium term plan into ordinary life,

twenty-payment life, endowment maturing at age sixty-two, and into

other usual forms of insurance as may be prescribed by the

Secretary. Provision shall be made for reconversion of any such

policies to a higher premium rate or, upon proof of good health

satisfactory to the Secretary, to a lower premium rate, in

accordance with regulations to be issued by the Secretary. No

reconversion shall be made to a five-year level premium term

policy.

(b) An insured who on or after the insured's sixty-fifth birthday

has a five-year level premium term policy of insurance in force by

payment of premiums may exchange such policy for insurance on a

special endowment at age ninety-six plan upon written application;

payment of the required premium; and surrender of the five-year

level premium term policy and any total disability provision

attached thereto with all rights, title, and interests thereunder.

However, if it is found by the Secretary subsequent to the exchange

that prior thereto the term policy matured because of total

permanent disability of the insured or that the insured was

entitled to total disability benefits under the total disability

provision attached to such policy, the insured, upon surrender of

the special endowment at age ninety-six policy and any provision

for waiver of premiums issued under subsection (c) of this section

with all rights, title, and interest thereunder, will be entitled

to benefits payable under the prior contract. In such case, the

cash value less any indebtedness on the endowment policy shall be

refunded together with any premiums paid on a provision for waiver

of premiums. Insurance on the special endowment at age ninety-six

plan shall be issued at the attained age of the insured upon the

same terms and conditions as are contained in standard policies of

United States Government Life Insurance except:

(1) the insurance shall not mature and no benefits shall be

paid thereunder because of total permanent disability;

(2) the premiums for such insurance shall be as prescribed by

the Secretary;

(3) such insurance cannot be exchanged, converted, or

reconverted to any other plan of insurance;

(4) all cash, loan, paid-up, and extended term insurance values

shall be as prescribed by the Secretary; and

(5) the insurance shall be subject to such other changes in

terms and conditions as the Secretary determines to be reasonable

and practicable.

(c) The Secretary shall, upon application made by the insured at

the same time as the insured exchanges the term policy for an

endowment policy issued under the provisions of subsection (b) of

this section, and upon payment of such extra premium as the

Secretary shall prescribe, include in such endowment policy a

provision for waiver of premiums on the policy and on the provision

during the total permanent disability of the insured, if such

disability began after the date of such application and while the

policy and the provision are in force by payment of premiums. The

Secretary shall not grant waiver of any premium becoming due more

than one year before receipt by the Secretary of claim for the

same, except as provided in this subsection. Any premiums paid for

months during which waiver is effective shall be refunded. The

Secretary shall provide by regulations for examination or

reexamination of an insured claiming waiver of premiums under this

subsection, and may deny waiver for failure to cooperate. If it is

found that an insured is no longer totally and permanently

disabled, the waiver of premiums shall cease as of the date of such

finding and the policy and provision may be continued by payment of

premiums as provided therein. In any case in which the Secretary

finds that the insured's failure to make timely claim for waiver of

premiums, or to submit satisfactory evidence of the existence or

continuance of total permanent disability was due to circumstances

beyond the insured's control, the Secretary may grant waiver or

continuance of waiver of premiums. If the insured dies without

filing claim for waiver, the beneficiary, within one year after the

death of the insured, or, if the beneficiary is insane or a minor,

within one year after removal of such legal disability, may file

claim for waiver with evidence of the insured's right to waiver

under this subsection. Policies containing a provision for waiver

of premiums issued under this subsection may be separately

classified for the purpose of dividend distribution from otherwise

similar policies not containing such provision.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1158, Sec. 742; Pub. L.

87-549, July 25, 1962, 76 Stat. 219; Pub. L. 99-576, title VII,

Sec. 701(29), Oct. 28, 1986, 100 Stat. 3292; renumbered Sec. 1942

and amended Pub. L. 102-83, Secs. 4(a)(2)(C)(iii), (b)(1), (2)(E),

5(a), Aug. 6, 1991, 105 Stat. 404-406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83, Sec. 5(a), renumbered section 742 of this

title as this section.

Subsecs. (a), (b). Pub. L. 102-83, Sec. 4(b)(1), (2)(E),

substituted "Secretary" for "Administrator" wherever appearing.

Subsec. (c). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted

"Secretary" for "Administrator" wherever appearing.

Pub. L. 102-83, Sec. 4(a)(2)(C)(iii), substituted "by the

Secretary" for "in the Veterans' Administration".

1986 - Subsec. (b). Pub. L. 99-576, Sec. 701(29)(A), substituted

"the insured's" for "his" and "the insured" for "he".

Subsec. (c). Pub. L. 99-576, Sec. 701(29)(B), substituted "the

insured" for "he", "the term" for "his term", and "the insured's

control" for "his control", and struck out "his failure" before "to

submit".

1962 - Pub. L. 87-549 designated existing provisions as subsec.

(a) and added subsecs. (b) and (c).

-End-

-CITE-

38 USC Sec. 1943 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER II - UNITED STATES GOVERNMENT LIFE INSURANCE

-HEAD-

Sec. 1943. Premiums

-STATUTE-

The premium rates for insurance shall be the net rates based upon

the American Experience Table of Mortality and interest at 3 1/2

percent per annum. Regulations shall prescribe the time and method

of payment of premiums, but payments of premiums in advance shall

not be required for periods of more than one month each, and may be

deducted from the pay or deposit of the insured or be otherwise

made at the insured's election.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1158, Sec. 743; Pub. L.

97-295, Sec. 4(26), Oct. 12, 1982, 96 Stat. 1307; Pub. L. 99-576,

title VII, Sec. 701(30), Oct. 28, 1986, 100 Stat. 3293; renumbered

Sec. 1943, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 743 of this title as

this section.

1986 - Pub. L. 99-576 substituted "the insured's" for "his".

1982 - Pub. L. 97-295 substituted "percent" for "per centum".

-End-

-CITE-

38 USC Sec. 1944 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER II - UNITED STATES GOVERNMENT LIFE INSURANCE

-HEAD-

Sec. 1944. Policy provisions

-STATUTE-

(a) Provisions for maturity at certain ages, for continuous

installments during the lifetime of the insured or beneficiaries,

or both, for refund of premiums, cash, loan, paid-up and extended

values, dividends from gains and savings, and such other provisions

for the protection and advantage of and for alternative benefits to

the insured and the beneficiaries as may be found to be reasonable

and practicable may be provided for in insurance contracts or from

time to time by regulations.

(b) All calculations on insurance shall be based upon the

American Experience Table of Mortality and interest at 3 1/2

percent per annum, except that no deduction shall be made for

continuous installments during the life of the insured in case the

insured's total and permanent disability continues more than two

hundred and forty months.

(c) On and after July 19, 1939, the rate of interest charged on

any loan secured by a lien on insurance shall not exceed 5 percent

per annum.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1158, Sec. 744; Pub. L.

97-295, Sec. 4(26), Oct. 12, 1982, 96 Stat. 1307; Pub. L. 99-576,

title VII, Sec. 701(30), Oct. 28, 1986, 100 Stat. 3293; renumbered

Sec. 1944, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 744 of this title as

this section.

1986 - Subsec. (b). Pub. L. 99-576 substituted "the insured's"

for "his".

1982 - Subsecs. (b), (c). Pub. L. 97-295 substituted "percent"

for "per centum".

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1961, 1962 of this title.

-End-

-CITE-

38 USC Sec. 1945 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER II - UNITED STATES GOVERNMENT LIFE INSURANCE

-HEAD-

Sec. 1945. Renewal

-STATUTE-

At the expiration of any term period any insurance policy issued

on the five-year level premium term plan which has not been

exchanged or converted to a permanent plan of insurance and which

is not lapsed shall be renewed as level premium term insurance

without application for a successive five-year period at the

premium rate for the attained age without medical examination.

However, renewal shall be effected in cases where the policy is

lapsed only if the insured makes application for reinstatement and

renewal of the insured's term policy within five years after the

date of lapse, and reinstatement in such cases shall be under the

terms and conditions prescribed by the Secretary.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1159, Sec. 745; Pub. L.

91-291, Sec. 11, June 25, 1970, 84 Stat. 331; Pub. L. 99-576, title

VII, Sec. 701(30), Oct. 28, 1986, 100 Stat. 3293; renumbered Sec.

1945 and amended Pub. L. 102-83, Secs. 4(b)(1), (2)(E), 5(a), Aug.

6, 1991, 105 Stat. 404-406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 745 of this title as

this section and substituted "Secretary" for "Administrator".

1986 - Pub. L. 99-576 substituted "the insured's" for "his".

1970 - Pub. L. 91-291 struck out effective date provision for

renewal of policies, provisions that, in case of lapsed policies,

such lapse have occurred within two months before the expiration of

the term period, special provisions for the interim period between

July 23, 1953 and December 31, 1953, and provisions that the

section take effect on Sept. 2, 1958, and required that the insurer

make application for reinstatement and renewal of his term policy

within five years after the date of the lapse.

EFFECTIVE DATE OF 1970 AMENDMENT

Amendment by Pub. L. 91-291 effective June 25, 1970, see section

14(a) of Pub. L. 91-291, set out as a note under section 1317 of

this title.

-End-

-CITE-

38 USC Sec. 1946 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER II - UNITED STATES GOVERNMENT LIFE INSURANCE

-HEAD-

Sec. 1946. Dividends to pay premiums

-STATUTE-

Until and unless the Secretary has received from the insured a

request in writing for payment of dividends in cash or that the

dividends be placed on deposit in accordance with the provisions of

the insured's policy, any regular annual dividends shall be applied

in payment of premiums becoming due on insurance after the date the

dividend is payable on or after December 31, 1958.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1159, Sec. 746; Pub. L.

99-576, title VII, Sec. 701(30), Oct. 28, 1986, 100 Stat. 3293;

renumbered Sec. 1946 and amended Pub. L. 102-83, Secs.

4(a)(2)(A)(iii)(V), 5(a), Aug. 6, 1991, 105 Stat. 403, 406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 746 of this title as

this section and substituted "Secretary" for "Veterans'

Administration".

1986 - Pub. L. 99-576 substituted "the insured's" for "his".

-End-

-CITE-

38 USC Sec. 1947 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER II - UNITED STATES GOVERNMENT LIFE INSURANCE

-HEAD-

Sec. 1947. Incontestability

-STATUTE-

Subject to the provisions of section 1954 of this title all

contracts or policies of insurance heretofore or hereafter issued,

reinstated, or converted shall be incontestable from the date of

issuance, reinstatement, or conversion, except for fraud,

nonpayment of premiums, or on the ground that the applicant was not

a member of the military or naval forces of the United States. The

insured under such contract or policy may, without prejudicing the

insured's rights, elect to make claim to the Department or to bring

suit under section 1984 of this title on any prior contract or

policy, and if found entitled thereto, shall, upon surrender of any

subsequent contract or policy, be entitled to payments under the

prior contract or policy. In any case in which a contract or policy

of insurance is canceled or voided after March 16, 1954, because of

fraud, the Secretary shall refund to the insured, if living, or, if

deceased, to the person designated as beneficiary (or if none

survives, to the estate of the insured) all money, without

interest, paid as premiums on such contract or policy for any

period subsequent to two years after the date such fraud induced

the Secretary to issue, reinstate, or convert such insurance less

any dividends, loan, or other payment made to the insured under

such contract or policy.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1159, Sec. 747; Pub. L.

99-576, title VII, Sec. 701(30), Oct. 28, 1986, 100 Stat. 3293;

renumbered Sec. 1947 and amended Pub. L. 102-83, Secs.

4(a)(2)(A)(iii)(VI), (3), (4), (b)(1), (2)(E), 5(a), (c)(1), Aug.

6, 1991, 105 Stat. 403-406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83, Sec. 5(a), renumbered section 747 of this

title as this section.

Pub. L. 102-83, Sec. 5(c)(1), substituted "1954" for "754" and

"1984" for "784".

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator" before "shall" in last sentence.

Pub. L. 102-83, Sec. 4(a)(3), (4), substituted "Department" for

"Veterans' Administration".

Pub. L. 102-83, Sec. 4(a)(2)(A)(iii)(VI), substituted "Secretary"

for "Veterans' Administration" before "to issue" in last sentence.

1986 - Pub. L. 99-576 substituted "the insured's" for "his".

-End-

-CITE-

38 USC Sec. 1948 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER II - UNITED STATES GOVERNMENT LIFE INSURANCE

-HEAD-

Sec. 1948. Total disability provision

-STATUTE-

The Secretary shall include in United States Government life

insurance policies provision whereby an insured, who is totally

disabled as a result of disease or injury for a period of four

consecutive months or more before attaining the age of sixty-five

years and before default in payment of any premium, shall be paid

disability benefits at the rate of $5.75 monthly for each $1,000 of

insurance in force when total disability benefits become payable.

The amount of such monthly payment under the provisions of this

section shall not be reduced because of payment of permanent and

total disability benefits under the insurance policy. Such payments

shall be effective as of the first day of the fifth consecutive

month, and shall be made monthly during the continuance of such

total disability. Such payments shall be concurrent with or

independent of permanent and total disability benefits under the

insurance policy. In addition to the monthly disability benefits

the payment of premiums on the life insurance and for the total

disability benefits authorized by this section shall be waived

during the continuance of such total disability. Regulations shall

provide for reexaminations of beneficiaries under this section;

and, in the event that it is found that an insured is no longer

totally disabled, the waiver of premiums and payment of benefits

shall cease and the insurance policy, including the total

disability provision, may be continued by payment of premiums as

provided in said policy and the total disability provision. Neither

the dividends nor the amount payable in any settlement under any

United States Government life insurance policy shall be decreased

because of disability benefits granted under the provisions of this

section. The payment of total disability benefits shall not

prejudice the right of any insured, who is totally and permanently

disabled, to permanent and total disability benefits under the

insured's insurance policy. The provision authorized by this

section shall not be included in any United States Government life

insurance policy heretofore or hereafter issued, except upon

application, payment of premium by the insured, and proof of good

health satisfactory to the Secretary. The benefit granted under

this section shall be on the basis of multiples of $500, and not

less than $1,000 or more than the amount of insurance in force at

time of application. The Secretary shall determine the amount of

the monthly premium to cover the benefits of this section, and in

order to continue such benefits in force the monthly premiums shall

be payable until the insured attains the age of sixty-five years or

until the prior maturity of the policy. In all other respects such

monthly premium shall be payable under the same terms and

conditions as the regular monthly premium on the United States

Government life insurance policy.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1159, Sec. 748; Pub. L.

97-295, Sec. 4(27), Oct. 12, 1982, 96 Stat. 1307; Pub. L. 99-576,

title VII, Sec. 701(30), Oct. 28, 1986, 100 Stat. 3293; renumbered

Sec. 1948 and amended Pub. L. 102-83, Secs. 4(b)(1), (2)(E), 5(a),

Aug. 6, 1991, 105 Stat. 404-406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 748 of this title as

this section and substituted "Secretary" for "Administrator"

wherever appearing.

1986 - Pub. L. 99-576 substituted "the insured's" for "his".

1982 - Pub. L. 97-295 substituted "premium" for "permium" after

"payment of".

-End-

-CITE-

38 USC Sec. 1949 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER II - UNITED STATES GOVERNMENT LIFE INSURANCE

-HEAD-

Sec. 1949. Change of beneficiary

-STATUTE-

Subject to regulations, the insured shall at all times have the

right to change the beneficiary or beneficiaries of a United States

Government life insurance policy without the consent of such

beneficiary or beneficiaries.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1160, Sec. 749; renumbered

Sec. 1949, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 749 of this title as

this section.

-End-

-CITE-

38 USC Sec. 1950 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER II - UNITED STATES GOVERNMENT LIFE INSURANCE

-HEAD-

Sec. 1950. Payment to estates

-STATUTE-

If no beneficiary of insurance is designated by the insured,

either while alive or by last will, or if the designated

beneficiary does not survive the insured, then there shall be paid

to the estate of the insured the present value of the remaining

unpaid monthly installments. If the designated beneficiary survives

the insured and dies before receiving all of the installments of

insurance payable and applicable, then there shall be paid to the

estate of such beneficiary the present value of the remaining

unpaid monthly installments. No payments shall be made to any

estate which under the laws of the residence of the insured or the

beneficiary, as the case may be, would escheat, but same shall

escheat to the United States and be credited to the United States

Government Life Insurance Fund.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1160, Sec. 750; Pub. L.

99-576, title VII, Sec. 701(31), Oct. 28, 1986, 100 Stat. 3293;

renumbered Sec. 1950, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105

Stat. 406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 750 of this title as

this section.

1986 - Pub. L. 99-576 substituted "while alive or by last will"

for "in his lifetime or by his last will and testament".

-End-

-CITE-

38 USC Sec. 1951 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER II - UNITED STATES GOVERNMENT LIFE INSURANCE

-HEAD-

Sec. 1951. Payment of insurance

-STATUTE-

United States Government life insurance, except as provided in

this subchapter, shall be payable in two hundred and forty equal

monthly installments. When the amount of an individual monthly

payment is less than $5, such amount may in the discretion of the

Secretary be allowed to accumulate without interest and be

disbursed annually.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1161, Sec. 751; renumbered

Sec. 1951 and amended Pub. L. 102-83, Secs. 4(b)(1), (2)(E), 5(a),

Aug. 6, 1991, 105 Stat. 404-406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 751 of this title as

this section and substituted "Secretary" for "Administrator".

-End-

-CITE-

38 USC Sec. 1952 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER II - UNITED STATES GOVERNMENT LIFE INSURANCE

-HEAD-

Sec. 1952. Optional settlement

-STATUTE-

(a) The Secretary may provide in insurance contracts for optional

settlements, to be selected by the insured, whereby such insurance

may be made payable either in one sum or in installments for

thirty-six months or more. A provision may also be included in such

contracts authorizing the beneficiary to elect to receive payment

of the insurance in installments for thirty-six months or more, but

only if the insured has not exercised the right of election as

provided in this subchapter. Even though the insured may have

exercised the right of election the beneficiary may elect to

receive such insurance in installments spread over a greater period

of time than that selected by the insured. Notwithstanding any

provision to the contrary in any insurance contract, the

beneficiary may, in the case of insurance maturing after September

30, 1981, and for which the insured has not exercised the right of

election of the insured as provided in this subchapter, elect to

receive payment of the insurance in one sum.

(b) Under such regulations as the Secretary may promulgate, the

cash surrender value of any policy of insurance or the proceeds of

an endowment contract which matures by reason of completion of the

endowment period may be paid to the insured (1) in equal monthly

installments of from thirty-six to two hundred and forty in number,

in multiples of twelve; or (2) as a refund life income in monthly

installments payable for such periods certain as may be required in

order that the sum of the installments certain, including a last

installment of such reduced amount as may be necessary, shall equal

the cash value of the contract, less any indebtedness, with such

payments continuing throughout the lifetime of the insured.

However, all settlements under option (2) above shall be calculated

on the basis of The Annuity Table for 1949. If the option selected

requires payment of monthly installments of less than $10, the

amount payable shall be paid in such maximum number of monthly

installments as are a multiple of twelve as will provide a monthly

installment of not less than $10.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1161, Sec. 752; Pub. L.

91-291, Sec. 12, June 25, 1970, 84 Stat. 332; Pub. L. 97-66, title

IV, Sec. 403(b), Oct. 17, 1981, 95 Stat. 1031; Pub. L. 99-576,

title VII, Sec. 701(32), Oct. 28, 1986, 100 Stat. 3293; renumbered

Sec. 1952 and amended Pub. L. 102-83, Secs. 4(b)(1), (2)(E), 5(a),

Aug. 6, 1991, 105 Stat. 404-406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 752 of this title as

this section and substituted "Secretary" for "Administrator" in

subsecs. (a) and (b).

1986 - Subsec. (a). Pub. L. 99-576 substituted "the right" for

"his right" in two places.

1981 - Subsec. (a). Pub. L. 97-66 inserted provision empowering

beneficiaries, in the case of insurance maturing after Sept. 30,

1981, and for which the insured has not exercised the right of

election of the insured as provided in this subchapter, to elect to

receive payment of the insurance in one sum.

1970 - Pub. L. 91-291 designated existing provisions as subsec.

(a) and added subsec. (b).

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-66 effective Oct. 17, 1981, see section

701(b)(1) of Pub. L. 97-66, set out as a note under section 1114 of

this title.

EFFECTIVE DATE OF 1970 AMENDMENT

Amendment by Pub. L. 91-291 effective first day of first calendar

month which begins more than six calendar months after June 25,

1970, see section 14(a) of Pub. L. 91-291, set out as a note under

section 1317 of this title.

-End-

-CITE-

38 USC Sec. 1953 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER II - UNITED STATES GOVERNMENT LIFE INSURANCE

-HEAD-

Sec. 1953. Assignments

-STATUTE-

Any person to whom United States Government life insurance shall

be payable may assign such person's interest in such insurance to

the spouse, child, grandchild, parent, brother, sister, uncle,

aunt, nephew, niece, brother-in-law, or sister-in-law of the

insured. Insofar as applicable, the definitions contained in

section 3 of the World War Veterans' Act, 1924, in effect on

December 31, 1958, shall apply to this section.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1161, Sec. 753; Pub. L.

96-128, title III, Sec. 304, Nov. 28, 1979, 93 Stat. 986;

renumbered Sec. 1953, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105

Stat. 406.)

-REFTEXT-

REFERENCES IN TEXT

Section 3 of the World War Veterans' Act, 1924, referred to in

text, is section 3 of act June 7, 1924, ch. 320, 43 Stat. 607,

which was classified to section 424 of former Title 38, Pensions,

Bonuses, and Veterans' Relief, and which was repealed and the

provisions thereof reenacted as section 101 of this title by Pub.

L. 85-857, Sept. 2, 1958, 72 Stat. 1105.

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 753 of this title as

this section.

1979 - Pub. L. 96-128 substituted "such person's" for "his".

EFFECTIVE DATE OF 1979 AMENDMENT

Amendment by Pub. L. 96-128 effective Nov. 28, 1979, see section

601(b) of Pub. L. 96-128, set out as a note under section 1114 of

this title.

-End-

-CITE-

38 USC Sec. 1954 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER II - UNITED STATES GOVERNMENT LIFE INSURANCE

-HEAD-

Sec. 1954. Forfeiture

-STATUTE-

No yearly renewable term insurance or United States Government

life insurance shall be payable for death inflicted as a lawful

punishment for crime or military offense, except when inflicted by

the enemy. In such cases the cash surrender value of United States

Government life insurance, if any, on the date of such death shall

be paid to the designated beneficiary if living, or if there be no

designated beneficiary alive at the death of the insured the said

value shall be paid to the estate of the insured.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1161, Sec. 754; renumbered

Sec. 1954, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 754 of this title as

this section.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1947 of this title.

