38 U.S.C. § 1945 — Renewal

Page 520 TITLE 38—VETERANS’ BENEFITS § 1944 1982—Pub. L. 97–295 substituted ‘‘percent’’ for ‘‘per centum’’. § 1944. Policy provisions (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 ad- vantage of and for alternative benefits to the in- sured 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 31⁄2 percent per annum, except that no deduction shall be made for con- tinuous installments during the life of the in- sured 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 inter- est charged on any loan secured by a lien on in- surance shall not exceed 5 percent per annum. (Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1158, § 744; Pub. L. 97–295, § 4(26), Oct. 12, 1982, 96 Stat. 1307; Pub. L. 99–576, title VII, § 701(30), Oct. 28, 1986, 100 Stat. 3293; renumbered § 1944, Pub. L. 102–83, § 5(a), Aug. 6, 1991, 105 Stat. 406.) Editorial Notes AMENDMENTS 1991—Pub. L. 102–83 renumbered section 744 of this title as this section. 1986—Subsec. (b). Pub. L. 99–576 substituted ‘‘the in- sured’s’’ for ‘‘his’’. 1982—Subsecs. (b), (c). Pub. L. 97–295 substituted ‘‘per- cent’’ for ‘‘per centum’’. § 1945. Renewal At the expiration of any term period any in- surance policy issued on the five-year level pre- mium 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 exam- ination. However, renewal shall be effected in cases where the policy is lapsed only if the in- sured 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 condi- tions prescribed by the Secretary. (Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1159, § 745; Pub. L. 91–291, § 11, June 25, 1970, 84 Stat. 331; Pub. L. 99–576, title VII, § 701(30), Oct. 28, 1986, 100 Stat. 3293; renumbered § 1945 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 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 provi- sion 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, spe- cial provisions for the interim period between July 23, 1953 and December 31, 1953, and provisions that the sec- tion take effect on Sept. 2, 1958, and required that the insurer make application for reinstatement and re- newal of his term policy within five years after the date of the lapse. 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. § 1946. Dividends to pay premiums Until and unless the Secretary has received from the insured a request in writing for pay- ment of dividends in cash or that the dividends be placed on deposit in accordance with the pro- visions of the insured’s policy, any regular an- nual dividends shall be applied in payment of premiums becoming due on insurance after the date the dividend is payable on or after Decem- ber 31, 1958. (Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1159, § 746; Pub. L. 99–576, title VII, § 701(30), Oct. 28, 1986, 100 Stat. 3293; renumbered § 1946 and amended Pub. L. 102–83, §§ 4(a)(2)(A)(iii)(V), 5(a), Aug. 6, 1991, 105 Stat. 403, 406.) Editorial Notes 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’’. § 1947. Incontestability Subject to the provisions of section 1954 of this title all contracts or policies of insurance here- tofore or hereafter issued, reinstated, or con- verted 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 pol- icy 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 en- titled thereto, shall, upon surrender of any sub- sequent contract or policy, be entitled to pay- ments 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, be- cause 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 in- terest, 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