
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: 38USC1920]

 
                      TITLE 38--VETERANS' BENEFITS
 
                        PART II--GENERAL BENEFITS
 
                          CHAPTER 19--INSURANCE
 
              SUBCHAPTER I--NATIONAL SERVICE LIFE INSURANCE
 
Sec. 1920. National Service Life Insurance Fund

    (a) The National Service Life Insurance Fund heretofore created in 
the Treasury is continued as a permanent trust fund. Except as otherwise 
provided in this chapter, all premiums paid on account of National 
Service Life Insurance shall be deposited and covered into the Treasury 
to the credit of such fund, which, together with interest earned 
thereon, shall be available for the payment of liabilities under such 
insurance, including payment of dividends and refunds of unearned 
premiums, 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 such fund such 
reserve amounts as may be required under accepted actuarial principles 
to meet all liabilities under such insurance; and the Secretary of the 
Treasury is authorized to invest and reinvest such fund, or any part 
thereof, in interest-bearing obligations of the United States or in 
obligations guaranteed as to principal and interest by the United 
States, and to sell such obligations for the purposes of such fund.
    (c)(1) For each fiscal year for which this subsection is in effect, 
the Secretary shall, from the National Service Life Insurance Fund, 
reimburse the ``General operating expenses'' account of the Department 
for the amount of administrative 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 
administrative 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 administrative costs to the 
Department for a fiscal year for which this subsection is in effect 
which, in the judgment of the Secretary, are properly allocable to the 
provision of National Service 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. 1154, Sec. 720; renumbered 
Sec. 1920 and amended Pub. L. 102-83, Secs. 4(b)(1), (2)(E), 5(a), Aug. 
6, 1991, 105 Stat. 404-406; Pub. L. 104-99, title II, Sec. 201(b), Jan. 
26, 1996, 110 Stat. 36.)

                          Codification

    Amendment by Pub. L. 104-99 is based on section 107(1) 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 subsection (c)'' after 
``unearned premiums''.
    Subsec. (c). Pub. L. 104-99 added subsec. (c).
    1991--Pub. L. 102-83 renumbered section 720 of this title as this 
section and substituted ``Secretary'' for ``Administrator'' in two 
places.

                  Section Referred to in Other Sections

    This section is referred to in sections 113, 1982 of this title.