-End-

-CITE-

38 USC Sec. 1955 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER II - UNITED STATES GOVERNMENT LIFE INSURANCE

-HEAD-

Sec. 1955. United States Government Life Insurance Fund

-STATUTE-

(a) All premiums paid on account of United States Government life

insurance shall be deposited and covered into the Treasury to the

credit of the United States Government Life Insurance Fund and

shall be available for the payment of losses, dividends, refunds,

and other benefits provided for under such insurance, including

such liabilities as shall have been or shall hereafter be reduced

to judgment in a district court of the United States or the United

States District Court for the District of Columbia, and for the

reimbursement of administrative costs under subsection (c).

Payments from this fund shall be made upon and in accordance with

awards by the Secretary.

(b) The Secretary is authorized to set aside out of the funds so

collected such reserve funds as may be required, under accepted

actuarial principles, to meet all liabilities under such insurance;

and the Secretary of the Treasury is authorized to invest and

reinvest the said United States Government Life Insurance Fund, or

any part thereof, in interest-bearing obligations of the United

States or bonds of the Federal farm-loan banks and to sell said

obligations of the United States or the bonds of the Federal

farm-loan banks for the purposes of such Fund.

(c)(1) For each fiscal year for which this subsection is in

effect, the Secretary shall, from the United States Government Life

Insurance Fund, reimburse the "General operating expenses" account

of the Department for the amount of administrative costs determined

under paragraph (2) for that fiscal year. Such reimbursement shall

be made from any surplus earnings for that fiscal year that are

available for dividends on such insurance after claims have been

paid and actuarially determined reserves have been set aside.

However, if the amount of such administrative costs exceeds the

amount of such surplus earnings, such reimbursement shall be made

only to the extent of such surplus earnings.

(2) The Secretary shall determine the administrative costs to the

Department for a fiscal year for which this subsection is in effect

which, in the judgment of the Secretary, are properly allocable to

the provision of United States Government Life Insurance (and to

the provision of any total disability income insurance added to the

provision of such insurance).

(3) This subsection shall be in effect only with respect to

fiscal year 1996.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1161, Sec. 755; renumbered

Sec. 1955 and amended Pub. L. 102-83, Secs. 4(b)(1), (2)(E), 5(a),

Aug. 6, 1991, 105 Stat. 404-406; Pub. L. 104-99, title II, Sec.

201(b), Jan. 26, 1996, 110 Stat. 36.)

-COD-

CODIFICATION

Amendment by Pub. L. 104-99 is based on section 107(3) of H.R.

2099, One Hundred Fourth Congress, as passed by the House of

Representatives on Dec. 7, 1995, which was enacted into law by Pub.

L. 104-99.

-MISC1-

AMENDMENTS

1996 - Subsec. (a). Pub. L. 104-99 inserted ", and for the

reimbursement of administrative costs under subsection (c)" after

"District of Columbia".

Subsec. (c). Pub. L. 104-99 added subsec. (c).

1991 - Pub. L. 102-83 renumbered section 755 of this title as

this section and substituted "Secretary" for "Administrator" in

subsecs. (a) and (b).

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 113, 1982 of this title.

-End-

-CITE-

38 USC Sec. 1956 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER II - UNITED STATES GOVERNMENT LIFE INSURANCE

-HEAD-

Sec. 1956. Military and naval insurance appropriation

-STATUTE-

All sums heretofore or hereafter appropriated for the military

and naval insurance appropriation and all premiums collected for

yearly renewable term insurance deposited and covered into the

Treasury to the credit of this appropriation shall be made

available to the Department. All premiums that may hereafter be

collected for yearly renewable term insurance shall be deposited

and covered into the Treasury for the credit of this appropriation.

Such sum is made available for the payment of the liabilities of

the United States incurred under contracts of yearly renewable term

insurance. Payments from this appropriation shall be made upon and

in accordance with the awards by the Secretary.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1162, Sec. 756; renumbered

Sec. 1956 and amended Pub. L. 102-83, Secs. 4(a)(3), (4), (b)(1),

(2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404-406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83, Sec. 5(a), renumbered section 756 of this

title as this section.

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator".

Pub. L. 102-83, Sec. 4(a)(3), (4), substituted "Department" for

"Veterans' Administration".

-End-

-CITE-

38 USC Sec. 1957 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER II - UNITED STATES GOVERNMENT LIFE INSURANCE

-HEAD-

Sec. 1957. Extra hazard costs

-STATUTE-

(a) The United States shall bear the excess mortality and

disability cost resulting from the hazards of war on United States

Government life insurance.

(b) Whenever benefits under United States Government life

insurance become, or have become, payable because of total

permanent disability of the insured or because of the death of the

insured as a result of disease or injury traceable to the extra

hazard of the military or naval service, as such hazard may be

determined by the Secretary, the liability shall be borne by the

United States. In such cases the Secretary shall transfer from the

military and naval insurance appropriation to the United States

Government Life Insurance Fund a sum which, together with the

reserve of the policy at the time of maturity by total permanent

disability or death, will equal the then value of such benefits.

When a person receiving total permanent disability benefits under a

United States Government life insurance policy recovers from such

disability and is then entitled to continue a reduced amount of

insurance, the Secretary shall transfer to the military and naval

insurance appropriation all of the loss reserve to the credit of

such policy claim except a sum sufficient to set up the then

required reserve on the reduced amount of the insurance that may be

continued, which sum shall be retained in the United States

Government Life Insurance Fund for the purpose of such reserve.

(c) Whenever benefits under the total disability provision

become, or have become, payable because of total disability of the

insured as a result of disease or injury traceable to the extra

hazard of the military or naval service, as such hazard may be

determined by the Secretary, the liability shall be borne by the

United States, and the Secretary shall transfer from the military

and naval insurance appropriation to the United States Government

Life Insurance Fund from time to time any amounts which become or

have become payable to the insured on account of such total

disability, and shall transfer from the United States Government

Life Insurance Fund to the military and naval insurance

appropriation the amount of the reserve held on account of the

total disability benefit. When a person receiving such payments on

account of total disability recovers from such disability and is

then entitled to continued protection under the total disability

provision, the Secretary shall transfer to the United States

Government Life Insurance Fund a sum sufficient to set up the then

required reserve on such total disability benefit.

(d) Any disability for which a waiver was required as a condition

to tendering a person a commission under Public Law 816,

Seventy-seventh Congress, shall be deemed to be a disability

resulting from an injury or disease traceable to the extra hazard

of military or naval service for the purpose of applying this

section.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1162, Sec. 757; renumbered

Sec. 1957 and amended Pub. L. 102-83, Secs. 4(b)(1), (2)(E), 5(a),

Aug. 6, 1991, 105 Stat. 404-406.)

-REFTEXT-

REFERENCES IN TEXT

Public Law 816, Seventy-seventh Congress, referred to in subsec.

(d), is act Dec. 18, 1942, ch. 768, Secs. 1, 2, 56 Stat. 1066.

Section 1 of that Act enacted section 853c-5 of former Title 34,

Navy, and was repealed by act July 9, 1952, ch. 608, pt. VIII, Sec.

803, 66 Stat. 505. Section 2 of that Act enacted section 853c-6 of

former Title 34, and was omitted from the Code in the general

revision and reenactment of Title 10, Armed Forces, by act Aug. 10,

1956, ch. 1041, 70A Stat. 1.

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 757 of this title as

this section and substituted "Secretary" for "Administrator"

wherever appearing in subsecs. (b) and (c).

-End-

-CITE-

38 USC Sec. 1958 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER II - UNITED STATES GOVERNMENT LIFE INSURANCE

-HEAD-

Sec. 1958. Statutory total permanent disability

-STATUTE-

Without prejudice to any other cause of disability, the permanent

loss of the use of both feet, of both hands, or of both eyes, or of

one foot and one hand, or of one foot and one eye, or of one hand

and one eye, or the loss of hearing of both ears, or the organic

loss of speech, shall be deemed total permanent disability for

insurance purposes. This section shall be deemed to be in effect on

and after April 6, 1917, and shall apply only to automatic

insurance, yearly renewable term insurance, and United States

Government life insurance issued prior to December 15, 1936.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1163, Sec. 758; renumbered

Sec. 1958, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 758 of this title as

this section.

-End-

-CITE-

38 USC Sec. 1959 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER II - UNITED STATES GOVERNMENT LIFE INSURANCE

-HEAD-

Sec. 1959. Waiver of disability for reinstatement

-STATUTE-

(a) In the event that all provisions of the rules and regulations

other than the requirements as to the physical condition of the

applicant have been complied with, an application for

reinstatement, in whole or in part, of lapsed United States

Government life insurance may be approved if made within two years

after the date of lapse and if the applicant's disability is the

result of an injury or disease, or of an aggravation thereof,

suffered or contracted in the active military or naval service

during the period beginning April 6, 1917, and ending July 2, 1921,

and the applicant during the applicant's lifetime submits proof

satisfactory to the Secretary showing that the applicant is not

totally and permanently disabled. As a condition to the acceptance

of an application for reinstatement under this section, the

applicant shall be required to pay all the back monthly premiums

which would have become payable if such insurance had not lapsed,

together with interest at the rate of 5 per centum per annum,

compounded annually, on each premium from the date said premium is

due by the terms of the policy.

(b) Premium liens established under the provisions of section 304

of the World War Veterans' Act, 1924, shall continue to bear

interest at the rate of 5 per centum per annum, compounded

annually, and will be deducted from any settlement of insurance to

which they are attached.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1163, Sec. 759; Pub. L.

99-576, title VII, Sec. 701(33), Oct. 28, 1986, 100 Stat. 3293;

renumbered Sec. 1959 and amended Pub. L. 102-83, Secs. 4(b)(1),

(2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404-406.)

-REFTEXT-

REFERENCES IN TEXT

Section 304 of the World War Veteran's Act, 1924, referred to in

subsec. (b), is section 304 of act June 7, 1924, ch. 320, title

III, 43 Stat. 625, which enacted section 515 of former Title 38,

Pensions, Bonuses, and Veterans' Relief, and which was repealed and

the provisions thereof reenacted as this section by Pub. L. 85-857,

Sec. 14(51), Sept. 2, 1958, 72 Stat. 1271.

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 759 of this title as

this section and substituted "Secretary" for "Administrator" in

subsec. (a).

1986 - Subsec. (a). Pub. L. 99-576 substituted "the applicant's"

for "his" and "the applicant" for "he".

-End-

-CITE-

38 USC Sec. 1960 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER II - UNITED STATES GOVERNMENT LIFE INSURANCE

-HEAD-

Sec. 1960. Waiver of premium payments on due date

-STATUTE-

(a) The Secretary is authorized to provide by regulations for

waiving the payment of premiums on United States Government life

insurance on the due date thereof and the insurance may be deemed

not to lapse in the cases of the following persons: (1) those who

are confined in hospital under the Department for a compensable

disability during the period while they are so confined; (2) those

who are rated as temporarily totally disabled by reason of any

injury or disease entitling them to compensation during the period

of such total disability and while they are so rated; (3) those

who, while mentally incompetent and for whom no legal guardian had

been or has been appointed, allowed or may allow their insurance to

lapse during the period for which they have been or hereafter may

be rated mentally incompetent, or until a guardian has notified the

Department of the guardian's qualification, but not later than six

months after appointment of a guardian. In mentally incompetent

cases the waiver is to be made without application and retroactive

when necessary. Relief from payment of premiums on the due date

thereof shall be for full calendar months, beginning with the month

in which said confinement to hospital, the temporary total

disability rating, or the mental incompetency began or begins and

ending with that month during the half or major fraction of which

such persons are no longer entitled to waiver as provided above.

(b) All premiums the payment of which when due is waived as

provided in this section shall bear interest at the rate of 5

percent per annum, compounded annually, from the due date of each

premium, and if not paid by the insured shall be deducted from the

insurance in any settlement thereunder, or when the same matures

either because of permanent total disability or death. In the event

any lien or other indebtedness established by this section or prior

corresponding provision of law exists against any policy of United

States Government life insurance in excess of the then cash

surrender value thereof at the time of the termination of such

policy of insurance for any reason other than by death or total

permanent disability the Secretary is authorized to transfer and

pay from the military and naval insurance appropriation to the

United States Government Life Insurance Fund a sum equal to the

amount such lien or indebtedness exceeds the then cash surrender

value.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1163, Sec. 760; Pub. L.

97-295, Sec. 4(28), Oct. 12, 1982, 96 Stat. 1307; Pub. L. 99-576,

title VII, Sec. 701(34), Oct. 28, 1986, 100 Stat. 3293; renumbered

Sec. 1960 and amended Pub. L. 102-83, Secs. 4(a)(3), (4), (b)(1),

(2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404-406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83, Sec. 5(a), renumbered section 760 of this

title as this section.

Subsec. (a). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted

"Secretary" for "Administrator".

Pub. L. 102-83, Sec. 4(a)(3), (4), substituted "Department" for

"Veterans' Administration" in two places.

Subsec. (b). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted

"Secretary" for "Administrator".

1986 - Subsec. (a). Pub. L. 99-576 substituted "the guardian's"

for "his".

1982 - Subsec. (b). Pub. L. 97-295 substituted "percent" for "per

centum".

-End-

-CITE-

38 USC Sec. 1961 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER II - UNITED STATES GOVERNMENT LIFE INSURANCE

-HEAD-

Sec. 1961. Authority for higher interest rates for amounts payable

to beneficiaries

-STATUTE-

Notwithstanding section 1944(b) of this title, if the beneficiary

of an insurance policy issued under the provisions of this

subchapter receives the proceeds of such policy under a settlement

option under which such proceeds are paid in equal monthly

installments over a limited period of months, the interest that may

be added to each such installment may be at a rate that is higher

than the interest rate prescribed in such section. The Secretary

may from time to time establish a higher interest rate under the

preceding sentence only in accordance with a determination that

such higher rate is administratively and actuarially sound. Any

such higher interest rate shall be paid on the unpaid balance of

such monthly installments.

-SOURCE-

(Added Pub. L. 96-128, title III, Sec. 303(a), Nov. 28, 1979, 93

Stat. 986, Sec. 761; renumbered Sec. 1961 and amended Pub. L.

102-83, Secs. 4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105

Stat. 404-406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83, Sec. 5(a), renumbered section 761 of this

title as this section.

Pub. L. 102-83, Sec. 5(c)(1), substituted "1944(b)" for "744(b)".

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator".

EFFECTIVE DATE

Section effective Nov. 28, 1979, see section 601(b) of Pub. L.

96-128, set out as an Effective Date of 1979 Amendment note under

section 1114 of this title.

-End-

-CITE-

38 USC Sec. 1962 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER II - UNITED STATES GOVERNMENT LIFE INSURANCE

-HEAD-

Sec. 1962. Authority for higher monthly installments payable to

certain annuitants

-STATUTE-

(a) Subject to subsections (b) and (c) of this section, the

Secretary may from time to time adjust the dollar amount of the

monthly installments payable to a beneficiary of United States

Government Life Insurance who is receiving the proceeds of such

insurance under a life annuity settlement option. The Secretary may

make such an adjustment only if the Secretary determines that the

adjustment is administratively and actuarially sound. The Secretary

may make such an adjustment without regard to the provisions of

section 1944 of this title with respect to interest rates and the

use of mortality tables.

(b) The Secretary shall determine the amount in the trust fund in

the Treasury held for payment of proceeds to United States

Government Life Insurance beneficiaries attributable to interest

and mortality gains on the reserves held for annuity accounts. Such

amount shall be available for distribution to the life annuitants

referred to in subsection (a) of this section as a fixed percentage

of, and in addition to, the monthly installment amount to which the

annuitants are entitled under this subchapter. For the purposes of

this section, gains on the reserves are defined as funds

attributable solely to annuity accounts that are in excess of

actuarial liabilities.

(c) The monthly amount of an annuity authorized in section 1944

of this title, as adjusted under this section, may not be less than

the monthly amount of such annuity that would otherwise be

applicable without regard to this section.

-SOURCE-

(Added Pub. L. 100-322, title III, Sec. 331(b)(1), May 20, 1988,

102 Stat. 536, Sec. 762; renumbered Sec. 1962 and amended Pub. L.

102-83, Secs. 4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105

Stat. 404-406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83, Sec. 5(a), renumbered section 762 of this

title as this section.

Subsec. (a). Pub. L. 102-83, Sec. 5(c)(1), substituted "1944" for

"744".

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator" wherever appearing.

Subsec. (b). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted

"Secretary" for "Administrator".

Subsec. (c). Pub. L. 102-83, Sec. 5(c)(1), substituted "1944" for

"744".

-End-

-CITE-

38 USC Sec. 1963 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER II - UNITED STATES GOVERNMENT LIFE INSURANCE

-HEAD-

Sec. 1963. Authority for payment of interest on settlements

-STATUTE-

(a) Subject to subsection (b) of this section, the Secretary may

pay interest on the proceeds of a United States Government Life

Insurance policy from the date the policy matures to the date of

payment of the proceeds to the beneficiary or, in the case of an

endowment policy, to the policyholder.

(b)(1) The Secretary may pay interest under subsection (a) of

this section only if the Secretary determines that the payment of

such interest is administratively and actuarially sound for the

settlement option involved.

(2) Interest paid under subsection (a) shall be at the rate that

is established by the Secretary for dividends held on credit or

deposit in policyholders' accounts.

-SOURCE-

(Added Pub. L. 100-687, div. B, title XIV, Sec. 1401(a)(2), Nov.

18, 1988, 102 Stat. 4128, Sec. 763; renumbered Sec. 1963 and

amended Pub. L. 102-83, Secs. 4(b)(1), (2)(E), 5(a), Aug. 6, 1991,

105 Stat. 404-406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 763 of this title as

this section and substituted "Secretary" for "Administrator"

wherever appearing.

EFFECTIVE DATE

Section effective with respect to insurance policies maturing

after Nov. 18, 1988, see section 1401(a)(3) of Pub. L. 100-687, set

out as a note under section 1928 of this title.

-End-

-CITE-

38 USC SUBCHAPTER III - SERVICEMEMBERS' GROUP LIFE

INSURANCE 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER III - SERVICEMEMBERS' GROUP LIFE INSURANCE

-HEAD-

SUBCHAPTER III - SERVICEMEMBERS' GROUP LIFE INSURANCE

-MISC1-

AMENDMENTS

1996 - Pub. L. 104-275, title IV, Sec. 405(b)(2)(A), Oct. 9,

1996, 110 Stat. 3339, substituted "SERVICEMEMBERS' GROUP" for

"SERVICEMEN'S GROUP".

-End-

-CITE-

38 USC Sec. 1965 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER III - SERVICEMEMBERS' GROUP LIFE INSURANCE

-HEAD-

Sec. 1965. Definitions

-STATUTE-

For the purpose of this subchapter -

(1) The term "active duty" means -

(A) full-time duty in the Armed Forces, other than active

duty for training;

(B) full-time duty (other than for training purposes) as a

commissioned officer of the Regular or Reserve Corps of the

Public Health Service;

(C) full-time duty as a commissioned officer of the National

Oceanic and Atmospheric Administration; and

(D) full-time duty as a cadet or midshipman at the United

States Military Academy, United States Naval Academy, United

States Air Force Academy, or the United States Coast Guard

Academy.

(2) The term "active duty for training" means -

(A) full-time duty in the Armed Forces performed by Reserves

for training purposes;

(B) full-time duty for training purposes performed as a

commissioned officer of the Reserve Corps of the Public Health

Service;

(C) full-time duty as a member, cadet, or midshipman of the

Reserve Officers Training Corps while attending field training

or practice cruises; and

(D) in the case of members of the National Guard or Air

National Guard of any State, full-time duty under sections 316,

502, 503, 504, or 505 of title 32, United States Code.

(3) The term "inactive duty training" means -

(A) duty (other than full-time duty) prescribed or authorized

for Reserves (including commissioned officers of the Reserve

Corps of the Public Health Service) which duty is scheduled in

advance by competent authority to begin at a specific time and

place; and

(B) in the case of a member of the National Guard or Air

National Guard of any State, such term means duty (other than

full-time duty) which is scheduled in advance by competent

authority to begin at a specific time and place under sections

316, 502, 503, 504, or 505 of title 32, United States Code.

(4) The terms "active duty for training" and "inactive duty

training" do not include duty performed as a temporary member of

the Coast Guard Reserve, and the term "inactive duty training"

does not include (A) work or study performed in connection with

correspondence courses, or (B) attendance at an educational

institution in an inactive status.

(5) The term "member" means -

(A) a person on active duty, active duty for training, or

inactive duty training in the uniformed services in a

commissioned, warrant, or enlisted rank, or grade, or as a

cadet or midshipman of the United States Military Academy,

United States Naval Academy, United States Air Force Academy,

or the United States Coast Guard Academy;

(B) a person who volunteers for assignment to the Ready

Reserve of a uniformed service and is assigned to a unit or

position in which such person may be required to perform active

duty, or active duty for training, and each year will be

scheduled to perform at least twelve periods of inactive duty

training that is creditable for retirement purposes under

chapter 1223 of title 10 (or under chapter 67 of that title as

in effect before the effective date of the Reserve Officer

Personnel Management Act);

(C) a person who volunteers for assignment to a mobilization

category in the Individual Ready Reserve, as defined in section

12304(i)(1) of title 10; and

(D) a member, cadet, or midshipman of the Reserve Officers

Training Corps while attending field training or practice

cruises.

(6) The term "uniformed services" means the Army, Navy, Air

Force, Marine Corps, Coast Guard, the commissioned corps of the

Public Health Service, and the commissioned corps of the National

Oceanic and Atmospheric Administration.

(7) The terms "widow" or "widower" means a person who is the

lawful spouse of the insured member at the time of his death.

(8) The term "child" means a legitimate child, a legally

adopted child, an illegitimate child as to the mother, or an

illegitimate child as to the alleged father, only if (A) he

acknowledged the child in writing signed by him; or (B) he has

been judicially ordered to contribute to the child's support; or

(C) he has been, before his death, judicially decreed to be the

father of such child; or (D) proof of paternity is established by

a certified copy of the public record of birth or church record

of baptism showing that the insured was the informant and was

named as father of the child; or (E) proof of paternity is

established from service department or other public records, such

as school or welfare agencies, which show that with his knowledge

the insured was named as the father of the child.

(9) The term "parent" means a father of a legitimate child,

mother of a legitimate child, father through adoption, mother

through adoption, mother of an illegitimate child, and father of

an illegitimate child but only if (A) he acknowledged paternity

of the child in writing signed by him before the child's death;

or (B) he has been judicially ordered to contribute to the

child's support; or (C) he has been judicially decreed to be the

father of such child; or (D) proof of paternity is established by

a certified copy of the public record of birth or church record

of baptism showing that the claimant was the informant and was

named as father of the child; or (E) proof of paternity is

established from service department or other public records, such

as school or welfare agencies, which show that with his knowledge

the claimant was named as father of the child. No person who

abandoned or willfully failed to support a child during the

child's minority, or consented to the child's adoption may be

recognized as a parent for the purpose of this subchapter.

