
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document affected by Public Law 106-419 Section 313(b)]
[Document affected by Public Law 107-14 Section 4(c)]
[Document affected by Public Law 107-14 Section 4(f)]
[CITE: 38USC1968]

 
                      TITLE 38--VETERANS' BENEFITS
 
                        PART II--GENERAL BENEFITS
 
                          CHAPTER 19--INSURANCE
 
          SUBCHAPTER III--SERVICEMEMBERS' GROUP LIFE INSURANCE
 
Sec. 1968. Duration and termination of coverage; conversion

    (a) Each policy purchased under this subchapter shall contain a 
provision, in terms approved by the Secretary, to the effect that any 
insurance thereunder on any member of the uniformed services, unless 
discontinued or reduced upon the written request of the insured (or 
discontinued pursuant to section 1969(a)(2)(B) of this title), shall 
continue in effect while the member is on active duty, active duty for 
training, or inactive duty training scheduled in advance by competent 
authority during the period thereof, or while the member meets the 
qualifications set forth in section 1965(5)(B) of this title, and such 
insurance shall cease--
        (1) with respect to a member on active duty or active duty for 
    training under a call or order to duty that does not specify a 
    period of less than thirty-one days--
            (A) one hundred and twenty days after the separation or 
        release from active duty or active duty for training, unless on 
        the date of such separation or release the member is totally 
        disabled, under criteria established by the Secretary, in which 
        event the insurance shall cease one year after the date of 
        separation or release from such active duty or active duty for 
        training, or on the date the insured ceases to be totally 
        disabled, whichever is the earlier date, but in no event prior 
        to the expiration of one hundred and twenty days after such 
        separation or release; or
            (B) at the end of the thirty-first day of a continuous 
        period of (i) absence without leave, (ii) confinement by civil 
        authorities under a sentence adjudged by a civilian court, or 
        (iii) confinement by military authorities under a courtmartial 
        sentence involving total forfeiture of pay and allowances. Any 
        insurance so terminated as the result of such an absence or 
        confinement, together with any beneficiary designation in effect 
        for such insurance at such termination thereof, shall be 
        automatically revived as of the date the member is restored to 
        active duty with pay or to active duty for training with pay;

        (2) with respect to a member on active duty or active duty for 
    training under a call or order to duty that specifies a period of 
    less than thirty-one days insurance under this subchapter shall 
    cease at midnight, local time, on the last day of such duty, unless 
    on such date the insured is suffering from a disability incurred or 
    aggravated during such period which, within one hundred and twenty 
    days after such date, (i) results in death, or (ii) renders the 
    member uninsurable at standard premium rates according to the good 
    health standards approved by the Secretary, in which event the 
    insurance shall continue in force to death, or for one hundred and 
    twenty days after such date, whichever is the earlier date;
        (3) with respect to a member on inactive duty training scheduled 
    in advance by competent authority insurance under this subchapter 
    shall cease at the end of such scheduled training period, unless at 
    such time the insured is suffering from a disability incurred, or 
    aggravated during such period which, within one hundred and twenty 
    days after the date of such training, (i) results in death, or (ii) 
    renders the member uninsurable at standard premium rates according 
    to the good health standards approved by the Secretary in which 
    event the insurance shall continue in force to death, or for one 
    hundred and twenty days after the date such training terminated, 
    whichever is the earlier date; and
        (4) with respect to a member of the Ready Reserve of a uniformed 
    service who meets the qualifications set forth in section 1965(5)(B) 
    of this title, 120 days after separation or release from such 
    assignment, unless on the date of such separation or release the 
    member is totally disabled, under criteria established by the 
    Secretary, in which event the insurance shall cease one year after 
    the date of separation or release from such assignment, or on the 
    date the insured ceases to be totally disabled, whichever is the 
    earlier date, but in no event before the end of 120 days after 
    separation or release from such assignment.

    (b)(1) Each policy purchased under this subchapter shall contain a 
provision, in terms approved by the Secretary, that, except as 
hereinafter provided, Servicemembers' Group Life Insurance which is 
continued in force after expiration of the period of duty or travel 
under section 1967(b) or 1968(a) of this title, effective the day after 
the date such insurance would cease--
        (A) shall be automatically converted to Veterans' Group Life 
    Insurance, subject to (i) the timely payment of the initial premium 
    under terms prescribed by the Secretary, and (ii) the terms and 
    conditions set forth in section 1977 of this title; or
        (B) at the election of the member, shall be converted to an 
    individual policy of insurance as described in section 1977(e) of 
    this title upon written application for conversion made to the 
    participating company selected by the member and payment of the 
    required premiums.

