38 U.S.C. § 1919 — National Service Life Insurance appro-

Page 506 TITLE 38—VETERANS’ BENEFITS § 1918 1981—Subsec. (c). Pub. L. 97–66 substituted ‘‘Except as provided in the second and third sentences of this sub- section, unless’’ for ‘‘Unless’’ and inserted provision that, in the case of insurance maturing after Sep- tember 30, 1981, and for which no option has been elect- ed by the insured, the first beneficiary may elect to re- ceive payment in one sum. 1970—Subsec. (c). Pub. L. 91–291 struck out provision that options (3) and (4) were not available in cases where the endowment contract matured by reason of the completion of the endowment period. Subsec. (e). Pub. L. 91–291 added subsec. (e). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2022 AMENDMENT Pub. L. 117–313, § 2(c), Dec. 27, 2022, 136 Stat. 4399, pro- vided that: ‘‘The amendments made by this section [amending this section and section 1952 of this title] shall apply with respect to the death of an insured per- son occurring on or after the date that is two years be- fore the date of the enactment of this Act [Dec. 27, 2022].’’ Pub. L. 117–313, § 3(c), Dec. 27, 2022, 136 Stat. 4400, pro- vided that: ‘‘The amendments made by this section [amending this section and section 1949 of this title] shall apply with respect to the death of an insured per- son occurring on or after the date that is two years be- fore the date of the enactment of this Act [Dec. 27, 2022].’’ EFFECTIVE DATE OF 2003 AMENDMENT Pub. L. 108–183, title I, § 103(c), Dec. 16, 2003, 117 Stat. 2655, provided that: ‘‘The amendments made by sub- sections (a) and (b) [amending this section and section 1952 of this title] shall take effect on October 1, 2004.’’ EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97–66 effective Oct. 17, 1981, see section 701(b)(1) of Pub. L. 97–66, set out as a note under section 1114 of this title. EFFECTIVE DATE OF 1970 AMENDMENT Amendment by Pub. L. 91–291 effective first day of first calendar month which begins more than six cal- endar months after June 25, 1970, see section 14(a) of Pub. L. 91–291, set out as a note under section 1317 of this title. TRANSITION PROVISION Pub. L. 108–183, title I, § 103(d), Dec. 16, 2003, 117 Stat. 2655, provided that: ‘‘In the case of a person insured under subchapter I or II of chapter 19 of title 38, United States Code, who dies before the effective date of the amendments made by subsections (a) and (b), as speci- fied by subsection (c) [set out as an Effective Date of 2003 Amendment note above], the two-year and four- year periods specified in subsection (f)(1) of section 1917 of title 38, United States Code, as added by subsection (a), and subsection (c)(1) of section 1952 of such title, as added by subsection (b), as applicable, shall for pur- poses of the applicable subsection be treated as being the two-year and four-year periods, respectively, begin- ning on the effective date of such amendments, as so specified.’’ § 1918. Assignments (a) Assignments of all or any part of the bene- ficiary’s interest may be made by a designated beneficiary to a widow, widower, child, father, mother, grandfather, grandmother, brother, or sister of the insured, when the designated con- tingent beneficiary, if any, joins the beneficiary in the assignment, and if the assignment is de- livered to the Secretary before any payments of the insurance shall have been made to the bene- ficiary. However, an interest in an annuity, when assigned, shall be payable in equal month- ly installments in such multiple of twelve as most nearly equals the number of installments certain under such annuity, or in two hundred and forty installments, whichever is the lesser. The provisions of this subsection shall not be applicable to insurance maturing after July 26, 1962. (b) Except as to insurance granted under the provisions of section 1922(b) of this title, any person to whom insurance maturing after July 26, 1962, is payable may assign all or any portion of such person’s interest in such insurance to a widow, widower, child, father, mother, grand- father, grandmother, brother, or sister of the in- sured when the