38 U.S.C. § 1968 — Duration and termination of coverage;

Page 535 TITLE 38—VETERANS’ BENEFITS § 1968 this joint resolution [Dec. 31, 2005]; or (2) with respect to any such section of Public Law 109–13, the date of the enactment into law of legislation that supersedes the provisions of, or the amendments made by, that section.’’ Pub. L. 109–13, div. A, title I, § 1012(h), (i), May 11, 2005, 119 Stat. 246, which provided that section 1012 of Pub. L. 109–13, amending this section and sections 1969, 1970, and 1977 of this title, would take effect on the first day of the first month that began more than 90 days after May 11, 2005, and would terminate on Sept. 30, 2005, and that provisions of such sections as in effect on the day before May 11, 2005, would be revived, was re- pealed by Pub. L. 109–80, § 2, Sept. 30, 2005, 119 Stat. 2045, effective Aug. 31, 2005. 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. Pub. L. 107–14, § 5, June 5, 2001, 115 Stat. 30, provided that: ‘‘(a) APPLICABILITY OF INCREASE IN BENEFIT.—Not- withstanding subsection (c) of section 312 of the Vet- erans Benefits and Health Care Improvement Act of 2000 (Public Law 106–419; 114 Stat. 1854) [set out as a note below], the amendments made by subsection (a) of that section [amending this section] shall take effect on October 1, 2000, with respect to any member of the uniformed services who died in the performance of duty (as determined by the Secretary concerned) during the period beginning on October 1, 2000, and ending at the close of March 31, 2001, and who on the date of death was insured under the Servicemembers’ Group Life In- surance program under subchapter III of chapter 19 of title 38, United States Code, for the maximum coverage available under that program. ‘‘(b) DEFINITIONS.—In this section: ‘‘(1) The term ‘Secretary concerned’ has the mean- ing given that term in section 101(25) of title 38, United States Code. ‘‘(2) The term ‘uniformed services’ has the meaning given that term in section 1965(6) of title 38, United States Code.’’ EFFECTIVE DATE OF 2000 AMENDMENT Pub. L. 106–419, title III, § 312(c), Nov. 1, 2000, 114 Stat. 1854, provided that: ‘‘The amendments made by this section [amending this section and section 1977 of this title] shall take effect on the first day of the first month that begins more than 120 days after the date of the enactment of this Act [Nov. 1, 2000].’’ EFFECTIVE DATE OF 1996 AMENDMENT Pub. L. 104–106, div. A, title VI, § 646, Feb. 10, 1996, 110 Stat. 369, provided that the amendments made by that section are effective Apr. 1, 1996. EFFECTIVE DATE OF 1993 AMENDMENT Pub. L. 103–160, div. A, title XI, § 1175(b), Nov. 30, 1993, 107 Stat. 1768, provided that: ‘‘The amendment made by subsection (a) [amending this section] shall apply with respect to amendments to chapter 19 of title 38, United States Code, that take effect after November 29, 1992.’’ EFFECTIVE DATE OF 1992 AMENDMENT Amendment by Pub. L. 102–568 effective Dec. 1, 1992, see section 205 of Pub. L. 102–568, set out as an Effective Date note under section 1922A of this title. EFFECTIVE DATE OF 1991 AMENDMENT Pub. L. 102–25, title III, § 336(c)(1), Apr. 6, 1991, 105 Stat. 90, provided that: ‘‘The amendments made by sub- section (a) [amending this section] shall apply with re- spect to deaths on or after the date of the enactment of this Act [Apr. 6, 1991].’’ EFFECTIVE DATE OF 1985 AMENDMENT Pub. L. 99–166, title IV, § 401(c), Dec. 3, 1985, 99 Stat. 957, as amended by Pub. L. 99–227, § 3, Dec. 28, 1985, 99 Stat. 1745, provided that: ‘‘(1) Except as provided in paragraph (2), the amend- ments made by subsections (a) and (b) [amending this section and section 777 [now 1977] of this title] shall take effect on January 1, 1986. ‘‘(2) The amendment made by subsection (a)(1)(A) [amending this section] shall be deemed to have taken effect on December 12, 1985, with respect to members who— ‘‘(A) died after December 11, 1985, and before Janu- ary 1, 1986; and ‘‘(B) were, on the date of death, insured in the amount of $35,000 under subchapter III of chapter 19 of title 38, United States Code.’’ EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97–66 effective Dec. 1, 1981, see section 701(b)(2) of Pub. L. 97–66, set out as a note under section 1114 of this title. EFFECTIVE DATE OF 1974 AMENDMENT Pub. L. 93–289, § 12(3), May 24, 1974, 88 Stat. 173, pro- vided that: ‘‘The amendments increasing the maximum amount of Servicemen’s Group Life Insurance shall be- come effective upon the date of enactment of this Act [May 24, 1974].’’ 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. PAYMENT OF DEATH GRATUITY TO SGLI BENEFICIARIES Pub. L. 103–139, title VIII, § 8134, Nov. 11, 1993, 107 Stat. 1471, required Secretary of Defense to pay death gratuity to each beneficiary under Servicemen’s Group Life Insurance policy in case of each deceased member of uniformed services who died on or after Oct. 29, 1992, and before Dec. 1, 1992, and whose death was in perform- ance of duty. § 1968. Duration and termination of coverage; conversion (a) Each policy purchased under this sub- chapter shall contain a provision, in terms ap- proved by the Secretary, to the effect that any insurance thereunder on any member of the uni- formed services, and any insurance thereunder on any insurable dependent of such a member, unless discontinued or reduced upon the written request of the insured (or discontinued pursuant to section 1969(a)(2)(B) of this title), shall con- tinue in effect while the member is on active duty, active duty for training, or inactive duty training scheduled in advance by competent au- thority during the period thereof, or while the member meets the qualifications set forth in subparagraph (B) or (C) of section 1965(5) of this title and such insurance shall cease as follows: (1) With respect to a member on active duty or active duty for training under a call or order to duty that does not specify a period of less than 31 days, insurance under this sub- chapter shall cease as follows: (A) 120 days after the separation or release from active duty or active duty for training, unless on the date of such separation or re- lease the member is totally disabled, under criteria established by the Secretary, in which event the insurance shall cease on the earlier of the following dates (but in no Page 536 TITLE 38—VETERANS’ BENEFITS § 1968 event before the end of 120 days after such separation or release): (i) The date on which the insured ceases to be totally disabled. (ii) The date that is two years after the date of separation or release from such ac- tive duty or active duty for training. (B) At the end of the thirty-first day of a continuous period of (i) absence without leave, (ii) confinement by civil authorities under a sentence adjudged by a civilian court, or (iii) confinement by military au- thorities under a courtmartial sentence in- volving total forfeiture of pay and allow- ances. Any insurance so terminated as the result of such an absence or confinement, to- gether with any beneficiary designation in effect for such insurance at such termi- nation thereof, shall be automatically re- vived as of the date the member is restored to active duty with pay or to active duty for training with pay. (2) With respect to a member on active duty or active duty for training under a call or order to duty that specifies a period of less than 31 days, insurance under this subchapter shall cease at midnight, local time, on the last day of such duty, unless on such date the in- sured is suffering from a disability incurred or aggravated during such period which, within 120 days after such date, (i) results in death, or (ii) renders the member uninsurable at stand- ard premium rates according to the good health standards approved by the Secretary, in which event the insurance shall continue in force to death, or for 120 days after such date, whichever is the earlier date. (3) With respect to a member on inactive duty training scheduled in advance by com- petent authority, insurance under this sub- chapter shall cease at the end of such sched- uled training period, unless at such time the insured is suffering from a disability incurred, or aggravated during such period which, with- in 120 days after the date of such training, (i) results in death, or (ii) renders the member uninsurable at standard premium rates ac- cording to the good health standards approved by