
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 106-419 Section 312(b)]
[CITE: 38USC1977]

 
                      TITLE 38--VETERANS' BENEFITS
 
                        PART II--GENERAL BENEFITS
 
                          CHAPTER 19--INSURANCE
 
          SUBCHAPTER III--SERVICEMEMBERS' GROUP LIFE INSURANCE
 
Sec. 1977. Veterans' Group Life Insurance

    (a)(1) Veterans' Group Life Insurance shall be issued in the amounts 
specified in section 1967(a) of this title. In the case of any 
individual, the amount of Veterans' Group Life Insurance may not exceed 
the amount of Servicemembers' Group Life Insurance coverage continued in 
force after the expiration of the period of duty or travel under section 
1967(b) or 1968(a) of this title. No person may carry a combined amount 
of Servicemembers' Group Life Insurance and Veterans' Group Life 
Insurance in excess of $200,000 at any one time.
    (2) If any person insured under Veterans' Group Life Insurance again 
becomes insured under Servicemembers' Group Life Insurance but dies 
before terminating or converting such person's Veterans' Group 
Insurance, Veterans' Group Life Insurance shall be payable only if such 
person is insured for less than $200,000 under Servicemembers' Group 
Life Insurance, and then only in an amount which, when added to the 
amount of Servicemembers' Group Life Insurance payable, does not exceed 
$200,000.
    (b) Veterans' Group Life Insurance shall (1) provide protection 
against death; (2) be issued on a renewable five-year term basis; (3) 
have no cash, loan, paid-up, or extended values; (4) except as otherwise 
provided, lapse for nonpayment of premiums; and (5) contain such other 
terms and conditions as the Secretary determines to be reasonable and 
practicable which are not specifically provided for in this section, 
including any provisions of this subchapter not specifically made 
inapplicable by the provisions of this section.
    (c) The premiums for Veterans' Group Life Insurance shall be 
established under the criteria set forth in sections 1971(a) and (c) of 
this title, except that the Secretary may provide for average premiums 
for such various age groupings as the Secretary may decide to be 
necessary according to sound actuarial principles, and shall include an 
amount necessary to cover the administrative cost of such insurance to 
the company or companies issuing such insurance. Such premiums shall be 
payable by the insureds thereunder as provided by the Secretary directly 
to the administrative office established for such insurance under 
section 1966(b) of this title. In any case in which a member or former 
member who was mentally incompetent on the date such member or former 
member first became insured under Veterans' Group Life Insurance dies 
within one year of such date, such insurance shall be deemed not to have 
lapsed for nonpayment of premiums and to have been in force on the date 
of death. Where insurance is in force under the preceding sentence, any 
unpaid premiums may be deducted from the proceeds of the insurance. Any 
person who claims eligibility for Veterans' Group Life Insurance based 
on disability incurred during a period of duty shall be required to 
submit evidence of qualifying health conditions and, if required, to 
submit to physical examinations at their own expense.
    (d) Any amount of Veterans' Group Life Insurance in force on any 
person on the date of such person's death shall be paid, upon the 
establishment of a valid claim therefor, pursuant to the provisions of 
section 1970 of this title. However, any designation of beneficiary or 
beneficiaries for Servicemembers' Group Life Insurance filed with a 
uniformed service until changed, shall be considered a designation of 
beneficiary or beneficiaries for Veterans' Group Life Insurance, but not 
for more than sixty days after the effective date of the insured's 
Veterans' Group Insurance, unless at the end of such sixty-day period, 
the insured is incompetent in which event such designation may continue 
in force until the disability is removed but not for more than five 
years after the effective date of the insured's Veterans' Group Life 
Insurance. Except as indicated above in incompetent cases, after such 
sixty-day period, any designation of beneficiary or beneficiaries for 
Veterans' Group Life Insurance to be effective must be by a writing 
signed by the insured and received by the administrative office 
established under section 1966(b) of this title.
    (e) An insured under Veterans' Group Life Insurance shall have the 
right at any time to convert such insurance to an individual policy of 
life insurance upon written application for conversion made to the 
participating company the insured selects and payment of the required 
premiums. The individual policy will be issued without medical 
examination on a plan then currently written by such company which does 
