§1920 — Title 38 Veterans' Benefits | U.S. Code

Summary

The National Service Life Insurance Fund is kept as a permanent trust in the Treasury. All premiums paid for that insurance and the interest they earn go into the fund. Money from the fund pays insurance bills like claims, dividends, and refunds, and it can also pay certain administrative costs when the Secretary orders payments. The Secretary must set aside reserves using normal actuarial rules to cover future liabilities. The Treasury Secretary can invest the fund in U.S. government interest-bearing or guaranteed securities and sell them when needed. For fiscal year 1996 only, the Secretary may reimburse the Department’s general operating expenses account for administrative costs tied to this insurance, but only from surplus earnings left after claims are paid and reserves are set, and only up to the amount of that surplus. The Secretary decides which costs count.

Title 38, §1920

Veterans' Benefits — Source: USLM XML via OLRC

(a)The National Service Life Insurance Fund heretofore created in the Treasury is continued as a permanent trust fund. Except as otherwise provided in this chapter, all premiums paid on account of National Service Life Insurance shall be deposited and covered into the Treasury to the credit of such fund, which, together with interest earned thereon, shall be available for the payment of liabilities under such insurance, including payment of dividends and refunds of unearned premiums, and for the reimbursement of administrative costs under subsection (c). Payments from this fund shall be made upon and in accordance with awards by the Secretary.

(b)The Secretary is authorized to set aside out of such fund such reserve amounts as may be required under accepted actuarial principles to meet all liabilities under such insurance; and the Secretary of the Treasury is authorized to invest and reinvest such fund, or any part thereof, in interest-bearing obligations of the United States or in obligations guaranteed as to principal and interest by the United States, and to sell such obligations for the purposes of such fund.

(c)(1)For each fiscal year for which this subsection is in effect, the Secretary shall, from the National Service Life Insurance Fund, reimburse the “General operating expenses” account of the Department for the amount of administrative costs determined under paragraph (2) for that fiscal year. Such reimbursement shall be made from any surplus earnings for that fiscal year that are available for dividends on such insurance after claims have been paid and actuarially determined reserves have been set aside. However, if the amount of such administrative costs exceeds the amount of such surplus earnings, such reimbursement shall be made only to the extent of such surplus earnings.

(2)The Secretary shall determine the administrative costs to the Department for a fiscal year for which this subsection is in effect which, in the judgment of the Secretary, are properly allocable to the provision of National Service Life Insurance (and to the provision of any total disability income insurance added to the provision of such insurance).

(3)This subsection shall be in effect only with respect to fiscal year 1996.

Notes & Related Subsidiaries

Editorial Notes

Codification Amendment by Pub. L. 104–99 is based on section 107(1) of H.R. 2099, One Hundred Fourth Congress, as passed by the House of Representatives on Dec. 7, 1995, which was enacted into law by Pub. L. 104–99.

Amendments

1996—Subsec. (a). Pub. L. 104–99 inserted “, and for the reimbursement of administrative costs under subsection (c)” after “unearned premiums”. Subsec. (c). Pub. L. 104–99 added subsec. (c). 1991—Pub. L. 102–83 renumbered section 720 of this title as this section and substituted “Secretary” for “Administrator” in two places.

§1920 National Service Life Insurance Fund

Summary

Title 38, §1920

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata