38 U.S.C. § 1971 — Basic tables of premiums; readjustment of

Page 544 TITLE 38—VETERANS’ BENEFITS § 1971 109–80. See Effective and Termination Dates of 2005 Amendments note below. Subsec. (j) read as follows: ‘‘A member with a spouse may not modify the beneficiary or beneficiaries designated by the member under sub- section (a) without providing written notice of such modification to the spouse.’’ 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 bene- fits’’ 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, § 5(a), renumbered section 770 of this title as this section. Subsec. (a). Pub. L. 102–83, § 5(c)(1), substituted ‘‘1966(b)’’ for ‘‘766(b)’’. Subsec. (c). Pub. L. 102–83, § 5(c)(1), substituted ‘‘1966(b)’’ for ‘‘766(b)’’. Pub. L. 102–83, § 4(b)(1), (2)(E), substituted ‘‘Sec- retary’’ for ‘‘Administrator’’ in two places. Subsec. (g)(1). Pub. L. 102–83, § 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, § 701(40)(A), sub- stituted ‘‘the insured’s’’ for ‘‘his’’ in two places in in- troductory text and in one place in par. Sixth. Subsec. (e). Pub. L. 99–576, § 701(40)(B), substituted ‘‘the member’s’’ for ‘‘his’’. 1982—Subsec. (c). Pub L. 97–306, § 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 pay- ment by any person entitled under this section was pending, the amount payable would escheat to the cred- it 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, § 401(a)(2), added subsec. (h). 1974—Subsec. (a). Pub. L. 93–289, § 7(1), included in par. First writings received in the administrative office es- tablished 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 In- surance, or if insured under Veterans’ Group Life Insur- ance. Subsec. (e). Pub. L. 93–289, § 7(2), substituted ‘‘the Vet- erans’ Insurance Act of 1974’’ for ‘‘this amendatory Act’’. Subsecs. (f), (g). Pub. L. 93–289, § 7(3), included pay- ment of benefits under Veterans’ Group Life Insurance. 1970—Subsecs. (e) to (g). Pub. L. 91–291 added subsecs. (e) to (g). Statutory Notes and Related Subsidiaries EFFECTIVE AND TERMINATION DATES OF 2005 AMENDMENTS Amendment by Pub. L. 109–80 effective Aug. 31, 2005, and this section shall be applied as if section 1012 of Pub. L. 109–13 had not been enacted, see section 2 of Pub. L. 109–80, set out as a note under section 1967 of this title. Amendment by Pub. L. 109–13 effective through the earlier of Dec. 31, 2005, or, with respect to certain sec- tions of Public Law 109–13, the date of the enactment into law of legislation that supersedes the provisions of, or the amendments made by, those sections, see sec- tion 115 of Pub. L. 109–77, set out as a note under sec- tion 1967 of this title. 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, § 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 Pub. L. 97–306, title IV, § 401(b), Oct. 14, 1982, 96 Stat. 1442, provided that: ‘‘The amendments made by sub- section (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. § 1971. Basic tables of premiums; readjustment of rates (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 de- termined 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 dis- tribution by age of the amount of group life in- surance 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 sub- sequent year, based on the experience under the policy, such readjustment to be made by the in- surance company or companies issuing the pol- icy 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 es- timated costs traceable to the extra hazard shall be retroactively readjusted annually in accord- ance with section 1969(b). (c) Each policy so purchased shall include a provision that, in the event the Secretary deter- mines that ascertaining the actual age distribu- tion 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 insur- ance 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 ac- tual age distribution. Such tentative average premium rate shall be redetermined by the Sec- Page 545 TITLE 38—VETERANS’ BENEFITS § 1973 retary during any policy year upon request by the insurance company or companies issuing the policy, if experience indicates that the assump- tions made in determining the tentative average premium rate for that policy year were incor- rect. (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 Sec- retary 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 agree- ment 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 ac- counting 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 Sec- retary, (1) the amounts of premiums actually ac- crued 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 ex- cess 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 in- terest 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 con- sistent 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 es- timated 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 de- posited to the credit of the revolving fund, sub- ject to the right of the insurance company or companies issuing the policy to make such de- posit in equal monthly installments over a pe- riod of not more than two years. (Added Pub. L. 89–214, § 1(a), Sept. 29, 1965, 79 Stat. 884, § 771; amended Pub. L. 93–289, § 8, May 24, 1974, 88 Stat. 169; renumbered § 1971 and amended Pub. L. 102–83, §§ 4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404–406; Pub. L. 104–275, title IV, § 405(b)(1)(E), Oct. 9, 1996, 110 Stat. 3339.) Editorial Notes AMENDMENTS 1996—Subsec. (b). Pub. L. 104–275 substituted ‘‘Servicemembers’ Group’’ for ‘‘Servicemen’s Group’’. 1991—Pub. L. 102–83, § 5(a), renumbered section 771 of this title as this section. Subsec. (a). Pub. L. 102–83, § 5(c)(1), substituted ‘‘1966’’ for ‘‘766’’. Pub. L. 102–83, § 4(b)(1), (2)(E), substituted ‘‘Sec- retary’’ for ‘‘Administrator’’ in two places. Subsec. (b). Pub. L. 102–83, § 5(c)(1), substituted ‘‘1969(b)’’ for ‘‘769(b)’’. Pub. L. 102–83, § 4(b)(1), (2)(E), substituted ‘‘Sec- retary’’ for ‘‘Administrator’’. Subsecs. (c), (d). Pub. L. 102–83, § 4(b)(1), (2)(E), sub- stituted ‘‘Secretary’’ for ‘‘Administrator’’ wherever ap- pearing. Subsec. (e). Pub. L. 102–83, § 5(c)(1), substituted ‘‘1969(d)(1)’’ for ‘‘769(d)(1)’’. Pub. L. 102–83, § 4(b)(1), (2)(E), substituted ‘‘Sec- retary’’ for ‘‘Administrator’’ wherever appearing. 1974—Subsec. (b). Pub. L. 93–289, § 8(1), substituted ‘‘premiums for Servicemen’s Group Life Insurance’’ for ‘‘premiums for the policy or policies’’. Subsec. (e). Pub. L. 93–289, § 8(2), substituted ‘‘section 769(d)(1) of this title’’ for ‘‘section 766 of this title’’. § 1972. Benefit certificates The Secretary shall arrange to have each member insured under a policy purchased under section 1966 of this title receive a certificate set- ting forth the benefits to which the member is entitled thereunder, to whom such benefit shall be payable, to whom claims should be sub- mitted, 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. (Added Pub. L. 89–214, § 1(a), Sept. 29, 1965, 79 Stat. 885, § 772; renumbered § 1972 and amended Pub. L. 102–83, §§ 4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404–406.) Editorial Notes AMENDMENTS 1991—Pub. L. 102–83, § 5(a), renumbered section 772 of this title as this section. Pub. L. 102–83, § 5(c)(1), substituted ‘‘1966’’ for ‘‘766’’. Pub. L. 102–83, § 4(b)(1), (2)(E), substituted ‘‘Sec- retary’’ for ‘‘Administrator’’. § 1973. Forfeiture 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 and Veterans’ 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. (Added Pub. L. 89–214, § 1(a), Sept. 29, 1965, 79 Stat. 885, § 773; renumbered § 1973, Pub. L. 102–83, § 5(a), Aug. 6, 1991, 105 Stat. 406; amended Pub. L. 104–275, title IV, § 405(b)(1)(F), Oct. 9, 1996, 110 Stat. 3339; Pub. L. 110–389, title IV, § 403(d), Oct. 10, 2008, 122 Stat. 4174.)