not provide for the payment of any sum less than the face value thereof 
or for the payment of an additional amount as premiums in the event the 
insured performs active duty, active duty for training, or inactive duty 
training. The Veterans' Group Life Insurance policy converted to an 
individual policy under this subsection shall terminate on the day 
before the date on which the individual policy becomes effective. Upon 
request to the administrative office established under section 1966(b) 
of this title, an insured under Veterans' Group Life Insurance shall be 
furnished a list of life insurance companies participating in the 
program established under this subchapter. In addition to the life 
insurance companies participating in the program established under this 
subchapter, the list furnished to an insured under this section shall 
include additional life insurance companies (not so participating) which 
meet qualifying criteria, terms, and conditions established by the 
Secretary and agree to sell insurance to former members in accordance 
with the provisions of this section.
    (f) The provisions of subsections (d) and (e) of section 1971 of 
this title shall be applicable to Veterans' Group Life Insurance. 
However, a separate accounting shall be required for each program of 
insurance authorized under this subchapter. In such accounting, the 
Secretary is authorized to allocate claims and other costs among such 
programs of insurance according to accepted actuarial principles.
    (g) Any person whose Servicemembers' Group Life Insurance was 
continued in force after termination of duty or discharge from service 
under the law as in effect prior to the date on which the Veterans' 
Group Life Insurance program (provided for under section 1977 of this 
title) became effective, and whose coverage under Servicemembers' Group 
Life Insurance terminated less than four years prior to such date, shall 
be eligible within one year from the effective date of the Veterans' 
Group Life Insurance program to apply for and be granted Veterans' Group 
Life Insurance in an amount equal to the amount of the insured's 
Servicemembers' Group Life Insurance which was not converted to an 
individual policy under prior law. Veterans' Group Life Insurance issued 
under this subsection shall be issued for a term period equal to five 
years, less the time elapsing between the termination of the applicant's 
Servicemembers' Group Life Insurance and the effective date on which the 
Veterans' Group Life Insurance program became effective. Veterans' Group 
Life Insurance under this subsection shall only be issued upon 
application to the administrative office established under section 
1966(b) of this title, payment of the required premium, and proof of 
good health satisfactory to that office, which proof shall be submitted 
at the applicant's own expense. Any person who cannot meet the good 
health requirements for insurance under this subsection solely because 
of a service-connected disability shall have such disability waived. For 
each month for which any eligible veteran, whose service-connected 
disabilities are waived, is insured under this subsection there shall be 
contributed to the insurer or insurers issuing the policy or policies 
from the appropriation ``Compensation and Pensions, Department of 
Veterans Affairs'' an amount necessary to cover the cost of the 
insurance in excess of the premiums established for eligible veterans, 
including the cost of the excess mortality attributable to such 
veteran's service-connected disabilities. The Secretary may establish, 
as the Secretary may determine to be necessary according to sound 
actuarial principles, a separate premium, age groupings for premium 
purposes, accounting, and reserves, for persons granted insurance under 
this subsection different from those established for other persons 
granted insurance under this section. Appropriations to carry out the 
purpose of this section are hereby authorized.
    (h)(1) Notwithstanding any other provision of law, members of the 
Individual Ready Reserve and the Inactive National Guard are eligible to 
be insured under Veterans' Group Life Insurance. Any such member shall 
be so insured upon submission of an application in the manner prescribed 
by the Secretary and the payment of premiums as required under this 
section.
    (2) In accordance with subsection (b), Veterans' Group Life 
Insurance coverage under this subsection shall be issued on a renewable 
five-year term basis, but the person insured must remain a member of the 
Individual Ready Reserve or Inactive National Guard throughout the 
period of the insurance in order for the insurance of such person to be 
renewed.
    (3) For the purpose of this subsection, the terms ``Individual Ready 
Reserve'' and ``Inactive National Guard'' shall have the meanings 
prescribed by the Secretary in consultation with the Secretary of 
Defense.

