38 U.S.C. § 1944: Policy provisions

Summary

Allows insurance contracts and agency rules to include many reasonable options and protections, like payments at set ages, lifetime installment plans for the insured or beneficiaries, premium refunds, cash and loan values and other policy values, and dividends. All calculations must use the American Experience Table of Mortality and interest at 3½ percent per annum, except no deduction for lifetime installments if total and permanent disability lasts more than 240 months. From July 19, 1939, loans secured by insurance are limited to 5 percent per annum.

Title 38, §1944

Veterans' Benefits, Source: USLM XML via OLRC

(a)Provisions for maturity at certain ages, for continuous installments during the lifetime of the insured or beneficiaries, or both, for refund of premiums, cash, loan, paid-up and extended values, dividends from gains and savings, and such other provisions for the protection and advantage of and for alternative benefits to the insured and the beneficiaries as may be found to be reasonable and practicable may be provided for in insurance contracts or from time to time by regulations.

(b)All calculations on insurance shall be based upon the American Experience Table of Mortality and interest at 3½ percent per annum, except that no deduction shall be made for continuous installments during the life of the insured in case the insured’s total and permanent disability continues more than two hundred and forty months.

(c)On and after July 19, 1939, the rate of interest charged on any loan secured by a lien on insurance shall not exceed 5 percent per annum.

Editorial Notes

Amendments

1991—Pub. L. 102–83 renumbered section 744 of this title as this section. 1986—Subsec. (b). Pub. L. 99–576 substituted “the insured’s” for “his”. 1982—Subsecs. (b), (c). Pub. L. 97–295 substituted “percent” for “per centum”.

§1944 Policy Provisions

Summary

Title 38, §1944

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata