
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: 38USC1925]

 
                      TITLE 38--VETERANS' BENEFITS
 
                        PART II--GENERAL BENEFITS
 
                          CHAPTER 19--INSURANCE
 
              SUBCHAPTER I--NATIONAL SERVICE LIFE INSURANCE
 
Sec. 1925. Limited period for acquiring insurance

    (a) Any person (other than a person referred to in subsection (f) of 
this section) heretofore eligible to apply for National Service Life 
Insurance after October 7, 1940, and before January 1, 1957, who is 
found by the Secretary to be suffering (1) from a service-connected 
disability or disabilities for which compensation would be payable if 10 
percent or more in degree and except for which such person would be 
insurable according to the standards of good health established by the 
Secretary; or (2) from a non-service-connected disability which renders 
such person uninsurable according to the standards of good health 
established by the Secretary and such person establishes to the 
satisfaction of the Secretary that such person is unable to obtain 
commercial life insurance at a substandard rate, shall, upon application 
in writing made before May 2, 1966, compliance with the health 
requirements of this section and payment of the required premiums, be 
granted insurance under this section.
    (b) If, notwithstanding the applicant's service-connected 
disability, such person is insurable according to the standards of good 
health established by the Secretary, the insurance granted under this 
section shall be issued upon the same terms and conditions as are 
contained in the standard policies of National Service Life Insurance 
except (1) five-year level premium term insurance may not be issued; (2) 
the net premium rates shall be based on the 1958 Commissioners Standard 
Ordinary Basic Mortality Table, increased at the time of issue by such 
an amount as the Secretary determines to be necessary for sound 
actuarial operations, and thereafter such premiums may be adjusted as 
the Secretary determines to be so necessary but at intervals of not less 
than two years; (3) an additional premium to cover administrative costs 
to the Government as determined by the Secretary at times of issue shall 
be charged for insurance issued under this subsection and for any total 
disability income provision attached thereto, and thereafter such costs 
may be adjusted as the Secretary determines to be necessary but at 
intervals of not less than five years; (4) all cash, loan, extended and 
paid-up insurance values shall be based on the 1958 Commissioners 
Standard Ordinary Basic Mortality Table; (5) all settlements on policies 
involving annuities shall be calculated on the basis of The Annuity 
Table for 1949; (6) all calculations in connection with insurance issued 
under this subsection shall be based on interest at the rate of 3\1/2\ 
percent per annum; and (7) the insurance shall include such other 
changes in terms and conditions as the Secretary determines to be 
reasonable and practicable.
    (c) If the applicant's service-connected disability or disabilities 
render the applicant uninsurable according to the standards of good 
health established by the Secretary, or if the applicant has a non-
service-connected disability which renders the applicant uninsurable 
according to the standards of good health established by the Secretary 
and such person establishes to the satisfaction of the Secretary that 
such person is unable to obtain commercial life insurance at a 
substandard rate and such uninsurability existed as of the date of 
approval of this section, the insurance granted under this section shall 
be issued upon the same terms and conditions as are contained in 
standard policies of National Service Life Insurance, except (1) five-
year level premium term insurance may not be issued; (2) the premiums 
charged for the insurance issued under this subsection shall be 
increased at the time of issue by such an amount as the Secretary 
determines to be necessary for sound actuarial operations and thereafter 
such premiums may be adjusted from time to time as the Secretary 
determines to be necessary; for the purpose of any increase at time of 
issue or later adjustment the service-connected group and the non-
service-connected group may be separately classified; (3) an additional 
premium to cover administrative costs to the Government as determined by 
the Secretary at the time of issue shall be charged for insurance issued 
under this subsection and for any total disability income provision 
attached thereto (for which the insured may subsequently become 
eligible) and thereafter such costs may be adjusted as the Secretary 
