
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: 38USC1923]

 
                      TITLE 38--VETERANS' BENEFITS
 
                        PART II--GENERAL BENEFITS
 
                          CHAPTER 19--INSURANCE
 
              SUBCHAPTER I--NATIONAL SERVICE LIFE INSURANCE
 
Sec. 1923. Veterans' Special Life Insurance

    (a) Insurance heretofore granted under the provisions of section 621 
of the National Service Life Insurance Act of 1940, against the death of 
the policyholder occurring while such insurance is in force, is subject 
to the same terms and conditions as are contained in standard policies 
of National Service Life Insurance on the five-year level premium term 
plan except (1) such insurance may not be exchanged for or converted to 
insurance on any other plan; (2) the premium rates for such insurance 
shall be based on the Commissioners 1941 Standard Ordinary Table of 
Mortality and interest at the rate of 2\1/4\ 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 
2\1/4\ per centum per annum; (4) all premiums and other collections on 
such insurance and any total disability provisions added thereto shall 
be credited to a revolving fund in the Treasury of the United States, 
which, together with interest earned thereon, shall be available for the 
payment of liabilities under such insurance and any total disability 
provisions added thereto, including payments of dividends and refunds of 
unearned premiums, and for the reimbursement of administrative costs 
under subsection (d).
    (b) Any term insurance heretofore issued under section 621 of the 
National Service Life Insurance Act of 1940, may be converted to a 
permanent plan of insurance or exchanged for a policy of limited 
convertible five-year level premium term insurance issued under this 
subsection. Insurance issued under this subsection shall be issued upon 
the same terms and conditions as are contained in the standard policies 
of National Service Life Insurance except (1) after September 1, 1960, 
limited convertible term insurance may not be issued or renewed on the 
term plan after the insured's fiftieth birthday; (2) the premium rates 
for such limited convertible term or permanent plan insurance shall be 
based on table X-18 (1950-54 Intercompany Table of Mortality) and 
interest at the rate of 2\1/2\ per centum per annum; (3) all settlements 
on policies involving annuities on insurance issued under this 
subsection shall be calculated on the basis of The Annuity Table for 
1949, and interest at the rate of 2\1/2\ per centum per annum; (4) all 
cash, loan, paid-up, and extended values, and, except as otherwise 
provided in this subsection, all other calculations in connection with 
insurance issued under this subsection shall be based on table X-18 
(1950-54 Intercompany Table of Mortality) and interest at the rate of 
2\1/2\ per centum per annum; (5) all premiums and other collections on 
insurance issued under this subsection and any total disability income 
provisions added thereto shall be credited directly to the revolving 
fund referred to in subsection (a) of this section, which together with 
interest earned thereon, shall be available for the payment of 
liabilities under such insurance and any total disability provisions 
added thereto, including payments of dividends and refunds of unearned 
premiums.
    (c) The Secretary is authorized to invest in, and the Secretary of 
the Treasury is authorized to sell and retire, special interest-bearing 
obligations of the United States for the account of the revolving fund 
with a maturity date as may be agreed upon by the two Secretaries. The 
rate of interest on such obligations shall be fixed by the Secretary of 
the Treasury at a rate equal to the rate of interest, computed as of the 
end of the month preceding the date of issue of such obligations, borne 
by all marketable interest-bearing obligations of the United States then 
forming a part of the public debt that are not due or callable until 
after the expiration of five years from the date of original issue; 
except that where such average rate is not a multiple of one-eighth of 1 
per centum, the rate of interest of such obligations shall be the 
multiple of one-eighth of 1 per centum nearest such average rate.
    (d)(1) For each fiscal year for which this subsection is in effect, 
the Secretary shall, from the Veterans' Special 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 Veterans' Special 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. 1157, Sec. 723; Pub. L. 85-896, 
Sept. 2, 1958, 72 Stat. 1716; Pub. L. 87-223, Sept. 13, 1961, 75 Stat. 
495; Pub. L. 93-289, Sec. 2(a), May 24, 1974, 88 Stat. 165; renumbered 
Sec. 1923 and amended Pub. L. 102-83, Secs. 4(b)(1), (2)(C), (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.)

