38 U.S.C. § 1955 — United States Government Life Insurance

Page 523 TITLE 38—VETERANS’ BENEFITS § 1955 Pub. L. 97–66, title IV, § 403(b), Oct. 17, 1981, 95 Stat. 1031; Pub. L. 99–576, title VII, § 701(32), Oct. 28, 1986, 100 Stat. 3293; renumbered § 1952 and amended Pub. L. 102–83, §§ 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404–406; Pub. L. 108–183, title I, § 103(b), Dec. 16, 2003, 117 Stat. 2655; Pub. L. 117–313, § 2(b), Dec. 27, 2022, 136 Stat. 4399.) Editorial Notes AMENDMENTS 2022—Subsec. (c)(1)(A). Pub. L. 117–313, § 2(b)(1), sub- stituted ‘‘one year’’ for ‘‘two years’’. Subsec. (c)(1)(B). Pub. L. 117–313, § 2(b)(2), substituted ‘‘two years’’ for ‘‘four years’’. 2003—Subsec. (c). Pub. L. 108–183 added subsec. (c). 1991—Pub. L. 102–83 renumbered section 752 of this title as this section and substituted ‘‘Secretary’’ for ‘‘Administrator’’ in subsecs. (a) and (b). 1986—Subsec. (a). Pub. L. 99–576 substituted ‘‘the right’’ for ‘‘his right’’ in two places. 1981—Subsec. (a). Pub. L. 97–66 inserted provision em- powering beneficiaries, in the case of insurance matur- ing after Sept. 30, 1981, and for which the insured has not exercised the right of election of the insured as pro- vided in this subchapter, to elect to receive payment of the insurance in one sum. 1970—Pub. L. 91–291 designated existing provisions as subsec. (a) and added subsec. (b). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2022 AMENDMENT Amendment by Pub. L. 117–313 applicable with re- spect to the death of an insured person occurring on or after the date that is two years before Dec. 27, 2022, see section 2(c) of Pub. L. 117–313, set out as a note under section 1917 of this title. EFFECTIVE DATE OF 2003 AMENDMENT Amendment by Pub. L. 108–183 effective Oct. 1, 2004, see section 103(c) of Pub. L. 108–183, set out as a note under section 1917 of this title. 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 For transition provision relating to subsec. (c)(1) of this section, see section 103(d) of Pub. L. 108–183, set out as a note under section 1917 of this title. § 1953. Assignments Any person to whom United States Govern- ment life insurance shall be payable may assign such person’s interest in such insurance to the spouse, child, grandchild, parent, brother, sister, uncle, aunt, nephew, niece, brother-in-law, or sister-in-law of the insured. Insofar as applica- ble, the definitions contained in section 3 of the World War Veterans’ Act, 1924, in effect on De- cember 31, 1958, shall apply to this section. (Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1161, § 753; Pub. L. 96–128, title III, § 304, Nov. 28, 1979, 93 Stat. 986; renumbered § 1953, Pub. L. 102–83, § 5(a), Aug. 6, 1991, 105 Stat. 406.) Editorial Notes REFERENCES IN TEXT Section 3 of the World War Veterans’ Act, 1924, re- ferred to in text, is section 3 of act June 7, 1924, ch. 320, 43 Stat. 607, which was classified to section 424 of former Title 38, Pensions, Bonuses, and Veterans’ Re- lief, and which was repealed and the provisions thereof reenacted as section 101 of this title by Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1105. AMENDMENTS 1991—Pub. L. 102–83 renumbered section 753 of this title as this section. 1979—Pub. L. 96–128 substituted ‘‘such person’s’’ for ‘‘his’’. 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. § 1954. Forfeiture No yearly renewable term insurance or United States Government life insurance shall be pay- able for death inflicted as a lawful punishment for crime or military offense, except when in- flicted by the enemy. In such cases the cash sur- render value of United States Government life insurance, if any, on the date of such death shall be paid to the designated beneficiary if living, or if there be no designated beneficiary alive at the death of the insured the said value shall be paid to the estate of the insured. (Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1161, § 754; renumbered § 1954, Pub. L. 102–83, § 5(a), Aug. 6, 1991, 105 Stat. 406.) Editorial Notes AMENDMENTS 1991—Pub. L. 102–83 renumbered section 754 of this title as this section. § 1955. United States Government Life Insurance Fund (a) All premiums paid on account of United States Government life insurance shall be depos- ited and covered into the Treasury to the credit of the United States Government Life Insurance Fund and shall be available for the payment of losses, dividends, refunds, and other benefits provided for under such insurance, including such liabilities as shall have been or shall here- after be reduced to judgment in a district court of the United States or the United States Dis- trict Court for the District of Columbia, and for the reimbursement of administrative costs under subsection (c). Payments 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 the funds so collected such reserve funds as may be required, under accepted actuarial principles, to meet all liabilities under such in- surance; and the Secretary of the Treasury is authorized to invest and reinvest the said United States Government Life Insurance Fund, or any part thereof, in interest-bearing obliga- tions of the United States or bonds