§1955 — Title 38 Veterans' Benefits | U.S. Code

Summary

All premiums for United States Government life insurance must be put into the Treasury and credited to the United States Government Life Insurance Fund. Money in that fund must pay claims, dividends, refunds, other insurance benefits, court-ordered liabilities, and to repay administrative costs allowed under the special reimbursement rule. Payments from the fund must follow awards made by the Secretary. The Secretary must set aside reserves from the fund using standard actuarial methods. The Secretary of the Treasury may invest or sell parts of the fund in U.S. interest-bearing securities or Federal farm‑loan bank bonds. For fiscal year 1996 only, the Secretary must reimburse the Department’s general operating expenses from the fund for administrative costs, but only from surplus earnings left after claims and reserves, and only up to the amount of that surplus.

Title 38, §1955

Veterans' Benefits — Source: USLM XML via OLRC

(a)All premiums paid on account of United States Government life insurance shall be deposited and covered into the Treasury to the credit of the United States Government Life Insurance Fund and shall be available for the payment of losses, dividends, refunds, and other benefits provided for under such insurance, including such liabilities as shall have been or shall hereafter be reduced to judgment in a district court of the United States or the United States District Court for the District of Columbia, 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 the funds so collected such reserve funds 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 the said United States Government Life Insurance Fund, or any part thereof, in interest-bearing obligations of the United States or bonds of the Federal farm-loan banks and to sell said obligations of the United States or the bonds of the Federal farm-loan banks for the purposes of such Fund.

(c)(1)For each fiscal year for which this subsection is in effect, the Secretary shall, from the United States Government 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 United States Government 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(3) 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 “District of Columbia”. Subsec. (c). Pub. L. 104–99 added subsec. (c). 1991—Pub. L. 102–83 renumbered section 755 of this title as this section and substituted “Secretary” for “Administrator” in subsecs. (a) and (b).

§1955 United States Government Life Insurance Fund

Summary

Title 38, §1955

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata