
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document affected by Public Law 107-14 Section 4(e)]
[CITE: 38USC1970]

 
                      TITLE 38--VETERANS' BENEFITS
 
                        PART II--GENERAL BENEFITS
 
                          CHAPTER 19--INSURANCE
 
          SUBCHAPTER III--SERVICEMEMBERS' GROUP LIFE INSURANCE
 
Sec. 1970. Beneficiaries; payment of insurance

    (a) Any amount of insurance under this subchapter in force on any 
member or former member on the date of the insured's death shall be 
paid, upon the establishment of a valid claim therefor, to the person or 
persons surviving at the date of the insured's death, in the following 
order of precedence:
    First, to the beneficiary or beneficiaries as the member or former 
member may have designated by a writing received prior to death (1) in 
the uniformed services if insured under Servicemembers' Group Life 
Insurance, or (2) in the administrative office established under section 
1966(b) of this title if separated or released from service, or if 
assigned to the Retired Reserve, and insured under Servicemembers' Group 
Life Insurance, or if insured under Veterans' Group Life Insurance;
    Second, if there be no such beneficiary, to the widow or widower of 
such member or former member;
    Third, if none of the above, to the child or children of such member 
or former member and descendants of deceased children by representation;
    Fourth, if none of the above, to the parents of such member or 
former member or the survivor of them;
    Fifth, if none of the above, to the duly appointed executor or 
administrator of the estate of such member or former member;
    Sixth, if none of the above, to other next of kin of such member or 
former member entitled under the laws of domicile of such member or 
former member at the time of the insured's death.
    (b) If any person otherwise entitled to payment under this section 
does not make claim therefor within one year after the death of the 
member or former member, or if payment to such person within that period 
is prohibited by Federal statute or regulation, payment may be made in 
the order of precedence as if such person had predeceased the member or 
former member, and any such payment shall be a bar to recovery by any 
other person.
    (c) If, within two years after the death of the member or former 
member, no claim for payment has been filed by any person entitled under 
the order of precedence set forth in this section, and neither the 
Secretary nor the administrative office established by the insurance 
company or companies pursuant to section 1966(b) of this title has 
received any notice that any such claim will be made, payment may be 
made to a claimant as may in the judgment of the Secretary be equitably 
entitled thereto, and such payment shall be a bar to recovery by any 
other person.
    (d) The member may elect settlement of insurance under this 
subchapter either in a lump sum or in thirty-six equal monthly 
installments. If no such election is made by the member the beneficiary 
or beneficiaries may elect settlement either in a lump sum or in thirty-
six equal monthly installments. If the member has elected settlement in 
a lump sum, the beneficiary or beneficiaries may elect settlement in 
thirty-six equal monthly installments.
    (e) Until and unless otherwise changed, a beneficiary designation 
and settlement option filed by a member with the member's uniformed 
service under prior provisions of law will be effective with respect to 
the increased insurance authorized under the Veterans' Insurance Act of 
1974 and the insurance shall be settled in the same proportionate amount 
as the portion designated for such beneficiary or beneficiaries bore to 
the amount of insurance heretofore in effect.
    (f) Notwithstanding the provisions of any other law, payment of 
matured Servicemembers' Group Life Insurance or Veterans' Group Life 
Insurance benefits may be made directly to a minor widow or widower on 
his or her own behalf, and payment in such case shall be a complete 
acquittance to the insurer.
    (g) Any payments due or to become due under Servicemembers' Group 
Life Insurance or Veterans' Group Life Insurance made to, or on account 
of, an insured or a beneficiary shall be exempt from taxation, shall be 
exempt from the claims of creditors, and shall not be liable to 
attachment, levy, or seizure by or under any legal or equitable process 
whatever, either before or after receipt by the beneficiary. The 
preceding sentence shall not apply to (1) collection of amounts not 
deducted from the member's pay, or collected from him by the Secretary 
concerned under section 1969(a) of this title, (2) levy under subchapter 
D of chapter 64 of the Internal Revenue Code of 1986 (26 U.S.C. 6331 et 
seq.) (relating to the seizure of property for collection of taxes), and 
(3) the taxation of any property purchased in part or wholly out of such 
payments.
    (h) Insurance payable under this subchapter may not be paid in any 
amount to the extent that such amount would escheat to a State. Payment 
of insurance under this subchapter may not be made to the estate of the 
insured or the estate of any beneficiary of the insured unless it is 
affirmatively shown that any amount to be paid will not escheat to a 
State. Any amount to be paid under this subchapter shall be reduced to 
the extent necessary to comply with this subsection.