the Secretary in which event the insurance shall continue in force to death, or for 120 days after the date such training terminated, whichever is the earlier date. (4) With respect to a 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, insurance under this subchapter shall cease 120 days after separation or release from such assign- ment, unless on the date of such separation or release the member is totally disabled, under criteria established by the Secretary, in which event the insurance shall cease on the earlier of the following dates (but in no event before the end of 120 days after separation or release from such assignment): (A) The date on which the insured ceases to be totally disabled. (B) The date that is two years after the date of separation or release from such as- signment. (5) With respect to an insurable dependent of the member, insurance under this subchapter shall cease— (A) 120 days after the date of an election made in writing by the member to terminate the coverage; or (B) on the earliest of— (i) 120 days after the date of the mem- ber’s death; (ii)(I) in the case of a member of the Ready Reserve of a uniformed service who meets the qualifications set forth in sub- paragraph (B) or (C) of section 1965(5) of this title, 120 days after separation or re- lease from such assignment; or (II) in the case of any other member of the uniformed services, 120 days after the date of the member’s separation or release from the uniformed services; or (iii) 120 days after the termination of the dependent’s status as an insurable depend- ent of the member. (b)(1) Each policy purchased under this sub- chapter shall contain a provision, in terms ap- proved by the Secretary, that, except as herein- after provided, Servicemembers’ Group Life In- surance which is continued in force after expira- tion of the period of duty or travel under section 1967(b) or 1968(a) of this title, effective the day after the date such insurance would cease— (A) shall be automatically converted to Vet- erans’ Group Life Insurance (to insure against death of the member only), subject to (i) the timely payment of the initial premium under terms prescribed by the Secretary, and (ii) the terms and conditions set forth in section 1977 of this title; or (B) at the election of the member, shall be converted to an individual policy of insurance as described in section 1977(e) of this title upon written application for conversion made to the participating company selected by the member and payment of the required pre- miums. (2) Automatic conversion to Veterans’ Group Life Insurance under paragraph (1) shall be ef- fective only in the case of an otherwise eligible member or former member who is separated or released from a period of active duty or active duty for training or inactive duty training on or after the date on which the Veterans’ Group Life Insurance program (provided for under section 1977 of this title) becomes effective. (3)(A) In the case of a policy purchased under this subchapter for an insurable dependent who is a spouse, upon election of the spouse, the pol- icy may be converted to an individual policy of insurance under the same conditions as de- scribed in section 1977(e) of this title (with re- spect to conversion of a Veterans’ Group Life In- surance policy to such an individual policy) upon written application for conversion made to the participating company selected by the spouse and payment of the required premiums. Conversion of such policy to Veterans’ Group Life Insurance is prohibited. (B) In the case of a policy purchased under this subchapter for an insurable dependent who is a child, such policy may not be converted under this subsection. Page 537 TITLE 38—VETERANS’ BENEFITS § 1968 (Added Pub. L. 89–214, § 1(a), Sept. 29, 1965, 79 Stat. 881, § 768; amended Pub. L. 91–291, § 3, June 25, 1970, 84 Stat. 328; Pub. L. 93–289, § 5(a), May 24, 1974, 88 Stat. 166; Pub. L. 97–295, § 4(30), Oct. 12, 1982, 96 Stat. 1307; Pub. L. 99–576, title VII, § 701(38), Oct. 28, 1986, 100 Stat. 3293; renumbered § 1968 and amended Pub. L. 102–83, §§ 4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404–406; Pub. L. 103–337, div. A, title VI, § 651(c), title XVI, § 