38 U.S.C. § 1982 — Administrative cost

Page 555 TITLE 38—VETERANS’ BENEFITS § 1982 ‘‘(a) IMPROVEMENT OF PROCESSES.—The Secretary of Veterans Affairs shall improve the processes and proce- dures of the Department of Veterans Affairs with re- spect to identifying, locating, and paying hard-to-find beneficiaries of life insurance policies issued under chapter 19 of title 38, United States Code, including by— ‘‘(1) improving the search tools available on the website of the Department; ‘‘(2) conducting outreach to veterans, veterans serv- ice organizations, and the general public with respect to such search tools; ‘‘(3) improving the processes for searching for infor- mation relating to potential recipients through inter- nal Department sources and sources available through other Federal agencies, State government agencies, and non-government entities; and ‘‘(4) ensuring the Department has sufficient dedi- cated staff whose primary responsibilities are identi- fying, locating, and paying hard-to-find beneficiaries, with the goal of disbursing by not later than two years after the date of the enactment of this Act [Dec. 27, 2022], all funds that, as of the date of the en- actment of this Act, are owed to a beneficiary of a life insurance policy issued under chapter 19 of title 38, United States Code. ‘‘(b) SENSE OF CONGRESS.—It is the sense of Congress that the Secretary of Veterans Affairs should work with interagency partners to determine the types of records, reports, and other materials that may be re- quired to identify, locate, and disburse undisbursed life insurance benefits to hard-to-find beneficiaries. ‘‘(c) REPORT.—Not later than 180 days after the date of the enactment of this Act, the Secretary shall sub- mit to the Committees on Veterans’ Affairs of the Sen- ate and House of Representatives a report on the progress of the Secretary in carrying out this section. ‘‘(d) UNDISBURSED LIFE INSURANCE BENEFITS DE- FINED.—The term ‘undisbursed life insurance benefits’— ‘‘(1) means any amount of money that is owed to a beneficiary of a life insurance policy issued under chapter 19 of title 38, United States Code, and that has not been disbursed for a period of two years or longer; and ‘‘(2) does not include any amount of money that— ‘‘(A) has not been disbursed due to a contested claim; or ‘‘(B) is in dispute by two or more parties over who is the entitled beneficiary.’’ § 1981. Replacement of surrendered and expired insurance (a) Any person who surrendered a policy of Na- tional Service Life Insurance or United States Government life insurance on a permanent plan for its cash value while in the active service after April 24, 1951, and before January 1, 1957, who was entitled on December 31, 1958, to rein- state or replace such insurance under section 623 of the National Service Life Insurance Act of 1940, may, upon application in writing made while on continuous active duty which began be- fore January 1, 1959, or within one hundred and twenty days after separation therefrom, be granted, without medical examination, perma- nent plan insurance on the same plan not in ex- cess of the amount surrendered for cash, or may reinstate such surrendered insurance upon pay- ment of the required reserve and the premium for the current month. Waiver of premiums and total disability income benefits otherwise au- thorized under this chapter shall not be denied in any case of issue or reinstatement of insur- ance on a permanent plan under this section or the prior corresponding provision of law in which it is shown to the satisfaction of the Sec- retary that total disability of the applicant began before the date of application. The cost of the premiums waived and total disability in- come benefits paid by virtue of the preceding sentence and the excess mortality cost in any case where the insurance matures by death from such total disability shall be borne by the United States and the Secretary shall transfer from time to time from the National Service Life Insurance appropriation to the National Service Life Insurance Fund and from the mili- tary and naval insurance appropriation to the United States Government Life Insurance Fund such sums as may be necessary to reimburse the funds for such costs. (b) Any person who had United States Govern- ment life insurance or National Service Life In- surance on the five-year level premium term plan, the term of which expired while such per- son was in the active service after April 25, 1951, or within one hundred and twenty days after separation from such active service, and in ei- ther case before January 1, 1957, who was enti- tled on December 31, 1958, to replace such insur- ance under section 623 of the National Service Life Insurance Act of 1940, shall, upon applica- tion made while on continuous active duty which began before January 1, 1959, or within one hundred and twenty days after separation therefrom, payment of premiums and evidence of good health satisfactory to the Secretary, be granted an equivalent amount of insurance on the five-year level premium term plan at the premium rate for such person’s then attained age. (Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1164, § 781; Pub. L. 99–576, title VII, § 701(44), Oct. 28, 1986, 100 Stat. 3294; renumbered § 1981 and amended Pub. L. 102–83, §§ 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404–406.) Editorial Notes REFERENCES IN TEXT Section 623 of the National Service Life Insurance Act of 1940, referred to in subsecs. (a) and (b), is section 623 of act Oct. 8, 1940, ch. 757, title VI, pt. I, as added Aug. 1, 1956, ch. 837, title V, § 501(a)(4), 70 Stat. 880, which enacted section 824 of former Title 38, Pensions, Bonuses, and Veterans’ Relief, and which was repealed and the provisions thereof reenacted as this section by Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1105. AMENDMENTS 1991—Pub. L. 102–83 renumbered section 781 of this title as this section and substituted ‘‘Secretary’’ for ‘‘Administrator’’ wherever appearing. 