However, the immediately preceding sentence shall not be applied

so as to require duplicate payments in any case in which

insurance benefits have been paid prior to receipt in the

administrative office established under subsection 1966(b) of

this title of sufficient evidence to clearly establish that the

person so paid could not qualify as a parent solely by reason of

such sentence.

(10) The term "insurable dependent", with respect to a member,

means the following:

(A) The member's spouse.

(B) The member's child, as defined in the first sentence of

section 101(4)(A) of this title.

-SOURCE-

(Added Pub. L. 89-214, Sec. 1(a), Sept. 29, 1965, 79 Stat. 880,

Sec. 765; amended Pub. L. 91-291, Sec. 1, June 25, 1970, 84 Stat.

326; Pub. L. 92-185, Sec. 1, Dec. 15, 1971, 85 Stat. 642; Pub. L.

92-315, June 20, 1972, 86 Stat. 227; Pub. L. 93-289, Secs. 3,

10(1), May 24, 1974, 88 Stat. 165, 172; Pub. L. 99-576, title VII,

Sec. 701(35), Oct. 28, 1986, 100 Stat. 3293; Pub. L. 102-54, Sec.

14(b)(16), June 13, 1991, 105 Stat. 284; renumbered Sec. 1965 and

amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat.

406; Pub. L. 103-337, div. A, title VI, Sec. 651(a), title XVI,

Sec. 1677(d)(1), Oct. 5, 1994, 108 Stat. 2792, 3020; Pub. L.

104-275, title IV, Sec. 402(a), Oct. 9, 1996, 110 Stat. 3337; Pub.

L. 106-419, title III, Sec. 313(a), Nov. 1, 2000, 114 Stat. 1854;

Pub. L. 107-14, Sec. 4(a)(1), June 5, 2001, 115 Stat. 26.)

-REFTEXT-

REFERENCES IN TEXT

Chapter 67 of title 10 as in effect before the effective date of

the Reserve Officer Personnel Management Act, referred to in par.

(5)(B), means chapter 67 (Sec. 1331 et seq.) of Title 10, Armed

Forces, prior to its transfer to part II of subtitle E of Title 10,

its renumbering as chapter 1223, and its general revision by

section 1662(j)(1) of Pub. L. 103-337. A new chapter 67 (Sec. 1331)

of Title 10 was added by section 1662(j)(7) of Pub. L. 103-337. For

effective date of the Reserve Officer Personnel Management Act

(Pub. L. 103-337, title XVI), see section 1691 of Pub. L. 103-337,

set out as an Effective Date note under section 10001 of Title 10.

-MISC1-

AMENDMENTS

2001 - Par. (10). Pub. L. 107-14 added par. (10).

2000 - Par. (5)(C), (D). Pub. L. 106-419 added subpar. (C) and

redesignated former subpar. (C) as (D).

1996 - Par. (5)(B). Pub. L. 104-275, Sec. 402(a)(1), inserted

"and" at end.

Par. (5)(C) to (E). Pub. L. 104-275, Sec. 402(a)(2), (3),

redesignated subpar. (E) as (C) and struck out former subpars. (C)

and (D) which read as follows:

"(C) a person assigned to, or who upon application would be

eligible for assignment to, the Retired Reserve of a uniformed

service who has not received the first increment of retirement pay

or has not yet reached sixty-one years of age and has completed at

least twenty years of satisfactory service creditable for

retirement purposes under chapter 1223 of title 10 (or under

chapter 67 of that title as in effect before the effective date of

the Reserve Officer Personnel Management Act);

"(D) a person transferred to the Retired Reserve of a uniformed

service under the temporary special retirement authority provided

in section 1331a of title 10 who has not received the first

increment of retirement pay or has not reached sixty-one years of

age; and".

1994 - Par. (5)(B), (C). Pub. L. 103-337, Sec. 1677(d)(1),

substituted "chapter 1223 of title 10 (or under chapter 67 of that

title as in effect before the effective date of the Reserve Officer

Personnel Management Act)" for "chapter 67 of title 10".

Par. (5)(D), (E). Pub. L. 103-337, Sec. 651(a), added subpar. (D)

and redesignated former subpar. (D) as (E).

1991 - Pub. L. 102-83, Sec. 5(a), renumbered section 765 of this

title as this section.

Par. (4). Pub. L. 102-54, Sec. 14(b)(16)(A), redesignated cls.

(i) and (ii) as (A) and (B), respectively.

Par. (8). Pub. L. 102-54, Sec. 14(b)(16)(B), redesignated cls.

(a) to (e) as (A) to (E), respectively.

Par. (9). Pub. L. 102-83, Sec. 5(c)(1), substituted "1966(b)" for

"766(b)".

Pub. L. 102-54, Sec. 14(b)(16)(B), redesignated cls. (a) to (e)

as (A) to (E), respectively.

1986 - Par. (5)(B). Pub. L. 99-576, Sec. 701(35)(A), substituted

"such person" for "he".

Par. (9). Pub. L. 99-576, Sec. 701(35)(B), substituted "the

child's" for "his" in two places.

1974 - Par. (1)(C). Pub. L. 93-289, Sec. 10(1), substituted

"National Oceanic and Atmospheric Administration" for

"Environmental Science Services Administration".

Par. (5). Pub. L. 93-289, Sec. 3, added cls. (B) and (C),

redesignated former cl. (B) as (D), and substituted "midshipman of"

for "midshipman at" in cl. (A).

Par. (6). Pub. L. 93-289, Sec. 10(1), substituted "National

Oceanic and Atmospheric Administration" for "Environmental Science

Services Administration".

1972 - Par. (1)(D). Pub. L. 92-315, Sec. 1(3), added cl. (D).

Par. (5)(A). Pub. L. 92-315, Sec. 1(4), expanded definition of

"member" to include persons in active duty as a cadet or midshipman

at the United States Military Academy, United States Naval Academy,

United States Air Force Academy and the United States Coast Guard

Academy.

1971 - Pars. (7) to (9). Pub. L. 92-185 added pars. (7) to (9)

defining, respectively, "widow" or "widower", "child", and

"parent".

1970 - Pub. L. 91-291 struck out from definition of "active duty"

a reference to calls or orders to duty which specify a period of 30

days or less, inserted definitions for "active duty for training"

and "inactive duty training", and, in definition of "uniformed

services", inserted provisions limiting the scope of that term in

the case of personnel of the Public Health Service and the

Environmental Science Services Administration to the commissioned

corps thereof respectively.

EFFECTIVE DATE OF 2001 AMENDMENT

Amendment by Pub. L. 107-14 effective on the first day of the

first month that begins more than 120 days after June 5, 2001, see

section 4(g)(1) of Pub. L. 107-14, set out as a note under section

101 of this title.

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by section 1677(d)(1) of Pub. L. 103-337 effective Dec.

1, 1994, except as otherwise provided, see section 1691 of Pub. L.

103-337, set out as an Effective Date note under section 10001 of

Title 10, Armed Forces.

EFFECTIVE DATE OF 1974 AMENDMENT

Section 12(2) of Pub. L. 93-289 provided that: "The amendments

relating to Servicemen's Group Life Insurance coverage on a

full-time basis for certain members of the Reserves and National

Guard shall become effective upon the date of enactment of this Act

[May 24, 1974]."

EFFECTIVE DATE OF 1971 AMENDMENT

Section 2 of Pub. L. 92-185 provided that: "The provisions of

this Act [amending this section] shall apply only to Servicemen's

Group Life Insurance in effect on the life of an insured member who

dies on or after the date of enactment of this Act [Dec. 15,

1971]."

EFFECTIVE DATE OF 1970 AMENDMENT

Amendment by Pub. L. 91-291 effective June 25, 1970, see section

14(a) of Pub. L. 91-291, set out as a note under section 1317 of

this title.

Section 14(b) of Pub. L. 91-291 provided that: "The provisions of

section 765(7), (8), and (9) [now 1765(7), (8), and (9)] of title

38, United States Code, as added by the first section of this Act

shall apply only to servicemen's group life insurance in effect on

the life of an insured member who dies on and after the date of

enactment of this Act [June 25, 1970]."

-TRANS-

TRANSFER OF FUNCTIONS

For transfer of authorities, functions, personnel, and assets of

the Coast Guard, including the authorities and functions of the

Secretary of Transportation relating thereto, to the Department of

Homeland Security, and for treatment of related references, see

sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic

Security, and the Department of Homeland Security Reorganization

Plan of November 25, 2002, as modified, set out as a note under

section 542 of Title 6.

-MISC2-

RENAMING OF GROUP LIFE INSURANCE PROGRAM

Section 405(a) of Pub. L. 104-275 provided that: "The program of

insurance operated by the Secretary of Veterans Affairs under

subchapter III of chapter 19 of title 38, United States Code, is

hereby redesignated as the Servicemembers' Group Life Insurance

program."

REFERENCES TO SERVICEMEN'S GROUP LIFE INSURANCE OR ADVISORY COUNCIL

ON SERVICEMEN'S GROUP LIFE INSURANCE

Section 405(d) of Pub. L. 104-275 provided that: "Any reference

to Servicemen's Group Life Insurance or to the Advisory Council on

Servicemen's Group Life Insurance in any Federal law, Executive

order, regulation, delegation of authority, or other document of

the Federal Government shall be deemed to refer to Servicemembers'

Group Life Insurance or the Advisory Council on Servicemembers'

Group Life Insurance, respectively."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 101, 1967, 1968, 1969 of

this title.

-End-

-CITE-

38 USC Sec. 1966 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER III - SERVICEMEMBERS' GROUP LIFE INSURANCE

-HEAD-

Sec. 1966. Eligible insurance companies

-STATUTE-

(a) The Secretary is authorized, without regard to section 3709

of the Revised Statutes, as amended (41 U.S.C. 5), to purchase from

one or more life insurance companies a policy or policies of group

life insurance to provide the benefits specified in this

subchapter. Each such life insurance company must (1) be licensed

to issue life insurance in each of the fifty States of the United

States and in the District of Columbia, and (2) as of the most

recent December 31 for which information is available to the

Secretary, have in effect at least 1 percent of the total amount of

group life insurance which all life insurance companies have in

effect in the United States.

(b) The life insurance company or companies issuing such policy

or policies shall establish an administrative office at a place and

under a name designated by the Secretary.

(c) The Secretary shall arrange with the life insurance company

or companies issuing any policy or policies under this subchapter

to reinsure, under conditions approved by the Secretary, portions

of the total amount of insurance under such policy or policies with

such other life insurance companies (which meet qualifying criteria

set forth by the Secretary) as may elect to participate in such

reinsurance.

(d) The Secretary may at any time discontinue any policy or

policies which the Secretary has purchased from any insurance

company under this subchapter.

-SOURCE-

(Added Pub. L. 89-214, Sec. 1(a), Sept. 29, 1965, 79 Stat. 880,

Sec. 766; amended Pub. L. 97-295, Sec. 4(29), Oct. 12, 1982, 96

Stat. 1307; Pub. L. 99-576, title VII, Sec. 701(36), Oct. 28, 1986,

100 Stat. 3293; renumbered Sec. 1966 and amended Pub. L. 102-83,

Secs. 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404-406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 766 of this title as

this section and substituted "Secretary" for "Administrator"

wherever appearing.

1986 - Subsec. (c). Pub. L. 99-576, Sec. 701(36)(A), substituted

"the Administrator" for "him".

Subsec. (d). Pub. L. 99-576, Sec. 701(36)(B), substituted "the

Administrator" for "he".

1982 - Subsec. (a). Pub. L. 97-295 substituted "percent" for "per

centum".

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1965, 1967, 1969, 1970,

1971, 1972, 1977 of this title.

-End-

-CITE-

38 USC Sec. 1967 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER III - SERVICEMEMBERS' GROUP LIFE INSURANCE

-HEAD-

Sec. 1967. Persons insured; amount

-STATUTE-

(a)(1) Subject to an election under paragraph (2), any policy of

insurance purchased by the Secretary under section 1966 of this

title shall automatically insure the following persons against

death:

(A) In the case of any member of a uniformed service on active

duty (other than active duty for training) -

(i) the member; and

(ii) each insurable dependent of the member.

(B) Any member of a uniformed service on active duty for

training or inactive duty training scheduled in advance by

competent authority.

(C) In the case of any member of the Ready Reserve of a

uniformed service who meets the qualifications set forth in

section 1965(5)(B) of this title -

(i) the member; and

(ii) each insurable dependent of the member.

(2)(A) A member may elect in writing not to be insured under this

subchapter.

(B) A member may elect in writing not to insure the member's

spouse under this subchapter.

(3)(A) Subject to subparagraphs (B) and (C), the amount for which

a person is insured under this subchapter is as follows:

(i) In the case of a member, $250,000.

(ii) In the case of a member's spouse, $100,000.

(iii) In the case of a member's child, $10,000.

(B) A member may elect in writing to be insured or to insure the

member's spouse in an amount less than the amount provided for

under subparagraph (A). The member may not elect to insure the

member's child in an amount less than $10,000. The amount of

insurance so elected shall, in the case of a member or spouse, be

evenly divisible by $10,000.

(C) In no case may the amount of insurance coverage under this

subsection of a member's spouse exceed the amount of insurance

coverage of the member.

(4)(A) An insurable dependent of a member is not insured under

this chapter unless the member is insured under this subchapter.

(B) An insurable dependent who is a child may not be insured at

any time by the insurance coverage under this chapter of more than

one member. If an insurable dependent who is a child is otherwise

eligible to be insured by the coverage of more than one member

under this chapter, the child shall be insured by the coverage of

the member whose eligibility for insurance under this subchapter

occurred first, except that if that member does not have legal

custody of the child, the child shall be insured by the coverage of

the member who has legal custody of the child.

(5) The insurance shall be effective with respect to a member and

the insurable dependents of the member on the latest of the

following dates:

(A) The first day of active duty or active duty for training.

(B) The beginning of a period of inactive duty training

scheduled in advance by competent authority.

(C) The first day a member of the Ready Reserve meets the

qualifications set forth in section 1965(5)(B) of this title.

(D) The date certified by the Secretary to the Secretary

concerned as the date Servicemembers' Group Life Insurance under

this subchapter for the class or group concerned takes effect.

(E) In the case of an insurable dependent who is a spouse, the

date of marriage of the spouse to the member.

(F) In the case of an insurable dependent who is a child, the

date of birth of such child or, if the child is not the natural

child of the member, the date on which the child acquires status

as an insurable dependent of the member.

(b) Any member (other than one who has elected not to be insured

under this subchapter for the period or periods of duty involved) -

(1) who, when authorized or required by competent authority,

assumes an obligation to perform (for less than thirty-one days)

active duty, or active duty for training, or inactive duty

training scheduled in advance by competent authority; and

(2) who is rendered uninsurable at standard premium rates

according to the good health standards approved by the Secretary,

or dies within one hundred and twenty days thereafter, from a

disability, or aggravation of a preexisting disability, incurred

by such member while proceeding directly to or returning directly

from such active duty, active duty for training, or inactive duty

training as the case may be;

shall be deemed to have been on active duty, active duty for

training, or inactive duty training, as the case may be, and to

have been insured under this subchapter at the time such disability

was incurred or aggravated, and if death occurs within one hundred

and twenty days thereafter as a result of such disability to have

been insured at the time of death. In determining whether or not

such individual was so authorized or required to perform such duty,

and whether or not such member was rendered uninsurable or died

within one hundred and twenty days thereafter from a disability so

incurred or aggravated, there shall be taken into account the call

or order to duty, the orders and authorizations of competent

authority, the hour on which the member began to so proceed or to

return, the hour on which such member was scheduled to arrive for,

or on which such member ceased to perform such duty; the method of

travel employed; such member's itinerary; the manner in which the

travel was performed; and the immediate cause of disability or

death. Whenever any claim is filed alleging that the claimant is

entitled to benefits by reason of this subsection, the burden of

proof shall be on the claimant.

(c) If a person eligible for insurance under this subchapter is

not so insured, or is insured for less than the maximum amount

provided for the person under subparagraph (A) of subsection

(a)(3), by reason of an election made by a member under

subparagraph (B) of that subsection, the person may thereafter be

insured under this subchapter in the maximum amount or any lesser

amount elected as provided in such subparagraph (B) upon written

application by the member, proof of good health of each person

(other than a child) to be so insured, and compliance with such

other terms and conditions as may be prescribed by the Secretary.

Any former member insured under Veterans' Group Life Insurance who

again becomes eligible for Servicemembers' Group Life Insurance and

declines such coverage solely for the purpose of maintaining such

member's Veterans' Group Life Insurance in effect shall upon

termination of coverage under Veterans' Group Life Insurance be

automatically insured under Servicemembers' Group Life Insurance,

if otherwise eligible therefor.

(d) Whenever a member has the opportunity to make an election

under subsection (a) not to be insured under this subchapter, or to

be insured under this subchapter in an amount less than the maximum

amount of $250,000, and at such other times periodically thereafter

as the Secretary concerned considers appropriate, the Secretary

concerned shall furnish to the member general information

concerning life insurance. Such information shall include -

(1) the purpose and role of life insurance in financial

planning;

(2) the difference between term life insurance and whole life

insurance;

(3) the availability of commercial life insurance; and

(4) the relationship between Servicemembers' Group Life

Insurance and Veterans' Group Life Insurance.

(e) The effective date and time for any change in benefits under

the Servicemembers' Group Life Insurance Program shall be based on

the date and time according to the time zone immediately west of

the International Date Line.

-SOURCE-

(Added Pub. L. 89-214, Sec. 1(a), Sept. 29, 1965, 79 Stat. 881,

Sec. 767; amended Pub. L. 91-291, Sec. 2, June 25, 1970, 84 Stat.

327; Pub. L. 93-289, Sec. 4, May 24, 1974, 88 Stat. 166; Pub. L.

97-66, title IV, Sec. 401(a), Oct. 17, 1981, 95 Stat. 1030; Pub. L.

99-166, title IV, Sec. 401(a), Dec. 3, 1985, 99 Stat. 956; Pub. L.

99-576, title VII, Sec. 701(37), Oct. 28, 1986, 100 Stat. 3293;

Pub. L. 102-25, title III, Sec. 336(a), Apr. 6, 1991, 105 Stat. 89;

renumbered Sec. 1967 and amended Pub. L. 102-83, Secs. 4(b)(1),

(2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404-406; Pub. L.

102-568, title II, Sec. 201, Oct. 29, 1992, 106 Stat. 4324; Pub. L.

103-160, div. A, title XI, Sec. 1175(a), Nov. 30, 1993, 107 Stat.

1768; Pub. L. 103-337, div. A, title VI, Sec. 651(b), Oct. 5, 1994,

108 Stat. 2792; Pub. L. 104-106, div. A, title VI, Sec. 646, Feb.

10, 1996, 110 Stat. 369; Pub. L. 104-275, title IV, Secs. 402(b),

404, 405(b)(1)(A), Oct. 9, 1996, 110 Stat. 3337, 3339; Pub. L.

106-419, title III, Secs. 312(a), 313(b), Nov. 1, 2000, 114 Stat.

1854, 1855; Pub. L. 107-14, Sec. 4(b), June 5, 2001, 115 Stat. 26.)

-MISC1-

AMENDMENTS

2001 - Subsec. (a). Pub. L. 107-14, Sec. 4(b)(1), amended subsec.

(a) generally. Prior to amendment, subsec. (a) read as follows:

"Any policy of insurance purchased by the Secretary under section

1966 of this title shall automatically insure against death -

"(1) any member of a uniformed service on active duty, active

duty for training, or inactive duty training scheduled in advance

by competent authority; and

"(2) any member of the Ready Reserve of a uniformed service who

meets the qualifications set forth in subparagraph (B) or (C) of

section 1965(5) of this title;

in the amount of $250,000, unless such member elects in writing (A)

not to be insured under this subchapter, or (B) to be insured in an

amount less than $250,000 that is evenly divisible by $10,000. The

insurance shall be effective the first day of active duty or active

duty for training, or the beginning of a period of inactive duty

training scheduled in advance by competent authority, or the first

day a member of the Ready Reserve meets the qualifications set

forth in subparagraph (B) or (C) of section 1965(5) of this title,

or the date certified by the Secretary to the Secretary concerned

as the date Servicemembers' Group Life Insurance under this

subchapter for the class or group concerned takes effect, whichever

is the later date."

Subsec. (c). Pub. L. 107-14, Sec. 4(b)(2), inserted first

sentence and struck out former first sentence which read as

follows: "If any member elects not to be insured under this

subchapter or to be insured in any amount less than $250,000, such

member may thereafter be insured under this subchapter in the

amount of $250,000 or any lesser amount evenly divisible by $10,000

upon written application, proof of good health, and compliance with

such other terms and conditions as may be prescribed by the

Secretary."

2000 - Subsec. (a). Pub. L. 106-419, Sec. 313(b), substituted

"subparagraph (B) or (C) of section 1965(5) of this title" for

"section 1965(5)(B) of this title" in par. (2) and concluding

provisions.

Pub. L. 106-419, Sec. 312(a), substituted "$250,000" for

"$200,000" in two places in concluding provisions.

Subsecs. (c), (d). Pub. L. 106-419, Sec. 312(a), substituted

"$250,000" for "$200,000" in two places in subsec. (c) and in

introductory provisions of subsec. (d).

1996 - Subsec. (a). Pub. L. 104-275, Sec. 405(b)(1)(A),

substituted "Servicemembers' Group" for "Servicemen's Group" in

concluding provisions.

Pub. L. 104-275, Sec. 402(b)(1)(C), struck out "or the first day

a member of the Reserves, whether or not assigned to the Retired

Reserve of a uniformed service, meets the qualifications of section

1965(5)(C) of this title, or the first day a member of the Reserves

meets the qualifications of section 1965(5)(D) of this title,"

after "section 1965(5)(B) of this title," in concluding provisions.

Pub. L. 104-106, Sec. 646(1), substituted "$200,000" for

"$100,000" in two places in concluding provisions.

Subsec. (a)(1). Pub. L. 104-275, Sec. 402(b)(1)(A), inserted

"and" at end.

Subsec. (a)(3), (4). Pub. L. 104-275, Sec. 402(b)(1)(B), struck

out pars. (3) and (4) which read as follows:

"(3) any member assigned to, or who upon application would be

eligible for assignment to, the Retired Reserve of a uniformed

service who meets the qualifications set forth in section

1965(5)(C) of this title; and

"(4) any member assigned to the Retired Reserve of a uniform

service who meets the qualifications set forth in section

1965(5)(D) of this title;".

