38 U.S.C. § 1912 — Total disability waiver

Page 501 TITLE 38—VETERANS’ BENEFITS § 1912 (Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1149, § 708; Pub. L. 99–576, title VII, § 701(24), Oct. 28, 1986, 100 Stat. 3292; Pub. L. 102–40, title IV, § 402(d)(1), May 7, 1991, 105 Stat. 239; renumbered § 1908 and amended Pub. L. 102–83, §§ 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404–406; Pub. L. 116–283, div. A, title IX, § 926(e), Jan. 1, 2021, 134 Stat. 3831.) Editorial Notes AMENDMENTS 2021—Pub. L. 116–283 inserted ‘‘Space Force,’’ after ‘‘Marine Corps,’’. 1991—Pub. L. 102–83 renumbered section 708 of this title as this section and substituted ‘‘Secretary’’ for ‘‘Administrator’’. Pub. L. 102–40 substituted ‘‘5301(b)’’ for ‘‘3101(b)’’. 1986—Pub. L. 99–576 substituted ‘‘the insured’s’’ for ‘‘his’’. Statutory Notes and Related Subsidiaries 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. § 1909. Effective date of insurance Insurance may be made effective, as specified in the application, not later than the first day of the calendar month following the date of appli- cation therefor, but the United States shall not be liable thereunder for death occurring before such effective date. (Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1149, § 709; renumbered § 1909, Pub. L. 102–83, § 5(a), Aug. 6, 1991, 105 Stat. 406.) Editorial Notes AMENDMENTS 1991—Pub. L. 102–83 renumbered section 709 of this title as this section. § 1910. Incontestability Subject to the provisions of section 1911 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 issue, reinstatement, or conversion except for fraud, nonpayment of premium, or on the ground that the applicant was not a member of the military or naval forces of the United States. However, in any case in which a contract or policy of insurance is canceled or voided after March 16, 1954, because of fraud, the Secretary shall refund to the insured, if living, or, if de- ceased, to the person designated as beneficiary (or if none survives, to the estate of the insured) all money, without interest, paid as premiums on such contract or policy for any period subse- quent to two years after the date such fraud in- duced the Secretary to issue, reinstate, or con- vert such insurance less any dividends, loan, or other payment made to the insured under such contract or policy. (Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1149, § 710; renumbered § 1910 and amended Pub. L. 102–83, §§ 4(a)(2)(A)(iii)(II), (b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 403–406.) Editorial Notes AMENDMENTS 1991—Pub. L. 102–83, § 5(a), renumbered section 710 of this title as this section. Pub. L. 102–83, § 5(c)(1), substituted ‘‘1911’’ for ‘‘711’’. Pub. L. 102–83, § 4(b)(1), (2)(E), substituted ‘‘Sec- retary’’ for ‘‘Administrator’’ before ‘‘shall’’. Pub. L. 102–83, § 4(a)(2)(A)(iii)(II), substituted ‘‘Sec- retary’’ for ‘‘Veterans’ Administration’’ before ‘‘to issue’’. § 1911. Forfeiture Any person guilty of mutiny, treason, spying, or desertion, or who, because of conscientious objections, refuses to perform service in the Armed Forces of the United States or refuses to wear the uniform of such force, shall forfeit all rights to National Service Life Insurance. No in- surance shall be payable for death inflicted as a lawful punishment for crime or for military or naval offense, except when inflicted by an enemy of the United States; but the cash sur- render value, if any, of such insurance on the date of such death shall be paid to the des- ignated beneficiary, if living, or otherwise to the beneficiary or beneficiaries within the per- mitted class in accordance with the order speci- fied in section 1916(b) of this title. (Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1150, § 711; renumbered § 1911 and amended Pub. L. 102–83, § 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406.) Editorial Notes AMENDMENTS 1991—Pub. L. 102–83 renumbered section 711 of this title as this section and substituted ‘‘1916(b)’’ for ‘‘716(b)’’. § 1912. Total disability waiver (a) Upon application by the insured and under such regulations as the Secretary may promul- gate, payment of premiums on insurance may be waived during the continuous total disability of the insured, which continues or has continued for six or more consecutive months, if such dis- ability began (1) after the date of the insured’s application for insurance, (2) while the insur- ance was in force under premium-paying condi- tions, and (3) before the insured’s sixty-fifth birthday. Notwithstanding any other provision of this chapter, in any case in which the total disability of the insured commenced on or after the insured’s sixtieth birthday but before the in- sured’s sixty-fifth birthday, the Secretary shall not grant waiver of any premium becoming due prior to January 1, 1965. (b) The Secretary, upon any application made after August 1, 1947, shall not grant waiver of any premium becoming due more than one year before the receipt by the Secretary of applica- tion for the same, except as provided in this sec- tion. Any premiums paid for months during which waiver is effective shall be refunded. The Secretary shall provide by regulations for exam- Page 502 TITLE 38—VETERANS’ BENEFITS § 1913 ination or reexamination of an insured claiming benefits under this section, and may deny bene- fits for failure to cooperate. If it is found that an insured is no longer totally disabled, the waiver of premiums shall cease as of the date of such finding and the policy of insurance may be continued by payment of premiums as provided in said policy. In any case in which the Sec- retary finds that the insured’s failure to make timely application for waiver of premiums or the insured’s failure to submit satisfactory evi- dence of the existence or continuance of total disability was due to circumstances beyond the insured’s control, the Secretary may grant waiv- er or continuance of waiver of