1677(d)(1), Oct. 5, 1994, 108 Stat. 2792, 3020; Pub. L. 104–106, div. A, title VI, § 647(b), Feb. 10, 1996, 110 Stat. 370; Pub. L. 104–275, title IV, §§ 402(c), 403(a), 405(b)(1)(B), Oct. 9, 1996, 110 Stat. 3337–3339; Pub. L. 106–65, div. A, title X, § 1066(d)(1), Oct. 5, 1999, 113 Stat. 773; Pub. L. 106–419, title III, § 313(b), Nov. 1, 2000, 114 Stat. 1855; Pub. L. 107–14, § 4(c), (f), June 5, 2001, 115 Stat. 28, 29; Pub. L. 109–233, title III, § 301, June 15, 2006, 120 Stat. 405; Pub. L. 110–389, title IV, § 403(b), Oct. 10, 2008, 122 Stat. 4174; Pub. L. 111–275, title IV, §§ 402(a), 403, Oct. 13, 2010, 124 Stat. 2879.) Editorial Notes AMENDMENTS 2010—Subsec. (a)(1)(A)(ii). Pub. L. 111–275, § 402(a)(1), added cl. (ii) and struck out former cl. (ii) which read as follows: ‘‘The date that is— ‘‘(I) two years after the date of separation or re- lease from such active duty or active duty for train- ing, in the case of such a separation or release during the period beginning on the date that is one year be- fore the date of the enactment of Veterans’ Housing Opportunity and Benefits Improvement Act of 2006 and ending on September 30, 2011; and ‘‘(II) 18 months after the date of separation or re- lease from such active duty or active duty for train- ing, in the case of such a separation or release on or after October 1, 2011.’’ Subsec. (a)(4)(B). Pub. L. 111–275, § 402(a)(2), added sub- par. (B) and struck out former subpar. (B) which read as follows: ‘‘The date that is— ‘‘(i) two years after the date of separation or re- lease from such assignment, in the case of such a sep- aration or release during the period beginning on the date that is one year before the date of the enact- ment of Veterans’ Housing Opportunity and Benefits Improvement Act of 2006 and ending on September 30, 2011; and ‘‘(ii) 18 months after the date of separation or re- lease from such assignment, in the case of such a sep- aration or release on or after October 1, 2011.’’ Subsec. (a)(5)(B)(ii). Pub. L. 111–275, § 403, amended cl. (ii) generally. Prior to amendment, cl. (ii) read as fol- lows: ‘‘the date of termination of the insurance on the member’s life under this subchapter; or’’. 2008—Subsec. (a)(5)(B)(ii). Pub. L. 110–389 struck out ‘‘120 days after’’ before ‘‘the date’’. 2006—Subsec. (a)(1). Pub. L. 109–233, § 301(a)(2)(A), sub- stituted ‘‘shall cease as follows:’’ for ‘‘shall cease—’’ in introductory provisions. Subsec. (a)(1)(A). Pub. L. 109–233, § 301(a)(1), substan- tially rewrote subpar. (A). Prior to amendment, subpar. (A) read as follows: ‘‘120 days after the separation or re- lease from active duty or active duty for training, un- less on the date of such separation or release the mem- ber is totally disabled, under criteria established by the Secretary, in which event the insurance shall cease one year after the date of separation or release from such active duty or active duty for training, or on the date the insured ceases to be totally disabled, whichever is the earlier date, but in no event before the end of 120 days after such separation or release; or’’. Subsec. (a)(1)(B). Pub. L. 109–233, § 301(a)(2)(B), sub- stituted ‘‘At’’ for ‘‘at’’ after subpar. designation. Subsec. (a)(4). Pub. L. 109–233, § 301(b), substantially rewrote par. (4). Prior to amendment, par. (4) read as follows: ‘‘With respect to a member of the Ready Re- serve of a uniformed service who meets the qualifica- tions set forth in subparagraph (B) or (C) of section 1965(5) of this title, insurance under this subchapter shall cease 120 days after separation or release from such assignment, unless on the date of such separation or release the member is totally disabled, under cri- teria established by the Secretary, in which event the insurance shall cease one year after the date of separa- tion or release from such assignment, or on the date the insured ceases to be totally disabled, whichever is the earlier date, but in no event before the end of 120 days after separation or release from such assign- ment.’’ 2001—Subsec. (a). Pub. L. 107–14, § 4(c)(1)(A), (2)(A), in introductory provisions, inserted ‘‘and any insurance thereunder on any insurable dependent of such a mem- ber,’’ after ‘‘any