Subsec. (c). Pub. L. 104-275, Sec. 405(b)(1)(A), substituted

"Servicemembers' Group" for "Servicemen's Group" in two places.

Pub. L. 104-106, Sec. 646(1), substituted "$200,000" for

"$100,000" in two places.

Subsec. (d). Pub. L. 104-275, Secs. 402(b)(2), 404, added subsec.

(d) and struck out former subsec. (d) which read as follows:

"Notwithstanding any other provision of this section, any member

who on May 1, 1991 is a member of the Retired Reserve of a

uniformed service (or who upon application would be eligible for

assignment to the Retired Reserve of a uniformed service) may

obtain increased insurance coverage in the amount of $100,000 or

any lesser amount evenly divisible by $10,000 if -

"(1) the member -

"(A) is insured under this subchapter on May 1, 1991; or

"(B) within one year after May 1, 1991, reinstates insurance

under this subchapter that had lapsed for nonpayment of

premiums; and

"(2) the member submits a written application for the increased

coverage to the office established pursuant to section 1966(b) of

this title within one year after May 1, 1991."

Subsec. (e). Pub. L. 104-275, Sec. 405(b)(1)(A), substituted

"Servicemembers' Group" for "Servicemen's Group".

Pub. L. 104-106, Sec. 646(2), (3), redesignated subsec. (f) as

(e) and struck out former subsec. (e) which read as follows: "In

addition to the amounts of insurance otherwise provided under this

section, an eligible member may, upon application, obtain increased

coverage beyond that provided under this section in the amount of

$100,000, or any lesser amount evenly divisible by $10,000."

Subsec. (f). Pub. L. 104-106, Sec. 646(3), redesignated subsec.

(f) as (e).

1994 - Subsec. (a). Pub. L. 103-337, Sec. 651(b)(4), inserted "or

the first day a member of the Reserves meets the qualifications of

section 1965(5)(D) of this title," after "section 1965(5)(C) of

this title," in second sentence.

Subsec. (a)(4). Pub. L. 103-337, Sec. 651(b)(1)-(3), added par.

(4).

1993 - Subsec. (f). Pub. L. 103-160 added subsec. (f).

1992 - Subsec. (e). Pub. L. 102-568 added subsec. (e).

1991 - Pub. L. 102-83, Sec. 5(a), renumbered section 767 of this

title as this section.

Subsec. (a). Pub. L. 102-83, Sec. 5(c)(1), substituted "1966" for

"766", "1965(5)(B)" for "765(5)(B)" in two places, and "1965(5)(C)"

for "765(5)(C)" in two places.

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator" in introductory provisions and in last sentence.

Pub. L. 102-25, Sec. 336(a)(1), substituted "$100,000" for

"$50,000" in two places in concluding provisions.

Subsec. (b)(2). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted

"Secretary" for "Administrator".

Subsec. (c). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted

"Secretary" for "Administrator".

Pub. L. 102-25, Sec. 336(a)(1), substituted "$100,000" for

"$50,000" in two places.

Subsec. (d). Pub. L. 102-83, Sec. 5(c)(1), substituted "1966(b)"

for "766(b)" in par. (2).

Pub. L. 102-54, Sec. 336(a)(2), substituted "May 1, 1991" for

"January 1, 1986" wherever appearing and "$100,000" for "$50,000"

in introductory provisions.

1986 - Subsec. (b). Pub. L. 99-576, Sec. 701(37)(A), substituted

"such member" for "him", "such member" for "he" in three places,

and "such member's" for "his".

Subsec. (c). Pub. L. 99-576, Sec. 701(37)(B)(i), substituted

"such member's" for "his".

Pub. L. 99-576, Sec. 701(37)(B)(ii), which directed that subsec.

(c) be amended by substituting "such member" for "he", could not be

executed, because "he" does not appear in text. See 1985 Amendment

note below.

1985 - Subsec. (a). Pub. L. 99-166, Sec. 401(a)(1), increased the

amount of insurance to $50,000 from $35,000 and substituted "an

amount less than $50,000 that is evenly divisible by $10,000" for

"the amount of $30,000, $25,000, $20,000, $15,000, $10,000, or

$5,000".

Subsec. (c). Pub. L. 99-166, Sec. 401(a)(2), substituted "any

amount less than $50,000, such member may thereafter be insured

under this subchapter in the amount of $50,000 or any lesser amount

evenly divisible by $10,000" for "the amount of $30,000, $25,000,

$20,000, $15,000, $10,000, or $5,000, he may thereafter be insured

under this subchapter or insured in the amount of $35,000, $30,000,

$25,000, $20,000, $15,000, or $10,000 under this subchapter, as the

case may be,".

Subsec. (d). Pub. L. 99-166, Sec. 401(a)(3), substituted "January

1, 1986" for "the effective date of this subsection" wherever

appearing, and substituted "in the amount of $50,000 or any lesser

amount evenly divisible by $10,000" for "up to a maximum of $35,000

(in any amount divisible by $5,000)".

1981 - Subsec. (a). Pub. L. 97-66, Sec. 401(a)(1), substituted

"in the amount of $35,000 unless such member elects in writing (A)

not to be insured under this subchapter, or (B) to be insured in

the amount of $30,000, $25,000, $20,000, $15,000, $10,000, or

$5,000" for "in the amount of $20,000 unless such member elects in

writing (A) not to be insured under this subchapter, or (B) to be

insured in the amount of $15,000, $10,000, or $5,000".

Subsec. (c). Pub. L. 97-66, Sec. 401(a)(2), substituted "insured

in the amount of $30,000, $25,000, $20,000, $15,000, $10,000, or

$5,000, he may thereafter be insured under this subchapter or

insured in the amount of $35,000, $30,000, $25,000, $20,000,

$15,000, or $10,000 under this subchapter" for "insured in the

amount of $15,000, $10,000, or $5,000, he may thereafter be insured

under this subchapter or insured in the amount of $20,000, $15,000,

or $10,000 under this subchapter".

Subsec. (d). Pub. L. 97-66, Sec. 401(a)(3), added subsec. (d).

1974 - Subsec. (a). Pub. L. 93-289, Sec. 4(1), authorized

insurance for any member of Ready Reserve who meets qualifications

set forth in section 765(5)(B) of this title, and any member

assigned to, or who upon application would be eligible for

assignment to, the Retired Reserve who meets the qualifications set

forth in section 765(5)(C) of this title, increased the amount of

insurance from $15,000 to $20,000, permitted a member to elect to

be insured for $15,000, and prescribed the effective dates of

insurance for members of the Ready Reserve and members of the

Reserves, whether or not assigned to the Retired Reserves.

Subsec. (b). Pub. L. 93-289, Sec. 4(2), substituted "one hundred

and twenty days" for "ninety days" in three places.

Subsec. (c). Pub. L. 93-289, Sec. 4(3), inserted provisions

authorizing members who elected to be insured in amounts of

$15,000, $10,000, or $5,000 to increase the amount of insurance to

$20,000, and inserted sentence providing for automatic insurance

for former members insured under Veterans' Group Life Insurance who

decline coverage under Servicemen's Group Life Insurance.

1970 - Subsec. (a). Pub. L. 91-291 increased from $10,000 to

$15,000 maximum amount of insurance authorized for members of

uniformed services and inserted references to active duty for

training and inactive duty training scheduled in advance by

competent authority.

Subsec. (b). Pub. L. 91-291 added subsec. (b). Former subsec. (b)

redesignated (c).

Subsec. (c). Pub. L. 91-291 redesignated former subsec. (b) as

subsec. (c) and inserted provisions reflecting the increase from

$10,000 to $15,000 in maximum available insurance for members of

uniformed services.

EFFECTIVE DATE OF 2001 AMENDMENT

Amendment by Pub. L. 107-14 effective on the first day of the

first month that begins more than 120 days after June 5, 2001, see

section 4(g)(1) of Pub. L. 107-14, set out as a note under section

101 of this title.

EFFECTIVE DATE OF 2000 AMENDMENT

Pub. L. 107-14, Sec. 5, June 5, 2001, 115 Stat. 30, provided

that:

"(a) Applicability of Increase in Benefit. - Notwithstanding

subsection (c) of section 312 of the Veterans Benefits and Health

Care Improvement Act of 2000 (Public Law 106-419; 114 Stat. 1854)

[set out as a note below], the amendments made by subsection (a) of

that section [amending this section] shall take effect on October

1, 2000, with respect to any member of the uniformed services who

died in the performance of duty (as determined by the Secretary

concerned) during the period beginning on October 1, 2000, and

ending at the close of March 31, 2001, and who on the date of death

was insured under the Servicemembers' Group Life Insurance program

under subchapter III of chapter 19 of title 38, United States Code,

for the maximum coverage available under that program.

"(b) Definitions. - In this section:

"(1) The term 'Secretary concerned' has the meaning given that

term in section 101(25) of title 38, United States Code.

"(2) The term 'uniformed services' has the meaning given that

term in section 1965(6) of title 38, United States Code."

Pub. L. 106-419, title III, Sec. 312(c), Nov. 1, 2000, 114 Stat.

1854, provided that: "The amendments made by this section [amending

this section and section 1977 of this title] shall take effect on

the first day of the first month that begins more than 120 days

after the date of the enactment of this Act [Nov. 1, 2000]."

EFFECTIVE DATE OF 1996 AMENDMENT

Section 646 of Pub. L. 104-106 provided that the amendments made

by that section are effective Apr. 1, 1996.

EFFECTIVE DATE OF 1993 AMENDMENT

Section 1175(b) of Pub. L. 103-160 provided that: "The amendment

made by subsection (a) [amending this section] shall apply with

respect to amendments to chapter 19 of title 38, United States

Code, that take effect after November 29, 1992."

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-568 effective Dec. 1, 1992, see section

205 of Pub. L. 102-568, set out as an Effective Date note under

section 1922A of this title.

EFFECTIVE DATE OF 1991 AMENDMENT

Section 336(c)(1) of Pub. L. 102-25 provided that: "The

amendments made by subsection (a) [amending this section] shall

apply with respect to deaths on or after the date of the enactment

of this Act [Apr. 6, 1991]."

EFFECTIVE DATE OF 1985 AMENDMENT

Section 401(c) of Pub. L. 99-166, as amended by Pub. L. 99-227,

Sec. 3, Dec. 28, 1985, 99 Stat. 1745, provided that:

"(1) Except as provided in paragraph (2), the amendments made by

subsections (a) and (b) [amending this section and section 777 [now

1977] of this title] shall take effect on January 1, 1986.

"(2) The amendment made by subsection (a)(1)(A) [amending this

section] shall be deemed to have taken effect on December 12, 1985,

with respect to members who -

"(A) died after December 11, 1985, and before January 1, 1986;

and

"(B) were, on the date of death, insured in the amount of

$35,000 under subchapter III of chapter 19 of title 38, United

States Code."

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-66 effective Dec. 1, 1981, see section

701(b)(2) of Pub. L. 97-66, set out as a note under section 1114 of

this title.

EFFECTIVE DATE OF 1974 AMENDMENT

Section 12(3) of Pub. L. 93-289 provided that: "The amendments

increasing the maximum amount of Servicemen's Group Life Insurance

shall become effective upon the date of enactment of this Act [May

24, 1974]."

EFFECTIVE DATE OF 1970 AMENDMENT

Amendment by Pub. L. 91-291 effective June 25, 1970, see section

14(a) of Pub. L. 91-291, set out as a note under section 1317 of

this title.

PAYMENT OF DEATH GRATUITY TO SGLI BENEFICIARIES

Pub. L. 103-139, title VIII, Sec. 8134, Nov. 11, 1993, 107 Stat.

1471, required Secretary of Defense to pay death gratuity to each

beneficiary under Servicemen's Group Life Insurance policy in case

of each deceased member of uniformed services who died on or after

Oct. 29, 1992, and before Dec. 1, 1992, and whose death was in

performance of duty.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1968, 1977 of this title.

-End-

-CITE-

38 USC Sec. 1968 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER III - SERVICEMEMBERS' GROUP LIFE INSURANCE

-HEAD-

Sec. 1968. Duration and termination of coverage; conversion

-STATUTE-

(a) Each policy purchased under this subchapter shall contain a

provision, in terms approved by the Secretary, to the effect that

any insurance thereunder on any member of the uniformed services,

and any insurance thereunder on any insurable dependent of such a

member, unless discontinued or reduced upon the written request of

the insured (or discontinued pursuant to section 1969(a)(2)(B) of

this title), shall continue in effect while the member is on active

duty, active duty for training, or inactive duty training scheduled

in advance by competent authority during the period thereof, or

while the member meets the qualifications set forth in subparagraph

(B) or (C) of section 1965(5) of this title and such insurance

shall cease as follows:

(1) With respect to a member on active duty or active duty for

training under a call or order to duty that does not specify a

period of less than 31 days, insurance under this subchapter

shall cease -

(A) 120 days after the separation or release from active duty

or active duty for training, unless on the date of such

separation or release the member is totally disabled, under

criteria established by the Secretary, in which event the

insurance shall cease one year after the date of separation or

release from such active duty or active duty for training, or

on the date the insured ceases to be totally disabled,

whichever is the earlier date, but in no event before the end

of 120 days after such separation or release; or

(B) at the end of the thirty-first day of a continuous period

of (i) absence without leave, (ii) confinement by civil

authorities under a sentence adjudged by a civilian court, or

(iii) confinement by military authorities under a courtmartial

sentence involving total forfeiture of pay and allowances. Any

insurance so terminated as the result of such an absence or

confinement, together with any beneficiary designation in

effect for such insurance at such termination thereof, shall be

automatically revived as of the date the member is restored to

active duty with pay or to active duty for training with pay.

(2) With respect to a member on active duty or active duty for

training under a call or order to duty that specifies a period of

less than 31 days, insurance under this subchapter shall cease at

midnight, local time, on the last day of such duty, unless on

such date the insured is suffering from a disability incurred or

aggravated during such period which, within 120 days after such

date, (i) results in death, or (ii) renders the member

uninsurable at standard premium rates according to the good

health standards approved by the Secretary, in which event the

insurance shall continue in force to death, or for 120 days after

such date, whichever is the earlier date.

(3) With respect to a member on inactive duty training

scheduled in advance by competent authority, insurance under this

subchapter shall cease at the end of such scheduled training

period, unless at such time the insured is suffering from a

disability incurred, or aggravated during such period which,

within 120 days after the date of such training, (i) results in

death, or (ii) renders the member uninsurable at standard premium

rates according to the good health standards approved by the

Secretary in which event the insurance shall continue in force to

death, or for 120 days after the date such training terminated,

whichever is the earlier date.

(4) With respect to a member of the Ready Reserve of a

uniformed service who meets the qualifications set forth in

subparagraph (B) or (C) of section 1965(5) of this title,

insurance under this subchapter shall cease 120 days after

separation or release from such assignment, unless on the date of

such separation or release the member is totally disabled, under

criteria established by the Secretary, in which event the

insurance shall cease one year after the date of separation or

release from such assignment, or on the date the insured ceases

to be totally disabled, whichever is the earlier date, but in no

event before the end of 120 days after separation or release from

such assignment.

(5) With respect to an insurable dependent of the member,

insurance under this subchapter shall cease -

(A) 120 days after the date of an election made in writing by

the member to terminate the coverage; or

(B) on the earliest of -

(i) 120 days after the date of the member's death;

(ii) 120 days after the date of termination of the

insurance on the member's life under this subchapter; or

(iii) 120 days after the termination of the dependent's

status as an insurable dependent of the member.

(b)(1) Each policy purchased under this subchapter shall contain

a provision, in terms approved by the Secretary, that, except as

hereinafter provided, Servicemembers' Group Life Insurance which is

continued in force after expiration of the period of duty or travel

under section 1967(b) or 1968(a) of this title, effective the day

after the date such insurance would cease -

(A) shall be automatically converted to Veterans' Group Life

Insurance (to insure against death of the member only), subject

to (i) the timely payment of the initial premium under terms

prescribed by the Secretary, and (ii) the terms and conditions

set forth in section 1977 of this title; or

(B) at the election of the member, shall be converted to an

individual policy of insurance as described in section 1977(e) of

this title upon written application for conversion made to the

participating company selected by the member and payment of the

required premiums.

(2) Automatic conversion to Veterans' Group Life Insurance under

paragraph (1) shall be effective only in the case of an otherwise

eligible member or former member who is separated or released from

a period of active duty or active duty for training or inactive

duty training on or after the date on which the Veterans' Group

Life Insurance program (provided for under section 1977 of this

title) becomes effective.

(3)(A) In the case of a policy purchased under this subchapter

for an insurable dependent who is a spouse, upon election of the

spouse, the policy may be converted to an individual policy of

insurance under the same conditions as described in section 1977(e)

of this title (with respect to conversion of a Veterans' Group Life

Insurance policy to such an individual policy) upon written

application for conversion made to the participating company

selected by the spouse and payment of the required premiums.

Conversion of such policy to Veterans' Group Life Insurance is

prohibited.

(B) In the case of a policy purchased under this subchapter for

an insurable dependent who is a child, such policy may not be

converted under this subsection.

-SOURCE-

(Added Pub. L. 89-214, Sec. 1(a), Sept. 29, 1965, 79 Stat. 881,

Sec. 768; amended Pub. L. 91-291, Sec. 3, June 25, 1970, 84 Stat.

328; Pub. L. 93-289, Sec. 5(a), May 24, 1974, 88 Stat. 166; Pub. L.

97-295, Sec. 4(30), Oct. 12, 1982, 96 Stat. 1307; Pub. L. 99-576,

title VII, Sec. 701(38), Oct. 28, 1986, 100 Stat. 3293; renumbered

Sec. 1968 and amended Pub. L. 102-83, Secs. 4(b)(1), (2)(E), 5(a),

(c)(1), Aug. 6, 1991, 105 Stat. 404-406; Pub. L. 103-337, div. A,

title VI, Sec. 651(c), title XVI, Sec. 1677(d)(1), Oct. 5, 1994,

108 Stat. 2792, 3020; Pub. L. 104-106, div. A, title VI, Sec.

647(b), Feb. 10, 1996, 110 Stat. 370; Pub. L. 104-275, title IV,

Secs. 402(c), 403(a), 405(b)(1)(B), Oct. 9, 1996, 110 Stat.

3337-3339; Pub. L. 106-65, div. A, title X, Sec. 1066(d)(1), Oct.

5, 1999, 113 Stat. 773; Pub. L. 106-419, title III, Sec. 313(b),

Nov. 1, 2000, 114 Stat. 1855; Pub. L. 107-14, Sec. 4(c), (f), June

5, 2001, 115 Stat. 28, 29.)

-MISC1-

AMENDMENTS

2001 - Subsec. (a). Pub. L. 107-14, Sec. 4(c)(1)(A), (2)(A), in

introductory provisions, inserted "and any insurance thereunder on

any insurable dependent of such a member," after "any insurance

thereunder on any member of the uniformed services," and

substituted "and such insurance shall cease as follows:" for ", and

such insurance shall cease - ".

Subsec. (a)(1). Pub. L. 107-14, Sec. 4(c)(2)(B), (C)(i), in

introductory provisions, substituted "With respect" for "with

respect" and "31 days, insurance under this subchapter shall cease

- " for "thirty-one days - ".

Subsec. (a)(1)(A). Pub. L. 107-14, Sec. 4(c)(2)(C)(ii),

substituted "120 days" for "one hundred and twenty days" and

"before the end of 120 days" for "prior to the expiration of one

hundred and twenty days".

Subsec. (a)(1)(B). Pub. L. 107-14, Sec. 4(c)(2)(C)(iii),

substituted a period for semicolon at end.

Subsec. (a)(2). Pub. L. 107-14, Sec. 4(c)(2)(B), (D), substituted

"With respect" for "with respect", "31 days," for "thirty-one

days", and a period for semicolon at end and substituted "120 days"

for "one hundred and twenty days" in two places.

Subsec. (a)(3). Pub. L. 107-14, Sec. 4(c)(2)(B), (E), substituted

"With respect" for "with respect" and a period for "; and" at end,

inserted a comma after "competent authority", and substituted "120

days" for "one hundred and twenty days" in two places.

Subsec. (a)(4). Pub. L. 107-14, Sec. 4(c)(2)(B), (F) substituted

"With respect" for "with respect" and inserted "insurance under

this subchapter shall cease" after "section 1965(5) of this

title,".

Subsec. (a)(5). Pub. L. 107-14, Sec. 4(c)(1)(B), added par. (5).

Subsec. (b)(1)(A). Pub. L. 107-14, Sec. 4(c)(3), inserted "(to

insure against death of the member only)" after "converted to

Veterans' Group Life Insurance".

Subsec. (b)(3). Pub. L. 107-14, Sec. 4(f), added par. (3).

2000 - Subsec. (a). Pub. L. 106-419 substituted "subparagraph (B)

or (C) of section 1965(5) of this title" for "section 1965(5)(B) of

this title" in introductory provisions and par. (4).

1999 - Subsec. (a). Pub. L. 106-65 made technical amendment to

directory language of Pub. L. 104-106, Sec. 647(b). See 1996

Amendment note below.

1996 - Subsec. (a). Pub. L. 104-275, Sec. 402(c)(1)(A),

substituted "section 1965(5)(B)" for "subparagraph (B), (C), or (D)

of section 1965(5)" in introductory provisions.

Pub. L. 104-106, Sec. 647(b), as amended by Pub. L. 106-65,

inserted "(or discontinued pursuant to section 1969(a)(2)(B) of

this title)" after "upon the written request of the insured" in

introductory provisions.

Subsec. (a)(1) to (3). Pub. L. 104-275, Sec. 402(c)(1)(B), (C),

substituted a semicolon for the period at end of pars. (1) and (2)

and "; and" for the period at end of par. (3).

Subsec. (a)(4). Pub. L. 104-275, Sec. 402(c)(1)(D)(iv), struck

out subpars. (B) and (C) which read as follows:

"(B) unless on the date of such separation or release the member

has completed at least twenty years of satisfactory service

creditable for retirement purposes under chapter 1223 of title 10

(or under chapter 67 of that title as in effect before the

effective date of the Reserve Officer Personnel Management Act) and

would upon application be eligible for assignment to or is assigned

to the Retired Reserve, in which event the insurance, unless

converted to an individual policy under terms and conditions set

forth in section 1977(e) of this title, shall, upon timely payment

of premiums under terms prescribed by the Secretary directly to the

administrative office established under section 1966(b) of this

title, continue in force until receipt of the first increment of

retirement pay by the member or the member's sixty-first birthday,

whichever occurs earlier; or

"(C) unless on the date of such separation or release the member

is transferred to the Retired Reserve of a uniformed service under

the temporary special retirement authority provided in section

1331a of title 10, in which event the insurance, unless converted

to an individual policy under terms and conditions set forth in

section 1977(e) of this title, shall, upon timely payment of

premiums under terms prescribed by the Secretary directly to the

administrative office established under section 1966(b) of this

title, continue in force until receipt of the first increment of

retirement pay by the member or the member's sixty-first birthday,

whichever occurs earlier."