of the Fed- Page 524 TITLE 38—VETERANS’ BENEFITS § 1956 eral farm-loan banks and to sell said obligations of the United States or the bonds of the Federal farm-loan banks 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 United States Government Life Insurance Fund, reimburse the ‘‘General operating expenses’’ ac- count of the Department for the amount of ad- ministrative 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 insurance after claims have been paid and actuarially determined reserves have been set aside. However, if the amount of such adminis- trative costs exceeds the amount of such surplus earnings, 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 United States Gov- ernment Life Insurance (and to the provision of any total disability 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. 1161, § 755; renumbered § 1955 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(3) 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 ‘‘District of Columbia’’. Subsec. (c). Pub. L. 104–99 added subsec. (c). 1991—Pub. L. 102–83 renumbered section 755 of this title as this section and substituted ‘‘Secretary’’ for ‘‘Administrator’’ in subsecs. (a) and (b). § 1956. Military and naval insurance appropria- tion All sums heretofore or hereafter appropriated for the military and naval insurance appropria- tion and all premiums collected for yearly re- newable term insurance deposited and covered into the Treasury to the credit of this appropria- tion shall be made available to the Department. All premiums that may hereafter be collected for yearly renewable term insurance shall be de- posited and covered into the Treasury for the credit of this appropriation. Such sum is made available for the payment of the liabilities of the United States incurred under contracts of yearly renewable term insurance. Payments from this appropriation shall be made upon and in accordance with the awards by the Secretary. (Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1162, § 756; renumbered § 1956 and amended Pub. L. 102–83, §§ 4(a)(3), (4), (b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404–406.) Editorial Notes AMENDMENTS 1991—Pub. L. 102–83, § 5(a), renumbered section 756 of this title as this section. Pub. L. 102–83, § 4(b)(1), (2)(E), substituted ‘‘Sec- retary’’ for ‘‘Administrator’’. Pub. L. 102–83, § 4(a)(3), (4), substituted ‘‘Department’’ for ‘‘Veterans’ Administration’’. § 1957. Extra hazard costs (a) The United States shall bear the excess mortality and disability cost resulting from the hazards of war on United States Government life insurance. (b) Whenever benefits under United States Government life insurance become, or have be- come, payable because of total permanent dis- ability of the insured or because of the death of the insured as a result of disease or injury trace- able to the extra hazard of the military or naval service, as such hazard may be determined by the Secretary, the liability shall be borne by the United States. In such cases the Secretary shall transfer from the military and naval insurance appropriation to the United States Government Life Insurance Fund a sum which, together with the reserve of the policy at the time of maturity by total permanent disability or death, will equal the then value of such benefits. When a person receiving total permanent disability ben- efits under a United States Government life in- surance policy recovers from such disability and is then entitled to continue a reduced amount of insurance, the Secretary shall transfer to the military and naval insurance appropriation all of the loss reserve to the credit of such policy claim except a sum sufficient to set up the then required reserve on the reduced amount of the insurance that may be continued, which sum shall be retained in the United States Govern- ment Life Insurance Fund for the purpose of such reserve. (c) Whenever benefits under the total dis- ability provision become, or have become, pay- able because of total disability of the insured as a result of disease or injury traceable to the extra hazard of the military or naval service, as such hazard may be determined by the Sec- retary, the liability shall be borne by the United States, and the Secretary shall transfer from the military and naval insurance appropriation to the United States Government Life Insurance Fund from time to time any amounts which be- come or have become payable to the insured on account of such total disability, and shall trans- fer from the United States Government Life In- surance Fund to the military and naval insur- ance appropriation the amount of the reserve held on account of the total disability benefit. When a person receiving such payments on ac- count of total disability recovers from such dis- ability and is then entitled to continued protec- tion under the total disability provision, the Secretary shall transfer to the United States Government Life Insurance Fund a sum suffi- cient to set up the then required reserve on such total disability benefit. (d) Any disability for which a waiver was re- quired as a condition to tendering a person a commission under Public Law 816, Seventy-sev-