38 U.S.C. § 1907 — Payment or use of dividends

Page 499 TITLE 38—VETERANS’ BENEFITS § 1907 ter 39 of this title by Pub. L. 91–666, § 2(a), Jan. 11, 1971, 84 Stat. 1998. See section 3903 of this title. AMENDMENTS 1991—Pub. L. 102–83, § 5(a), renumbered section 704 of this title as this section. Subsec. (b). Pub. L. 102–83, § 4(b)(1), (2)(E), substituted ‘‘Secretary’’ for ‘‘Administrator’’. Subsec. (c). Pub. L. 102–83, § 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, § 4(b)(1), (2)(E), substituted ‘‘Sec- retary’’ for ‘‘Administrator’’. Subsec. (d). Pub. L. 102–83, § 5(c)(1), substituted ‘‘1912’’ for ‘‘712’’. Subsec. (e). Pub. L. 102–83, § 4(b)(1), (2)(E), substituted ‘‘Secretary’’ for ‘‘Administrator’’ wherever appearing. 1986—Subsec. (d). Pub. L. 99–576, § 701(21)(A), sub- stituted ‘‘the insured’s’’ for ‘‘his’’ in four places, and ‘‘the insured’’ for ‘‘he’’ in two places. Subsec. (e). Pub. L. 99–576, § 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). Statutory Notes and Related Subsidiaries 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 cal- endar 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. § 1905. Renewal All level premium term policies, except as otherwise provided in this section, shall cease and terminate at the expiration of the term pe- riod. 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 re- instatement in such cases shall be under the terms and conditions prescribed by the Sec- retary. 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 in- sured to continued insurance protection but for such expiration, the insurance, if subject to re- newal under this section, shall be automatically renewed for an additional period of five years at the premium rate for the then attained age, un- less the insured has elected insurance on some other available plan. (Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1148, § 705; Pub. L. 91–291, § 8, June 25, 1970, 84 Stat. 331; Pub. L. 99–576, title VII, § 701(22), Oct. 28, 1986, 100 Stat. 3292; renumbered § 1905 and amended Pub. L. 102–83, §§ 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404–406.) Editorial Notes PRIOR PROVISIONS Prior section 1905, Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1216; Pub. L. 90–77, title II, § 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, § 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 re- newal of lapsed policies that the insured make applica- tion 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 be- fore the expiration of the term period. Statutory Notes and Related Subsidiaries 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. § 1906. Policy provisions Provisions for cash, loan, paid-up, and ex- tended 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 pro- mulgated by the Secretary. (Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1149, § 706; renumbered § 1906 and amended Pub. L. 102–83, §§ 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404–406.) Editorial Notes AMENDMENTS 1991—Pub. L. 102–83 renumbered section 706 of this title as this section and substituted ‘‘Secretary’’ for ‘‘Administrator’’. § 1907. Payment or use of dividends (a) Until and unless the Secretary has received from the insured a request or directive in writ- ing exercising any other dividend option allow- able under the insured’s policy, any dividend ac- cumulations and unpaid dividends shall be ap- plied 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 Page 500 TITLE 38—VETERANS’ BENEFITS § 1908 by the Secretary, it shall be returned to the claimant, with a copy of this subsection, and such action shall be a complete response with- out 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 pay- able on national service life insurance after the date of such application to purchase paid up in- surance. 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 divi- dend credits and deposits of such insured exist- ing at the date of the insured’s application to purchase paid up insurance. After September 1, 1992, the Secretary may, from time to time, pro- vide for further one-year periods during which insureds may purchase additional paid up insur- ance 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 pe- riod that it would be actuarially and adminis- tratively 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 poli- cies (other than endowment policies) may be used under this section only to purchase addi- tional paid up whole life insurance. The paid up insurance granted under this subsection shall be in addition to any insurance otherwise author- ized 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 author- ized 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 Sec- retary determines to be reasonable and prac- ticable. (Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1149, § 707; Pub. L. 91–291, § 9, June 25, 1970, 84 Stat. 331; Pub. L. 92–188, § 2, Dec. 15, 1971, 85 Stat. 645; Pub. L. 97–295, § 4(22), Oct. 12, 1982, 96 Stat. 1306; Pub. L. 99–576, title VII, § 701(23), Oct. 28, 1986, 100 Stat. 3292; renumbered § 1907 and amended Pub. L. 102–83, §§ 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, § 203, Aug. 14, 1991, 105 Stat. 416.) Editorial Notes AMENDMENTS 1991—Pub. L. 102–83, § 5(a), renumbered section 707 of this title as this section. Subsec. (a). Pub. L. 102–83, § 4(a)(2)(A)(iii)(I), sub- stituted ‘‘Secretary’’ for ‘‘Veterans’ Administration’’. Subsec. (b). Pub. L. 102–83, § 4(a)(2)(C)(i), substituted ‘‘by the Secretary’’ for ‘‘in the Veterans’ Administra- tion’’ in second sentence. Pub. L. 102–83, § 4(a)(2)(A)(iii)(I), substituted ‘‘Sec- retary’’ for ‘‘Veterans’ Administration’’ in first sen- tence. Subsec. (c). Pub. L. 102–86 amended subsec. (c) of this section as in effect before the redesignations made by Pub. L. 102–83, § 5, by substituting ‘‘during the one-year period beginning September 1, 1991’’ for ‘‘before Feb- ruary 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 insur- ance from existing dividend credits and deposits. Any such period for the purchase of additional paid up in- surance may be allowed only if the Secretary deter- mines in the case of any such period that it would be actuarially and administratively sound to do so.’’ Pub. L. 102–83, § 5(c)(1), substituted ‘‘1915’’ for ‘‘715’’ in cl. (2). Pub. L. 102–83, § 4(b)(1), (2)(E), substituted ‘‘Sec- retary’’ 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, § 2(3), substituted ‘‘Payment or use of dividends’’ for ‘‘Dividends to pay premiums’’ as section catchline. Subsec. (a). Pub. L. 92–188, § 2(1), substituted ‘‘or di- rective in writing exercising any other dividend option allowable under his policy’’ for ‘‘in writing for payment in cash’’. Subsec. (c). Pub. L. 92–188, § 2(2), added subsec. (c). 1970—Pub. L. 91–291 designated existing provisions as subsec. (a) and added subsec. (b). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1971 AMENDMENT Pub. L. 92–188, § 4, Dec. 15, 1971, 85 Stat. 645, 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. § 1908. Premium payments The Secretary shall, by regulations, prescribe the time and method of payment of the pre- miums on insurance, but payments of premiums in advance shall not be required for periods of more than one month each, and may at the elec- tion of the insured be deducted from the in- sured’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 ac- tive-service pay to any person in the active serv- ice in the Army, Navy, Air Force, Marine Corps, Space Force, or Coast Guard, which amount shall constitute a lien upon any service or other pay accruing to the person for whom such ad- vance was made and shall be collected therefrom if not otherwise paid. No disbursing or certi- fying officer shall be responsible for any loss in- curred 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.