Pub. L. 104-275, Sec. 402(c)(1)(D)(i)-(iii), substituted "120

days after separation or release from such assignment, unless on"

for "one hundred and twenty days after separation or release from

such assignment -

"(A) unless on",

substituted "before the end of 120 days" for "prior to the

expiration of one hundred and twenty days", and substituted "such

assignment." for "such assignment;".

Subsec. (a)(5), (6). Pub. L. 104-275, Sec. 402(c)(1)(E), struck

out pars. (5) and (6) which read as follows:

"(5) with respect to a member of the Retired Reserve who meets

the qualifications of section 1965(5)(C) of this title, and who was

assigned to the Retired Reserve prior to the date insurance under

the amendment made by section 5(a) of the Veterans' Insurance Act

of 1974 (Public Law 93-289, 88 Stat. 166) is placed in effect for

members of the Retired Reserve, at such time as the member receives

the first increment of retirement pay, or the member's sixty-first

birthday, whichever occurs earlier, subject to the timely payment

of the initial and subsequent premiums, under terms prescribed by

the Secretary, directly to the administrative office established

under section 1966(b) of this title.

"(6) with respect to a member of the Retired Reserve who meets

the qualifications of section 1965(5)(D) of this title, at such

time as the member receives the first increment of retirement pay,

or the member's sixty-first birthday, whichever occurs earlier,

subject to the timely payment of the initial and subsequent

premiums, under terms prescribed by the Secretary, directly to the

administrative office established under section 1966(b) of this

title."

Subsec. (b). Pub. L. 104-275, Sec. 403(a)(3), substituted "(2)

Automatic conversion to Veterans' Group Life Insurance under

paragraph (1)" for "Such automatic conversion".

Pub. L. 104-275, Sec. 403(a)(2), substituted "would cease -

" and subpars. (A) and (B) for "would cease, shall be automatically

converted to Veterans' Group Life Insurance subject to (1) the

timely payment of the initial premium under terms prescribed by the

Secretary, and (2) the terms and conditions set forth in section

1977 of this title."

Pub. L. 104-275, Sec. 403(a)(1), inserted "(1)" after "(b)" at

beginning of subsec.

Pub. L. 104-275, Sec. 402(c)(2), struck out at end "Servicemen's

Group Life Insurance continued in force under section 1968(a)(4)(B)

or (5) of this title shall not be converted to Veterans' Group Life

Insurance. However, a member whose insurance could be continued in

force under section 1968(a)(4)(B) of this title, but is not so

continued, may, effective the day after the insurance otherwise

would cease, convert such insurance to an individual policy under

the terms and conditions set forth in section 1977(e) of this

title."

Subsec. (b)(1). Pub. L. 104-275, Sec. 405(b)(1)(B), substituted

"Servicemembers' Group" for "Servicemen's Group".

1994 - Subsec. (a). Pub. L. 103-337, Sec. 651(c)(1), substituted

"subparagraph (B), (C), or (D) of section 1965(5)" for "section

1965(5)(B) or (C)" in introductory provisions.

Subsec. (a)(4)(B). Pub. L. 103-337, Sec. 1677(d)(1), substituted

"chapter 1223 of title 10 (or under chapter 67 of that title as in

effect before the effective date of the Reserve Officer Personnel

Management Act)" for "chapter 67 of title 10".

Subsec. (a)(4)(C). Pub. L. 103-337, Sec. 651(c)(2), added subpar.

(C).

Subsec. (a)(6). Pub. L. 103-337, Sec. 651(c)(3), added par. (6).

1991 - Pub. L. 102-83, Sec. 5(a), renumbered section 768 of this

title as this section.

Subsec. (a). Pub. L. 102-83, Sec. 5(c)(1), substituted

"1965(5)(B)" for "765(5)(B)" in two places, "1977(e)" for "777(e)",

"1966(b)" for "766(b)" in two places, and "1965(5)(C)" for

"765(5)(C)".

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator" wherever appearing.

Subsec. (b). Pub. L. 102-83, Sec. 5(c)(1), substituted "1967(b)

or 1968(a)" for "767(b) or 768(a)", "1977" for "777" in two places,

"1968(a)(4)(B)" for "768(a)(4)(B)" in two places, and "1977(e)" for

"777(e)".

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator" in two places.

1986 - Subsec. (a)(2), (3). Pub. L. 99-576, Sec. 701(38)(A), (B),

struck out "his" before "death", and substituted "the member" for

"his".

Subsec. (b). Pub. L. 99-576, Sec. 701(38)(C), substituted "the"

for "he" before "insurance otherwise".

1982 - Subsec. (a)(5). Pub. L. 97-295 substituted "the amendment

made by section 5(a) of the Veterans' Insurance Act of 1974 (Public

Law 93-289, 88 Stat. 166)" for "this amendment".

1974 - Subsec. (a). Pub. L. 93-289, Sec. 5(a)(1)-(3), inserted in

opening provisions "or while the member meets the qualifications

set forth in section 765(5)(B) or (C) of this title,", substituted

"one hundred and twenty days" for "ninety days" wherever appearing

in pars. (2) and (3), and added pars. (4) and (5).

Subsec. (b). Pub. L. 93-289, Sec. 5(a)(4), substituted provisions

requiring policies of Servicemen's Group Life Insurance to contain

a provision automatically converting such policy to Veterans' Group

Life Insurance, for provisions which required such policies to

contain a provision for conversion to an individual policy of

insurance, and inserted sentences providing for the effective date

of automatic conversion, prohibiting conversion of Servicemen's

Group Life Insurance continued in force under section 768(a)(4)(B)

or (5) of this title, and authorizing conversion by a member whose

insurance could be continued in force under section 768(a)(4)(B) of

this title, but is not so continued.

Subsec. (c). Pub. L. 93-289, Sec. 5(a)(5), repealed subsec. (c)

which related to conversion by eligible insured persons to policies

written by companies participating in the program established by

this subchapter.

1970 - Subsec. (a). Pub. L. 91-291 designated existing provisions

as subsec. (a) and substituted provisions covering the duration of

coverage for provisions covering termination of coverage. For

termination and conversion of insurance see subsecs. (b) and (c) of

this section.

Subsecs. (b), (c). Pub. L. 91-291 added subsecs. (b) and (c).

EFFECTIVE DATE OF 2001 AMENDMENT

Amendment by Pub. L. 107-14 effective on the first day of the

first month that begins more than 120 days after June 5, 2001, see

section 4(g)(1) of Pub. L. 107-14, set out as a note under section

101 of this title.

EFFECTIVE DATE OF 1999 AMENDMENT

Pub. L. 106-65, div. A, title X, Sec. 1066(d)(1), Oct. 5, 1999,

113 Stat. 773, provided that the amendment made by section

1066(d)(1) is effective Apr. 1, 1996.

EFFECTIVE DATE OF 1996 AMENDMENT

Section 647(c) of Pub. L. 104-106 provided that: "The amendments

made by this section [amending this section and section 1969 of

this title] shall take effect on April 1, 1996."

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by section 1677(d)(1) of Pub. L. 103-337 effective Dec.

1, 1994, except as otherwise provided, see section 1691 of Pub. L.

103-337, set out as an Effective Date note under section 10001 of

Title 10, Armed Forces.

EFFECTIVE DATE OF 1974 AMENDMENT

Section 12(4) of Pub. L. 93-289 provided that: "The amendments

made by sections 5(a)(4) and (5) of this Act [amending this

section], and those enacting a Veterans' Group Life Insurance

program [sections 777, 778, and 779 [now 1977, 1978, and 1979] of

this title] shall become effective on the first day of the third

calendar month following the month in which this Act is enacted

[May 1974]."

EFFECTIVE DATE OF 1970 AMENDMENT

Amendment by Pub. L. 91-291 effective June 25, 1970, see section

14(a) of Pub. L. 91-291, set out as a note under section 1317 of

this title.

CONVERSION OF SGLI TO VGLI

Section 402(e) of Pub. L. 104-275 provided that: "The

Servicemembers' Group Life Insurance of any member of the Retired

Reserve of a uniformed service shall be converted to Veterans'

Group Life Insurance effective 90 days after the date of the

enactment of this Act [Oct. 9, 1996]."

RIGHT OF PERSONS DISCHARGED OR RELEASED FROM UNIFORMED SERVICES TO

CONVERT SERVICEMEN'S GROUP LIFE INSURANCE TO INDIVIDUAL POLICIES

Section 5(b) of Pub. L. 93-289 provided that the amendments made

by Pub. L. 93-289, enacting sections 777, 778, and 779 [now 1977,

1978, and 1979] of this title and section 707 of Title 37, Pay and

Allowances of the Uniformed Services, and amending sections 723,

765, 767, 768, 769, 770, 771, and 774 [now 1923, 1965, 1967, 1968,

1969, 1970, 1971, and 1974] of this title, not be construed to

deprive any person discharged or released from the uniformed

services of the United States prior to the date on which the

Veterans' Group Life Insurance program (provided for under section

777 [now 1977] of this title) became effective of the right to

convert Servicemen's Group Life Insurance to an individual policy

under the provisions of law in effect prior to such effective date.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1969, 1977, 1980 of this

title.

-End-

-CITE-

38 USC Sec. 1969 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER III - SERVICEMEMBERS' GROUP LIFE INSURANCE

-HEAD-

Sec. 1969. Deductions; payment; investment; expenses

-STATUTE-

(a)(1) During any period in which a member, on active duty or

active duty for training under a call or order to such duty that

does not specify a period of less than thirty-one days, is insured

under Servicemembers' Group Life Insurance, there shall be deducted

each month from the member's basic or other pay until separation or

release from such duty an amount determined by the Secretary (which

shall be the same for all such members) as the share of the cost

attributable to insuring such member under such policy, less any

costs traceable to the extra hazard of such duty in the uniformed

service.

(2)(A) During any month in which a member is assigned to the

Ready Reserve of a uniformed service under conditions which meet

the qualifications of (subparagraph (B) or (C) of section 1965(5)

of this title, and is insured under a policy of insurance purchased

by the Secretary, under section 1966 of this title, there shall be

contributed from the appropriation made for active duty pay of the

uniformed service concerned an amount determined by the Secretary

(which shall be the same for all such members) as the share of the

cost attributable to insuring such member under this policy, less

any costs traceable to the extra hazards of such duty in the

uniformed services. Any amounts so contributed on behalf of any

individual shall be collected by the Secretary concerned from such

individual (by deduction from pay or otherwise) and shall be

credited to the appropriation from which such contribution was

made.

(B) If an individual who is required pursuant to subparagraph (A)

to make a direct remittance of costs to the Secretary concerned

fails to make the required remittance within 60 days of the date on

which such remittance is due, such individual's insurance with

respect to which such remittance is required shall be terminated by

the Secretary concerned. Such termination shall be made by written

notice to the individual's official address and shall be effective

60 days after the date of such notice. Such termination of

insurance may be vacated if, before the effective date of

termination, the individual remits all amounts past due for such

insurance and demonstrates to the satisfaction of the Secretary

concerned that the failure to make timely remittances was

justifiable.

(3) During any fiscal year, or portion thereof, that a member is

on active duty or active duty for training under a call or order to

such duty that specifies a period of less than thirty-one days, or

is authorized or required to perform inactive duty training

scheduled in advance by competent authority, and is insured under

Servicemembers' Group Life Insurance, the Secretary concerned shall

collect from the member (by deduction from pay or otherwise) an

amount determined by the Secretary (which shall be the same for all

such members) as the share of the cost attributable to insuring

such member under such policy, less any costs traceable to the

extra hazard of such duty in the uniformed service.

(4) Any amount not deducted from the basic or other pay of a

member insured under Servicemembers' Group Life Insurance, or

collected from the member by the Secretary concerned, if not

otherwise paid, shall be deducted from the proceeds of any

insurance thereafter payable. The initial monthly amount under

paragraph (1) or (2) hereof, or fiscal year amount under paragraph

(3) hereof, determined by the Secretary to be charged under this

section for Servicemembers' Group Life Insurance may be continued

from year to year, except that the Secretary may redetermine such

monthly or fiscal year amounts from time to time in accordance with

experience. No refunds will be made to any member of any amount

properly deducted from the member's basic or other pay, or

collected from the member by the Secretary concerned, to cover the

insurance granted under Servicemembers' Group Life Insurance.

(b) For each month for which any member is so insured, there

shall be contributed from the appropriation made for active duty

pay of the uniformed service concerned an amount determined by the

Secretary and certified to the Secretary concerned to be the cost

of Servicemembers' Group Life Insurance which is traceable to the

extra hazard of duty in the uniformed services. Effective January

1, 1970, such cost shall be determined by the Secretary on the

basis of the excess mortality incurred by members and former

members of the uniformed services insured under Servicemembers'

Group Life Insurance above what their mortality would have been

under peacetime conditions as such mortality is determined by the

Secretary using such methods and data as the Secretary shall

determine to be reasonable and practicable. The Secretary is

authorized to make such adjustments regarding contributions from

pay appropriations as may be indicated from actual experience.

(c) An amount equal to the first amount due on Servicemembers'

Group Life Insurance may be advanced from current appropriations

for active-service pay to any such member, which amount shall

constitute a lien upon any service or other pay accruing to the

person from whom such advance was made and shall be collected

therefrom if not otherwise paid. No disbursing or certifying

officer shall be responsible for any loss incurred by reason of

such advance.

(d)(1) The sums withheld from the basic or other pay of members,

or collected from them by the Secretary concerned, under subsection

(a) of this section, and the sums contributed from appropriations

under subsection (b) of this section, together with the income

derived from any dividends or premium rate adjustments received

from insurers shall be deposited to the credit of a revolving fund

established in the Treasury of the United States. All premium

payments and extra hazard costs on Servicemembers' Group Life

Insurance and the administrative cost to the Department of

insurance issued under this subchapter shall be paid from the

revolving fund.

(2) The Secretary is authorized to set aside out of the revolving

fund such amounts as may be required to meet the administrative

costs to the Department of insurance issued under this subchapter

and all current premium payments and extra hazard costs on any

insurance policy or policies purchased under section 1966 of this

title. The Secretary of the Treasury is authorized to invest in and

to sell and retire special interest-bearing obligations of the

United States for the account of the revolving fund. Such

obligations issued for this purpose shall have maturities fixed

with due regard for the needs of the fund and shall bear interest

at a rate equal to the average market yield (computed by the

Secretary of the Treasury on the basis of market quotations as of

the end of the calendar month next preceding the date of issue) on

all marketable interest-bearing obligations of the United States

then forming a part of the public debt which are not due or

callable until after the expiration of four years from the end of

such calendar month; except that where such average market yield is

not a multiple of one-eighth of 1 per centum, the rate of interest

of such obligation shall be the multiple of one-eighth of 1 per

centum nearest such market yield.

(3) Notwithstanding the provisions of section 1982 of this title,

the Secretary shall, from time to time, determine the

administrative costs to the Department which in the Secretary's

judgment are properly allocable to insurance issued under this

subchapter and shall transfer such cost from the revolving fund to

the appropriation "General Operating Expenses, Department of

Veterans Affairs".

(e) The Secretary of Defense shall prescribe regulations for the

administration of the functions of the Secretaries of the military

departments under this section. Such regulations shall prescribe

such procedures as the Secretary of Defense, after consultation

with the Secretary, may consider necessary to ensure that such

functions are carried out in a timely and complete manner and in

accordance with the provisions of this section, including

specifically the provisions of subsection (a)(2) of this section

relating to contributions from appropriations made for active duty

pay.

(f)(1) No tax, fee, or other monetary payment may be imposed or

collected by any State, or by any political subdivision or other

governmental authority of a State, on or with respect to any

premium paid under an insurance policy purchased under this

subchapter.

(2) Paragraph (1) of this subsection shall not be construed to

exempt any company issuing a policy of insurance under this

subchapter from the imposition, payment, or collection of a tax,

fee, or other monetary payment on the net income or profit accruing

to or realized by that company from business conducted under this

subchapter, if that tax, fee, or payment is applicable to a broad

range of business activity.

(g)(1)(A) During any period in which a spouse of a member is

insured under this subchapter and the member is on active duty,

there shall be deducted each month from the member's basic or other

pay until separation or release from active duty an amount

determined by the Secretary as the premium allocable to the pay

period for providing that insurance coverage. No premium may be

charged for providing insurance coverage for a child.

(B) During any month in which a member is assigned to the Ready

Reserve of a uniformed service under conditions which meet the

qualifications set forth in section 1965(5)(B) of this title and

the spouse of the member is insured under a policy of insurance

purchased by the Secretary under section 1966 of this title, there

shall be contributed from the appropriation made for active duty

pay of the uniformed service concerned an amount determined by the

Secretary (which shall be the same for all such members) as the

share of the cost attributable to insuring the spouse of such

member under this policy, less any costs traceable to the extra

hazards of such duty in the uniformed services. Any amounts so

contributed on behalf of any individual shall be collected by the

Secretary concerned from such individual (by deduction from pay or

otherwise) and shall be credited to the appropriation from which

such contribution was made.

(2)(A) The Secretary shall determine the premium amounts to be

charged for life insurance coverage for spouses of members under

this subchapter.

(B) The premium amounts shall be determined on the basis of sound

actuarial principles and shall include an amount necessary to cover

the administrative costs to the insurer or insurers providing such

insurance.

(C) Each premium rate for the first policy year shall be

continued for subsequent policy years, except that the rate may be

adjusted for any such subsequent policy year on the basis of the

experience under the policy, as determined by the Secretary in

advance of that policy year.

(h) Any overpayment of a premium for insurance coverage for an

insurable dependent of a member that is terminated under section

1968(a)(5) of this title shall be refunded to the member.

-SOURCE-

(Added Pub. L. 89-214, Sec. 1(a), Sept. 29, 1965, 79 Stat. 881,

Sec. 769; amended Pub. L. 91-291, Sec. 4, June 25, 1970, 84 Stat.

329; Pub. L. 93-289, Secs. 6, 10(2), May 24, 1974, 88 Stat. 168,

172; Pub. L. 97-66, title IV, Sec. 402, Oct. 17, 1981, 95 Stat.

1031; Pub. L. 99-576, title VII, Sec. 701(39), Oct. 28, 1986, 100

Stat. 3293; Pub. L. 100-322, title III, Sec. 332(a), May 20, 1988,

102 Stat. 537; renumbered Sec. 1969 and amended Pub. L. 102-83,

Secs. 4(a)(3), (4), (b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105

Stat. 404-406; Pub. L. 103-337, div. A, title VI, Sec. 651(d), Oct.

5, 1994, 108 Stat. 2793; Pub. L. 103-446, title XII, Sec.

1201(e)(8), (i)(3), Nov. 2, 1994, 108 Stat. 4685, 4688; Pub. L.

104-106, div. A, title VI, Sec. 647(a), Feb. 10, 1996, 110 Stat.

370; Pub. L. 104-275, title IV, Secs. 402(d), 405(b)(1)(C), Oct. 9,

1996, 110 Stat. 3337, 3339; Pub. L. 106-419, title III, Sec.

313(b), Nov. 1, 2000, 114 Stat. 1855; Pub. L. 107-14, Sec. 4(d),

June 5, 2001, 115 Stat. 29.)

-MISC1-

AMENDMENTS

2001 - Subsecs. (g), (h). Pub. L. 107-14 added subsecs. (g) and

(h).

2000 - Subsec. (a)(2)(A). Pub. L. 106-419 substituted

"subparagraph (B) or (C) of section 1965(5) of this title" for

"section 1965(5)(B) of this title".

1996 - Subsec. (a)(1). Pub. L. 104-275, Sec. 405(b)(1)(C),

substituted "Servicemembers' Group" for "Servicemen's Group".

Subsec. (a)(2). Pub. L. 104-106 designated existing provisions as

subpar. (A) and added subpar. (B).

Subsec. (a)(2)(A). Pub. L. 104-275, Sec. 402(d)(1), struck out

"is assigned to the Reserve (other than the Retired Reserve) and

meets the qualifications of section 1965(5)(C) of this title, or is

assigned to the Retired Reserve and meets the qualifications of

section 1965(5)(D) of this title," after "qualifications of section

1965(5)(B) of this title,".

Subsec. (a)(3), (4). Pub. L. 104-275, Sec. 405(b)(1)(C),

substituted "Servicemembers' Group" for "Servicemen's Group"

wherever appearing.

Subsecs. (b) to (d)(1). Pub. L. 104-275, Sec. 405(b)(1)(C),

substituted "Servicemembers' Group" for "Servicemen's Group"

wherever appearing.

Subsecs. (e) to (g). Pub. L. 104-275, Sec. 402(d)(2), (3),

redesignated subsecs. (f) and (g) as (e) and (f), respectively, and

struck out former subsec. (e) which related to premiums for

Servicemen's Group Life Insurance for members assigned to the

Retired Reserve of a uniformed service.

1994 - Subsec. (a)(2). Pub. L. 103-337, Sec. 651(d)(1),

substituted "is assigned to the Reserve" for "or is assigned to the

Reserve" and inserted "or is assigned to the Retired Reserve and

meets the qualifications of section 1965(5)(D) of this title,"

after "section 1965(5)(C) of this title,".

Subsec. (d)(3). Pub. L. 103-446, Sec. 1201(i)(3), substituted

"Department of Veterans Affairs" for "Department".

Subsec. (e). Pub. L. 103-446, Sec. 1201(e)(8), substituted

"subsections (a) and (c) of section 1971" for "sections 1971(a) and

(c)" and "subsections (d) and (e) of section 1971" for "sections

1971(d) and (e)".

Pub. L. 103-337, Sec. 651(d)(2), substituted "subparagraph (C) or

(D) of section 1965(5)" for "section 1965(5)(C)".

1991 - Pub. L. 102-83, Sec. 5(a), renumbered section 769 of this

title as this section.

Subsec. (a). Pub. L. 102-83, Sec. 5(c)(1), substituted

"1965(5)(B)" for "765(5)(B)", "1965(5)(C)" for "765(5)(C)", and

"1966" for "766" in par. (2).

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator" wherever appearing.

Subsec. (b). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted

"Secretary" for "Administrator" wherever appearing.

Subsec. (d)(1). Pub. L. 102-83, Sec. 4(a)(3), (4), substituted

"Department" for "Veterans' Administration".

Subsec. (d)(2). Pub. L. 102-83, Sec. 5(c)(1), substituted "1966"

for "766".

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator".

Pub. L. 102-83, Sec. 4(a)(3), (4), substituted "Department" for

"Veterans' Administration".

Subsec. (d)(3). Pub. L. 102-83, Sec. 5(c)(1), substituted "1982"

for "782".

