
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 38USC1916]

 
                      TITLE 38--VETERANS' BENEFITS
 
                        PART II--GENERAL BENEFITS
 
                          CHAPTER 19--INSURANCE
 
              SUBCHAPTER I--NATIONAL SERVICE LIFE INSURANCE
 
Sec. 1916. Insurance which matured before August 1, 1946

    (a) Insurance which matured before August 1, 1946, is payable in the 
following manner:
        (1) If the beneficiary to whom payment is first made was under 
    thirty years of age at the time of maturity, in two hundred and 
    forty equal monthly installments.
        (2) If the beneficiary to whom payment is first made was thirty 
    or more years of age at the time of maturity, in equal monthly 
    installments for one hundred and twenty months certain, with such 
    payments continuing during the remaining lifetime of such 
    beneficiary.
        (3) If elected by the insured or a beneficiary entitled to make 
    such an election under prior provisions of law, as a refund life 
    income in monthly installments payable for such period certain as 
    may be required in order that the sum of the installments certain, 
    including a last installment of such reduced amount as may be 
    necessary, shall equal the face value of the contract, less any 
    indebtedness, with such payments continuing throughout the lifetime 
    of the first beneficiary. A refund life income optional settlement 
    is not available in any case in which such settlement would result 
    in payments of installments over a shorter period than one hundred 
    and twenty months. If the mode of payment is changed to a refund 
    life income in accordance with prior provisions of law, after 
    payment has commenced, payment of monthly installments will be 
    adjusted as of the date of maturity of such policy with credit being 
    allowed for payments previously made on the insurance.

    (b) Such insurance shall be payable only to a widow, widower, child, 
parent, brother or sister of the insured. Any installments certain of 
such 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 following classes, and in the order named, 
unless designated by the insured in a different order:
        (1) To the widow or widower of the insured, if living.
        (2) If no widow or widower, to the child or children of the 
    insured, if living, in equal shares.
        (3) If no widow, widower, or child, to the parent or parents of 
    the insured who last bore that relationship, if living, in equal 
    shares.
        (4) If no widow, widower, child, or parent, to the brothers and 
    sisters of the insured, if living, in equal shares.

    (c) The provisions of this section shall not be construed to enlarge 
the classes of beneficiaries heretofore authorized under section 602(d) 
of the National Service Life Insurance Act of 1940, for payment of 
gratuitous insurance.
    (d) If no beneficiary of insurance which matured before August 1, 
1946, was designated by the insured or if the designated beneficiary did 
not survive the insured, the beneficiary shall be determined in 
accordance with the order specified in subsection (b) and the insurance 
shall be payable in equal monthly installments in accordance with 
subsection (a). The right of any beneficiary to payment of any 
installments of such insurance 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).
    (e) No installments of insurance which matured before August 1, 
1946, 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, except that if the reserve of 
a contract of converted National Service Life Insurance, together with 
dividends accumulated thereon, less any indebtedness under such 
contract, exceeds the aggregate amount paid to beneficiaries, the excess 
shall be paid to the estate of the insured unless the estate of the 
insured would escheat under the laws of the insured's place of 
residence, in which event no payment shall be made. When the amount of 
an individual monthly payment of such insurance is less than $5, such 
amount may, in the discretion of the Secretary, be allowed to accumulate 
without interest and be disbursed annually.
    (f) Any payments of insurance made to a person, represented by the 
insured to be within the permitted class of beneficiaries, shall be 
deemed to have been properly made and to satisfy fully the obligation of 
the United States under such insurance policy to the extent of such 
payments.

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1151, Sec. 716; Pub. L. 99-576, 
title VII, Sec. 701(27), Oct. 28, 1986, 100 Stat. 3292; renumbered 
Sec. 1916 and amended Pub. L. 102-83, Secs. 4(b)(1), (2)(E), 5(a), Aug. 
6, 1991, 105 Stat. 404-406; Pub. L. 102-86, title V, Sec. 506(a)(2), 
Aug. 14, 1991, 105 Stat. 426.)

                       References in Text

    Section 602(d) of the National Service Life Insurance Act of 1940, 
referred to in subsec. (c), is section 602(d) of act Oct. 8, 1940, ch. 
757, title VI, pt. I, 54 Stat. 1009, which enacted section 802(d) of 
former Title 38, Pensions, Bonuses, and Veterans' Relief, and which was 
omitted in the general revision and reenactment of this title by Pub. L. 
85-857, Sept. 2, 1958, 72 Stat. 1105.


                               Amendments

    1991--Pub. L. 102-83, Sec. 5(a), renumbered section 716 of this 
title as this section.
    Subsec. (b). Pub. L. 102-86 amended subsec. (b) of this section as 
in effect before the redesignations made by Pub. L. 102-83, Sec. 5, by 
substituting ``unpaid'' for ``upaid''.
    Subsec. (e). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted 
``Secretary'' for ``Administrator''.
    1986--Subsec. (e). Pub. L. 99-576 substituted ``the insured's'' for 
``his''.

                  Section Referred to in Other Sections

    This section is referred to in section 1911 of this title.