    (2) Automatic conversion to Veterans' Group Life Insurance under 
paragraph (1) shall be effective only in the case of an otherwise 
eligible member or former member who is separated or released from a 
period of active duty or active duty for training or inactive duty 
training on or after the date on which the Veterans' Group Life 
Insurance program (provided for under section 1977 of this title) 
becomes effective.

(Added Pub. L. 89-214, Sec. 1(a), Sept. 29, 1965, 79 Stat. 881, 
Sec. 768; amended Pub. L. 91-291, Sec. 3, June 25, 1970, 84 Stat. 328; 
Pub. L. 93-289, Sec. 5(a), May 24, 1974, 88 Stat. 166; Pub. L. 97-295, 
Sec. 4(30), Oct. 12, 1982, 96 Stat. 1307; Pub. L. 99-576, title VII, 
Sec. 701(38), Oct. 28, 1986, 100 Stat. 3293; renumbered Sec. 1968 and 
amended Pub. L. 102-83, Secs. 4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 
1991, 105 Stat. 404-406; Pub. L. 103-337, div. A, title VI, Sec. 651(c), 
title XVI, Sec. 1677(d)(1), Oct. 5, 1994, 108 Stat. 2792, 3020; Pub. L. 
104-106, div. A, title VI, Sec. 647(b), Feb. 10, 1996, 110 Stat. 370; 
Pub. L. 104-275, title IV, Secs. 402(c), 403(a), 405(b)(1)(B), Oct. 9, 
1996, 110 Stat. 3337-3339; Pub. L. 106-65, div. A, title X, 
Sec. 1066(d)(1), Oct. 5, 1999, 113 Stat. 773.)


