Title 38 — Veterans' BenefitsRelease 119-73
§1963 Authority for payment of interest on settlements
Title 38 › Part PART II— - GENERAL BENEFITS › Chapter CHAPTER 19— - INSURANCE › Subchapter SUBCHAPTER II— - UNITED STATES GOVERNMENT LIFE INSURANCE › § 1963
Summary
The Secretary may pay interest on U.S. life insurance proceeds from maturity until payment to the beneficiary (or policyholder for endowments), only if it is administratively and financially sound and at the dividend-held rate.
Full Legal Text
Title 38, §1963
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 United States Government Life 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) shall be at the rate that is established by the Secretary for dividends held on credit or deposit in policyholders’ accounts.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
1991—Pub. L. 102–83 renumbered section 763 of this title as this section and substituted “Secretary” for “Administrator” wherever appearing.
Statutory Notes and Related Subsidiaries
Effective Date
Section effective with respect to insurance policies maturing after Nov. 18, 1988, see section 1401(a)(3) of Pub. L. 100–687, set out as a note under section 1928 of this title.
Reference
Citations & Metadata
Citation
38 U.S.C. § 1963
Title 38 — Veterans' Benefits
Last Updated
Apr 6, 2026
Release point: 119-73