(Added Pub. L. 89-214, Sec. 1(a), Sept. 29, 1965, 79 Stat. 883, 
Sec. 770; amended Pub. L. 91-291, Sec. 5, June 25, 1970, 84 Stat. 330; 
Pub. L. 93-289, Sec. 7, May 24, 1974, 88 Stat. 169; Pub. L. 97-295, 
Sec. 4(31), Oct. 12, 1982, 96 Stat. 1307; Pub. L. 97-306, title IV, 
Sec. 401(a), Oct. 14, 1982, 96 Stat. 1442; Pub. L. 99-576, title VII, 
Sec. 701(40), Oct. 28, 1986, 100 Stat. 3294; Pub. L. 102-54, 
Sec. 14(b)(17), June 13, 1991, 105 Stat. 284; renumbered Sec. 1970 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. 104-275, title IV, Sec. 405(b)(1)(D), 
Oct. 9, 1996, 110 Stat. 3339; Pub. L. 105-368, title III, Sec. 302(b), 
Nov. 11, 1998, 112 Stat. 3333.)

                       References in Text

    Veterans' Insurance Act of 1974, referred to in subsec. (e), is Pub. 
L. 93-289, May 24, 1974, 88 Stat. 165, as amended, which enacted 
sections 777, 778, and 779 [now 1977, 1978, and 1979] of this title, 
section 707 of Title 37, Pay and Allowances of the Uniformed Services, 
amended sections 723, 765, 767 to 771, and 774 [now 1923, 1965, 1967 to 
1971, and 1974] of this title, and enacted provisions set out as notes 
under sections 723, 765, 767, and 768 [now 1923, 1965, 1967, and 1968] 
of this title and section 707 of Title 37. For complete classification 
of this Act to the Code, see Tables.
    Subchapter D of chapter 64 of the Internal Revenue Code of 1986, 
referred to in subsec. (g)(3), is classified to subchapter D (Sec. 6331 
et seq.) of chapter 64 of Title 26, Internal Revenue Code.


                               Amendments

    1998--Subsec. (g). Pub. L. 105-368, in first sentence, substituted 
``Any payments'' for ``Payments of benefits'' and inserted ``an insured 
or'' after ``or on account of,''.
    1996--Subsecs. (a), (f), (g). Pub. L. 104-275 substituted 
``Servicemembers' Group'' for ``Servicemen's Group'' wherever appearing.
    1991--Pub. L. 102-83, Sec. 5(a), renumbered section 770 of this 
title as this section.
    Subsec. (a). Pub. L. 102-83, Sec. 5(c)(1), substituted ``1966(b)'' 
for ``766(b)''.
    Subsec. (c). Pub. L. 102-83, Sec. 5(c)(1), substituted ``1966(b)'' 
for ``766(b)''.
    Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted ``Secretary'' for 
``Administrator'' in two places.
    Subsec. (g)(1). Pub. L. 102-83, Sec. 5(c)(1), substituted 
``1969(a)'' for ``769(a)''.
    Subsec. (g)(2). Pub. L. 102-54 substituted ``Internal Revenue Code 
of 1986'' for ``Internal Revenue Code of 1954''.
    1986--Subsec. (a). Pub. L. 99-576, Sec. 701(40)(A), substituted 
``the insured's'' for ``his'' in two places in introductory text and in 
one place in par. Sixth.
    Subsec. (e). Pub. L. 99-576, Sec. 701(40)(B), substituted ``the 
member's'' for ``his''.
    1982--Subsec. (c). Pub L. 97-306, Sec. 401(a)(1), struck out 
provision that if, within four years after the death of the member or 
former member, payment had not been made pursuant to this section and no 
claim for payment by any person entitled under this section was pending, 
the amount payable would escheat to the credit of the revolving fund 
referred to in section 769(d) of this title.
    Subsec. (g). Pub. L. 97-295 inserted ``(26 U.S.C. 6331 et seq.)'' 
after ``Code of 1954''.
    Subsec. (h). Pub. L. 97-306, Sec. 401(a)(2), added subsec. (h).
    1974--Subsec. (a). Pub. L. 93-289, Sec. 7(1), included in par. First 
writings received in the administrative office established under section 
766(b) of this title if separated or released from service, or if 
assigned to the Retired Reserve, and insured under Servicemen's Group 
Life Insurance, or if insured under Veterans' Group Life Insurance.
    Subsec. (e). Pub. L. 93-289, Sec. 7(2), substituted ``the Veterans' 
Insurance Act of 1974'' for ``this amendatory Act''.
    Subsecs. (f), (g). Pub. L. 93-289, Sec. 7(3), included payment of 
benefits under Veterans' Group Life Insurance.
    1970--Subsecs. (e) to (g). Pub. L. 91-291 added subsecs. (e) to (g).


                    Effective Date of 1998 Amendment

    Pub. L. 105-368, title III, Sec. 302(c), Nov. 11, 1998, 112 Stat. 
3333, provided that: ``The amendments made by this section [enacting 
section 1980 of this title and amending this section] shall take effect 
90 days after the date of the enactment of this Act [Nov. 11, 1998].''


                    Effective Date of 1982 Amendment

    Section 401(b) of Pub. L. 97-306 provided that: ``The amendments 
made by subsection (a) [amending this section] shall take effect on 
October 1, 1982.''


                    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.

                  Section Referred to in Other Sections

    This section is referred to in section 1977 of this title.
