38 U.S. Code § 1922 - Service disabled veterans’ insurance

(a) Any person who is released from active military, naval, or air service, under other than dishonorable conditions on or after April 25, 1951, and is found by the Secretary to be suffering from a disability or disabilities for which compensation would be payable if 10 per centum or more in degree and except for which such person would be insurable according to the standards of good health established by the Secretary, shall, upon application in writing made within two years from the date service-connection of such disability is determined by the Secretary and payment of premiums as provided in this subchapter, be granted insurance by the United States against the death of such person occurring while such insurance is in force. If such a person is shown by evidence satisfactory to the Secretary to have been mentally incompetent during any part of the two-year period, application for insurance under this section may be filed within two years after a guardian is appointed or within two years after the removal of such disability as determined by the Secretary, whichever is the earlier date. If the guardian was appointed or the removal of the disability occurred before January 1, 1959, application for insurance under this section may be made within two years after that date. Insurance granted under this section shall be issued upon the same terms and conditions as are contained in the standard policies of National Service Life Insurance except
(1) the premium rates for such insurance shall be based on the Commissioners 1941 Standard Ordinary Table of Mortality and interest at the rate of 21/4 per centum per annum;
(2) all cash, loan, paid-up, and extended values shall be based upon the Commissioners 1941 Standard Ordinary Table of Mortality and interest at the rate of 21/4 per centum per annum;
(3) all settlements on policies involving annuities shall be calculated on the basis of The Annuity Table for 1949, and interest at the rate of 21/4 per centum per annum;
(4) insurance granted under this section shall be on a nonparticipating basis and all premiums and other collections therefor shall be credited directly to a revolving fund in the Treasury of the United States, and any payments on such insurance shall be made directly from such fund; and
(5) administrative support financed by the appropriations for “General Operating Expenses, Department of Veterans Affairs” and “Information Technology Systems, Department of Veterans Affairs” for the program of insurance under this section shall be paid from premiums credited to the fund under paragraph (4), and payments for claims against the fund under paragraph (4) for amounts in excess of amounts credited to such fund under that paragraph (after such administrative costs have been paid) shall be paid from appropriations to the fund. Appropriations to such fund are hereby authorized. As to insurance issued under this section, waiver of premiums pursuant to section 602(n) of the National Service Life Insurance Act of 1940 and section 1912 of this title shall not be denied on the ground that the service-connected disability became total before the effective date of such insurance.
(b)
(1) Any person who, on or after April 25, 1951, was otherwise qualified for insurance under the provisions of section 620 of the National Service Life Insurance Act of 1940, or under subsection (a) of this section, but who did not apply for such insurance and who is shown by evidence satisfactory to the Secretary
(A) to have been mentally incompetent from a service-connected disability,
(i) at the time of release from active service, or
(ii) during any part of the two-year period from the date the service connection of a disability is first determined by the Secretary, or
(iii) after release from active service but is not rated service-connected disabled by the Secretary until after death; and
(B) to have remained continuously so mentally incompetent until date of death; and
(C) to have died before the appointment of a guardian, or within two years after the appointment of a guardian; shall be deemed to have applied for and to have been granted such insurance, as of the date of death, in an amount which, together with any other United States Government or National Service life insurance in force, shall aggregate $10,000. The date to be used for determining whether such person was insurable according to the standards of good health established by the Secretary, except for the service-connected disability, shall be the date of release from active service or the date the person became mentally incompetent, whichever is the later.
(2) Payments of insurance granted under subsection (b)(1) of this section shall be made only to the following beneficiaries and in the order named—
(A) to the widow or widower of the insured, if living and while unremarried;
(B) if no widow or widower entitled thereto, to the child or children of the insured, if living, in equal shares;
(C) if no widow or widower or child entitled thereto, to the parent or parents of the insured who last bore that relationship, if living, in equal shares.
(3) No application for insurance payments under this subsection shall be valid unless filed with the Secretary within two years after the date of death of the insured or before January 1, 1961, whichever is the later, and the relationship of the applicant shall be proved as of the date of death of the insured by evidence satisfactory to the Secretary. Persons shown by evidence satisfactory to the Secretary to have been mentally or legally incompetent at the time the right to apply for death benefits expires, may make such application at any time within one year after the removal of such disability.
(4) Notwithstanding section 1917 of this title, insurance under this subsection shall be payable to the beneficiary determined under paragraph (2) of this subsection in a lump sum.
(c) The premium rate of any term insurance issued under this section shall not exceed the renewal age 70 premium rate.

Source

(Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1155, § 722; renumbered § 1922 and amended Pub. L. 102–83, §§ 4(a)(2)(A)(iii)(IV), (D)(i), (b)(1), (2)(E), 5(a), (c)(1),Aug. 6, 1991, 105 Stat. 403–406; Pub. L. 102–86, title II, §§ 201(a), 202(a),Aug. 14, 1991, 105 Stat. 415, 416; Pub. L. 103–446, title XII, § 1201(i)(2),Nov. 2, 1994, 108 Stat. 4688; Pub. L. 106–419, title III, § 311(a),Nov. 1, 2000, 114 Stat. 1854; Pub. L. 110–389, title IV, § 404,Oct. 10, 2008, 122 Stat. 4175; Pub. L. 111–117, div. E, title II, § 226,Dec. 16, 2009, 123 Stat. 3307.)
References in Text