insurance thereunder on any member of the uniformed services,’’ and substituted ‘‘and such insurance shall cease as follows:’’ for ‘‘, and such insur- ance shall cease—’’. Subsec. (a)(1). Pub. L. 107–14, § 4(c)(2)(B), (C)(i), in in- troductory provisions, substituted ‘‘With respect’’ for ‘‘with respect’’ and ‘‘31 days, insurance under this sub- chapter shall cease—’’ for ‘‘thirty-one days—’’. Subsec. (a)(1)(A). Pub. L. 107–14, § 4(c)(2)(C)(ii), sub- stituted ‘‘120 days’’ for ‘‘one hundred and twenty days’’ and ‘‘before the end of 120 days’’ for ‘‘prior to the expi- ration of one hundred and twenty days’’. Subsec. (a)(1)(B). Pub. L. 107–14, § 4(c)(2)(C)(iii), sub- stituted a period for semicolon at end. Subsec. (a)(2). Pub. L. 107–14, § 4(c)(2)(B), (D), sub- stituted ‘‘With respect’’ for ‘‘with respect’’, ‘‘31 days,’’ for ‘‘thirty-one days’’, and a period for semicolon at end and substituted ‘‘120 days’’ for ‘‘one hundred and twenty days’’ in two places. Subsec. (a)(3). Pub. L. 107–14, § 4(c)(2)(B), (E), sub- stituted ‘‘With respect’’ for ‘‘with respect’’ and a period for ‘‘; and’’ at end, inserted a comma after ‘‘competent authority’’, and substituted ‘‘120 days’’ for ‘‘one hun- dred and twenty days’’ in two places. Subsec. (a)(4). Pub. L. 107–14, § 4(c)(2)(B), (F) sub- stituted ‘‘With respect’’ for ‘‘with respect’’ and inserted ‘‘insurance under this subchapter shall cease’’ after ‘‘section 1965(5) of this title,’’. Subsec. (a)(5). Pub. L. 107–14, § 4(c)(1)(B), added par. (5). Subsec. (b)(1)(A). Pub. L. 107–14, § 4(c)(3), inserted ‘‘(to insure against death of the member only)’’ after ‘‘con- verted to Veterans’ Group Life Insurance’’. Subsec. (b)(3). Pub. L. 107–14, § 4(f), added par. (3). 2000—Subsec. (a). Pub. L. 106–419 substituted ‘‘sub- paragraph (B) or (C) of section 1965(5) of this title’’ for ‘‘section 1965(5)(B) of this title’’ in introductory provi- sions and par. (4). 1999—Subsec. (a). Pub. L. 106–65 made technical amendment to directory language of Pub. L. 104–106, § 647(b). See 1996 Amendment note below. 1996—Subsec. (a). Pub. L. 104–275, § 402(c)(1)(A), sub- stituted ‘‘section 1965(5)(B)’’ for ‘‘subparagraph (B), (C), or (D) of section 1965(5)’’ in introductory provisions. Pub. L. 104–106, § 647(b), as amended by Pub. L. 106–65, inserted ‘‘(or discontinued pursuant to section 1969(a)(2)(B) of this title)’’ after ‘‘upon the written re- quest of the insured’’ in introductory provisions. Subsec. (a)(1) to (3). Pub. L. 104–275, § 402(c)(1)(B), (C), substituted a semicolon for the period at end of pars. (1) and (2) and ‘‘; and’’ for the period at end of par. (3). Subsec. (a)(4). Pub. L. 104–275, § 402(c)(1)(D)(iv), struck out subpars. (B) and (C) which read as follows: ‘‘(B) unless on the date of such separation or release the member has completed at least twenty years of sat- isfactory service creditable for retirement purposes under 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) and would upon application be eligible for assignment to or is as- signed to the Retired Reserve, in which event the insur- ance, unless converted to an individual policy under terms and conditions set forth in section 1977(e) of this Page 538 TITLE 38—VETERANS’ BENEFITS § 1968 title, shall, upon timely payment of premiums under terms prescribed by the Secretary directly to the ad- ministrative office established under section 1966(b) of this title, continue in force until receipt of the first in- crement of retirement pay by the member or the mem- ber’s sixty-first birthday, whichever occurs earlier; or ‘‘(C) unless on the date of such separation or release the member is transferred to the Retired Reserve of a uniformed service under the temporary special retire- ment authority provided in section 1331a of title 10, in which event the insurance, unless converted to an indi- vidual policy under terms and conditions set forth in section 1977(e) of this title, shall, upon timely payment of premiums under terms prescribed by the Secretary directly to the administrative office established under section 1966(b) of this title, continue in force until re- ceipt of the first increment of retirement pay by the member or the member’s sixty-first birthday, which- ever occurs earlier.’’ Pub. L. 104–275, § 402(c)(1)(D)(i)–(iii), substituted ‘‘120 days after separation or release from such assignment, unless on’’ for ‘‘one hundred and twenty days after sep- aration or release from such assignment— ‘‘(A) unless on’’, substituted ‘‘before the end of 120 days’’ for ‘‘prior to the expiration of one hundred and twenty days’’, and substituted ‘‘such assignment.’’ for ‘‘such assign- ment;’’. Subsec. (a)(5), (6). Pub. L. 104–275, § 402(c)(1)(E), struck out pars. (5) and (6) which read as follows: ‘‘(5) with respect to a member of the Retired Reserve who meets the qualifications of section 1965(5)(C) of this title, and who was assigned to the Retired Reserve prior to the date insurance under the amendment made by section 5(a) of the Veterans’ Insurance Act of 1974 (Public Law 93–289, 88 Stat. 166) is placed in effect for members of the Retired Reserve, at such time as the member receives the first increment of retirement pay, or the member’s sixty-first birthday, whichever occurs earlier, subject to the timely payment of the initial and subsequent premiums, under terms prescribed by the Secretary, directly to the administrative office es- tablished under section 1966(b) of this title. ‘‘(6) with respect to a member of the Retired Reserve who meets the qualifications of section 1965(5)(D) of this title, at such time as the member receives the first increment of retirement pay, or the member’s sixty- first birthday, whichever occurs earlier, subject to the timely payment of the initial and subsequent pre- miums, under terms prescribed by the Secretary, di- rectly to the administrative office established under section 1966(b) of this title.’’ Subsec. (b). Pub. L. 104–275, § 403(a)(3), substituted ‘‘(2) Automatic conversion to Veterans’ Group Life Insur- ance under paragraph (1)’’ for ‘‘Such automatic conver- sion’’. Pub. L. 104–275, § 403(a)(2), substituted ‘‘would cease— ’’ and subpars. (A) and (B) for ‘‘would cease, shall be automatically converted to Veterans’ Group Life Insur- ance subject to (1) the timely payment of the initial premium under terms prescribed by the Secretary, and (2) the terms and conditions set forth in section 1977 of this title.’’ Pub. L. 104–275, § 403(a)(1), inserted ‘‘(1)’’ after ‘‘(b)’’ at beginning of subsec. Pub. L. 104–275, § 402(c)(2), struck out at end ‘‘Service- men’s Group Life Insurance continued in force under section 1968(a)(4)(B) or (5) of this title shall not be con- verted to Veterans’ Group Life Insurance. However, a member whose insurance could be continued in force under section 1968(a)(4)(B) of this title, but is not so continued, may, effective the day after the insurance otherwise would cease, convert such insurance to an in- dividual policy under the terms and conditions set forth in section 1977(e) of this title.’’ Subsec. (b)(1). Pub. L. 104–275, § 405(b)(1)(B), sub- stituted ‘‘Servicemembers’ Group’’ for ‘‘Servicemen’s Group’’. 1994—Subsec. (a). Pub. L. 103–337, § 651(c)(1), sub- stituted ‘‘subparagraph (B), (C), or (D) of section 1965(5)’’ for ‘‘section 1965(5)(B) or (C)’’ in introductory provisions. Subsec. (a)(4)(B). 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’’. Subsec. (a)(4)(C). Pub. L. 103–337, § 651(c)(2), added sub- par. (C). Subsec. (a)(6). Pub. L. 103–337, § 651(c)(3), added par. (6). 1991—Pub. L. 102–83, § 5(a), renumbered section 768 of this title as this section. Subsec. (a). Pub. L. 102–83, § 5(c)(1), substituted ‘‘1965(5)(B)’’ for ‘‘765(5)(B)’’ in two places, ‘‘1977(e)’’ for ‘‘777(e)’’, ‘‘1966(b)’’ for ‘‘766(b)’’ in two places, and ‘‘1965(5)(C)’’ for ‘‘765(5)(C)’’. Pub. L. 102–83, § 4(b)(1), (2)(E), substituted ‘‘Sec- retary’’ for ‘‘Administrator’’ wherever appearing. Subsec. (b). Pub. L. 102–83, § 5(c)(1), substituted ‘‘1967(b) or 1968(a)’’ for ‘‘767(b) or 768(a)’’, ‘‘1977’’ for ‘‘777’’ in two places, ‘‘1968(a)(4)(B)’’ for ‘‘768(a)(4)(B)’’ in two places, and ‘‘1977(e)’’ for ‘‘777(e)’’. Pub. L. 102–83, § 4(b)(1), (2)(E), substituted ‘‘Sec- retary’’ for ‘‘Administrator’’ in two places. 1986—Subsec. (a)(2), (3). Pub. L. 99–576, § 701(38)(A), (B), struck out ‘‘his’’ before ‘‘death’’, and substituted ‘‘the member’’ for ‘‘his’’. Subsec. (b). Pub. L. 99–576, § 701(38)(C), substituted ‘‘the’’ for ‘‘he’’ before ‘‘insurance otherwise’’. 1982—Subsec. (a)(5). Pub. L. 97–295 substituted ‘‘the amendment made by section 5(a) of the Veterans’ In- surance Act of 1974 (Public Law 93–289, 88 Stat. 166)’’ for ‘‘this amendment’’. 1974—Subsec. (a). Pub. L. 93–289, § 5(a)(1)–(3), inserted in opening provisions ‘‘or while the member meets the qualifications set forth in section 765(5)(B) or (C) of this title,’’, substituted ‘‘one hundred and twenty days’’ for ‘‘ninety days’’ wherever appearing in pars. (2) and (3), and added pars. (4) and (5). Subsec. (b). Pub. L. 93–289, § 5(a)(4), substituted provi- sions requiring policies of Servicemen’s Group Life In- surance to contain a provision automatically con- verting such policy to Veterans’ Group Life Insurance, for provisions which required such policies to contain a provision for conversion to an individual policy of in- surance, and inserted sentences providing for the effec- tive date of automatic conversion, prohibiting conver- sion of Servicemen’s Group Life Insurance continued in force under section 768(a)(4)(B) or (5) of this title, and authorizing conversion by a member whose insurance could be continued in force under section 768(a)(4)(B) of this title, but is not so continued. Subsec. (c). Pub. L. 93–289, § 5(a)(5), repealed subsec. (c) which related to conversion by eligible insured per- sons to policies written by companies participating in the program established by this subchapter. 1970—Subsec. (a). Pub. L. 91–291 designated existing provisions as subsec. (a) and substituted provisions cov- ering the duration of coverage for provisions covering termination of coverage. For termination and conver- sion of insurance see subsecs. (b) and (c) of this section. Subsecs. (b), (c). Pub. L. 91–291 added subsecs. (b) and (c). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Pub. L. 111–275, title IV, § 402(b), Oct. 13, 2010, 124 Stat. 2879, provided that: ‘‘The amendments made by sub- section (a) [amending this section] shall apply with re- spect to a person who is separated or released on or after June 15, 2005.’’ EFFECTIVE DATE OF 2008 AMENDMENT Pub. L. 110–389, title IV, § 403(e)(2), Oct. 10, 2008, 122 Stat. 4174, provided that: ‘‘The amendment made by subsection (b) [amending this section] shall apply with respect to Servicemembers’ Group Life Insurance cov- Page 539 TITLE 38—VETERANS’ BENEFITS § 1969 erage for an insurable dependent of a member, as de- fined in section 1965(10) of title 38, United States Code (as amended by section 402 of this Act), that begins on or after the date of the enactment of this Act [Oct. 10, 2008].’’ 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 1999 AMENDMENT Pub. L. 106–65, div. A, title X, § 1066(d)(1), Oct. 5, 1999, 113 Stat. 773, provided that the amendment made by section 1066(d)(1) is effective Apr. 1, 1996. EFFECTIVE DATE OF 1996 AMENDMENT Pub. L. 104–106, div. A, title VI, § 647(c), Feb. 10, 1996, 110 Stat. 370, provided that: ‘‘The amendments made by this section [amending this section and section 1969 of this title] shall take effect on April 1, 1996.’’ 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(4), May 24, 1974, 88 Stat. 173, pro- vided that: ‘‘The amendments made by sections 5(a)(4) and (5) of this Act [amending this section], and those enacting a Veterans’ Group Life Insurance program [sections 777, 778, and 779 [now 1977, 1978, and 1979] of this title] shall become effective on the first day of the third calendar month following the month in which this Act is enacted [May 1974].’’ 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. CONVERSION OF SGLI TO VGLI Pub. L. 104–275, title IV, § 402(e), Oct. 9, 1996, 110 Stat. 3338, provided that: ‘‘The Servicemembers’ Group Life Insurance of any member of the Retired Reserve of a uniformed service shall be converted to Veterans’ Group Life Insurance effective 90 days after the date of the enactment of this Act [Oct. 9, 1996].’’ RIGHT OF PERSONS DISCHARGED OR RELEASED FROM UNIFORMED SERVICES TO CONVERT SERVICEMEN’S GROUP LIFE INSURANCE TO INDIVIDUAL POLICIES Pub. L. 93–289, § 5(b), May 24, 1974, 88 Stat. 168, pro- vided that the amendments made by Pub. L. 93–289, en- acting sections 777, 778, and 779 [now 1977, 1978, and 1979] of this title and section 707 of Title 37, Pay and Allow- ances of the Uniformed Services, and amending sec- tions 723, 765, 767, 768, 769, 770, 771, and 774 [now 1923, 1965, 1967, 1968, 1969, 1970, 1971, and 1974] of this title, not be construed to deprive any person discharged or re- leased from the uniformed services of the United States prior to the date on which the Veterans’ Group Life In- surance program (provided for under section 777 [now 1977] of this title) became effective of the right to con- vert Servicemen’s Group Life Insurance to an indi- vidual policy under the provisions of law in effect prior to such effective date. § 1969. Deductions; payment; investment; ex- penses (a)(1) During any period in which a member, on active duty or active duty for training under a call or order to such duty that does not specify a period of less than thirty-one days, is insured under Servicemembers’ Group Life Insurance, there shall be deducted each month from the member’s basic or other pay until separation or release from such duty an amount determined by the Secretary (which shall be the same for all such members) as the share of the cost attrib- utable to insuring such member under such pol- icy, less any costs traceable to the extra hazard of such duty in the uniformed service. (2)(A) During any month in which a member is assigned to the Ready Reserve of a uniformed service under conditions which meet the quali- fications of (subparagraph (B) or (C) of section 1965(5) of this title, and is insured under a policy of insurance purchased by the Secretary, under section 1966 of this title, there shall be contrib- uted from the appropriation made for active duty pay of the uniformed service concerned an amount determined by the Secretary (which shall be the same for all such members) as the share of the cost attributable to insuring such member under this policy, less any costs trace- able to the extra hazards of such duty in the uniformed services. Any amounts so contributed on behalf of any individual shall be collected by the Secretary concerned from such individual (by deduction from pay or otherwise) and shall be credited to the appropriation from which such contribution was made. (B) If an individual who is required pursuant to subparagraph (A) to make a direct remittance of costs to the Secretary concerned fails to make the required remittance within 60 days of the date on which such remittance is due, such individual’s insurance with respect to which such remittance is required shall be terminated by the Secretary concerned. Such termination shall be made by written notice to the individ- ual’s official address and shall be effective 60 days after the date of such notice. Such termi- nation of insurance may be vacated if, before the effective date of termination, the individual remits all amounts past due for such insurance and demonstrates to the satisfaction of the Sec- retary concerned that the failure to make time- ly remittances was justifiable. (3) During any fiscal year, or portion thereof, that a member is on active duty or active duty for training under a call or order to such duty that specifies a period of less than thirty-one days, or is authorized or required to perform in- active duty training scheduled in advance by competent authority, and is insured under Servicemembers’ Group Life Insurance, the Sec- retary concerned shall collect from the member (by deduction from pay or otherwise) an amount determined by the Secretary (which shall be the same for all such members) as the share of the cost attributable to insuring such member under such policy, less any costs traceable to the extra hazard of such duty in the uniformed service. (4) Any amount not deducted from the basic or other pay of a member insured under Servicemembers’ Group Life Insurance, or col- lected from the member by the Secretary con- cerned, if not otherwise paid, shall be deducted from the proceeds of any insurance thereafter payable. The initial monthly amount under paragraph (1) or (2) hereof, or fiscal year amount under paragraph (3) hereof, determined by the Secretary to be charged under this section for