Title 38 — Veterans' BenefitsRelease 119-73
§1928 Authority for payment of interest on settlements
Title 38 › Part PART II— - GENERAL BENEFITS › Chapter CHAPTER 19— - INSURANCE › Subchapter SUBCHAPTER I— - NATIONAL SERVICE LIFE INSURANCE › § 1928
Summary
The Secretary may pay interest on proceeds from National Service Life, Veterans’ Special, and Veterans Reopened insurance policies from maturity until paid to the beneficiary or, for endowments, the policyholder. Interest is paid only if administratively and actuarially sound and at the Secretary’s dividend-account rate for that program.
Full Legal Text
Title 38, §1928
Veterans' Benefits — Source: USLM XML via OLRC
(a)Subject to subsection (b) of this section, the Secretary may pay interest on the proceeds of a participating National Service Life Insurance, Veterans’ Special Life Insurance, and Veterans Reopened Insurance policy from the date the policy matures to the date of payment of the proceeds to the beneficiary or, in the case of an endowment policy, to the policyholder.
(b)(1)The Secretary may pay interest under subsection (a) of this section only if the Secretary determines that the payment of such interest is administratively and actuarially sound for the settlement option involved.
(2)Interest paid under subsection (a) of this section shall be at the rate that is established by the Secretary for dividends held on credit or deposit in policyholders’ accounts under the insurance program involved.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
1991—Pub. L. 102–83 renumbered section 728 of this title as this section and substituted “Secretary” for “Administrator” wherever appearing.
Statutory Notes and Related Subsidiaries
Effective Date
Pub. L. 100–687, div. B, title XIV, § 1401(a)(3), Nov. 18, 1988, 102 Stat. 4129, provided that: “The
Amendments
made by this subsection [enacting this section and section 763 [now 1963] of this title] shall take effect with respect to insurance policies maturing after the date of the enactment of this Act [Nov. 18, 1988].”
Reference
Citations & Metadata
Citation
38 U.S.C. § 1928
Title 38 — Veterans' Benefits
Last Updated
Apr 6, 2026
Release point: 119-73