
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: 38USC1981]

 
                      TITLE 38--VETERANS' BENEFITS
 
                        PART II--GENERAL BENEFITS
 
                          CHAPTER 19--INSURANCE
 
                         SUBCHAPTER IV--GENERAL
 
Sec. 1981. Replacement of surrendered and expired insurance

    (a) Any person who surrendered a policy of National Service Life 
Insurance or United States Government life insurance on a permanent plan 
for its cash value while in the active service after April 24, 1951, and 
before January 1, 1957, who was entitled on December 31, 1958, to 
reinstate or replace such insurance under section 623 of the National 
Service Life Insurance Act of 1940, may, upon application in writing 
made while on continuous active duty which began before January 1, 1959, 
or within one hundred and twenty days after separation therefrom, be 
granted, without medical examination, permanent plan insurance on the 
same plan not in excess of the amount surrendered for cash, or may 
reinstate such surrendered insurance upon payment of the required 
reserve and the premium for the current month. Waiver of premiums and 
total disability income benefits otherwise authorized under this chapter 
shall not be denied in any case of issue or reinstatement of insurance 
on a permanent plan under this section or the prior corresponding 
provision of law in which it is shown to the satisfaction of the 
Secretary that total disability of the applicant began before the date 
of application. The cost of the premiums waived and total disability 
income benefits paid by virtue of the preceding sentence and the excess 
mortality cost in any case where the insurance matures by death from 
such total disability shall be borne by the United States and the 
Secretary shall transfer from time to time from the National Service 
Life Insurance appropriation to the National Service Life Insurance Fund 
and from the military and naval insurance appropriation to the United 
States Government Life Insurance Fund such sums as may be necessary to 
reimburse the funds for such costs.
    (b) Any person who had United States Government life insurance or 
National Service Life Insurance on the five-year level premium term 
plan, the term of which expired while such person was in the active 
service after April 25, 1951, or within one hundred and twenty days 
after separation from such active service, and in either case before 
January 1, 1957, who was entitled on December 31, 1958, to replace such 
insurance under section 623 of the National Service Life Insurance Act 
of 1940, shall, upon application made while on continuous active duty 
which began before January 1, 1959, or within one hundred and twenty 
days after separation therefrom, payment of premiums and evidence of 
good health satisfactory to the Secretary, be granted an equivalent 
amount of insurance on the five-year level premium term plan at the 
premium rate for such person's then attained age.

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1164, Sec. 781; Pub. L. 99-576, 
title VII, Sec. 701(44), Oct. 28, 1986, 100 Stat. 3294; renumbered 
Sec. 1981 and amended Pub. L. 102-83, Secs. 4(b)(1), (2)(E), 5(a), Aug. 
6, 1991, 105 Stat. 404-406.)

                       References in Text

    Section 623 of the National Service Life Insurance Act of 1940, 
referred to in subsecs. (a) and (b), is section 623 of act Oct. 8, 1940, 
ch. 757, title VI, pt. I, as added Aug. 1, 1956, ch. 837, title V, 
Sec. 501(a)(4), 70 Stat. 880, which enacted section 824 of former Title 
38, Pensions, Bonuses, and Veterans' Relief, and which was repealed and 
the provisions thereof reenacted as this section by Pub. L. 85-857, 
Sept. 2, 1958, 72 Stat. 1105.


                               Amendments

    1991--Pub. L. 102-83 renumbered section 781 of this title as this 
section and substituted ``Secretary'' for ``Administrator'' wherever 
appearing.
    1986--Subsec. (b). Pub. L. 99-576 substituted ``such person'' for 
``he'' and ``such person's'' for ``his''.