                               Amendments

    1999--Subsec. (a). Pub. L. 106-65 made technical amendment to 
directory language of Pub. L. 104-106, Sec. 647(b). See 1996 Amendment 
note below.
    1996--Subsec. (a). Pub. L. 104-275, Sec. 402(c)(1)(A), substituted 
``section 1965(5)(B)'' for ``subparagraph (B), (C), or (D) of section 
1965(5)'' in introductory provisions.
    Pub. L. 104-106, Sec. 647(b), as amended by Pub. L. 106-65, inserted 
``(or discontinued pursuant to section 1969(a)(2)(B) of this title)'' 
after ``upon the written request of the insured'' in introductory 
provisions.
    Subsec. (a)(1) to (3). Pub. L. 104-275, Sec. 402(c)(1)(B), (C), 
substituted a semicolon for the period at end of pars. (1) and (2) and 
``; and'' for the period at end of par. (3).
    Subsec. (a)(4). Pub. L. 104-275, Sec. 402(c)(1)(D)(iv), struck out 
subpars. (B) and (C) which read as follows:
    ``(B) unless on the date of such separation or release the member 
has completed at least twenty years of satisfactory service creditable 
for retirement purposes under chapter 1223 of title 10 (or under chapter 
67 of that title as in effect before the effective date of the Reserve 
Officer Personnel Management Act) and would upon application be eligible 
for assignment to or is assigned to the Retired Reserve, in which event 
the insurance, unless converted to an individual policy under terms and 
conditions set forth in section 1977(e) of this title, shall, upon 
timely payment of premiums under terms prescribed by the Secretary 
directly to the administrative office established under section 1966(b) 
of this title, continue in force until receipt of the first increment of 
retirement pay by the member or the member's sixty-first birthday, 
whichever occurs earlier; or
    ``(C) unless on the date of such separation or release the member is 
transferred to the Retired Reserve of a uniformed service under the 
temporary special retirement authority provided in section 1331a of 
title 10, in which event the insurance, unless converted to an 
individual policy under terms and conditions set forth in section 
1977(e) of this title, shall, upon timely payment of premiums under 
terms prescribed by the Secretary directly to the administrative office 
established under section 1966(b) of this title, continue in force until 
receipt of the first increment of retirement pay by the member or the 
member's sixty-first birthday, whichever occurs earlier.''
    Pub. L. 104-275, Sec. 402(c)(1)(D)(i)-(iii), substituted ``120 days 
after separation or release from such assignment, unless on'' for ``one 
hundred and twenty days after separation or release from such 
assignment--
        ``(A) unless on'',
substituted ``before the end of 120 days'' for ``prior to the expiration 
of one hundred and twenty days'', and substituted ``such assignment.'' 
for ``such assignment;''.
    Subsec. (a)(5), (6). Pub. L. 104-275, Sec. 402(c)(1)(E), struck out 
pars. (5) and (6) which read as follows:
    ``(5) with respect to a member of the Retired Reserve who meets the 
qualifications of section 1965(5)(C) of this title, and who was assigned 
to the Retired Reserve prior to the date insurance under the amendment 
made by section 5(a) of the Veterans' Insurance Act of 1974 (Public Law 
93-289, 88 Stat. 166) is placed in effect for members of the Retired 
Reserve, at such time as the member receives the first increment of 
retirement pay, or the member's sixty-first birthday, whichever occurs 
earlier, subject to the timely payment of the initial and subsequent 
premiums, under terms prescribed by the Secretary, directly to the 
administrative office established under section 1966(b) of this title.
    ``(6) with respect to a member of the Retired Reserve who meets the 
qualifications of section 1965(5)(D) of this title, at such time as the 
member receives the first increment of retirement pay, or the member's 
sixty-first birthday, whichever occurs earlier, subject to the timely 
payment of the initial and subsequent premiums, under terms prescribed 
by the Secretary, directly to the administrative office established 
under section 1966(b) of this title.''
    Subsec. (b). Pub. L. 104-275, Sec. 403(a)(3), substituted ``(2) 
Automatic conversion to Veterans' Group Life Insurance under paragraph 
(1)'' for ``Such automatic conversion''.
    Pub. L. 104-275, Sec. 403(a)(2), substituted ``would cease--'' and 
subpars. (A) and (B) for ``would cease, shall be automatically converted 
to Veterans' Group Life Insurance subject to (1) the timely payment of 
the initial premium under terms prescribed by the Secretary, and (2) the 
terms and conditions set forth in section 1977 of this title.''
    Pub. L. 104-275, Sec. 403(a)(1), inserted ``(1)'' after ``(b)'' at 
beginning of subsec.
    Pub. L. 104-275, Sec. 402(c)(2), struck out at end ``Servicemen's 
Group Life Insurance continued in force under section 1968(a)(4)(B) or 
(5) of this title shall not be converted to Veterans' Group Life 
Insurance. However, a member whose insurance could be continued in force 
under section 1968(a)(4)(B) of this title, but is not so continued, may, 
effective the day after the insurance otherwise would cease, convert 
such insurance to an individual policy under the terms and conditions 
set forth in section 1977(e) of this title.''
    Subsec. (b)(1). Pub. L. 104-275, Sec. 405(b)(1)(B), substituted 
``Servicemembers' Group'' for ``Servicemen's Group''.
    1994--Subsec. (a). Pub. L. 103-337, Sec. 651(c)(1), substituted 
``subparagraph (B), (C), or (D) of section 1965(5)'' for ``section 
1965(5)(B) or (C)'' in introductory provisions.
    Subsec. (a)(4)(B). Pub. L. 103-337, Sec. 1677(d)(1), substituted 
``chapter 1223 of title 10 (or under chapter 67 of that title as in 
effect before the effective date of the Reserve Officer Personnel 
Management Act)'' for ``chapter 67 of title 10''.
    Subsec. (a)(4)(C). Pub. L. 103-337, Sec. 651(c)(2), added subpar. 
(C).
    Subsec. (a)(6). Pub. L. 103-337, Sec. 651(c)(3), added par. (6).
    1991--Pub. L. 102-83, Sec. 5(a), renumbered section 768 of this 
title as this section.
    Subsec. (a). Pub. L. 102-83, Sec. 5(c)(1), substituted 
``1965(5)(B)'' for ``765(5)(B)'' in two places, ``1977(e)'' for 
``777(e)'', ``1966(b)'' for ``766(b)'' in two places, and ``1965(5)(C)'' 
for ``765(5)(C)''.
    Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted ``Secretary'' for 
``Administrator'' wherever appearing.
    Subsec. (b). Pub. L. 102-83, Sec. 5(c)(1), substituted ``1967(b) or 
1968(a)'' for ``767(b) or 768(a)'', ``1977'' for ``777'' in two places, 
``1968(a)(4)(B)'' for ``768(a)(4)(B)'' in two places, and ``1977(e)'' 
for ``777(e)''.
    Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted ``Secretary'' for 
``Administrator'' in two places.
    1986--Subsec. (a)(2), (3). Pub. L. 99-576, Sec. 701(38)(A), (B), 
struck out ``his'' before ``death'', and substituted ``the member'' for 
``his''.
    Subsec. (b). Pub. L. 99-576, Sec. 701(38)(C), substituted ``the'' 
for ``he'' before ``insurance otherwise''.
    1982--Subsec. (a)(5). Pub. L. 97-295 substituted ``the amendment 
made by section 5(a) of the Veterans' Insurance Act of 1974 (Public Law 
93-289, 88 Stat. 166)'' for ``this amendment''.
    1974--Subsec. (a). Pub. L. 93-289, Sec. 5(a)(1)-(3), inserted in 
opening provisions ``or while the member meets the qualifications set 
forth in section 765(5)(B) or (C) of this title,'', substituted ``one 
hundred and twenty days'' for ``ninety days'' wherever appearing in 
pars. (2) and (3), and added pars. (4) and (5).
    Subsec. (b). Pub. L. 93-289, Sec. 5(a)(4), substituted provisions 
requiring policies of Servicemen's Group Life Insurance to contain a 
provision automatically converting such policy to Veterans' Group Life 
Insurance, for provisions which required such policies to contain a 
provision for conversion to an individual policy of insurance, and 
inserted sentences providing for the effective date of automatic 
conversion, prohibiting conversion of Servicemen's Group Life Insurance 
continued in force under section 768(a)(4)(B) or (5) of this title, and 
authorizing conversion by a member whose insurance could be continued in 
force under section 768(a)(4)(B) of this title, but is not so continued.
    Subsec. (c). Pub. L. 93-289, Sec. 5(a)(5), repealed subsec. (c) 
which related to conversion by eligible insured persons to policies 
written by companies participating in the program established by this 
subchapter.
    1970--Subsec. (a). Pub. L. 91-291 designated existing provisions as 
subsec. (a) and substituted provisions covering the duration of coverage 
for provisions covering termination of coverage. For termination and 
conversion of insurance see subsecs. (b) and (c) of this section.
    Subsecs. (b), (c). Pub. L. 91-291 added subsecs. (b) and (c).


