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Title 38 — Veterans' BenefitsRelease 119-73not60

§1928 Authority for Payment of Interest on Settlements

Title 38 › Part II— GENERAL BENEFITS › Chapter 19— INSURANCE › Subchapter I— NATIONAL SERVICE LIFE INSURANCE › § 1928

Last updated Apr 5, 2026|Official source

Summary

The Secretary may pay interest on proceeds from three kinds of veterans’ policies—National Service Life Insurance, Veterans’ Special Life Insurance, and Veterans Reopened Insurance—starting at the policy’s maturity date and ending when the money is paid to the beneficiary or, for an endowment, to the policyholder. Interest can only be paid if the Secretary finds it makes sense for how the program is run and for its finances. The interest rate will be the same rate set for dividends held in policyholders’ accounts for that insurance 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 5, 2026

Release point: 119-73not60