1986—Subsec. (b). Pub. L. 99–576 substituted ‘‘such person’’ for ‘‘he’’ and ‘‘such person’s’’ for ‘‘his’’. § 1982. Administrative cost Except as provided in sections 1920(c), 1923(d), and 1955(c) of this title, the United States shall bear the cost of administration in connection with this chapter, including expenses for med- ical examinations, inspections when necessary, printing and binding, and for such other expend- itures as are necessary in the discretion of the Secretary. (Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1165, § 782; renumbered § 1982 and amended Pub. L. 102–83, Page 556 TITLE 38—VETERANS’ BENEFITS § 1983 §§ 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404–406; Pub. L. 104–99, title II, § 201(b), Jan. 26, 1996, 110 Stat. 36.) Editorial Notes CODIFICATION Amendment by Pub. L. 104–99 is based on section 107(4) of H.R. 2099, One Hundred Fourth Congress, as passed by the House of Representatives on Dec. 7, 1995, which was enacted into law by Pub. L. 104–99. AMENDMENTS 1996—Pub. L. 104–99 substituted ‘‘Except as provided in sections 1920(c), 1923(d), and 1955(c) of this title, the United States’’ for ‘‘The United States’’. 1991—Pub. L. 102–83 renumbered section 782 of this title as this section and substituted ‘‘Secretary’’ for ‘‘Administrator’’. § 1983. Settlements for minors or incompetents When an optional mode of settlement of Na- tional Service Life Insurance or United States Government life insurance heretofore or here- after matured is available to a beneficiary who is a minor or incompetent, such option may be exercised by such beneficiary’s fiduciary, person qualified under the Act of February 25, 1933 (25 U.S.C. 14), or person recognized by the Secretary as having custody of the person or the estate of such beneficiary, and the obligation of the United States under the insurance contract shall be fully satisfied by payment of benefits in accordance with the mode of settlement so se- lected. (Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1165, § 783; Pub. L. 99–576, title VII, § 701(45), Oct. 28, 1986, 100 Stat. 3294; Pub. L. 102–54, § 14(b)(19), June 13, 1991, 105 Stat. 284; renumbered § 1983 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 783 of this title as this section and substituted ‘‘Secretary’’ for ‘‘Administrator’’. Pub. L. 102–54 substituted ‘‘the Act of February 25, 1933 (25 U.S.C. 14)’’ for ‘‘section 14 of title 25’’. 1986—Pub. L. 99–576 substituted ‘‘such beneficiary’s’’ for ‘‘his’’. § 1984. Suits on insurance (a) In the event of disagreement as to claim, including claim for refund of premiums, under contract of National Service Life Insurance, United States Government life insurance, or yearly renewable term insurance between the Secretary and any person or persons claiming thereunder an action on the claim may be brought against the United States either in the United States District Court for the District of Columbia or in the district court of the United States in and for the district in which such per- son or any one of them resides, and jurisdiction is conferred upon such courts to hear and deter- mine all such controversies. All persons having or claiming to have an interest in such insur- ance may be made parties to such suit, and such as are not inhabitants of or found within the dis- trict in which suit is brought may be brought in by order of the court to be served personally or by publication or in such other reasonable man- ner as the court may direct. In all cases where the Secretary acknowledges the indebtedness of the United States upon any such contract of in- surance and there is a dispute as to the person or persons entitled to payment, a suit in the na- ture of a bill of interpleader may be brought at the request of the Secretary in the name of the United States against all persons having or claiming to have any interest in such insurance in the United States District Court for the Dis- trict of Columbia or in the district court in and for the district in which any such claimant re- sides; however, no less than thirty days before instituting such suit the Secretary shall mail a notice of such intention to each of the persons to be made parties to the suit. The courts of ap- peals for the several circuits, including the Dis- trict of Columbia, shall respectively exercise ap- pellate jurisdiction and, except as provided in section 1254 of title 28, the decrees of such courts of appeals shall be final. (b) No suit on yearly renewable term insur- ance, United States Government life insurance, or National Service Life Insurance shall be al- lowed under this section unless the same shall have been brought within six years after the right accrued for which the claim is made. For the purposes of this section it shall be deemed that the right accrued on the happening of the contingency on which the claim is founded. The limitation of six years is suspended for the pe- riod elapsing between the filing with the Sec- retary of the claim sued upon and the denial of the claim. However, if a claim is timely filed the claimant shall have not less than ninety days from the date of mailing of notice of denial within which to file suit. After June 28, 1936, no- tice of denial of the claim under a contract of insurance shall be by registered mail or by cer- tified mail directed to the claimant’s last ad- dress of record. Infants, insane persons, or per- sons under other legal disability, or persons rated as incompetent or insane by the Secretary shall have three years in which to bring suit after the removal of their disabilities. If suit is seasonably begun and fails for defect in process, or for other reasons not affecting the merits, a new action, if one lies, may be brought within a year though the period of limitation has elapsed. No State or other statute of limitations shall be applicable to suits filed under this sec- tion. (c) In any suit, action, or proceeding brought under the provisions of this section subpenas for witnesses who are required to attend a court of the United States in any district may run into any other district. However, no writ of subpena shall issue for witnesses living out of the dis- trict in which the court is held at a greater dis- tance than one hundred miles from the place of holding the same without the permission of the court being first had upon proper application and cause shown. The word ‘‘district’’ and the words ‘‘district court’’ as used in this section shall be construed to include the District of Co- lumbia and the United States District Court for the District of Columbia. (d) Attorneys of the Department, when as- signed to assist in the trial of cases, and em-