determines to be necessary but at intervals of not less than five years 
and for this purpose the service-connected and non-service-connected can 
be separately classified; (4) all settlements on policies involving 
annuities shall be calculated on the basis of The Annuity Table for 
1949; (5) all calculations in connection with insurance issued under 
this subsection shall be based on interest at the rate of 3\1/2\ percent 
per annum; and (6) the insurance shall include such other changes in 
terms and conditions as the Secretary determines to be reasonable and 
practicable.
    (d)(1) All premiums and collections on insurance issued pursuant to 
this section and any total disability income provision attached thereto 
shall be credited to the Veterans Reopened Insurance Fund, a revolving 
fund established in the Treasury of the United States, and all payments 
on such insurance and any total disability provision attached thereto, 
including payments of dividends and refunds of unearned premiums, shall 
be made from that fund and the interest earned on the assets of that 
fund. For actuarial and accounting purposes, the assets and liabilities 
(including liabilities for repayment of advances hereinafter authorized, 
and adjustment of premiums) attributable to the insured groups 
established under this section shall be separately determined. Such 
amounts in the Veterans Special Term Insurance Fund in the Treasury, not 
exceeding $1,650,000 in the aggregate, as may hereafter be determined by 
the Secretary to be in excess of the actuarial liabilities of that fund, 
including contingency reserves, shall be available for transfer to the 
Veterans Reopened Insurance Fund as needed to provide initial capital. 
Any amounts so transferred shall be repaid to the Treasury over a 
reasonable period of time with interest as determined by the Secretary 
of the Treasury taking into consideration the average yield on all 
marketable interest-bearing obligations of the United States of 
comparable maturities then forming a part of the public debt.
    (2) The Secretary is authorized to set aside out of the revolving 
fund established under this section such reserve amounts as may be 
required under accepted actuarial principles to meet all liabilities on 
insurance issued under this section and any total disability income 
provision attached thereto. The Secretary of the Treasury is authorized 
to invest in and to sell and retire special interest-bearing obligations 
of the United States for the account of the revolving fund. Such 
obligations issued for this purpose shall have maturities fixed with due 
regard for the needs of the fund and shall bear interest at a rate equal 
to the average market yield (computed by the Secretary of the Treasury 
on the basis of market quotations as of the end of the calendar month 
next preceding the date of issue) on all marketable interest-bearing 
obligations of the United States then forming a part of the public debt 
which are not due or callable until after the expiration of four years 
from the end of such calendar month; except that where such average 
market yield is not a multiple of one-eighth of 1 percent, the rate of 
interest of such obligation shall be the multiple of one-eighth of 1 
percent nearest such market yield.
    (3) Notwithstanding the provisions of section 1982 of this title, 
the Secretary shall, from time to time, determine the administrative 
costs to the Government which in the Secretary's judgment are properly 
allocable to insurance issued under this section and any total 
disability income provision attached thereto, and shall transfer from 
the revolving fund, the amount of such cost allocable to the Department 
to the appropriation ``General Operating Expenses, Department of 
Veterans Affairs'', and the remainder of such cost to the general fund 
receipts in the Treasury. The initial administrative costs of issuing 
insurance under this section and any total disability income provision 
attached thereto shall be so transferred over such period of time as the 
Secretary determines to be reasonable and practicable.
    (e) Notwithstanding the provisions of section 1982 of this title, a 
medical examination (including any supplemental examination or tests) 
when required of an applicant for issuance of insurance under this 
section or any total disability income provisions attached thereto shall 
be at the applicant's own expense by a duly licensed physician.
    (f) No insurance shall be granted under this section to any person 
referred to in section 107 of this title or to any person while on 
active duty or active duty for training under a call or order to such 
duty for a period of thirty-one days or more.

