§1920 National Service Life Insurance Fund

Summary

Keeps the National Service Life Insurance Fund as a permanent trust inside the Treasury. All premiums for this insurance must go into the fund, and the fund’s interest must pay insurance costs like claims, dividends, refunds, and certain administrative costs. Money can only be paid out under awards the Secretary gives. The Secretary must set aside reserves using accepted actuarial methods. The Treasury Secretary may invest the fund in U.S. government interest-bearing securities or U.S.-guaranteed obligations and may sell those investments as needed. For fiscal year 1996 only, the Secretary must reimburse the Department’s general operating expenses account from the fund for administrative costs tied to this insurance. Reimbursement can come only from surplus earnings left for dividends after claims are paid and reserves are set; if costs exceed that surplus, payment is limited to the surplus. The Secretary decides which administrative costs are related to the insurance, including any added total disability income coverage.