
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: 38USC1942]

 
                      TITLE 38--VETERANS' BENEFITS
 
                        PART II--GENERAL BENEFITS
 
                          CHAPTER 19--INSURANCE
 
         SUBCHAPTER II--UNITED STATES GOVERNMENT LIFE INSURANCE
 
Sec. 1942. Plans of insurance

    (a) Regulations shall provide for the right to convert insurance on 
the five-year level premium term plan into ordinary life, twenty-payment 
life, endowment maturing at age sixty-two, and into other usual forms of 
insurance as may be prescribed by the Secretary. Provision shall be made 
for reconversion of any such policies to a higher premium rate or, upon 
proof of good health satisfactory to the Secretary, to a lower premium 
rate, in accordance with regulations to be issued by the Secretary. No 
reconversion shall be made to a five-year level premium term policy.
    (b) An insured who on or after the insured's sixty-fifth birthday 
has a five-year level premium term policy of insurance in force by 
payment of premiums may exchange such policy for insurance on a special 
endowment at age ninety-six plan upon written application; payment of 
the required premium; and surrender of the five-year level premium term 
policy and any total disability provision attached thereto with all 
rights, title, and interests thereunder. However, if it is found by the 
Secretary subsequent to the exchange that prior thereto the term policy 
matured because of total permanent disability of the insured or that the 
insured was entitled to total disability benefits under the total 
disability provision attached to such policy, the insured, upon 
surrender of the special endowment at age ninety-six policy and any 
provision for waiver of premiums issued under subsection (c) of this 
section with all rights, title, and interest thereunder, will be 
entitled to benefits payable under the prior contract. In such case, the 
cash value less any indebtedness on the endowment policy shall be 
refunded together with any premiums paid on a provision for waiver of 
premiums. Insurance on the special endowment at age ninety-six plan 
shall be issued at the attained age of the insured upon the same terms 
and conditions as are contained in standard policies of United States 
Government Life Insurance except:
        (1) the insurance shall not mature and no benefits shall be paid 
    thereunder because of total permanent disability;
        (2) the premiums for such insurance shall be as prescribed by 
    the Secretary;
        (3) such insurance cannot be exchanged, converted, or 
    reconverted to any other plan of insurance;
        (4) all cash, loan, paid-up, and extended term insurance values 
    shall be as prescribed by the Secretary; and
        (5) the insurance shall be subject to such other changes in 
    terms and conditions as the Secretary determines to be reasonable 
    and practicable.

    (c) The Secretary shall, upon application made by the insured at the 
same time as the insured exchanges the term policy for an endowment 
policy issued under the provisions of subsection (b) of this section, 
and upon payment of such extra premium as the Secretary shall prescribe, 
include in such endowment policy a provision for waiver of premiums on 
the policy and on the provision during the total permanent disability of 
the insured, if such disability began after the date of such application 
and while the policy and the provision are in force by payment of 
premiums. The Secretary shall not grant waiver of any premium becoming 
due more than one year before receipt by the Secretary of claim for the 
same, except as provided in this subsection. Any premiums paid for 
months during which waiver is effective shall be refunded. The Secretary 
shall provide by regulations for examination or reexamination of an 
insured claiming waiver of premiums under this subsection, and may deny 
waiver for failure to cooperate. If it is found that an insured is no 
longer totally and permanently disabled, the waiver of premiums shall 
cease as of the date of such finding and the policy and provision may be 
continued by payment of premiums as provided therein. In any case in 
which the Secretary finds that the insured's failure to make timely 
claim for waiver of premiums, or to submit satisfactory evidence of the 
existence or continuance of total permanent disability was due to 
circumstances beyond the insured's control, the Secretary may grant 
waiver or continuance of waiver of premiums. If the insured dies without 
filing claim for waiver, the beneficiary, within one year after the 
death of the insured, or, if the beneficiary is insane or a minor, 
within one year after removal of such legal disability, may file claim 
for waiver with evidence of the insured's right to waiver under this 
subsection. Policies containing a provision for waiver of premiums 
issued under this subsection may be separately classified for the 
purpose of dividend distribution from otherwise similar policies not 
containing such provision.

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1158, Sec. 742; Pub. L. 87-549, 
July 25, 1962, 76 Stat. 219; Pub. L. 99-576, title VII, Sec. 701(29), 
Oct. 28, 1986, 100 Stat. 3292; renumbered Sec. 1942 and amended Pub. L. 
102-83, Secs. 4(a)(2)(C)(iii), (b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 
Stat. 404-406.)


                               Amendments

    1991--Pub. L. 102-83, Sec. 5(a), renumbered section 742 of this 
title as this section.
    Subsecs. (a), (b). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted 
``Secretary'' for ``Administrator'' wherever appearing.
    Subsec. (c). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted 
``Secretary'' for ``Administrator'' wherever appearing.
    Pub. L. 102-83, Sec. 4(a)(2)(C)(iii), substituted ``by the 
Secretary'' for ``in the Veterans' Administration''.
    1986--Subsec. (b). Pub. L. 99-576, Sec. 701(29)(A), substituted 
``the insured's'' for ``his'' and ``the insured'' for ``he''.
    Subsec. (c). Pub. L. 99-576, Sec. 701(29)(B), substituted ``the 
insured'' for ``he'', ``the term'' for ``his term'', and ``the insured's 
control'' for ``his control'', and struck out ``his failure'' before 
``to submit''.
    1962--Pub. L. 87-549 designated existing provisions as subsec. (a) 
and added subsecs. (b) and (c).
