
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: 38USC1924]

 
                      TITLE 38--VETERANS' BENEFITS
 
                        PART II--GENERAL BENEFITS
 
                          CHAPTER 19--INSURANCE
 
              SUBCHAPTER I--NATIONAL SERVICE LIFE INSURANCE
 
Sec. 1924. In-service waiver of premiums

    (a) Waiver of all premiums on five-year level premium term insurance 
and that portion of any permanent insurance premiums representing the 
cost of the pure insurance risk, as determined by the Secretary, granted 
on National Service Life Insurance or United States Government life 
insurance under section 622 of the National Service Life Insurance Act 
of 1940 and in effect on January 1, 1959, shall, unless canceled, 
continue in effect according to the provisions of such section for the 
remainder of the insured's continuous active service and for one hundred 
and twenty days thereafter. Such premium waiver renders the contract of 
insurance nonparticipating during the period the waiver is in effect.
    (b) Whenever benefits become payable because of the maturity of such 
insurance while under the premium waiver continued by this section, 
liability for payment of such benefits shall be borne by the United 
States in an amount which, when added to any reserve of the policy at 
the time of maturity, will equal the then value of such benefits under 
such policy. Where life contingencies are involved in the calculation of 
the value of such benefits, the calculation of such liability or 
liabilities shall be based upon such mortality table or tables as the 
Secretary may prescribe with interest at the rate of 2\1/4\ per centum 
per annum as to insurance issued under sections 620 and 621 of the 
National Service Life Insurance Act of 1940, at the rate of 3 per centum 
per annum as to other National Service Life Insurance, and 3\1/2\ per 
centum per annum as to United States Government life insurance. The 
Secretary shall transfer from time to time from the National Service 
Life Insurance appropriation to the National Service Life Insurance Fund 
and from the military and naval insurance appropriation to the United 
States Government Life Insurance Fund such sums as may be necessary to 
carry out the provisions of this section.
    (c) In any case in which insurance continued in force under this 
section matures on or after January 1, 1972, an amount equal to the 
amount of premiums, less dividends, waived on and after that date shall 
be placed as an indebtedness against the insurance and, unless otherwise 
paid, shall be deducted from the proceeds. In such case, the liability 
of the Government under subsection (b) of this section shall be reduced 
by the amount so deducted from the proceeds.

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1157, Sec. 724; Pub. L. 92-197, 
Sec. 7, Dec. 15, 1971, 85 Stat. 662; renumbered Sec. 1924 and amended 
Pub. L. 102-83, Secs. 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 
404-406.)

                       References in Text

    Section 622 of the National Service Life Insurance Act of 1940, 
referred to in subsec. (a), is section 622 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 823 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.
    Sections 620 and 621 of the National Service Life Insurance Act of 
1940, referred to in subsec. (b), are sections 620 and 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 sections 821 and 822 of former 
Title 38, Pensions, Bonuses, and Veterans' Relief, and which were 
repealed and reenacted as sections 722 and 723 [now 1922 and 1923], 
respectively, of this title by Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 
1105.


                               Amendments

    1991--Pub. L. 102-83 renumbered section 724 of this title as this 
section and substituted ``Secretary'' for ``Administrator'' wherever 
appearing in subsecs. (a) and (b).
    1971--Subsec. (c). Pub. L. 92-197 added subsec. (c).


                    Effective Date of 1971 Amendment

    Amendment by Pub. L. 92-197 effective Jan. 1, 1972, see section 10 
of Pub. L. 92-197, set out as a note under section 1311 of this title.
