§1921 — Title 38 Veterans' Benefits | U.S. Code

Summary

The United States must pay extra costs that come from the higher risks of military or naval service. That covers extra death costs and the cost of waived insurance premiums when total disability is caused by that extra risk, as the Secretary decides. If death results from disease or injury traceable to that extra risk, the United States pays an amount that, when added to the policy reserve at death, equals the value of the benefits. Calculations use mortality tables the Secretary picks and interest at 3 percent per year. The Secretary must move money from the National Service Life Insurance appropriation to the National Service Life Insurance Fund as needed. When premiums are waived because total disability is traceable to the extra risk, the United States pays those premiums and the Secretary transfers matching sums from the appropriation to the Fund. For disability income payments caused by the extra risk, the United States also pays, and the Secretary transfers payments from the appropriation to the Fund and moves the reserve from the Fund to the appropriation. If a person recovers but keeps coverage, the Secretary must transfer money to set up the required reserve. Any disability that required a waiver to receive a commission under Public Law 816, Seventy-seventh Congress is treated the same.

Title 38, §1921

Veterans' Benefits — Source: USLM XML via OLRC

(a)The United States shall bear the excess mortality cost and the cost of waiver of premiums on account of total disability traceable to the extra hazard of military or naval service, as such hazard may be determined by the Secretary.

(b)Whenever benefits under insurance become payable because of the death of the insured as the result of disease or injury traceable to the extra hazard of military or naval service, as such hazard may be determined by the Secretary, the liability for payment of such benefits shall be borne by the United States in an amount which, when added to the reserve of the policy at the time of death of the insured will equal the then value of such benefits under such policy. Where life contingencies are involved in the calculation of the value of such benefits of insurance heretofore or hereafter matured, the calculation of such liability or liabilities shall be based upon such mortality table or tables as the Secretary may prescribe with interest at the rate of 3 per centum per annum. The Secretary shall transfer from time to time from the National Service Life Insurance appropriation to the National Service Life Insurance Fund such sums as may be necessary to carry out the provisions of this section.

(c)Whenever the premiums under insurance are waived because of the total disability of the insured as the result of disease or injury traceable to the extra hazard of military or naval service, as such hazard may be determined by the Secretary, the premiums so waived shall be paid by the United States and the Secretary shall transfer from time to time an amount equal to the amount of such premiums from the National Service Life Insurance appropriation to the National Service Life Insurance Fund.

(d)Whenever benefits under the total disability income provision become, or have become, payable because of total disability of the insured as a result of disease or injury traceable to the extra hazard of the military or naval service, as such hazard may be determined by the Secretary, the liability shall be borne by the United States, and the Secretary shall transfer from the National Service Life Insurance appropriation to the National Service Life Insurance Fund from time to time any amounts which become, or have become, payable to the insured on account of such total disability, and to transfer from the National Service Life Insurance Fund to the National Service Life Insurance appropriation the amount of the reserve held on account of the total disability benefit. When a person receiving such payments on account of total disability recovers from such disability, and is then entitled to continue protection under the total disability income provision, the Secretary shall transfer to the National Service Life Insurance Fund a sum sufficient to set up the then required reserve on such total disability benefit.

(e)Any disability for which a waiver was required as a condition to tendering a person a commission under Public Law 816, Seventy-seventh Congress, shall be deemed to be a disability resulting from an injury or disease traceable to the extra hazard of military or naval service for the purpose of applying this section.

Notes & Related Subsidiaries

Editorial Notes

References in Text

Public Law 816, Seventy-seventh Congress, referred to in subsec. (e), is act Dec. 18, 1942, ch. 768, §§ 1, 2, 56 Stat. 1066. section 1 of that Act enacted section 853c–5 of former Title 34, Navy, and was repealed by act July 9, 1952, ch. 608, pt. VIII, § 803, 66 Stat. 505. section 2 of that Act enacted section 853c–6 of former Title 34, and was omitted from the Code in the general revision and reenactment of Title 10, Armed Forces, by act Aug. 10, 1956, ch. 1041, 70A Stat. 1.

Amendments

1991—Pub. L. 102–83 renumbered section 721 of this title as this section and substituted “Secretary” for “Administrator” wherever appearing in subsecs. (a) to (d).

§1921 Extra hazard costs