§3976 — Title 50 War and National Defense | U.S. Code

Summary

When a protected policy pays out while the service member is covered, the insurance company must deduct any unpaid premiums plus interest at the policy’s loan rate; if no rate is stated, use the company’s loan rate when the policy was issued and report the deduction to the Secretary of Veterans Affairs.

Title 50, §3976

War and National Defense — Source: USLM XML via OLRC

(a)If a policy matures as a result of a servicemember’s death or otherwise during the period of protection of the policy under this subchapter, the insurer in making settlement shall deduct from the insurance proceeds the amount of the unpaid premiums guaranteed under this subchapter, together with interest due at the rate fixed in the policy for policy loans.

(b)If the interest rate is not specifically fixed in the policy, the rate shall be the same as for policy loans in other policies issued by the insurer at the time the insured’s policy was issued.

(c)The amount deducted under this section, if any, shall be reported by the insurer to the Secretary of Veterans Affairs.

Notes & Related Subsidiaries

Editorial Notes

Codification Section was formerly classified to section 546 of the former Appendix to this title prior to editorial reclassification and renumbering as this section.

Prior Provisions

A prior section 406 of act Oct. 17, 1940, ch. 888, art. IV, 54 Stat. 1184; Oct. 6, 1942, ch. 581, § 13, 56 Stat. 775; Apr. 3, 1948, ch. 170, § 6, 62 Stat. 160, related to guaranty of premiums and interest by United States, settlement of amounts due upon expiration of protection, subrogation of United States, and crediting debt repayments, prior to the general amendment of this Act by Pub. L. 108–189. See section 3977 of this title.

Statutory Notes and Related Subsidiaries

Effective Date

Section applicable to any case not final before Dec. 19, 2003, see section 3 of Pub. L. 108–189, set out as a note under section 3901 of this title.

§3976 Deduction of unpaid premiums