
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: 38USC1917]

 
                      TITLE 38--VETERANS' BENEFITS
 
                        PART II--GENERAL BENEFITS
 
                          CHAPTER 19--INSURANCE
 
              SUBCHAPTER I--NATIONAL SERVICE LIFE INSURANCE
 
Sec. 1917. Insurance maturing on or after August 1, 1946

    (a) The insured shall have the right to designate the beneficiary or 
beneficiaries of insurance maturing on or after August 1, 1946, and 
shall, subject to regulations, at all times have the right to change the 
beneficiary or beneficiaries of such insurance without the consent of 
such beneficiary or beneficiaries.
    (b) Insurance maturing on or after August 1, 1946, shall be payable 
in accordance with the following optional modes of settlement:
        (1) In one sum.
        (2) In equal monthly installments of from thirty-six to two 
    hundred and forty in number, in multiples of twelve.
        (3) In equal monthly installments for one hundred and twenty 
    months certain with such payments continuing during the remaining 
    lifetime of the first beneficiary.
        (4) 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; however, such 
    optional settlement shall not be available in any case in which such 
    settlement would result in payments of installments over a shorter 
    period than one hundred and twenty months.

    (c) Except as provided in the second and third sentences of this 
subsection, unless the insured elects some other mode of settlement, 
such insurance shall be payable to the designated beneficiary or 
beneficiaries in thirty-six equal monthly installments. The first 
beneficiary may elect to receive payment under any option which provides 
for payment over a longer period of time than the option elected by the 
insured, or if no option has been elected by the insured, in excess of 
thirty-six months. In the case of insurance maturing after September 30, 
1981, and for which no option has been elected by the insured, the first 
beneficiary may elect to receive payment in one sum. If the option 
selected requires payment to any one beneficiary of monthly installments 
of less than $10, the amount payable to such beneficiary shall be paid 
in such maximum number of monthly installments as are a multiple of 
twelve as will provide a monthly installment of not less than $10. If 
the present value of the amount payable at the time any person initially 
becomes entitled to payment thereof is not sufficient to pay at least 
twelve monthly installments of not less than $10 each, such amount shall 
be payable in one sum. Options (3) and (4) shall not be available if any 
firm, corporation, legal entity (including the estate of the insured), 
or trustee is beneficiary.
    (d) If the beneficiary of such insurance is entitled to a lump-sum 
settlement but elects some other mode of settlement and dies before 
receiving all the benefits due and payable under such mode of 
settlement, the present value of the remaining unpaid amount shall be 
payable to the estate of the beneficiary. If no beneficiary is 
designated by the insured, or if the designated beneficiary does not 
survive the insured, or if a designated beneficiary not entitled to a 
lump-sum settlement survives the insured, and dies before receiving all 
the benefits due and payable, then the commuted value of the remaining 
unpaid insurance (whether accrued or not) shall be paid in one sum to 
the estate of the insured. In no event shall there be any payment to the 
estate of the insured or of the beneficiary of any sums unless it is 
shown that any sums paid will not escheat.
    (e) Under such regulations as the Secretary may promulgate, the cash 
surrender value of any policy of insurance or the proceeds of an 
endowment contract which matures by reason of completion of the 
endowment period may be paid to the insured under option (2) or (4) of 
this section. All settlements under option (4), however, shall be 
calculated on the basis of The Annuity Table for 1949. If the option 
selected requires payment of monthly installments of less than $10, the 
amount payable shall be paid in such maximum number of monthly 
installments as are a multiple of twelve as will provide a monthly 
installment of not less than $10.

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1152, Sec. 717; Pub. L. 91-291, 
Sec. 10, June 25, 1970, 84 Stat. 331; Pub. L. 97-66, title IV, 
Sec. 403(a), Oct. 17, 1981, 95 Stat. 1031; renumbered Sec. 1917 and 
amended Pub. L. 102-83, Secs. 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 
Stat. 404-406.)


                               Amendments

    1991--Pub. L. 102-83 renumbered section 717 of this title as this 
section and substituted ``Secretary'' for ``Administrator'' in subsec. 
(e).
    1981--Subsec. (c). Pub. L. 97-66 substituted ``Except as provided in 
the second and third sentences of this subsection, unless'' for 
``Unless'' and inserted provision that, in the case of insurance 
maturing after September 30, 1981, and for which no option has been 
elected by the insured, the first beneficiary may elect to receive 
payment in one sum.
    1970--Subsec. (c). Pub. L. 91-291 struck out provision that options 
(3) and (4) were not available in cases where the endowment contract 
matured by reason of the completion of the endowment period.
    Subsec. (e). Pub. L. 91-291 added subsec. (e).


                    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 calendar 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.

                  Section Referred to in Other Sections

    This section is referred to in section 1922 of this title.