designated contingent bene- ficiary, if any, joins the beneficiary in the as- signment. Such joinder shall not be required in any case in which the insurance proceeds are payable in a lump sum. (Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1153, § 718; Pub. L. 87–557, § 1, July 27, 1962, 76 Stat. 245; Pub. L. 96–128, title III, § 304, Nov. 28, 1979, 93 Stat. 986; Pub. L. 97–295, § 4(24), Oct. 12, 1982, 96 Stat. 1306; renumbered § 1918 and amended Pub. L. 102–83, §§ 4(a)(2)(A)(iii)(III), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 403, 406.) Editorial Notes AMENDMENTS 1991—Pub. L. 102–83, § 5(a), renumbered section 718 of this title as this section. Subsec. (a). Pub. L. 102–83, § 4(a)(2)(A)(iii)(III), sub- stituted ‘‘Secretary’’ for ‘‘Veterans’ Administration’’. Subsec. (b). Pub. L. 102–83, § 5(c)(1), substituted ‘‘1922(b)’’ for ‘‘722(b)’’. 1982—Subsec. (a). Pub. L. 97–295 substituted ‘‘after July 26, 1962’’ for ‘‘on or after the date of enactment of this sentence’’. Subsec. (b). Pub. L. 97–295 substituted ‘‘after July 26, 1982,’’ for ‘‘on or after the date of enactment of this sentence’’. 1979—Subsec. (b). Pub. L. 96–128 substituted ‘‘such person’s’’ for ‘‘his’’. 1962—Pub. L. 87–557 designated existing provisions as subsec. (a), inserted sentence making subsection inap- plicable to insurance maturing on or after ‘‘the date of enactment of this sentence [July 27, 1962]’’, and added subsec. (b). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1979 AMENDMENT Amendment by Pub. L. 96–128 effective Nov. 28, 1979, see section 601(b) of Pub. L. 96–128, set out as a note under section 1114 of this title. § 1919. National Service Life Insurance appro- priation (a) The National Service Life Insurance appro- priation is continued and there is authorized to be appropriated, out of any money in the Treas- ury not otherwise appropriated, such sums as may be necessary to carry out the provisions of this chapter and the provisions heretofore pre- scribed in the National Service Life Insurance Act of 1940, or related Acts, for the payment of liabilities under National Service Life Insur- ance. Payment from this appropriation shall be made upon and in accordance with awards by the Secretary. (b) All premiums heretofore and hereafter paid on insurance issued or reinstated under section Page 507 TITLE 38—VETERANS’ BENEFITS § 1921 602(v)(1) of the National Service Life Insurance Act of 1940 where the requirement of good health was waived under such section because of a serv- ice-incurred injury or disability shall be cred- ited directly to the National Service Life Insur- ance appropriation and any payments of benefits heretofore and hereafter made on such insurance shall be made directly from such appropriation. (Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1154, § 719; Pub. L. 98–160, title VII, § 702(5), Nov. 21, 1983, 97 Stat. 1009; renumbered § 1919 and amended Pub. L. 102–83, §§ 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404–406; Pub. L. 105–368, title III, § 304(a), Nov. 11, 1998, 112 Stat. 3334.) Editorial Notes REFERENCES IN TEXT The National Service Life Insurance Act of 1940, re- ferred to in subsec. (a), is act Oct. 8, 1940, ch. 757, title VI, part I, 54 Stat. 1008, which was classified generally to chapter 13 (§ 801 et seq.) of former Title 38, Pensions, Bonuses, and Veterans’ Relief, and which was repealed and the provisions thereof reenacted as this subchapter by Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1105. Section 602(v)(i) of the National Service Life Insur- ance Act of 1940, referred to in subsec. (b), is section 602(v)(1) of act Oct. 8, 1940, ch. 757, title VI, pt. I, 54 Stat. 1009, which enacted section 802(v)(1) of former Title 38, Pensions, Bonuses, and Veterans’ Relief, and which was repealed and the provisions thereof reen- acted as section 715 [now 1915] of this title by Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1105. AMENDMENTS 1998—Subsec. (b). Pub. L. 105–368 substituted ‘‘section 602(v)(1)’’ for ‘‘sections 602(c)(2) and 602(v)(1)’’ and ‘‘under such section’’ for ‘‘under such sections’’. 