(Added Pub. L. 93-289, Sec. 9(a), May 24, 1974, 88 Stat. 169, Sec. 777; 
amended Pub. L. 97-66, title IV, Sec. 401(b), Oct. 17, 1981, 95 Stat. 
1031; Pub. L. 99-166, title IV, Sec. 401(b), Dec. 3, 1985, 99 Stat. 957; 
Pub. L. 99-576, title VII, Sec. 701(43), Oct. 28, 1986, 100 Stat. 3294; 
Pub. L. 102-25, title III, Sec. 336(b), Apr. 6, 1991, 105 Stat. 90; 
renumbered Sec. 1977 and amended Pub. L. 102-83, Secs. 4(a)(2)(B)(iii), 
(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 403-406; Pub. L. 
102-568, title II, Sec. 202, Oct. 29, 1992, 106 Stat. 4324; Pub. L. 103-
446, title XII, Sec. 1201(e)(9), Nov. 2, 1994, 108 Stat. 4685; Pub. L. 
104-275, title IV, Secs. 403(b), 405(b)(1)(H), 406, Oct. 9, 1996, 110 
Stat. 3338-3340.)


                               Amendments

    1996--Subsec. (a). Pub. L. 104-275, Sec. 403(b)(1), designated 
existing provisions as par. (1), struck out at end ``Any person insured 
under Veterans' Group Life Insurance who again becomes insured under 
Servicemen's Group Life Insurance may within 60 days after becoming so 
insured convert any or all of such person's Veterans' Group Life 
Insurance to an individual policy of insurance under subsection (e). 
However, if such a person dies within the 60-day period and before 
converting such person's Veterans' Group Life Insurance, Veterans' Group 
Life Insurance will be payable only if such person is insured for less 
than $200,000 under Servicemen's Group Life Insurance, and then only in 
an amount which when added to the amount of Servicemen's Group Life 
Insurance payable shall not exceed $200,000.'', and added par. (2).
    Subsec. (a)(1). Pub. L. 104-275, Sec. 406, struck out ``and (e)'' 
after ``section 1967(a)'' and after ``section 1967(b)''.
    Pub. L. 104-275, Sec. 405(b)(1)(H), substituted ``Servicemembers' 
Group'' for ``Servicemen's Group'' in two places.
    Subsec. (d). Pub. L. 104-275, Sec. 405(b)(1)(H), substituted 
``Servicemembers' Group'' for ``Servicemen's Group''.
    Subsec. (e). Pub. L. 104-275, Sec. 403(b)(2), inserted ``at any 
time'' after ``shall have the right'' in first sentence and substituted 
as third sentence ``The Veterans' Group Life Insurance policy converted 
to an individual policy under this subsection shall terminate on the day 
before the date on which the individual policy becomes effective.'' for 
``The individual policy will be effective the day after the insured's 
Veterans' Group Life Insurance terminates by expiration of the five-year 
term period, except in a case where the insured is eligible to convert 
at an earlier date by reason of again having become insured under 
Servicemen's Group Life Insurance, in which event the effective date of 
the individual policy may not be later than the sixty-first day after 
the insured again became so insured.''
    Subsec. (g). Pub. L. 104-275, Sec. 405(b)(1)(H), substituted 
``Servicemembers' Group'' for ``Servicemen's Group'' wherever appearing.
    1994--Subsec. (f). Pub. L. 103-446 substituted ``subsections (d) and 
(e) of section 1971'' for ``sections 1971(d) and (e)''.
    1992--Subsec. (a). Pub. L. 102-568, Sec. 202(1), inserted ``and 
(e)'' after ``1967(a)'' and after ``1967(b)'', substituted ``$200,000'' 
for ``$100,000'' wherever appearing, ``60 days'' for ``sixty days'', and 
``60-day period'' for ``sixty-day period'', and struck out ``of this 
section'' after ``subsection (e)''.
    Subsec. (b)(2). Pub. L. 102-568, Sec. 202(2), substituted 
``renewable'' for ``nonrenewable''.
    Subsec. (h)(2). Pub. L. 102-568, Sec. 202(3), substituted ``In 
accordance with subsection (b)'' for ``Notwithstanding subsection (b)(2) 
of this section''.
    1991--Pub. L. 102-83, Sec. 5(a), renumbered section 777 of this 
title as this section.
    Subsec. (a). Pub. L. 102-83, Sec. 5(c)(1), substituted ``1967(a)'' 
for ``767(a)'' and ``1967(b) or 1968(a)'' for ``767(b) or 768(a)''.
    Pub. L. 102-25 substituted ``$100,000'' for ``$50,000'' wherever 
appearing.