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator" and "Secretary's" for "Administrator's".

Pub. L. 102-83, Sec. 4(a)(3), (4), substituted "Department" for

"Veterans' Administration" in two places.

Subsec. (e). Pub. L. 102-83, Sec. 5(c)(1), substituted

"1965(5)(C)" for "765(5)(C)", "1971(a)" for "771(a)", "1966(b)" for

"766(b)", and "1971(d)" for "771(d)".

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator" wherever appearing.

Subsec. (f). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted

"Secretary" for "Administrator".

1988 - Subsec. (g). Pub. L. 100-322 added subsec. (g).

1986 - Subsec. (a)(1). Pub. L. 99-576, Sec. 701(39)(A),

substituted "the member's" for "his".

Subsec. (a)(3). Pub. L. 99-576, Sec. 701(39)(B), substituted "the

member" for "him".

Subsec. (a)(4). Pub. L. 99-576, Sec. 701(39)(C), substituted "the

member" for "him" in two places and "the member's" for "his".

Subsec. (b). Pub. L. 99-576, Sec. 701(39)(D), substituted "the

Administrator" for "he" before "shall determine".

Subsec. (d)(3). Pub. L. 99-576, Sec. 701(39)(E), substituted "the

Administrator's" for "his".

Subsec. (e). Pub. L. 99-576, Sec. 701(39)(F), substituted "the

Administrator" for "he" before "may determine".

1981 - Subsec. (f). Pub. L. 97-66 added subsec. (f).

1974 - Subsec. (a)(1). Pub. L. 93-289, Sec. 6(1), substituted "is

insured under Servicemen's Group Life Insurance" for "is insured

under a policy of insurance purchased by the Administrator, under

section 766 of this title".

Subsec. (a)(2). Pub. L. 93-289, Sec. 6(2), added par. (2). Former

par. (2) redesignated (3).

Subsec. (a)(3). Pub. L. 93-289, Sec. 6(1), (2), redesignated

former par. (2) as (3), and substituted "is insured under

Servicemen's Group Life Insurance" for "is insured under a policy

of insurance purchased by the Administrator, under section 766 of

this title." Former par. (3) redesignated (4).

Subsec. (a)(4). Pub. L. 93-289, Sec. 6(2), (3), redesignated

former par. (3) as (4), and substituted "paragraph (1) or (2)

hereof, or fiscal year amount under paragraph (3) hereof", for

"subsection (1) hereof, or fiscal year amount under subsection (2)

hereof", and "Servicemen's Group Life Insurance" for "this

subchapter" in two places, and for "insurance under this

subchapter".

Subsec. (b). Pub. L. 93-289, Sec. 6(4), substituted "Servicemen's

Group Life Insurance" for "such insurance" in first sentence, and

"Servicemen's Group Life Insurance" for "this subchapter" in second

sentence.

Subsec. (c). Pub. L. 93-289, Sec. 6(5), substituted "Servicemen's

Group Life Insurance" for "any such insurance".

Subsec. (d)(1). Pub. L. 93-289, Sec. 6(6), substituted

"Servicemen's Group Life Insurance" for "any insurance policy or

policies purchased under section 766 of this title".

Subsec. (d)(3). Pub. L. 93-289, Sec. 10(2), capitalized

"Operating Expenses".

Subsec. (e). Pub. L. 93-289, Sec. 6(7), added subsec. (e).

1970 - Subsec. (a). Pub. L. 91-291, Sec. 4(1), separated

provisions covering deduction of the cost of insurance from the pay

of members into provisions covering such deduction in the case of

persons on active duty or active duty for training under a call or

order to such duty that does not specify a period of not less than

thirty-one days and provisions covering such deduction in the case

of persons on active duty or active duty for training under a call

or order to such duty specifying a period of less than thirty-one

days or persons authorized or required to perform inactive duty

training scheduled in advance by competent authority and inserted

provision for the collection of sums from individuals by the

Secretary concerned.

Subsec. (b). Pub. L. 91-291, Sec. 4(1), substituted the mortality

which members and former members of the uniform services concerned

would have been under peacetime conditions as determined by the

Administrator for the mortality of the male civilian population of

the United States of the same age as the median age of members of

the uniformed services as shown by the records of the uniformed

services, the primary insurer or insurers, and the Department of

Health, Education, and Welfare as the standard against which the

excess mortality suffered by members of the uniformed services

would be measured to determine the extent to which the cost of

insurance was traceable to the extra hazard of active duty in the

uniformed services.

Subsec. (d)(1). Pub. L. 91-291, Sec. 4(2), inserted reference to

collection of sums by Secretary concerned.

EFFECTIVE DATE OF 2001 AMENDMENT

Amendment by Pub. L. 107-14 effective on the first day of the

first month that begins more than 120 days after June 5, 2001, see

section 4(g)(1) of Pub. L. 107-14, set out as a note under section

101 of this title.

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by Pub. L. 104-106 effective Apr. 1, 1996, see section

647(c) of Pub. L. 104-106, set out as a note under section 1968 of

this title.

EFFECTIVE DATE OF 1988 AMENDMENT

Section 332(b) of Pub. L. 100-322 provided that: "The amendment

made by subsection (a) [amending this section] shall take effect

with respect to premiums paid for periods beginning after June 30,

1988."

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-66 effective Oct. 17, 1981, see section

701(b)(1) of Pub. L. 97-66, set out as a note under section 1114 of

this title.

EFFECTIVE DATE OF 1970 AMENDMENT

Amendment by Pub. L. 91-291 effective June 25, 1970, see section

14(a) of Pub. L. 91-291, set out as a note under section 1317 of

this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1968, 1970, 1971, 1980 of

this title.

-End-

-CITE-

38 USC Sec. 1970 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER III - SERVICEMEMBERS' GROUP LIFE INSURANCE

-HEAD-

Sec. 1970. Beneficiaries; payment of insurance

-STATUTE-

(a) Any amount of insurance under this subchapter in force on any

member or former member on the date of the insured's death shall be

paid, upon the establishment of a valid claim therefor, to the

person or persons surviving at the date of the insured's death, in

the following order of precedence:

First, to the beneficiary or beneficiaries as the member or

former member may have designated by a writing received prior to

death (1) in the uniformed services if insured under

Servicemembers' Group Life Insurance, or (2) in the administrative

office established under section 1966(b) of this title if separated

or released from service, or if assigned to the Retired Reserve,

and insured under Servicemembers' Group Life Insurance, or if

insured under Veterans' Group Life Insurance;

Second, if there be no such beneficiary, to the widow or widower

of such member or former member;

Third, if none of the above, to the child or children of such

member or former member and descendants of deceased children by

representation;

Fourth, if none of the above, to the parents of such member or

former member or the survivor of them;

Fifth, if none of the above, to the duly appointed executor or

administrator of the estate of such member or former member;

Sixth, if none of the above, to other next of kin of such member

or former member entitled under the laws of domicile of such member

or former member at the time of the insured's death.

(b) If any person otherwise entitled to payment under this

section does not make claim therefor within one year after the

death of the member or former member, or if payment to such person

within that period is prohibited by Federal statute or regulation,

payment may be made in the order of precedence as if such person

had predeceased the member or former member, and any such payment

shall be a bar to recovery by any other person.

(c) If, within two years after the death of the member or former

member, no claim for payment has been filed by any person entitled

under the order of precedence set forth in this section, and

neither the Secretary nor the administrative office established by

the insurance company or companies pursuant to section 1966(b) of

this title has received any notice that any such claim will be

made, payment may be made to a claimant as may in the judgment of

the Secretary be equitably entitled thereto, and such payment shall

be a bar to recovery by any other person.

(d) The member may elect settlement of insurance under this

subchapter either in a lump sum or in thirty-six equal monthly

installments. If no such election is made by the member the

beneficiary or beneficiaries may elect settlement either in a lump

sum or in thirty-six equal monthly installments. If the member has

elected settlement in a lump sum, the beneficiary or beneficiaries

may elect settlement in thirty-six equal monthly installments.

(e) Until and unless otherwise changed, a beneficiary designation

and settlement option filed by a member with the member's uniformed

service under prior provisions of law will be effective with

respect to the increased insurance authorized under the Veterans'

Insurance Act of 1974 and the insurance shall be settled in the

same proportionate amount as the portion designated for such

beneficiary or beneficiaries bore to the amount of insurance

heretofore in effect.

(f) Notwithstanding the provisions of any other law, payment of

matured Servicemembers' Group Life Insurance or Veterans' Group

Life Insurance benefits may be made directly to a minor widow or

widower on his or her own behalf, and payment in such case shall be

a complete acquittance to the insurer.

(g) Any payments due or to become due under Servicemembers' Group

Life Insurance or Veterans' Group Life Insurance made to, or on

account of, an insured or a beneficiary shall be exempt from

taxation, shall be exempt from the claims of creditors, and shall

not be liable to attachment, levy, or seizure by or under any legal

or equitable process whatever, either before or after receipt by

the beneficiary. The preceding sentence shall not apply to (1)

collection of amounts not deducted from the member's pay, or

collected from him by the Secretary concerned under section 1969(a)

of this title, (2) levy under subchapter D of chapter 64 of the

Internal Revenue Code of 1986 (26 U.S.C. 6331 et seq.) (relating to

the seizure of property for collection of taxes), and (3) the

taxation of any property purchased in part or wholly out of such

payments.

(h) Insurance payable under this subchapter may not be paid in

any amount to the extent that such amount would escheat to a State.

Payment of insurance under this subchapter may not be made to the

estate of the insured or the estate of any beneficiary of the

insured unless it is affirmatively shown that any amount to be paid

will not escheat to a State. Any amount to be paid under this

subchapter shall be reduced to the extent necessary to comply with

this subsection.

(i) Any amount of insurance in force on an insurable dependent of

a member under this subchapter on the date of the dependent's death

shall be paid, upon the establishment of a valid claim therefor, to

the member or, in the event of the member's death before payment to

the member can be made, then to the person or persons entitled to

receive payment of the proceeds of insurance on the member's life

under this subchapter.

-SOURCE-

(Added Pub. L. 89-214, Sec. 1(a), Sept. 29, 1965, 79 Stat. 883,

Sec. 770; amended Pub. L. 91-291, Sec. 5, June 25, 1970, 84 Stat.

330; Pub. L. 93-289, Sec. 7, May 24, 1974, 88 Stat. 169; Pub. L.

97-295, Sec. 4(31), Oct. 12, 1982, 96 Stat. 1307; Pub. L. 97-306,

title IV, Sec. 401(a), Oct. 14, 1982, 96 Stat. 1442; Pub. L.

99-576, title VII, Sec. 701(40), Oct. 28, 1986, 100 Stat. 3294;

Pub. L. 102-54, Sec. 14(b)(17), June 13, 1991, 105 Stat. 284;

renumbered Sec. 1970 and amended Pub. L. 102-83, Secs. 4(b)(1),

(2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404-406; Pub. L.

104-275, title IV, Sec. 405(b)(1)(D), Oct. 9, 1996, 110 Stat. 3339;

Pub. L. 105-368, title III, Sec. 302(b), Nov. 11, 1998, 112 Stat.

3333; Pub. L. 107-14, Sec. 4(e), June 5, 2001, 115 Stat. 29.)

-REFTEXT-

REFERENCES IN TEXT

Veterans' Insurance Act of 1974, referred to in subsec. (e), is

Pub. L. 93-289, May 24, 1974, 88 Stat. 165, as amended, which

enacted sections 777, 778, and 779 [now 1977, 1978, and 1979] of

this title, section 707 of Title 37, Pay and Allowances of the

Uniformed Services, amended sections 723, 765, 767 to 771, and 774

[now 1923, 1965, 1967 to 1971, and 1974] of this title, and enacted

provisions set out as notes under sections 723, 765, 767, and 768

[now 1923, 1965, 1967, and 1968] of this title and section 707 of

Title 37. For complete classification of this Act to the Code, see

Tables.

Subchapter D of chapter 64 of the Internal Revenue Code of 1986,

referred to in subsec. (g)(3), is classified to subchapter D (Sec.

6331 et seq.) of chapter 64 of Title 26, Internal Revenue Code.

-MISC1-

AMENDMENTS

2001 - Subsec. (i). Pub. L. 107-14 added subsec. (i).

1998 - Subsec. (g). Pub. L. 105-368, in first sentence,

substituted "Any payments" for "Payments of benefits" and inserted

"an insured or" after "or on account of,".

1996 - Subsecs. (a), (f), (g). Pub. L. 104-275 substituted

"Servicemembers' Group" for "Servicemen's Group" wherever

appearing.

1991 - Pub. L. 102-83, Sec. 5(a), renumbered section 770 of this

title as this section.

Subsec. (a). Pub. L. 102-83, Sec. 5(c)(1), substituted "1966(b)"

for "766(b)".

Subsec. (c). Pub. L. 102-83, Sec. 5(c)(1), substituted "1966(b)"

for "766(b)".

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator" in two places.

Subsec. (g)(1). Pub. L. 102-83, Sec. 5(c)(1), substituted

"1969(a)" for "769(a)".

Subsec. (g)(2). Pub. L. 102-54 substituted "Internal Revenue Code

of 1986" for "Internal Revenue Code of 1954".

1986 - Subsec. (a). Pub. L. 99-576, Sec. 701(40)(A), substituted

"the insured's" for "his" in two places in introductory text and in

one place in par. Sixth.

Subsec. (e). Pub. L. 99-576, Sec. 701(40)(B), substituted "the

member's" for "his".

1982 - Subsec. (c). Pub L. 97-306, Sec. 401(a)(1), struck out

provision that if, within four years after the death of the member

or former member, payment had not been made pursuant to this

section and no claim for payment by any person entitled under this

section was pending, the amount payable would escheat to the credit

of the revolving fund referred to in section 769(d) of this title.

Subsec. (g). Pub. L. 97-295 inserted "(26 U.S.C. 6331 et seq.)"

after "Code of 1954".

Subsec. (h). Pub. L. 97-306, Sec. 401(a)(2), added subsec. (h).

1974 - Subsec. (a). Pub. L. 93-289, Sec. 7(1), included in par.

First writings received in the administrative office established

under section 766(b) of this title if separated or released from

service, or if assigned to the Retired Reserve, and insured under

Servicemen's Group Life Insurance, or if insured under Veterans'

Group Life Insurance.

Subsec. (e). Pub. L. 93-289, Sec. 7(2), substituted "the

Veterans' Insurance Act of 1974" for "this amendatory Act".

Subsecs. (f), (g). Pub. L. 93-289, Sec. 7(3), included payment of

benefits under Veterans' Group Life Insurance.

1970 - Subsecs. (e) to (g). Pub. L. 91-291 added subsecs. (e) to

(g).

EFFECTIVE DATE OF 2001 AMENDMENT

Amendment by Pub. L. 107-14 effective on the first day of the

first month that begins more than 120 days after June 5, 2001, see

section 4(g)(1) of Pub. L. 107-14, set out as a note under section

101 of this title.

EFFECTIVE DATE OF 1998 AMENDMENT

Pub. L. 105-368, title III, Sec. 302(c), Nov. 11, 1998, 112 Stat.

3333, provided that: "The amendments made by this section [enacting

section 1980 of this title and amending this section] shall take

effect 90 days after the date of the enactment of this Act [Nov.

11, 1998]."

EFFECTIVE DATE OF 1982 AMENDMENT

Section 401(b) of Pub. L. 97-306 provided that: "The amendments

made by subsection (a) [amending this section] shall take effect on

October 1, 1982."

EFFECTIVE DATE OF 1970 AMENDMENT

Amendment by Pub. L. 91-291 effective June 25, 1970, see section

14(a) of Pub. L. 91-291, set out as a note under section 1317 of

this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1977 of this title.

-End-

-CITE-

38 USC Sec. 1971 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER III - SERVICEMEMBERS' GROUP LIFE INSURANCE

-HEAD-

Sec. 1971. Basic tables of premiums; readjustment of rates

-STATUTE-

(a) Each policy or policies purchased under section 1966 of this

title shall include for the first policy year a schedule of basic

premium rates by age which the Secretary shall have determined on a

basis consistent with the lowest schedule of basic premium rates

generally charged for new group life insurance policies issued to

large employers, this schedule of basic premium rates by age to be

applied, except as otherwise provided in this section, to the

distribution by age of the amount of group life insurance under the

policy at its date of issue to determine an average basic premium

per $1,000 of insurance. Each policy so purchased shall also

include provisions whereby the basic rates of premium determined

for the first policy year shall be continued for subsequent policy

years, except that they may be readjusted for any subsequent year,

based on the experience under the policy, such readjustment to be

made by the insurance company or companies issuing the policy on a

basis determined by the Secretary in advance of such year to be

consistent with the general practice of life insurance companies

under policies of group life insurance issued to large employers.

(b) The total premiums for Servicemembers' Group Life Insurance

shall be the sum of the amounts computed according to the

provisions of subsection (a) above and the estimated cost traceable

to the extra hazard of active duty in the uniformed services as

determined by the Secretary, subject to the provision that such

estimated costs traceable to the extra hazard shall be

retroactively readjusted annually in accordance with section

1969(b).

(c) Each policy so purchased shall include a provision that, in

the event the Secretary determines that ascertaining the actual age

distribution of the amounts of group life insurance in force at the

date of issue of the policy or at the end of the first or any

subsequent year of insurance thereunder would not be possible

except at a disproportionately high expense, the Secretary may

approve the determination of a tentative average group life

premium, for the first or any subsequent policy year, in lieu of

using the actual age distribution. Such tentative average premium

rate shall be redetermined by the Secretary during any policy year

upon request by the insurance company or companies issuing the

policy, if experience indicates that the assumptions made in

determining the tentative average premium rate for that policy year

were incorrect.

(d) Each policy so purchased shall contain a provision

stipulating the maximum expense and risk charges for the first

policy year, which charges shall have been determined by the

Secretary on a basis consistent with the general level of such

charges made by life insurance companies under policies of group

life insurance issued to large employers. Such maximum charges

shall be continued from year to year, except that the Secretary may

redetermine such maximum charges for any year either by agreement

with the insurance company or companies issuing the policy or upon

written notice given by the Secretary to such companies at least

one year in advance of the beginning of the year for which such

redetermined maximum charges will be effective.

(e) Each such policy shall provide for an accounting to the

Secretary not later than ninety days after the end of each policy

year, which shall set forth, in a form approved by the Secretary,

(1) the amounts of premiums actually accrued under the policy from

its date of issue to the end of such policy year, (2) the total of

all mortality and other claim charges incurred for that period, and

(3) the amounts of the insurers' expense and risk charge for that

period. Any excess of the total of item (1) over the sum of items

(2) and (3) shall be held by the insurance company or companies

issuing the policy as a special contingency reserve to be used by

such insurance company or companies for charges under such policy

only, such reserve to bear interest at a rate to be determined in

advance of each policy year by the insurance company or companies

issuing the policy, which rate shall be approved by the Secretary

as being consistent with the rates generally used by such company

or companies for similar funds held under other group life

insurance policies. If and when the Secretary determines that such

special contingency reserve has attained an amount estimated by the

Secretary to make satisfactory provision for adverse fluctuations

in future charges under the policy, any further excess shall be

deposited to the credit of the revolving fund established under

section 1969(d)(1) of this title. If and when such policy is

discontinued, and if after all charges have been made, there is any

positive balance remaining in such special contingency reserve,

such balance shall be deposited to the credit of the revolving

fund, subject to the right of the insurance company or companies

issuing the policy to make such deposit in equal monthly

installments over a period of not more than two years.

-SOURCE-

(Added Pub. L. 89-214, Sec. 1(a), Sept. 29, 1965, 79 Stat. 884,

Sec. 771; amended Pub. L. 93-289, Sec. 8, May 24, 1974, 88 Stat.

169; renumbered Sec. 1971 and amended Pub. L. 102-83, Secs.

4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404-406;

Pub. L. 104-275, title IV, Sec. 405(b)(1)(E), Oct. 9, 1996, 110

Stat. 3339.)

-MISC1-

AMENDMENTS

1996 - Subsec. (b). Pub. L. 104-275 substituted "Servicemembers'

Group" for "Servicemen's Group".

1991 - Pub. L. 102-83, Sec. 5(a), renumbered section 771 of this

title as this section.

Subsec. (a). Pub. L. 102-83, Sec. 5(c)(1), substituted "1966" for

"766".

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator" in two places.

Subsec. (b). Pub. L. 102-83, Sec. 5(c)(1), substituted "1969(b)"

for "769(b)".

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator".

Subsecs. (c), (d). Pub. L. 102-83, Sec. 4(b)(1), (2)(E),

substituted "Secretary" for "Administrator" wherever appearing.

Subsec. (e). Pub. L. 102-83, Sec. 5(c)(1), substituted

"1969(d)(1)" for "769(d)(1)".

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator" wherever appearing.

1974 - Subsec. (b). Pub. L. 93-289, Sec. 8(1), substituted

"premiums for Servicemen's Group Life Insurance" for "premiums for

the policy or policies".

Subsec. (e). Pub. L. 93-289, Sec. 8(2), substituted "section

769(d)(1) of this title" for "section 766 of this title".

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1977 of this title.

-End-

-CITE-

38 USC Sec. 1972 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER III - SERVICEMEMBERS' GROUP LIFE INSURANCE

-HEAD-

Sec. 1972. Benefit certificates

-STATUTE-

The Secretary shall arrange to have each member insured under a

policy purchased under section 1966 of this title receive a

certificate setting forth the benefits to which the member is

entitled thereunder, to whom such benefit shall be payable, to whom

claims should be submitted, and summarizing the provisions of the

policy principally affecting the member. Such certificate shall be

in lieu of the certificate which the insurance company or companies

would otherwise be required to issue.

-SOURCE-

(Added Pub. L. 89-214, Sec. 1(a), Sept. 29, 1965, 79 Stat. 885,

Sec. 772; renumbered Sec. 1972 and amended Pub. L. 102-83, Secs.

4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404-406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83, Sec. 5(a), renumbered section 772 of this

title as this section.

Pub. L. 102-83, Sec. 5(c)(1), substituted "1966" for "766".

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator".

-End-

-CITE-

38 USC Sec. 1973 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER III - SERVICEMEMBERS' GROUP LIFE INSURANCE

-HEAD-

Sec. 1973. Forfeiture

-STATUTE-

Any person guilty of mutiny, treason, spying, or desertion, or

who, because of conscientious objections, refuses to perform

service in the Armed Forces of the United States or refuses to wear

the uniform of such force, shall forfeit all rights to

Servicemembers' Group Life Insurance under this subchapter. No such

insurance shall be payable for death inflicted as a lawful

punishment for crime or for military or naval offense, except when

inflicted by an enemy of the United States.

-SOURCE-

(Added Pub. L. 89-214, Sec. 1(a), Sept. 29, 1965, 79 Stat. 885,

Sec. 773; renumbered Sec. 1973, Pub. L. 102-83, Sec. 5(a), Aug. 6,

1991, 105 Stat. 406; amended Pub. L. 104-275, title IV, Sec.

405(b)(1)(F), Oct. 9, 1996, 110 Stat. 3339.)

-MISC1-

AMENDMENTS

1996 - Pub. L. 104-275 substituted "Servicemembers' Group" for

"Servicemen's Group".

1991 - Pub. L. 102-83 renumbered section 773 of this title as

this section.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1979 of this title.

-End-

-CITE-

38 USC Sec. 1974 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER III - SERVICEMEMBERS' GROUP LIFE INSURANCE

-HEAD-

Sec. 1974. Advisory Council on Servicemembers' Group Life Insurance

-STATUTE-

(a) There is an Advisory Council on Servicemembers' Group Life

Insurance. The council consists of -

(1) the Secretary of the Treasury, who is the chairman of the

council;

(2) the Secretary of Defense;

(3) the Secretary of Commerce;

(4) the Secretary of Health and Human Services;

(5) the Secretary of Transportation; and

(6) the Director of the Office of Management and Budget.

Members of the council shall serve without additional compensation.

(b) The council shall meet at least once a year, or more often at

the call of the Secretary of Veterans Affairs. The council shall

review the operations of the Department under this subchapter and

shall advise the Secretary on matters of policy relating to the

Secretary's activities under this subchapter.

-SOURCE-

(Added Pub. L. 89-214, Sec. 1(a), Sept. 29, 1965, 79 Stat. 885,

Sec. 774; amended Pub. L. 91-291, Sec. 6, June 25, 1970, 84 Stat.

331; Pub. L. 93-289, Sec. 10(3), May 24, 1974, 88 Stat. 172; Pub.

L. 97-295, Sec. 4(95)(A), Oct. 12, 1982, 96 Stat. 1313; Pub. L.

99-576, title VII, Sec. 701(41), Oct. 28, 1986, 100 Stat. 3294;

Pub. L. 102-54, Sec. 14(b)(18), June 13, 1991, 105 Stat. 284;

renumbered Sec. 1974, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105

Stat. 406; Pub. L. 104-275, title IV, Sec. 405(b)(1)(G), (2)(B),

Oct. 9, 1996, 110 Stat. 3339.)

-MISC1-

AMENDMENTS

1996 - Pub. L. 104-275, Sec. 405(b)(2)(B), substituted

"Servicemembers' Group" for "Servicemen's Group" in section

catchline.

Subsec. (a). Pub. L. 104-275, Sec. 405(b)(1)(G), substituted

"Servicemembers' Group" for "Servicemen's Group" in introductory

provisions.

1991 - Pub. L. 102-83 renumbered section 774 of this title as

this section.

Pub. L. 102-54 amended section generally. Prior to amendment,

section read as follows: "There is hereby established an Advisory

Council on Servicemen's Group Life Insurance consisting of the

Secretary of the Treasury as Chairman, the Secretary of Defense,

the Secretary of Commerce, the Secretary of Health and Human

Services, the Secretary of Transportation, and the Director of the

Office of Management and Budget each of whom shall serve without

additional compensation. The Council shall meet once a year, or

oftener at the call of the Administrator, and shall review the

operations under this subchapter and advise the Administrator on

matters of policy relating to the Administrator activities

thereunder."

1986 - Pub. L. 99-576 substituted "the Administrator" for "his"

before "activities".

1982 - Pub. L. 97-295 substituted "Health and Human Services" for

"Health, Education, and Welfare".

1974 - Pub. L. 93-289 substituted "Office of Management and

Budget" for "Bureau of the Budget".

1970 - Pub. L. 91-291 added the Secretary of Transportation to

the membership of the Advisory Council on Servicemen's Group Life

Insurance.

EFFECTIVE DATE OF 1970 AMENDMENT

Amendment by Pub. L. 91-291 effective June 25, 1970, see section

14(a) of Pub. L. 91-291, set out as a note under section 1317 of

this title.

TERMINATION OF ADVISORY COUNCILS

Advisory councils in existence on Jan. 5, 1973, to terminate not

later than the expiration of the 2-year period following Jan. 5,

1973, unless, in the case of a council established by the President

or an officer of the Federal Government, such council is renewed by

appropriate action prior to the expiration of such 2-year period,

or in the case of a council established by the Congress, its

duration is otherwise provided by law. See sections 3(2) and 14 of

Pub. L. 92-463, Oct. 6, 1972, 86 Stat. 770, 776, set out in the

Appendix to Title 5, Government Organization and Employees.

-End-

-CITE-

38 USC Sec. 1975 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER III - SERVICEMEMBERS' GROUP LIFE INSURANCE

-HEAD-

Sec. 1975. Jurisdiction of District Courts

-STATUTE-

The district courts of the United States shall have original

jurisdiction of any civil action or claim against the United States

founded upon this subchapter.

-SOURCE-

(Added Pub. L. 89-214, Sec. 1(a), Sept. 29, 1965, 79 Stat. 885,

Sec. 775; renumbered Sec. 1975, Pub. L. 102-83, Sec. 5(a), Aug. 6,

1991, 105 Stat. 406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 775 of this title as

this section.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 511 of this title.

-End-

-CITE-

38 USC Sec. 1976 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER III - SERVICEMEMBERS' GROUP LIFE INSURANCE

-HEAD-

Sec. 1976. Effective date

-STATUTE-

The insurance provided for in this subchapter and the deductions

and contributions for that purpose shall take effect on the date

designated by the Secretary and certified by the Secretary to each

Secretary concerned.

-SOURCE-

(Added Pub. L. 89-214, Sec. 1(a), Sept. 29, 1965, 79 Stat. 885,

Sec. 776; amended Pub. L. 99-576, title VII, Sec. 701(42), Oct. 28,

1986, 100 Stat. 3294; renumbered Sec. 1976 and amended Pub. L.

102-83, Secs. 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat.

404-406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83, Sec. 5(a), renumbered section 776 of this

title as this section and substituted "Secretary" for

"Administrator" in two places.

1986 - Pub. L. 99-576 substituted "the Administrator" for "him"

after "certified by".

INTERIM COVERAGE UNTIL EFFECTIVE DATE OF GROUP PLAN; $5,000 DEATH

GRATUITY

Section 3 of Pub. L. 89-214, as amended by Pub. L. 89-730, Sec.

6(a)-(d), Nov. 2, 1966, 80 Stat. 1159, provided for payment of a

death gratuity of up to $5,000 in certain cases of death of

veterans while in active military, naval, or air service during the

period from Jan. 1, 1957, to the date immediately preceding the

date on which the Servicemen's Group Life Insurance program was

placed in effect under this section, and required that an

application for such gratuity had to be made within one year after

Sept. 29, 1965.

Pub. L. 89-730, Sec. 6(e), Nov. 2, 1966, 80 Stat. 1159, provided

that any waiver of future benefits executed by any person under

section 3(a) of Pub. L. 89-214 (see above), as in effect prior to

Nov. 2, 1966, was to have no effect.

Pub. L. 89-730, Sec. 6(f), Nov. 2, 1966, 80 Stat. 1159, provided

that in any case in which the death gratuity paid to any person

under section 3 of Pub. L. 89-214 (see above), was reduced pursuant

to clause (B) of subsection (c)(1) of such section, as in effect

prior to Nov. 2, 1966, the Administrator of Veterans' Affairs was

to pay to such person an amount equal to the amount by which such

death gratuity was reduced.

Pub. L. 89-730, Sec. 6(g), Nov. 2, 1966, 80 Stat. 1159, provided

that notwithstanding the time limitation prescribed in section 3(a)

of Pub. L. 89-214 (see above), any application for death gratuity

filed under such section shall be valid if filed within one year

after Nov. 2, 1966.

-End-

-CITE-

38 USC Sec. 1977 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER III - SERVICEMEMBERS' GROUP LIFE INSURANCE

-HEAD-

Sec. 1977. Veterans' Group Life Insurance

-STATUTE-

(a)(1) Veterans' Group Life Insurance shall be issued in the

amounts specified in section 1967(a) of this title. In the case of

any individual, the amount of Veterans' Group Life Insurance may

not exceed the amount of Servicemembers' Group Life Insurance

coverage continued in force after the expiration of the period of

duty or travel under section 1967(b) or 1968(a) of this title. No

person may carry a combined amount of Servicemembers' Group Life

Insurance and Veterans' Group Life Insurance in excess of $250,000

at any one time.

(2) If any person insured under Veterans' Group Life Insurance

again becomes insured under Servicemembers' Group Life Insurance

but dies before terminating or converting such person's Veterans'

Group Insurance, Veterans' Group Life Insurance shall be payable

only if such person is insured for less than $250,000 under

Servicemembers' Group Life Insurance, and then only in an amount

which, when added to the amount of Servicemembers' Group Life

Insurance payable, does not exceed $250,000.

(b) Veterans' Group Life Insurance shall (1) provide protection

against death; (2) be issued on a renewable five-year term basis;

(3) have no cash, loan, paid-up, or extended values; (4) except as

otherwise provided, lapse for nonpayment of premiums; and (5)

contain such other terms and conditions as the Secretary determines

to be reasonable and practicable which are not specifically

provided for in this section, including any provisions of this

subchapter not specifically made inapplicable by the provisions of

this section.

(c) The premiums for Veterans' Group Life Insurance shall be

established under the criteria set forth in sections 1971(a) and

(c) of this title, except that the Secretary may provide for

average premiums for such various age groupings as the Secretary

may decide to be necessary according to sound actuarial principles,

and shall include an amount necessary to cover the administrative

cost of such insurance to the company or companies issuing such

insurance. Such premiums shall be payable by the insureds

thereunder as provided by the Secretary directly to the

administrative office established for such insurance under section

1966(b) of this title. In any case in which a member or former

member who was mentally incompetent on the date such member or

former member first became insured under Veterans' Group Life

Insurance dies within one year of such date, such insurance shall

be deemed not to have lapsed for nonpayment of premiums and to have

been in force on the date of death. Where insurance is in force

under the preceding sentence, any unpaid premiums may be deducted

from the proceeds of the insurance. Any person who claims

eligibility for Veterans' Group Life Insurance based on disability

incurred during a period of duty shall be required to submit

evidence of qualifying health conditions and, if required, to

submit to physical examinations at their own expense.

(d) Any amount of Veterans' Group Life Insurance in force on any

person on the date of such person's death shall be paid, upon the

establishment of a valid claim therefor, pursuant to the provisions

of section 1970 of this title. However, any designation of

beneficiary or beneficiaries for Servicemembers' Group Life

Insurance filed with a uniformed service until changed, shall be

considered a designation of beneficiary or beneficiaries for

Veterans' Group Life Insurance, but not for more than sixty days

after the effective date of the insured's Veterans' Group

Insurance, unless at the end of such sixty-day period, the insured

is incompetent in which event such designation may continue in

force until the disability is removed but not for more than five

years after the effective date of the insured's Veterans' Group

Life Insurance. Except as indicated above in incompetent cases,

after such sixty-day period, any designation of beneficiary or

beneficiaries for Veterans' Group Life Insurance to be effective

must be by a writing signed by the insured and received by the

administrative office established under section 1966(b) of this

title.

(e) An insured under Veterans' Group Life Insurance shall have

the right at any time to convert such insurance to an individual

policy of life insurance upon written application for conversion

made to the participating company the insured selects and payment

of the required premiums. The individual policy will be issued

without medical examination on a plan then currently written by

such company which does not provide for the payment of any sum less

than the face value thereof or for the payment of an additional

amount as premiums in the event the insured performs active duty,

active duty for training, or inactive duty training. The Veterans'

Group Life Insurance policy converted to an individual policy under

this subsection shall terminate on the day before the date on which

the individual policy becomes effective. Upon request to the

administrative office established under section 1966(b) of this

title, an insured under Veterans' Group Life Insurance shall be

furnished a list of life insurance companies participating in the

program established under this subchapter. In addition to the life

insurance companies participating in the program established under

this subchapter, the list furnished to an insured under this

section shall include additional life insurance companies (not so

participating) which meet qualifying criteria, terms, and

conditions established by the Secretary and agree to sell insurance

to former members in accordance with the provisions of this

section.

(f) The provisions of subsections (d) and (e) of section 1971 of

this title shall be applicable to Veterans' Group Life Insurance.

However, a separate accounting shall be required for each program

of insurance authorized under this subchapter. In such accounting,

the Secretary is authorized to allocate claims and other costs

among such programs of insurance according to accepted actuarial

principles.

(g) 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. Veterans' Group Life Insurance issued under this

subsection 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.

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. 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. 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. 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. Appropriations to carry out the

purpose of this section are hereby authorized.

(h)(1) Notwithstanding any other provision of law, members of the

Individual Ready Reserve and the Inactive National Guard are

eligible to be insured under Veterans' Group Life Insurance. Any

such member shall be so insured upon submission of an application

in the manner prescribed by the Secretary and the payment of

premiums as required under this section.

(2) In accordance with subsection (b), Veterans' Group Life

Insurance coverage under this subsection shall be issued on a

renewable five-year term basis, but the person insured must remain

a member of the Individual Ready Reserve or Inactive National Guard

throughout the period of the insurance in order for the insurance

of such person to be renewed.

(3) For the purpose of this subsection, the terms "Individual

Ready Reserve" and "Inactive National Guard" shall have the

meanings prescribed by the Secretary in consultation with the

Secretary of Defense.

-SOURCE-

(Added Pub. L. 93-289, Sec. 9(a), May 24, 1974, 88 Stat. 169, Sec.

777; amended Pub. L. 97-66, title IV, Sec. 401(b), Oct. 17, 1981,

95 Stat. 1031; Pub. L. 99-166, title IV, Sec. 401(b), Dec. 3, 1985,

99 Stat. 957; Pub. L. 99-576, title VII, Sec. 701(43), Oct. 28,

1986, 100 Stat. 3294; Pub. L. 102-25, title III, Sec. 336(b), Apr.

6, 1991, 105 Stat. 90; renumbered Sec. 1977 and amended Pub. L.

102-83, Secs. 4(a)(2)(B)(iii), (b)(1), (2)(E), 5(a), (c)(1), Aug.

6, 1991, 105 Stat. 403-406; Pub. L. 102-568, title II, Sec. 202,

Oct. 29, 1992, 106 Stat. 4324; Pub. L. 103-446, title XII, Sec.

1201(e)(9), Nov. 2, 1994, 108 Stat. 4685; Pub. L. 104-275, title

IV, Secs. 403(b), 405(b)(1)(H), 406, Oct. 9, 1996, 110 Stat.

3338-3340; Pub. L. 106-419, title III, Sec. 312(b), Nov. 1, 2000,

114 Stat. 1854.)

-MISC1-

AMENDMENTS

2000 - Subsec. (a). Pub. L. 106-419 substituted "$250,000" for

"$200,000" in par. (1) and two places in par. (2).

1996 - Subsec. (a). Pub. L. 104-275, Sec. 403(b)(1), designated

existing provisions as par. (1), struck out at end "Any person

insured under Veterans' Group Life Insurance who again becomes

insured under Servicemen's Group Life Insurance may within 60 days

after becoming so insured convert any or all of such person's

Veterans' Group Life Insurance to an individual policy of insurance

under subsection (e). However, if such a person dies within the

60-day period and before converting such person's Veterans' Group

Life Insurance, Veterans' Group Life Insurance will be payable only

if such person is insured for less than $200,000 under Servicemen's

Group Life Insurance, and then only in an amount which when added

to the amount of Servicemen's Group Life Insurance payable shall

not exceed $200,000.", and added par. (2).

Subsec. (a)(1). Pub. L. 104-275, Sec. 406, struck out "and (e)"

after "section 1967(a)" and after "section 1967(b)".

Pub. L. 104-275, Sec. 405(b)(1)(H), substituted "Servicemembers'

Group" for "Servicemen's Group" in two places.

Subsec. (d). Pub. L. 104-275, Sec. 405(b)(1)(H), substituted

"Servicemembers' Group" for "Servicemen's Group".

Subsec. (e). Pub. L. 104-275, Sec. 403(b)(2), inserted "at any

time" after "shall have the right" in first sentence and

substituted as third sentence "The Veterans' Group Life Insurance

policy converted to an individual policy under this subsection

shall terminate on the day before the date on which the individual

policy becomes effective." for "The individual policy will be

effective the day after the insured's Veterans' Group Life

Insurance terminates by expiration of the five-year term period,

except in a case where the insured is eligible to convert at an

earlier date by reason of again having become insured under

Servicemen's Group Life Insurance, in which event the effective

date of the individual policy may not be later than the sixty-first

day after the insured again became so insured."

Subsec. (g). Pub. L. 104-275, Sec. 405(b)(1)(H), substituted

"Servicemembers' Group" for "Servicemen's Group" wherever

appearing.

1994 - Subsec. (f). Pub. L. 103-446 substituted "subsections (d)

and (e) of section 1971" for "sections 1971(d) and (e)".

1992 - Subsec. (a). Pub. L. 102-568, Sec. 202(1), inserted "and

(e)" after "1967(a)" and after "1967(b)", substituted "$200,000"

for "$100,000" wherever appearing, "60 days" for "sixty days", and

"60-day period" for "sixty-day period", and struck out "of this

section" after "subsection (e)".

Subsec. (b)(2). Pub. L. 102-568, Sec. 202(2), substituted

"renewable" for "nonrenewable".

Subsec. (h)(2). Pub. L. 102-568, Sec. 202(3), substituted "In

accordance with subsection (b)" for "Notwithstanding subsection

(b)(2) of this section".

1991 - Pub. L. 102-83, Sec. 5(a), renumbered section 777 of this

title as this section.

Subsec. (a). Pub. L. 102-83, Sec. 5(c)(1), substituted "1967(a)"

for "767(a)" and "1967(b) or 1968(a)" for "767(b) or 768(a)".

Pub. L. 102-25 substituted "$100,000" for "$50,000" wherever

appearing.

Subsec. (b). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted

"Secretary" for "Administrator".

Subsec. (c). Pub. L. 102-83, Sec. 5(c)(1), substituted "1971(a)"

for "771(a)" and "1966(b)" for "766(b)".

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator" wherever appearing.

Subsec. (d). Pub. L. 102-83, Sec. 5(c)(1), substituted "1970" for

"770" and "1966(b)" for "766(b)".

Subsec. (e). Pub. L. 102-83, Sec. 5(c)(1), substituted "1966(b)"

for "766(b)".

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator".

Subsec. (f). Pub. L. 102-83, Sec. 5(c)(1), substituted "1971(d)"

for "771(d)".

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator".

Subsec. (g). Pub. L. 102-83, Sec. 5(c)(1), substituted "1977" for

"777" and "1966(b)" for "766(b)".

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator" in two places.

Pub. L. 102-83, Sec. 4(a)(2)(B)(iii), substituted "Department of

Veterans Affairs" for "Veterans' Administration".

Subsec. (h)(1), (3). Pub. L. 102-83, Sec. 4(b)(1), (2)(E),

substituted "Secretary" for "Administrator".

1986 - Subsec. (a). Pub. L. 99-576, Sec. 701(43)(A), substituted

"such person's" for "his" in two places and "such person" for "he".

Subsec. (c). Pub. L. 99-576, Sec. 701(43)(B), substituted "the

Administrator" for "he" in first sentence and "such member or

former member" for "he" in third sentence.

Subsec. (d). Pub. L. 99-576, Sec. 701(43)(C), substituted "such

person's" for "his".

Subsec. (e). Pub. L. 99-576, Sec. 701(43)(D), substituted "the

insured" for "he" in first and third sentences.

Subsec. (g). Pub. L. 99-576, Sec. 701(43)(E), substituted "the

insured's" for "his" and "the Administrator" for "he".

1985 - Subsec. (a). Pub. L. 99-166, Sec. 401(b)(1), substituted

"Veterans' Group Life Insurance shall be issued in the amounts

specified in section 767(a) of this title. In the case of any

individual, the amount of Veterans' Group Life Insurance may not

exceed the amount of Servicemen's Group Life Insurance coverage

continued in force after the expiration of the period of duty or

travel under section 767(b) or 768(a) of this title" for "Veterans'

Group Life Insurance shall be issued in the amount of $5,000,

$10,000, $15,000, $20,000, $25,000, $30,000 or $35,000 only" and

"$50,000" for "$35,000" in three places.

Subsec. (h). Pub. L. 99-166, Sec. 401(b)(2), added subsec. (h).

1981 - Subsec. (a). Pub. L. 97-66 inserted figures of $25,000,

$30,000, and $35,000 to the enumeration of allowable amounts in

which Veterans' Group Life Insurance may be issued, and substituted

$35,000 for $20,000 as the maximum amount of combined Servicemen's

Group Life Insurance and Veterans' Group Life Insurance which a

person may carry at any one time and as the figure covering

situations in which a person insured under Veterans' Group Life

Insurance dies within the sixty-day period after having again

become insured under Servicemen's Group Life Insurance before

converting his Veterans' Group Life Insurance to an individual

policy.

EFFECTIVE DATE OF 2000 AMENDMENT

Amendment by Pub. L. 106-419 effective on the first day of the

first month that begins more than 120 days after Nov. 1, 2000, see

section 312(c) of Pub. L. 106-419, set out as a note under section

1967 of this title.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-568 effective Dec. 1, 1992, see section

205 of Pub. L. 102-568, set out as an Effective Date note under

section 1922A of this title.

EFFECTIVE DATE OF 1985 AMENDMENT

Amendment by Pub. L. 99-166 effective Jan. 1, 1986, see section

401(c)(1) of Pub. L. 99-166, set out as a note under section 1967

of this title.

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-66 effective Dec. 1, 1981, see section

701(b)(2) of Pub. L. 97-66, set out as a note under section 1114 of

this title.

EFFECTIVE DATE

Section effective first day of third calendar month following May

1974, see section 12(4) of Pub. L. 93-289, set out as an Effective

Date of 1974 Amendment note under section 1968 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1968, 1980 of this title.

-End-

-CITE-

38 USC Sec. 1978 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER III - SERVICEMEMBERS' GROUP LIFE INSURANCE

-HEAD-

Sec. 1978. Reinstatement

-STATUTE-

Reinstatement of insurance coverage granted under this subchapter

but lapsed for nonpayment of premiums shall be under terms and

conditions prescribed by the Secretary.

-SOURCE-

(Added Pub. L. 93-289, Sec. 9(a), May 24, 1974, 88 Stat. 172, Sec.

778; renumbered Sec. 1978 and amended Pub. L. 102-83, Secs.

4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404-406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 778 of this title as

this section and substituted "Secretary" for "Administrator".

EFFECTIVE DATE

Section effective first day of third calendar month following May

1974, see section 12(4) of Pub. L. 93-289, set out as an Effective

Date of 1974 Amendment note under section 1968 of this title.