                    Effective Date of 1999 Amendment

    Pub. L. 106-65, div. A, title X, Sec. 1066(d)(1), Oct. 5, 1999, 113 
Stat. 773, provided that the amendment made by section 1066(d)(1) is 
effective Apr. 1, 1996.


                    Effective Date of 1996 Amendment

    Section 647(c) of Pub. L. 104-106 provided that: ``The amendments 
made by this section [amending this section and section 1969 of this 
title] shall take effect on April 1, 1996.''


                    Effective Date of 1994 Amendment

    Amendment by section 1677(d)(1) of Pub. L. 103-337 effective Dec. 1, 
1994, except as otherwise provided, see section 1691 of Pub. L. 103-337, 
set out as an Effective Date note under section 10001 of Title 10, Armed 
Forces.


                    Effective Date of 1974 Amendment

    Section 12(4) of Pub. L. 93-289 provided that: ``The amendments made 
by sections 5(a)(4) and (5) of this Act [amending this section], and 
those enacting a Veterans' Group Life Insurance program [sections 777, 
778, and 779 [now 1977, 1978, and 1979] of this title] shall become 
effective on the first day of the third calendar month following the 
month in which this Act is enacted [May 1974].''


                    Effective Date of 1970 Amendment

    Amendment by Pub. L. 91-291 effective June 25, 1970, see section 
14(a) of Pub. L. 91-291, set out as a note under section 1317 of this 
title.


                       Conversion of SGLI to VGLI

    Section 402(e) of Pub. L. 104-275 provided that: ``The 
Servicemembers' Group Life Insurance of any member of the Retired 
Reserve of a uniformed service shall be converted to Veterans' Group 
Life Insurance effective 90 days after the date of the enactment of this 
Act [Oct. 9, 1996].''


   Right of Persons Discharged or Released From Uniformed Services To 
    Convert Servicemen's Group Life Insurance to Individual Policies

    Section 5(b) of Pub. L. 93-289 provided that the amendments made by 
Pub. L. 93-289, enacting sections 777, 778, and 779 [now 1977, 1978, and 
1979] of this title and section 707 of Title 37, Pay and Allowances of 
the Uniformed Services, and amending sections 723, 765, 767, 768, 769, 
770, 771, and 774 [now 1923, 1965, 1967, 1968, 1969, 1970, 1971, and 
1974] of this title, not be construed to deprive any person discharged 
or released from the uniformed services of the United States prior to 
the date on which the Veterans' Group Life Insurance program (provided 
for under section 777 [now 1977] of this title) became effective of the 
right to convert Servicemen's Group Life Insurance to an individual 
policy under the provisions of law in effect prior to such effective 
date.

                  Section Referred to in Other Sections

    This section is referred to in sections 1977, 1980 of this title.
