38 U.S.C. § 1966 — Eligible insurance companies

Page 529 TITLE 38—VETERANS’ BENEFITS § 1966 1994—Par. (5)(B), (C). Pub. L. 103–337, § 1677(d)(1), sub- stituted ‘‘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, § 651(a), added subpar. (D) and redesignated former subpar. (D) as (E). 1991—Pub. L. 102–83, § 5(a), renumbered section 765 of this title as this section. Par. (4). Pub. L. 102–54, § 14(b)(16)(A), redesignated cls. (i) and (ii) as (A) and (B), respectively. Par. (8). Pub. L. 102–54, § 14(b)(16)(B), redesignated cls. (a) to (e) as (A) to (E), respectively. Par. (9). Pub. L. 102–83, § 5(c)(1), substituted ‘‘1966(b)’’ for ‘‘766(b)’’. Pub. L. 102–54, § 14(b)(16)(B), redesignated cls. (a) to (e) as (A) to (E), respectively. 1986—Par. (5)(B). Pub. L. 99–576, § 701(35)(A), sub- stituted ‘‘such person’’ for ‘‘he’’. Par. (9). Pub. L. 99–576, § 701(35)(B), substituted ‘‘the child’s’’ for ‘‘his’’ in two places. 1974—Par. (1)(C). Pub. L. 93–289, § 10(1), substituted ‘‘National Oceanic and Atmospheric Administration’’ for ‘‘Environmental Science Services Administration’’. Par. (5). Pub. L. 93–289, § 3, added cls. (B) and (C), re- designated former cl. (B) as (D), and substituted ‘‘mid- shipman of’’ for ‘‘midshipman at’’ in cl. (A). Par. (6). Pub. L. 93–289, § 10(1), substituted ‘‘National Oceanic and Atmospheric Administration’’ for ‘‘Envi- ronmental Science Services Administration’’. 1972—Par. (1)(D). Pub. L. 92–315, § 1(3), added cl. (D). Par. (5)(A). Pub. L. 92–315, § 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 ‘‘ac- tive 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 train- ing’’, and, in definition of ‘‘uniformed services’’, in- serted 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. Statutory Notes and Related Subsidiaries CHANGE OF NAME Reference to Reserve Corps of the Public Health Serv- ice deemed to be a reference to the Ready Reserve Corps, see section 204(c)(3) of Title 42, The Public Health and Welfare. EFFECTIVE DATE OF 2005 AMENDMENT Amendment by Pub. L. 109–13 effective on the first day of the first month beginning more than 180 days after May 11, 2005, see section 1032(d)(1) of Pub. L. 109–13, set out as an Effective Date note under section 1980A 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 1994 AMENDMENT Amendment by section 1677(d)(1) of Pub. L. 103–337 ef- fective 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 Pub. L. 93–289, § 12(2), May 24, 1974, 88 Stat. 173, pro- vided 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 Pub. L. 92–185, § 2, Dec. 15, 1971, 85 Stat. 643, provided that: ‘‘The provisions of this Act [amending this sec- tion] shall apply only to Servicemen’s Group Life In- surance 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. Pub. L. 91–291, § 14(b), June 25, 1970, 84 Stat. 333, pro- vided 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].’’ 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 relat- ing 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 Secu- rity, and the Department of Homeland Security Reor- ganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6. RENAMING OF GROUP LIFE INSURANCE PROGRAM Pub. L. 104–275, title IV, § 405(a), Oct. 9, 1996, 110 Stat. 3339, provided that: ‘‘The program of insurance oper- ated by the Secretary of Veterans Affairs under sub- chapter 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 Pub. L. 104–275, title IV, § 405(d), Oct. 9, 1996, 110 Stat. 3340, 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 Insur- ance or the Advisory Council on Servicemembers’ Group Life Insurance, respectively.’’ § 1966. Eligible insurance companies (a) The Secretary is authorized, without re- gard to section 6101(b) to (d) of title 41, to pur- chase 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 li- censed 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 De- cember 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. Page 530 TITLE 38—VETERANS’ BENEFITS § 1967 (c) The Secretary shall arrange with the life insurance company or companies issuing any policy or policies under this subchapter to rein- sure, under conditions approved by the Sec- retary, portions of the total amount of insur- ance 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 dis- continue any policy or policies which the Sec- retary has purchased from any insurance com- pany under this subchapter. (Added Pub. L. 89–214, § 1(a), Sept. 29, 1965, 79 Stat. 880, § 766; amended Pub. L. 97–295, § 4(29), Oct. 12, 1982, 96 Stat. 1307; Pub. L. 99–576, title VII, § 701(36), Oct. 28, 1986, 100 Stat. 3293; renum- bered § 1966 and amended Pub. L. 102–83, §§ 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404–406; Pub. L. 111–350, § 5(j)(2), Jan. 4, 2011, 124 Stat. 3850.) Editorial Notes AMENDMENTS 2011—Subsec. (a). Pub. L. 111–350 substituted ‘‘section 6101(b) to (d) of title 41’’ for ‘‘section 3709 of the Revised Statutes, as amended (41 U.S.C. 5)’’. 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, § 701(36)(A), sub- stituted ‘‘the Administrator’’ for ‘‘him’’. Subsec. (d). Pub. L. 99–576, § 701(36)(B), substituted ‘‘the Administrator’’ for ‘‘he’’. 1982—Subsec. (a). Pub. L. 97–295 substituted ‘‘percent’’ for ‘‘per centum’’. § 1967. Persons insured; amount (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 uni- formed service on active duty (other than ac- tive duty for training)— (i) the member; and (ii) each insurable dependent of the mem- ber (other than a dependent who is also a member of a uniformed service and, because of such membership, is automatically in- sured under this paragraph). (B) Any member of a uniformed service on active duty for training or inactive duty train- ing scheduled in advance by competent au- thority. (C) In the case of 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— (i) the member; and (ii) each insurable dependent of the mem- ber (other than a dependent who is also a member of a uniformed service and, because of such membership, is automatically in- sured under this paragraph). (2)(A) A member may elect in writing not to be insured under this subchapter. (B) A member may elect in writing not to in- sure the member’s spouse under this subchapter. (3)(A) Subject to subparagraphs (B), (C), and (D), the amount for which a person is insured under this subchapter is as follows: (i) In the case of a member, $500,000. (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 in- sured 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, be evenly divis- ible by $50,000 and, in the case of a member’s 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. (D) In the case of a member who elects under paragraph (2)(A) not to be insured under this section, or who elects under subparagraph (B) to be insured for an amount less than the max- imum amount provided under subparagraph (A), and who is deployed to a combat theater of oper- ations, the member— (i) shall be insured under this subchapter for the maximum amount provided under subpara- graph (A) for the period of such deployment; and (ii) upon the end of such deployment— (I) shall be insured in the amount elected by the member under subparagraph (B); or (II) shall not be insured, if so elected under paragraph (2)(A). (4)(A) An insurable dependent of a member is not insured under this chapter unless the mem- ber is insured under this subchapter. (B) An insurable dependent who is a child may not be insured at any time by the insurance cov- erage under this chapter of more than one mem- ber. 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 re- spect 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 com- petent authority. (C) The first day a member of the Ready Re- serve meets the qualifications set forth in sub- paragraph (B) or (C) of section 1965(5) 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 con- cerned takes effect. (E) In the case of an insurable dependent who is a spouse, the date of marriage of the spouse to the member.