    Subsec. (b). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted 
``Secretary'' for ``Administrator''.
    Subsec. (c). Pub. L. 102-83, Sec. 5(c)(1), substituted ``1971(a)'' 
for ``771(a)'' and ``1966(b)'' for ``766(b)''.
    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 ``1970'' for 
``770'' and ``1966(b)'' for ``766(b)''.
    Subsec. (e). 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''.
    Subsec. (f). Pub. L. 102-83, Sec. 5(c)(1), substituted ``1971(d)'' 
for ``771(d)''.
    Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted ``Secretary'' for 
``Administrator''.
    Subsec. (g). Pub. L. 102-83, Sec. 5(c)(1), substituted ``1977'' for 
``777'' and ``1966(b)'' for ``766(b)''.
    Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted ``Secretary'' for 
``Administrator'' in two places.
    Pub. L. 102-83, Sec. 4(a)(2)(B)(iii), substituted ``Department of 
Veterans Affairs'' for ``Veterans' Administration''.
    Subsec. (h)(1), (3). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 
substituted ``Secretary'' for ``Administrator''.
    1986--Subsec. (a). Pub. L. 99-576, Sec. 701(43)(A), substituted 
``such person's'' for ``his'' in two places and ``such person'' for 
``he''.
    Subsec. (c). Pub. L. 99-576, Sec. 701(43)(B), substituted ``the 
Administrator'' for ``he'' in first sentence and ``such member or former 
member'' for ``he'' in third sentence.
    Subsec. (d). Pub. L. 99-576, Sec. 701(43)(C), substituted ``such 
person's'' for ``his''.
    Subsec. (e). Pub. L. 99-576, Sec. 701(43)(D), substituted ``the 
insured'' for ``he'' in first and third sentences.
    Subsec. (g). Pub. L. 99-576, Sec. 701(43)(E), substituted ``the 
insured's'' for ``his'' and ``the Administrator'' for ``he''.
    1985--Subsec. (a). Pub. L. 99-166, Sec. 401(b)(1), substituted 
``Veterans' Group Life Insurance shall be issued in the amounts 
specified in section 767(a) of this title. In the case of any 
individual, the amount of Veterans' Group Life Insurance may not exceed 
the amount of Servicemen's Group Life Insurance coverage continued in 
force after the expiration of the period of duty or travel under section 
767(b) or 768(a) of this title'' for ``Veterans' Group Life Insurance 
shall be issued in the amount of $5,000, $10,000, $15,000, $20,000, 
$25,000, $30,000 or $35,000 only'' and ``$50,000'' for ``$35,000'' in 
three places.
    Subsec. (h). Pub. L. 99-166, Sec. 401(b)(2), added subsec. (h).
    1981--Subsec. (a). Pub. L. 97-66 inserted figures of $25,000, 
$30,000, and $35,000 to the enumeration of allowable amounts in which 
Veterans' Group Life Insurance may be issued, and substituted $35,000 
for $20,000 as the maximum amount of combined Servicemen's Group Life 
Insurance and Veterans' Group Life Insurance which a person may carry at 
any one time and as the figure covering situations in which a person 
insured under Veterans' Group Life Insurance dies within the sixty-day 
period after having again become insured under Servicemen's Group Life 
Insurance before converting his Veterans' Group Life Insurance to an 
individual policy.


                    Effective Date of 1992 Amendment

    Amendment by Pub. L. 102-568 effective Dec. 1, 1992, see section 205 
of Pub. L. 102-568, set out as an Effective Date note under section 
1922A of this title.


                    Effective Date of 1985 Amendment

    Amendment by Pub. L. 99-166 effective Jan. 1, 1986, see section 
401(c)(1) of Pub. L. 99-166, set out as a note under section 1967 of 
this title.


                    Effective Date of 1981 Amendment

    Amendment by Pub. L. 97-66 effective Dec. 1, 1981, see section 
701(b)(2) of Pub. L. 97-66, set out as a note under section 1114 of this 
title.


                             Effective Date

    Section effective first day of third calendar month following May 
1974, see section 12(4) of Pub. L. 93-289, set out as an Effective Date 
of 1974 Amendment note under section 1968 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 1968, 1980 of this title.