1991—Pub. L. 102–83 renumbered section 719 of this title as this section and substituted ‘‘Secretary’’ for ‘‘Administrator’’ in subsec. (a). 1983—Subsec. (b). Pub. L. 98–160 substituted ‘‘sec- tions’’ for ‘‘subsections’’ after ‘‘issued or reinstated under’’ and after ‘‘waived under such’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1998 AMENDMENT Pub. L. 105–368, title III, § 304(b), Nov. 11, 1998, 112 Stat. 3334, provided that: ‘‘The amendments made by this section [amending this section] shall take effect at the end of the 90-day period beginning on the date of the enactment of this Act [Nov. 11, 1998].’’ § 1920. National Service Life Insurance Fund (a) The National Service Life Insurance Fund heretofore created in the Treasury is continued as a permanent trust fund. Except as otherwise provided in this chapter, all premiums paid on account of National Service Life Insurance shall be deposited and covered into the Treasury to the credit of such fund, which, together with in- terest earned thereon, shall be available for the payment of liabilities under such insurance, in- cluding payment of dividends and refunds of un- earned premiums, and for the reimbursement of administrative costs under subsection (c). Pay- ments from this fund shall be made upon and in accordance with awards by the Secretary. (b) The Secretary is authorized to set aside out of such fund such reserve amounts as may be required under accepted actuarial principles to meet all liabilities under such insurance; and the Secretary of the Treasury is authorized to invest and reinvest such fund, or any part there- of, in interest-bearing obligations of the United States or in obligations guaranteed as to prin- cipal and interest by the United States, and to sell such obligations for the purposes of such fund. (c)(1) For each fiscal year for which this sub- section is in effect, the Secretary shall, from the National Service Life Insurance Fund, reim- burse the ‘‘General operating expenses’’ account of the Department for the amount of adminis- trative costs determined under paragraph (2) for that fiscal year. Such reimbursement shall be made from any surplus earnings for that fiscal year that are available for dividends on such in- surance after claims have been paid and actuari- ally determined reserves have been set aside. However, if the amount of such administrative costs exceeds the amount of such surplus earn- ings, such reimbursement shall be made only to the extent of such surplus earnings. (2) The Secretary shall determine the adminis- trative costs to the Department for a fiscal year for which this subsection is in effect which, in the judgment of the Secretary, are properly al- locable to the provision of National Service Life Insurance (and to the provision of any total dis- ability income insurance added to the provision of such insurance). (3) This subsection shall be in effect only with respect to fiscal year 1996. (Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1154, § 720; renumbered § 1920 and amended Pub. L. 102–83, §§ 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(1) 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—Subsec. (a). Pub. L. 104–99 inserted ‘‘, and for the reimbursement of administrative costs under sub- section (c)’’ after ‘‘unearned premiums’’. Subsec. (c). Pub. L. 104–99 added subsec. (c). 1991—Pub. L. 102–83 renumbered section 720 of this title as this section and substituted ‘‘Secretary’’ for ‘‘Administrator’’ in two places. § 1921. Extra hazard costs (a) The United States shall bear the excess mortality cost and the cost of waiver of pre- miums on account of total disability traceable to the extra hazard of military or naval service, as such hazard may be determined by the Sec- retary. (b) Whenever benefits under insurance become payable because of the death of the insured as the result of disease or injury traceable to the extra hazard of military or naval service, as such hazard may be determined by the Sec- retary, the liability for payment of such benefits shall be borne by the United States in an amount which, when added to the reserve of the policy at the time of death of the insured will