§1955 United States Government Life Insurance Fund

Summary

All premiums for United States Government life insurance must go into the Treasury and be credited to the United States Government Life Insurance Fund. Money in that Fund is for paying losses, dividends, refunds, and other benefits (including liabilities decided by a U.S. district court), and for reimbursing certain administrative costs. Payments from the Fund are made when the Secretary orders them. The Secretary may set aside reserves using normal actuarial methods. The Secretary of the Treasury may invest Fund money in U.S. interest-bearing obligations or Federal farm-loan bank bonds and may sell those investments for the Fund. For fiscal year 1996 only, the Secretary must use any surplus earnings available for dividends to reimburse the Department’s "General operating expenses" account for administrative costs that are reasonably linked to providing this insurance. If those costs are more than the surplus, reimbursement is limited to the surplus. The Secretary decides which costs count, including any added total disability income insurance.