Section 602(n) of the National Service Life Insurance Act of 1940, referred to in subsec. (a), is section 602(n) of act Oct. 8, 1940, ch. 757, title VI, pt. I, 54 Stat. 1009, which enacted section 802(n) of former Title 38, Pensions, Bonuses, and Veterans’ Relief, and which was repealed and the provisions thereof reenacted as section 712 [now 1912] of this title by Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1105.
Section 620 of the National Service Life Insurance Act of 1940, referred to in subsec. (b)(1), is section 620 of act Oct. 8, 1940, ch. 757, title VI, pt. I, as added Apr. 25, 1951, ch. 39, pt. II, § 10,65 Stat. 36, which enacted section 821 of former Title 38, Pensions, Bonuses, and Veterans’ Relief, and which was repealed and the provisions thereof reenacted as this section by Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1105.
Amendments

2009—Subsec. (a)(5). Pub. L. 111–117substituted “administrative support financed by the appropriations for ‘General Operating Expenses, Department of Veterans Affairs’ and ‘Information Technology Systems, Department of Veterans Affairs’ for” for “administrative costs to the Government for the costs of”.
2008—Subsec. (a). Pub. L. 110–389substituted “directly from such fund; and (5) administrative costs to the Government for the costs of the program of insurance under this section shall be paid from premiums credited to the fund under paragraph (4), and payments for claims against the fund under paragraph (4) for amounts in excess of amounts credited to such fund under that paragraph (after such administrative costs have been paid) shall be paid from appropriations to the fund” for “directly from such fund”.
2000—Subsec. (c). Pub. L. 106–419added subsec. (c).
1994—Subsec. (b)(4). Pub. L. 103–446substituted “Notwithstanding section 1917 of this title,” for “Notwithstanding the provisions of section 1917 of this title,”.
1991—Pub. L. 102–83, § 5(a), renumbered section 722 of this title as this section.
Subsec. (a). Pub. L. 102–86, § 201(a), amended subsec. (a) of this section as in effect before the redesignations made by Pub. L. 102–83, § 5, by substituting “two years” for “one year” wherever appearing and “two-year” for “one-year”.
Pub. L. 102–83, § 5(c)(1), substituted “1912” for “712”.
Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator” in four places.
Pub. L. 102–83, § 4(a)(2)(A)(iii)(IV), substituted “Secretary” for “Veterans’ Administration” after first reference to “determined by the”.
Subsec. (b)(1). Pub. L. 102–86, § 201(a), amended subsec. (b)(1) of this section as in effect before the redesignations made by Pub. L. 102–83, § 5, by substituting “two-year” for “one-year” and “two years” for “one year”.
Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator” in two places.
Pub. L. 102–83, § 4(a)(2)(A)(iii)(IV), substituted “Secretary” for “Veterans’ Administration” in two places.
Subsec. (b)(3). Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator” in two places.
Pub. L. 102–83, § 4(a)(2)(D)(i), substituted “with the Secretary” for “in the Veterans’ Administration”.
Subsec. (b)(4). Pub. L. 102–86, § 202(a)(1), amended subsec. (b) of this section as in effect before the redesignations made by Pub. L. 102–83, § 5, by amending par. (4) generally. Prior to amendment, par. (4) read as follows: “Notwithstanding the provisions of section 717 of this title, insurance under this subsection shall be payable at the election of the first beneficiary in 240 equal monthly installments or under the options specified in section 717(b)(3) or (4) of this title. Any installments certain of insurance remaining unpaid at the death of any beneficiary shall be paid in equal monthly installments in an amount equal to the monthly installments paid to the first beneficiary, to the person or persons then in being within the classes specified in subsection (b)(2) of this section and in the order named.”
Pub. L. 102–83, § 5(c)(1), amended par. (4) as amended by Pub. L. 102–86, § 202(a)(1), by substituting “1917” for “717”. See above.
Subsec. (b)(5). Pub. L. 102–86, § 202(a)(2), amended subsec. (b) of this section as in effect before the redesignations by Pub. L. 102–83, § 5, by striking out par. (5) which read as follows: “The right of any beneficiary to payment of any installments shall be conditioned upon his or her being alive to receive such payments. No person shall have a vested right to any installment or installments of any such insurance and any installments not paid to a beneficiary during such beneficiary’s lifetime shall be paid to the beneficiary or beneficiaries within the permitted class next entitled to priority, as provided in subsection (b)(2) of this section. No installments of such insurance shall be paid to the heirs or legal representatives as such of the insured or of any beneficiary, and if no person within the permitted class survives to receive the insurance or any part thereof no payment of the unpaid installments shall be made.”
Effective Date of 1991 Amendment

Pub. L. 102–86, title II, § 201(b),Aug. 14, 1991, 105 Stat. 415, provided that: “The amendments made by subsection (a) [amending this section] shall apply with respect to any person who, on or after September 1, 1991, is found by the Secretary of Veterans Affairs to be eligible for insurance under section 722 [now 1922] of title 38, United States Code.”
Pub. L. 102–86, title II, § 202(b),Aug. 14, 1991, 105 Stat. 416, provided that: “The amendments made by subsection (a) [amending this section] shall apply with respect to deaths occurring before, on, or after the date of the enactment of this Act [Aug. 14, 1991]. In the case of insurance under section 722(b) [now 1922(b)] of title 38, United States Code, payable by reason of a death before the date of the enactment of this Act, the Secretary shall pay the remaining balance of such insurance in a lump sum as soon as practicable after the date of the enactment of this Act.”

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38 CFR - Pensions, Bonuses, and Veterans' Relief

38 CFR Part 8 - NATIONAL SERVICE LIFE INSURANCE

 

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