§1955 United States Government Life Insurance Fund

Summary

All premiums paid for United States Government life insurance must go into the United States Government Life Insurance Fund in the Treasury. That fund must be used to pay losses, dividends, refunds, and other benefits under the insurance, including liabilities that have been or later are decided by a United States district court or the United States District Court for the District of Columbia. Payments from the fund are made when the Secretary awards them. The Secretary may set aside reserves, using normal actuarial rules, to cover future liabilities. The Secretary of the Treasury may invest the fund in interest‑bearing U.S. obligations or bonds of the Federal Farm‑Loan Banks and may sell those investments for the fund’s purposes. For fiscal year 1996 only, the Secretary must use any surplus earnings left for dividends (after claims are paid and reserves set aside) to reimburse the Department’s "General operating expenses" account for administrative costs the Secretary decides are related to providing this life insurance (including any added total disability income insurance). If those administrative costs are more than the surplus earnings, reimbursement is limited to the amount of the surplus earnings.