38 U.S.C. § 1905 — Renewal

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