-End-

-CITE-

38 USC Sec. 1979 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER III - SERVICEMEMBERS' GROUP LIFE INSURANCE

-HEAD-

Sec. 1979. Incontestability

-STATUTE-

Subject to the provision of section 1973 of this title, insurance

coverage granted under this subchapter shall be incontestable from

the date of issue, reinstatement, or conversion except for fraud or

nonpayment of premium.

-SOURCE-

(Added Pub. L. 93-289, Sec. 9(a), May 24, 1974, 88 Stat. 172, Sec.

779; renumbered Sec. 1979 and amended Pub. L. 102-83, Sec. 5(a),

(c)(1), Aug. 6, 1991, 105 Stat. 406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 779 of this title as

this section and substituted "1973" for "773".

EFFECTIVE DATE

Section effective first day of third calendar month following May

1974, see section 12(4) of Pub. L. 93-289, set out as an Effective

Date of 1974 Amendment note under section 1968 of this title.

-End-

-CITE-

38 USC Sec. 1980 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER III - SERVICEMEMBERS' GROUP LIFE INSURANCE

-HEAD-

Sec. 1980. Option to receive accelerated death benefit

-STATUTE-

(a) For the purpose of this section, a person shall be considered

to be terminally ill if the person has a medical prognosis such

that the life expectancy of the person is less than a period

prescribed by the Secretary. The maximum length of such period may

not exceed 12 months.

(b)(1) A terminally ill person insured under Servicemembers'

Group Life Insurance or Veterans' Group Life Insurance may elect to

receive in a lump-sum payment a portion of the face value of the

insurance as an accelerated death benefit reduced by an amount

necessary to assure that there is no increase in the actuarial

value of the benefit paid, as determined by the Secretary.

(2) The Secretary shall prescribe the maximum amount of the

accelerated death benefit available under this section that the

Secretary finds to be administratively practicable and actuarially

sound, but in no event may the amount of the benefit exceed the

amount equal to 50 percent of the face value of the person's

insurance in force on the date the election of the person to

receive the benefit is approved.

(3) A person making an election under this section may elect to

receive an amount that is less than the maximum amount prescribed

under paragraph (2). The Secretary shall prescribe the increments

in which a reduced amount under this paragraph may be elected.

(c) The portion of the face value of insurance which is not paid

in a lump sum as an accelerated death benefit under this section

shall remain payable in accordance with the provisions of this

chapter.

(d) Deductions under section 1969 of this title and premiums

under section 1977(c) of this title shall be reduced, in a manner

consistent with the percentage reduction in the face value of the

insurance as a result of payment of an accelerated death benefit

under this section, effective with respect to any amounts which

would otherwise become due on or after the date of payment under

this section.

(e) The Secretary shall prescribe regulations to carry out this

section. Such regulations shall include provisions regarding -

(1) the form and manner in which an application for an election

under this section shall be made; and

(2) the procedures under which any such application shall be

considered.

(f)(1) An election to receive a benefit under this section shall

be irrevocable.

(2) A person may not make more than one election under this

section, even if the election of the person is to receive less than

the maximum amount of the benefit available to the person under

this section.

(g) If a person insured under Servicemembers' Group Life

Insurance elects to receive a benefit under this section and the

person's Servicemembers' Group Life Insurance is thereafter

converted to Veterans' Group Life Insurance as provided in section

1968(b) of this title, the amount of the benefit paid under this

section shall reduce the amount of Veterans' Group Life Insurance

available to the person under section 1977(a) of this title.

(h) Notwithstanding any other provision of law, the amount of the

accelerated death benefit received by a person under this section

shall not be considered income or resources for purposes of

determining eligibility for or the amount of benefits under any

Federal or federally-assisted program or for any other purpose.

-SOURCE-

(Added Pub. L. 105-368, title III, Sec. 302(a)(1), Nov. 11, 1998,

112 Stat. 3332.)

-MISC1-

EFFECTIVE DATE

Section effective 90 days after Nov. 11, 1998, see section 302(c)

of Pub. L. 105-368, set out as an Effective Date of 1998 Amendment

note under section 1970 of this title.

-End-

-CITE-

38 USC SUBCHAPTER IV - GENERAL 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER IV - GENERAL

-HEAD-

SUBCHAPTER IV - GENERAL

-MISC1-

AMENDMENTS

1965 - Pub. L. 89-214, Sec. 1(a), Sept. 29, 1965, 79 Stat. 880,

redesignated "SUBCHAPTER III - GENERAL" as "SUBCHAPTER IV -

GENERAL".

-End-

-CITE-

38 USC Sec. 1981 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER IV - GENERAL

-HEAD-

Sec. 1981. Replacement of surrendered and expired insurance

-STATUTE-

(a) Any person who surrendered a policy of National Service Life

Insurance or United States Government life insurance on a permanent

plan for its cash value while in the active service after April 24,

1951, and before January 1, 1957, who was entitled on December 31,

1958, to reinstate or replace such insurance under section 623 of

the National Service Life Insurance Act of 1940, may, upon

application in writing made while on continuous active duty which

began before January 1, 1959, or within one hundred and twenty days

after separation therefrom, be granted, without medical

examination, permanent plan insurance on the same plan not in

excess of the amount surrendered for cash, or may reinstate such

surrendered insurance upon payment of the required reserve and the

premium for the current month. Waiver of premiums and total

disability income benefits otherwise authorized under this chapter

shall not be denied in any case of issue or reinstatement of

insurance on a permanent plan under this section or the prior

corresponding provision of law in which it is shown to the

satisfaction of the Secretary that total disability of the

applicant began before the date of application. The cost of the

premiums waived and total disability income benefits paid by virtue

of the preceding sentence and the excess mortality cost in any case

where the insurance matures by death from such total disability

shall be borne by the United States and the Secretary shall

transfer from time to time from the National Service Life Insurance

appropriation to the National Service Life Insurance Fund and from

the military and naval insurance appropriation to the United States

Government Life Insurance Fund such sums as may be necessary to

reimburse the funds for such costs.

(b) Any person who had United States Government life insurance or

National Service Life Insurance on the five-year level premium term

plan, the term of which expired while such person was in the active

service after April 25, 1951, or within one hundred and twenty days

after separation from such active service, and in either case

before January 1, 1957, who was entitled on December 31, 1958, to

replace such insurance under section 623 of the National Service

Life Insurance Act of 1940, shall, upon application made while on

continuous active duty which began before January 1, 1959, or

within one hundred and twenty days after separation therefrom,

payment of premiums and evidence of good health satisfactory to the

Secretary, be granted an equivalent amount of insurance on the

five-year level premium term plan at the premium rate for such

person's then attained age.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1164, Sec. 781; Pub. L.

99-576, title VII, Sec. 701(44), Oct. 28, 1986, 100 Stat. 3294;

renumbered Sec. 1981 and amended Pub. L. 102-83, Secs. 4(b)(1),

(2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404-406.)

-REFTEXT-

REFERENCES IN TEXT

Section 623 of the National Service Life Insurance Act of 1940,

referred to in subsecs. (a) and (b), is section 623 of act Oct. 8,

1940, ch. 757, title VI, pt. I, as added Aug. 1, 1956, ch. 837,

title V, Sec. 501(a)(4), 70 Stat. 880, which enacted section 824 of

former Title 38, Pensions, Bonuses, and Veterans' Relief, and which

was repealed and the provisions thereof reenacted as this section

by Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1105.

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 781 of this title as

this section and substituted "Secretary" for "Administrator"

wherever appearing.

1986 - Subsec. (b). Pub. L. 99-576 substituted "such person" for

"he" and "such person's" for "his".

-End-

-CITE-

38 USC Sec. 1982 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER IV - GENERAL

-HEAD-

Sec. 1982. Administrative cost

-STATUTE-

Except as provided in sections 1920(c), 1923(d), and 1955(c) of

this title, the United States shall bear the cost of administration

in connection with this chapter, including expenses for medical

examinations, inspections when necessary, printing and binding, and

for such other expenditures as are necessary in the discretion of

the Secretary.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1165, Sec. 782; renumbered

Sec. 1982 and amended Pub. L. 102-83, Secs. 4(b)(1), (2)(E), 5(a),

Aug. 6, 1991, 105 Stat. 404-406; Pub. L. 104-99, title II, Sec.

201(b), Jan. 26, 1996, 110 Stat. 36.)

-COD-

CODIFICATION

Amendment by Pub. L. 104-99 is based on section 107(4) of H.R.

2099, One Hundred Fourth Congress, as passed by the House of

Representatives on Dec. 7, 1995, which was enacted into law by Pub.

L. 104-99.

-MISC1-

AMENDMENTS

1996 - Pub. L. 104-99 substituted "Except as provided in sections

1920(c), 1923(d), and 1955(c) of this title, the United States" for

"The United States".

1991 - Pub. L. 102-83 renumbered section 782 of this title as

this section and substituted "Secretary" for "Administrator".

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1925, 1969 of this title.

-End-

-CITE-

38 USC Sec. 1983 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER IV - GENERAL

-HEAD-

Sec. 1983. Settlements for minors or incompetents

-STATUTE-

When an optional mode of settlement of National Service Life

Insurance or United States Government life insurance heretofore or

hereafter matured is available to a beneficiary who is a minor or

incompetent, such option may be exercised by such beneficiary's

fiduciary, person qualified under the Act of February 25, 1933 (25

U.S.C. 14), or person recognized by the Secretary as having custody

of the person or the estate of such beneficiary, and the obligation

of the United States under the insurance contract shall be fully

satisfied by payment of benefits in accordance with the mode of

settlement so selected.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1165, Sec. 783; Pub. L.

99-576, title VII, Sec. 701(45), Oct. 28, 1986, 100 Stat. 3294;

Pub. L. 102-54, Sec. 14(b)(19), June 13, 1991, 105 Stat. 284;

renumbered Sec. 1983 and amended Pub. L. 102-83, Secs. 4(b)(1),

(2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404-406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 783 of this title as

this section and substituted "Secretary" for "Administrator".

Pub. L. 102-54 substituted "the Act of February 25, 1933 (25

U.S.C. 14)" for "section 14 of title 25".

1986 - Pub. L. 99-576 substituted "such beneficiary's" for "his".

-End-

-CITE-

38 USC Sec. 1984 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER IV - GENERAL

-HEAD-

Sec. 1984. Suits on insurance

-STATUTE-

(a) In the event of disagreement as to claim, including claim for

refund of premiums, under contract of National Service Life

Insurance, United States Government life insurance, or yearly

renewable term insurance between the Secretary and any person or

persons claiming thereunder an action on the claim may be brought

against the United States either in the United States District

Court for the District of Columbia or in the district court of the

United States in and for the district in which such person or any

one of them resides, and jurisdiction is conferred upon such courts

to hear and determine all such controversies. All persons having or

claiming to have an interest in such insurance may be made parties

to such suit, and such as are not inhabitants of or found within

the district in which suit is brought may be brought in by order of

the court to be served personally or by publication or in such

other reasonable manner as the court may direct. In all cases where

the Secretary acknowledges the indebtedness of the United States

upon any such contract of insurance and there is a dispute as to

the person or persons entitled to payment, a suit in the nature of

a bill of interpleader may be brought at the request of the

Secretary in the name of the United States against all persons

having or claiming to have any interest in such insurance in the

United States District Court for the District of Columbia or in the

district court in and for the district in which any such claimant

resides; however, no less than thirty days before instituting such

suit the Secretary shall mail a notice of such intention to each of

the persons to be made parties to the suit. The courts of appeals

for the several circuits, including the District of Columbia, shall

respectively exercise appellate jurisdiction and, except as

provided in section 1254 of title 28, the decrees of such courts of

appeals shall be final.

(b) No suit on yearly renewable term insurance, United States

Government life insurance, or National Service Life Insurance shall

be allowed under this section unless the same shall have been

brought within six years after the right accrued for which the

claim is made. For the purposes of this section it shall be deemed

that the right accrued on the happening of the contingency on which

the claim is founded. The limitation of six years is suspended for

the period elapsing between the filing with the Secretary of the

claim sued upon and the denial of the claim. However, if a claim is

timely filed the claimant shall have not less than ninety days from

the date of mailing of notice of denial within which to file suit.

After June 28, 1936, notice of denial of the claim under a contract

of insurance shall be by registered mail or by certified mail

directed to the claimant's last address of record. Infants, insane

persons, or persons under other legal disability, or persons rated

as incompetent or insane by the Secretary shall have three years in

which to bring suit after the removal of their disabilities. If

suit is seasonably begun and fails for defect in process, or for

other reasons not affecting the merits, a new action, if one lies,

may be brought within a year though the period of limitation has

elapsed. No State or other statute of limitations shall be

applicable to suits filed under this section.

(c) In any suit, action, or proceeding brought under the

provisions of this section subpenas for witnesses who are required

to attend a court of the United States in any district may run into

any other district. However, no writ of subpena shall issue for

witnesses living out of the district in which the court is held at

a greater distance than one hundred miles from the place of holding

the same without the permission of the court being first had upon

proper application and cause shown. The word "district" and the

words "district court" as used in this section shall be construed

to include the District of Columbia and the United States District

Court for the District of Columbia.

(d) Attorneys of the Department, when assigned to assist in the

trial of cases, and employees of the Department when ordered in

writing by the Secretary to appear as witnesses, shall be paid the

regular travel and subsistence allowance paid to other employees

when on official travel status.

(e) Part-time and fee-basis employees of the Department, in

addition to their regular travel and subsistence allowance, when

ordered in writing by the Secretary to appear as witnesses in suits

under this section, may be allowed, within the discretion and under

written orders of the Secretary, a fee in an amount not to exceed

$50 per day.

(f) Employees of the Department who are subpenaed to attend the

trial of any suit, under the provisions of this section, as

witnesses for a party to such suit shall be granted court leave or

authorized absence, as applicable, for the period they are required

to be away from the Department in answer to such subpenas.

(g) Whenever a judgment or decree shall be rendered in an action

brought under the provisions of this section, the court, as a part

of its judgment or decree, shall determine and allow reasonable

fees for the attorneys of the successful party or parties and

apportion same if proper, said fees not to exceed 10 per centum of

the amount recovered and to be paid by the Department out of the

payments to be made under the judgment or decree at a rate not

exceeding one-tenth of each of such payments until paid; except

that, in a suit brought by or on behalf of an insured during the

insured's lifetime for waiver of premiums on account of total

disability, the court, as part of its judgment or decree, shall

determine and allow a reasonable fee to be paid by the insured to

the insured's attorney.

(h) The term "claim" as used in this section means any writing

which uses words showing an intention to claim insurance benefits;

and the term "disagreement" means a denial of the claim, after

consideration on its merits, by the Secretary or any employee or

organizational unit of the Department heretofore or hereafter

designated therefor by the Secretary.

(i) The Attorney General of the United States is authorized to

agree to a judgment to be rendered by the chief judge of the United

States court having jurisdiction of the case, pursuant to

compromise approved by the Attorney General upon the recommendation

of the United States attorney charged with the defense, upon such

terms and for sums within the amount claimed to be payable, in any

suit brought under the provisions of this section, on a contract of

yearly renewable term insurance, and the Secretary shall make

payments in accordance with any such judgment. The Comptroller

General of the United States shall allow credit in the accounts of

disbursing officers for all payments of insurance made in

accordance with any such judgment. All such judgments shall

constitute final settlement of the claim and no appeal therefrom

shall be authorized.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1165, Sec. 784; Pub. L.

86-507, Sec. 1(32), June 11, 1960, 74 Stat. 202; Pub. L. 97-295,

Sec. 4(32), Oct. 12, 1982, 96 Stat. 1307; Pub. L. 99-576, title

VII, Sec. 701(46), Oct. 28, 1986, 100 Stat. 3294; renumbered Sec.

1984 and amended Pub. L. 102-83, Secs. 4(a)(2)(A)(iii)(VII),

(VIII), (D)(ii), (3), (4), (b)(1), (2)(E), 5(a), Aug. 6, 1991, 105

Stat. 403-406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83, Sec. 5(a), renumbered section 784 of this

title as this section.

Subsec. (a). Pub. L. 102-83, Sec. 4(a)(2)(A)(iii)(VII),

substituted "Secretary" for "Veterans' Administration" wherever

appearing.

Subsec. (b). Pub. L. 102-83, Sec. 4(a)(2)(D)(ii), substituted

"with the Secretary" for "in the Veterans' Administration".

Pub. L. 102-83, Sec. 4(a)(2)(A)(iii)(VIII), substituted

"Secretary" for "Veterans' Administration" before "shall".

Subsec. (d). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted

"Secretary" for "Administrator".

Pub. L. 102-83, Sec. 4(a)(3), (4), substituted "Department" for

"Veterans' Administration" in two places.

Subsec. (e). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted

"Secretary" for "Administrator" in two places.

Pub. L. 102-83, Sec. 4(a)(3), (4), substituted "Department" for

"Veterans' Administration".

Subsecs. (f), (g). Pub. L. 102-83, Sec. 4(a)(3), (4), substituted

"Department" for "Veterans' Administration" wherever appearing.

Subsec. (h). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted

"Secretary" for "Administrator" in two places.

Pub. L. 102-83, Sec. 4(a)(3), (4), substituted "Department" for

"Veterans' Administration".

Subsec. (i). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted

"Secretary" for "Administrator".

1986 - Subsec. (g). Pub. L. 99-576 substituted "the insured's"

for "his" in two places.

1982 - Subsec. (b). Pub. L. 97-295, Sec. 4(32)(A), substituted

"the claim. However, if" for "said claim: Provided, That in any

case in which".

Subsec. (c). Pub. L. 97-295, Sec. 4(32)(B), substituted

"district. However," for "district: Provided, That", and

substituted "in this section" for "herein" after "as used".

1960 - Subsec. (b). Pub. L. 86-507 inserted "or by certified

mail" after "registered mail".

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 108, 511, 1947, 1985,

5905 of this title.

-End-

-CITE-

38 USC Sec. 1985 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER IV - GENERAL

-HEAD-

Sec. 1985. Decisions by the Secretary

-STATUTE-

Except in the event of suit as provided in section 1984 of this

title, or other appropriate court proceedings, all decisions

rendered by the Secretary under the provisions of this chapter

shall be final and conclusive on all questions of law or fact, and

no other official of the United States shall have jurisdiction to

review any such decisions.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1167, Sec. 785; renumbered

Sec. 1985 and amended Pub. L. 102-83, Secs. 4(b)(1), (2)(E), 5(a),

(c)(1), Aug. 6, 1991, 105 Stat. 404-406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83, Sec. 5(a), renumbered section 785 of this

title as this section.

Pub. L. 102-83, Sec. 5(c)(1), substituted "1984" for "784".

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator" in section catchline and in text.

-End-

-CITE-

38 USC Sec. 1986 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER IV - GENERAL

-HEAD-

Sec. 1986. Deposits in and disbursements from trust funds

-STATUTE-

All cash balances in the United States Government Life Insurance

Fund and the National Service Life Insurance Fund on January 1,

1959, together with all moneys thereafter accruing to such funds,

including premiums, appropriated moneys, the proceeds of any sales

of investments which may be necessary to meet current expenditures,

and interest on investments, shall be available for disbursement

for meeting all expenditures and making investments authorized to

be made from such funds.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1167, Sec. 786; renumbered

Sec. 1986, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 786 of this title as

this section.

-End-

-CITE-

38 USC Sec. 1987 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER IV - GENERAL

-HEAD-

Sec. 1987. Penalties

-STATUTE-

(a) Any person who shall knowingly make or cause to be made, or

conspire, combine, aid, or assist in, agree to, arrange for, or in

anywise procure the making or presentation of a false or fraudulent

affidavit, declaration, certificate, statement, voucher, or paper,

or writing purporting to be such, concerning any application for

insurance or reinstatement thereof, waiver of premiums or claim for

benefits under National Service Life Insurance, United States

Government life insurance, or yearly renewable term insurance for

any person, shall be fined not more than $1,000, or be imprisoned

for not more than one year, or both.

(b) Whoever in any claim for National Service Life Insurance,

United States Government life insurance, or yearly renewable term

insurance makes any sworn statement of a material fact knowing it

to be false, shall be guilty of perjury and shall be fined not more

than $5,000, or be imprisoned for not more than two years, or both.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1167, Sec. 787; Pub. L.

99-576, title VII, Sec. 701(47), Oct. 28, 1986, 100 Stat. 3294;

renumbered Sec. 1987, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105

Stat. 406.)

-MISC1-

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 787 of this title as

this section.

1986 - Subsec. (a). Pub. L. 99-576 substituted "any" for "himself

or any other".

-End-

-CITE-

38 USC Sec. 1988 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 19 - INSURANCE

SUBCHAPTER IV - GENERAL

-HEAD-

Sec. 1988. Savings provision

-STATUTE-

Nothing in this title or any amendment or repeal made by the Act

enacting this title shall affect any right, remedy, liability,

authorization or requirement pertaining to Government insurance,

the respective insurance funds, or the insurance appropriations,

authorized or prescribed under the provisions of the War Risk

Insurance Act, the World War Veterans' Act, 1924, the National

Service Life Insurance Act of 1940, or any related Act, which was

in effect on December 31, 1958.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1167, Sec. 788; renumbered

Sec. 1988, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 406.)

-REFTEXT-

REFERENCES IN TEXT

The War Risk Insurance Act, referred to in text, is act Sept. 2,

1914, ch. 293, 38 Stat. 711, as amended. Sections 600 and 601 of

the World War Veterans' Act, 1924 (act June 7, 1924, ch. 320, 43

Stat. 607, 629) repealed the War Risk Insurance Act subject to

certain limitations provided in section 602 thereof.

The World War Veterans' Act, 1924, referred to in text, is act

June 7, 1924, ch. 320, 43 Stat. 607, as amended, which was

classified generally to chapter 10 (Secs. 421 to 574) of former

Title 38, Pensions, Bonuses, and Veterans' Relief, and which was

repealed by Pub. L. 85-857, Sec. 14(51), Sept. 2, 1958, 72 Stat.

1271. For distribution of sections 421 to 574 of former Title 38 in

this title, see Table preceding section 101 of this title.

The National Service Life Insurance Act of 1940, referred to in

text, is act Oct. 8, 1940, ch. 757, title VI, part I, 54 Stat.

1008, as amended, which was classified generally to chapter 13

(Sec. 801 et seq.) of former Title 38, Pensions, Bonuses, and

Veterans' Relief, and which was repealed and the provisions thereof

reenacted as this subchapter by Pub. L. 85-857, Sept. 2, 1958, 72

Stat. 1105.

-MISC1-

PRIOR PROVISIONS

A prior section 2000 was renumbered section 4100 of this title.

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 788 of this title as

this section.

-End-