(a) Guarantee of premiums and interest by the United States
Payment of premiums, and interest on premiums at the rate specified in section
546 of this Appendix], which become due on a policy under the protection of this title [sections
549 of this Appendix] is guaranteed by the United States. If the amount guaranteed is not paid to the insurer before the period of insurance protection under this title expires, the amount due shall be treated by the insurer as a policy loan on the policy.
(2) Policy termination
If, at the expiration of insurance protection under this title, the cash surrender value of a policy is less than the amount due to pay premiums and interest on premiums on the policy, the policy shall terminate. Upon such termination, the United States shall pay the insurer the difference between the amount due and the cash surrender value.
(b) Recovery from insured of amounts paid by the United States
(1) Debt payable to the United States
The amount paid by the United States to an insurer under this title [sections
549 of this Appendix] shall be a debt payable to the United States by the insured on whose policy payment was made.
Such amount may be collected by the United States, either as an offset from any amount due the insured by the United States or as otherwise authorized by law.
(3) Debt not dischargeable in bankruptcy
Such debt payable to the United States is not dischargeable in bankruptcy proceedings.
(c) Crediting of amounts recovered
Any amounts received by the United States as repayment of debts incurred by an insured under this title [sections
549 of this Appendix] shall be credited to the appropriation for the payment of claims under this title.
The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.
The most recent Classification Table update that we have noticed was Tuesday, April 16, 2013
An empty table indicates that we see no relevant changes listed in the classification tables. If you suspect that our system may be missing something, please double-check with the Office of the Law Revision Counsel.