                       References in Text

    Section 621 of the National Service Life Insurance Act of 1940, 
referred to in subsecs. (a) and (b), is section 621 of act Oct. 8, 1940, 
ch. 757, title VI, pt. I, as added Apr. 25, 1951, ch. 39, pt. II, 
Sec. 10, 65 Stat. 36, which enacted section 822 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.

                          Codification

    Amendment by Pub. L. 104-99 is based on section 107(2) 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 (d)'' before 
period at end.
    Subsec. (d). Pub. L. 104-99 added subsec. (d).
    1991--Pub. L. 102-83, Sec. 5(a), renumbered section 723 of this 
title as this section.
    Subsec. (c). Pub. L. 102-83, Sec. 4(b)(2)(C), substituted ``two 
Secretaries'' for ``Administrator and Secretary''.
    Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted ``Secretary'' for 
``Administrator'' after ``The''.
    1974--Pub. L. 93-289, Sec. 2(a)(1), substituted ``Veterans' Special 
Life Insurance'' for ``Veterans' special term insurance'' in section 
catchline.
    Subsec. (a). Pub. L. 93-289, Sec. 2(a)(2), substituted ``all 
premiums and other collections on such insurance and any total 
disability provisions added thereto shall be credited to a revolving 
fund in the Treasury of the United States, which, together with interest 
earned thereof, shall be available for the payment of liabilities under 
such insurance and any total disability provisions added thereto, 
including payments of dividends and refunds of unearned premiums'' for 
``such insurance and any total disability provision added thereto shall 
be on a nonparticipating basis and all premiums and other collections 
therefor shall be credited to a revolving fund in the Treasury of the 
United States and the payments on such term insurance and any total 
disability provision added thereto shall be made directly from such 
fund'' in cl. (4).
    Subsec. (b). Pub. L. 93-289, Sec. 2(a)(3), substituted ``all 
premiums and other collections on insurance issued under this subsection 
and any total disability income provisions added thereto shall be 
credited directly to the revolving fund referred to in subsection (a) of 
this section, which together with interest earned thereon, shall be 
available for the payment of liabilities under such insurance and any 
total disability provisions added thereto, including payments of 
dividends and refunds of unearned premiums'' for ``insurance and any 
total disability provision added thereto issued under this subsection 
shall be on a nonparticipating basis and all premiums and other 
collections therefor shall be credited directly to the revolving fund 
referred to in subsection (a) and payments on such insurance and any 
total disability provision added thereto shall be made directly from 
such fund'' in cl. (5).
    Subsecs. (d), (e). Pub. L. 93-289, Sec. 2(a)(4), repealed subsecs. 
(d) and (e) which related to the payment of dividends from the excess 
funds in the revolving fund, and to the transfer of funds from the 
revolving fund to general fund receipts in the Treasury.
    1961--Subsecs. (d), (e). Pub. L. 87-223 added subsecs. (d) and (e).
    1958--Subsec. (b). Pub. L. 85-896, Sec. 1(2), added subsec. (b). 
Former subsec. (b) redesignated (c).
    Subsec. (c). Pub. L. 85-896, Sec. 1(1), redesignated former subsec. 
(b) as (c) and substituted ``equal to the rate of interest, computed as 
of the end of the month preceding the date of issue of such obligations, 
borne by all marketable interest-bearing obligations of the United 
States then forming a part of the public debt that are not due or 
callable until after the expiration of five years from the date of 
original issue; except that where such average rate is not a multiple of 
one-eighth of 1 per centum, the rate of interest of such obligations 
shall be the multiple of one-eighth of 1 per centum nearest such average 
rate'' for ``not exceeding the average interest rate on all marketable 
obligations of the United States Treasury outstanding as of the end of 
the month preceding the date of issue of this special obligation''.


                    Effective Date of 1974 Amendment

    Section 12(1) of Pub. L. 93-289 provided that: ``The amendments made 
by section 2 [amending this section], relating to Veterans' Special Life 
Insurance, shall become effective upon the date of enactment of this Act 
[May 24, 1974] except that no dividend on such insurance shall be paid 
prior to January 1, 1974.''

                  Section Referred to in Other Sections

    This section is referred to in sections 113, 1904, 1926, 1927, 1929, 
1982 of this title.
