38 U.S.C. § 1920 — National Service Life Insurance Fund

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 of former Title 38, Pensions, Bonuses, and Veterans’ Relief, and which was repealed and the provisions thereof reenacted as this subchapter by Pub.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Stat. 1009, which enacted section 802(v)(1) of former Title 38, Pensions, Bonuses, and Veterans’ Relief, and which was repealed and the provisions thereof reen- acted as section 715 [now 1915] of this title by Pub.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