premiums. (c) If the insured dies without filing applica- tion for waiver, the beneficiary, within one year after the death of the insured, or, if the bene- ficiary is insane or a minor, within one year after removal of such legal disability, may file application for waiver with evidence of the in- sured’s right to waiver under this section. Pre- mium rates shall be calculated without charge for the cost of waiver of premiums provided in this section and no deduction from benefits oth- erwise payable shall be made on account there- of. (d) In any case in which an insured has been denied or would have been denied premium waiv- er under section 602(n) of the National Service Life Insurance Act of 1940 or this section solely because the insured became totally disabled be- tween the date of valid application for insurance and the subsequent effective date thereof, and in which it is shown that (1) the total disability was incurred in line of duty between October 8, 1940, and July 31, 1946, inclusive, or June 27, 1950, and April 30, 1951, inclusive, and (2) the insured remained continuously so totally disabled to the date of death or June 8, 1960, whichever is ear- lier, the Secretary may grant waiver of pre- miums from the beginning of and during the continuous total disability of such insured. Ap- plication for waiver of premiums under this sub- section must be filed by the insured or, in the event of the insured’s death, by the beneficiary within two years after June 8, 1960, except that if the insured or the beneficiary be insane or a minor within the two-year period, application for such waiver may be filed within two years after removal of such legal disability, or if an insane insured shall die before the removal of the disability, application may be filed by the beneficiary within two years after the insured’s death. No insurance shall be placed in force under this subsection in any case in which there was an award of benefits under the Servicemen’s Indemnity Act of 1951 or of gratuitous insurance under section 1922(b) of this title. The amount of insurance placed in force hereunder together with any other United States Government life insurance or national service life insurance in force at the time of death, or at the time of the insured’s application for waiver hereunder, may not exceed $10,000 and shall be reduced by the amount of any gratuitous insurance awarded under the National Service Life Insurance Act of 1940. Waiver of premiums under this subsection shall render the insurance nonparticipating dur- ing the period such premium waiver is in effect. The cost of waiver of premium and death bene- fits paid as a result of this subsection shall be borne by the United States. (Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1150, § 712; Pub. L. 86–497, June 8, 1960, 74 Stat. 164; Pub. L. 88–364, July 7, 1964, 78 Stat. 302; Pub. L. 97–295, § 4(23), Oct. 12, 1982, 96 Stat. 1306; Pub. L. 99–576, title VII, § 701(25), Oct. 28, 1986, 100 Stat. 3292; re- numbered § 1912 and amended Pub. L. 102–83, §§ 4(a)(2)(C)(ii), (b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404–406.) Editorial Notes REFERENCES IN TEXT The Servicemen’s Indemnity Act of 1951, referred to in subsec. (d), is act Apr. 25, 1951, ch. 39, pt. I, 65 Stat. 33, as amended, which was classified generally to sub- chapter II (§ 851 et seq.) of chapter 13 of former Title 38, Pensions, Bonuses, and Veterans’ Relief, and was re- pealed by act Aug. 1, 1956, ch. 837, title V, § 502(9), 70 Stat. 886. The National Service Life Insurance Act of 1940, re- ferred to in subsec. (d), is act Oct. 8, 1940, ch. 757, title VI, pt. I, §§ 601 to 623, 54 Stat. 1008, which was classified generally to subchapter I (§§ 801 to 824) of chapter 13 of former Title 38, Pensions, Bonuses, and Veterans’ Re- lief, and which was repealed by Pub. L. 85–857, § 14(75), Sept. 2, 1958, 72 Stat. 1272, and the provisions thereof re- enacted generally as this subchapter by the first sec- tion of Pub. L. 85–857 which enacted Title 38, Veterans’ Benefits. Section 602(n) of the 1940 Act, also referred to in subsec. (d), is covered by this section. AMENDMENTS 1991—Pub. L. 102–83, § 5(a), renumbered section 712 of this title as this section. Subsec. (a). Pub. L. 102–83, § 4(b)(1), (2)(E), substituted ‘‘Secretary’’ for ‘‘Administrator’’ in two places. Subsec. (b). Pub. L. 102–83, § 4(b)(1), (2)(E), substituted ‘‘Secretary’’ for ‘‘Administrator’’ in four places. Pub. L. 102–83, § 4(a)(2)(C)(ii), substituted ‘‘by the Sec- retary’’ for ‘‘in the Veterans’ Administration’’. Subsec. (d). Pub. L. 102–83, § 5(c)(1), substituted ‘‘1922(b)’’ for ‘‘722(b)’’. Pub. L. 102–83, § 4(b)(1), (2)(E), substituted ‘‘Sec- retary’’ for ‘‘Administrator’’. 1986—Subsecs. (a), (b), (d). Pub. L. 99–576 substituted ‘‘the insured’s’’ for ‘‘his’’ wherever appearing, and ‘‘the insured’’ for ‘‘he’’ in first sentence of subsec. (d). 1982—Subsec. (d). Pub. L. 97–295 substituted ‘‘June 8, 1960’’ for ‘‘the date of enactment of this subsection’’ in two places. 1964—Subsec. (a). Pub. L. 88–364 extended from age 60 to age 65 the age before which a person must become totally disabled to be eligible for waiver of premiums, and provided that where total disability commenced on or after the 60th birthday but before the 65th, the Ad- ministrator shall not waive premiums becoming due prior to Jan. 1, 1965. 1960—Subsec. (d). Pub. L. 86–497 added subsec. (d). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1964 AMENDMENT Pub. L. 88–364 provided that the amendment made by Pub. L. 88–364 is effective Jan. 1, 1965. § 1913. Death before six months’ total disability Whenever premiums are not waived under sec- tion 1912 of this title solely because the insured died prior to the continuance of total disability for six months, and proof of such facts, satisfac- tory to the Secretary, is filed by the beneficiary with the Department within one year after the insured’s death, the insurance shall be deemed