(Added Pub. L. 88-664, Sec. 12(a), Oct. 13, 1964, 78 Stat. 1096, 
Sec. 725; amended Pub. L. 89-40, June 14, 1965, 79 Stat. 130; Pub. L. 
96-128, title III, Sec. 301, Nov. 28, 1979, 93 Stat. 985; Pub. L. 97-
295, Sec. 4(25), Oct. 12, 1982, 96 Stat. 1306; Pub. L. 99-576, title 
VII, Sec. 701(28), Oct. 28, 1986, 100 Stat. 3292; renumbered Sec. 1925 
and amended Pub. L. 102-83, Secs. 4(a)(2)(B)(ii), (3), (4), (b)(1), 
(2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 403-406.)


                               Amendments

    1991--Pub. L. 102-83, Sec. 5(a), renumbered section 725 of this 
title as this section.
    Subsecs. (a) to (c). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 
substituted ``Secretary'' for ``Administrator'' wherever appearing.
    Subsec. (d). Pub. L. 102-83, Sec. 5(c)(1), substituted ``1982'' for 
``782'' in par. (3).
    Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted ``Secretary'' for 
``Administrator'' and ``Secretary's'' for ``Administrator's'' wherever 
appearing in pars. (1) to (3).
    Pub. L. 102-83, Sec. 4(a)(3), (4), substituted ``Department'' for 
first reference to ``Veterans' Administration'' in par. (3).
    Pub. L. 102-83, Sec. 4(a)(2)(B)(ii), substituted ``Department of 
Veterans Affairs'' for second reference to ``Veterans' Administration'' 
in par. (3).
    Subsec. (e). Pub. L. 102-83, Sec. 5(c)(1), substituted ``1982'' for 
``782''.
    1986--Subsecs. (a), (b). Pub. L. 99-576, Sec. 701(28)(A), 
substituted ``such person'' for ``he''.
    Subsec. (c). Pub. L. 99-576, Sec. 701(28)(A), (B), substituted ``the 
applicant'' for ``him'' in two places, and ``such person'' for ``he''.
    Subsec. (d)(3). Pub. L. 99-576, Sec. 701(28)(C), substituted ``the 
Administrator's'' for ``his''.
    1982--Subsec. (a). Pub. L. 97-295, Sec. 4(25), substituted 
``percent'' for ``per centum'', and substituted ``before May 2, 1966'' 
for ``within one year after the effective date of this section''.
    Subsecs. (b), (c), (d)(2). Pub. L. 97-295, Sec. 4(25)(A), 
substituted ``percent'' for ``per centum'' wherever appearing.
    1979--Subsec. (b). Pub. L. 96-128, Sec. 301(a), struck out cl. (8) 
which required the insurance and any attached total disability income 
provision to be on a nonparticipatory basis.
    Subsec. (c). Pub. L. 96-128, Sec. 301(b), struck out cl. (4) which 
required the insurance and any attached total disability income 
provision to be on a nonparticipatory basis, and redesignated former 
cls. (5) to (7) as (4) to (6), respectively.
    Subsec. (d)(1). Pub. L. 96-128, Sec. 301(c), inserted provisions 
respecting payments of dividends and refunds of unearned premiums from 
the fund, and interest earned on the assets of the fund.
    1965--Subsec. (b). Pub. L. 89-40, Sec. 1(1), struck out provision 
from cl. (8) which called for all premiums and other collections for 
insurance granted under this section to be credited to a revolving fund 
established in the Treasury of the United States and for payment on such 
insurance or total disability income provisions to be made directly from 
that fund.
    Subsec. (c). Pub. L. 89-40, Sec. 1(2), struck out cl. (8) which 
provided that all premiums and other collections on the insurance and 
any total disability income provision attached thereto should be 
credited to the National Service Life Insurance appropriation, and the 
payments on such insurance and total disability income provisions should 
be made directly from such appropriations, and struck out sentence which 
authorized necessary appropriations.
    Subsec. (d)(1). Pub. L. 89-40, Sec. 1(3), struck out provisions 
authorizing appropriations to carry out the purposes of subsec. (b) of 
this section by adding to the revolving fund as needed at interest to be 
determined by the Secretary of the Treasury, and substituted therefor 
provisions requiring credit to Veterans Reopened Insurance Fund of all 
premiums and collections on insurance issued pursuant to this section 
and disbursements from that fund of all payments on insurance and total 
disability provisions attached thereto, separate determination for 
actuarial purposes of the various insured groups under this section, 
transfer to fund from Veterans Special Term Insurance Fund to provide 
initial capital of excess funds not exceeding $1,650,000, and repayment 
over a reasonable time at interest to be determined by the Secretary of 
the Treasury.
    Subsec. (d)(2). Pub. L. 89-40, Sec. 1(4), struck out reference to 
subsec. (b) of this section.
    Subsec. (d)(3). Pub. L. 89-40, Sec. 1(5), struck out reference to 
National Service Life Insurance appropriation.


                    Effective Date of 1979 Amendment

    Amendment by Pub. L. 96-128 effective Nov. 28, 1979, see section 
601(b) of Pub. L. 96-128, set out as a note under section 1114 of this 
title.


                    Effective Date of 1965 Amendment

    Pub. L. 89-40 provided that the amendment made by Pub. L. 89-40 is 
effective May 1, 1965.


                             Effective Date

    Section 12(d) of Pub. L. 88-664 provided that: ``The amendments made 
by this section [enacting this section and amending section 704 [now 
1904] of this title] shall take effect as of the first day of the first 
calendar month which begins more than six calendar months after the date 
of enactment of this Act [Oct. 13, 1964].''

                  Section Referred to in Other Sections

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