
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 38USC1960]

 
                      TITLE 38--VETERANS' BENEFITS
 
                        PART II--GENERAL BENEFITS
 
                          CHAPTER 19--INSURANCE
 
         SUBCHAPTER II--UNITED STATES GOVERNMENT LIFE INSURANCE
 
Sec. 1960. Waiver of premium payments on due date

    (a) The Secretary is authorized to provide by regulations for 
waiving the payment of premiums on United States Government life 
insurance on the due date thereof and the insurance may be deemed not to 
lapse in the cases of the following persons: (1) those who are confined 
in hospital under the Department for a compensable disability during the 
period while they are so confined; (2) those who are rated as 
temporarily totally disabled by reason of any injury or disease 
entitling them to compensation during the period of such total 
disability and while they are so rated; (3) those who, while mentally 
incompetent and for whom no legal guardian had been or has been 
appointed, allowed or may allow their insurance to lapse during the 
period for which they have been or hereafter may be rated mentally 
incompetent, or until a guardian has notified the Department of the 
guardian's qualification, but not later than six months after 
appointment of a guardian. In mentally incompetent cases the waiver is 
to be made without application and retroactive when necessary. Relief 
from payment of premiums on the due date thereof shall be for full 
calendar months, beginning with the month in which said confinement to 
hospital, the temporary total disability rating, or the mental 
incompetency began or begins and ending with that month during the half 
or major fraction of which such persons are no longer entitled to waiver 
as provided above.
    (b) All premiums the payment of which when due is waived as provided 
in this section shall bear interest at the rate of 5 percent per annum, 
compounded annually, from the due date of each premium, and if not paid 
by the insured shall be deducted from the insurance in any settlement 
thereunder, or when the same matures either because of permanent total 
disability or death. In the event any lien or other indebtedness 
established by this section or prior corresponding provision of law 
exists against any policy of United States Government life insurance in 
excess of the then cash surrender value thereof at the time of the 
termination of such policy of insurance for any reason other than by 
death or total permanent disability the Secretary is authorized to 
transfer and pay from the military and naval insurance appropriation to 
the United States Government Life Insurance Fund a sum equal to the 
amount such lien or indebtedness exceeds the then cash surrender value.

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1163, Sec. 760; Pub. L. 97-295, 
Sec. 4(28), Oct. 12, 1982, 96 Stat. 1307; Pub. L. 99-576, title VII, 
Sec. 701(34), Oct. 28, 1986, 100 Stat. 3293; renumbered Sec. 1960 and 
amended Pub. L. 102-83, Secs. 4(a)(3), (4), (b)(1), (2)(E), 5(a), Aug. 
6, 1991, 105 Stat. 404-406.)


                               Amendments

    1991--Pub. L. 102-83, Sec. 5(a), renumbered section 760 of this 
title as this section.
    Subsec. (a). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted 
``Secretary'' for ``Administrator''.
    Pub. L. 102-83, Sec. 4(a)(3), (4), substituted ``Department'' for 
``Veterans' Administration'' in two places.
    Subsec. (b). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted 
``Secretary'' for ``Administrator''.
    1986--Subsec. (a). Pub. L. 99-576 substituted ``the guardian's'' for 
``his''.
    1982--Subsec. (b). Pub. L. 97-295 substituted ``percent'' for ``per 
centum''.
