38 U.S.C. § 1957: Extra hazard costs

Summary

The United States must pay the extra costs for deaths and disabilities under United States Government life insurance that come from the hazards of war. If an insured person dies or becomes totally and permanently disabled because of disease or injury tied to those military or naval hazards (as the Secretary decides), the Secretary must move money from the military and naval insurance appropriation into the United States Government Life Insurance Fund. That transfer, plus the policy reserve at the time, must equal the value of the benefits due. If someone on total permanent disability recovers and keeps a smaller amount of insurance, the Secretary must return the loss reserve to the military appropriation except for enough money to back the smaller continued insurance, which stays in the Life Insurance Fund. For ongoing total-disability payments, the United States also pays. The Secretary must transfer amounts payable from the military appropriation to the Life Insurance Fund and move the reserve for the disability benefit the other way. If the person recovers but still keeps protection under the disability rule, the Secretary must put up the needed reserve in the Life Insurance Fund. Any disability that needed a waiver to get a commission under Public Law 816, Seventy-seventh Congress counts as a disability from those extra hazards.

Title 38, §1957

Veterans' Benefits, Source: USLM XML via OLRC

(a)The United States shall bear the excess mortality and disability cost resulting from the hazards of war on United States Government life insurance.

(b)Whenever benefits under United States Government life insurance become, or have become, payable because of total permanent disability of the insured or because of the death of the insured as a result of disease or injury traceable to the extra hazard of the military or naval service, as such hazard may be determined by the Secretary, the liability shall be borne by the United States. In such cases the Secretary shall transfer from the military and naval insurance appropriation to the United States Government Life Insurance Fund a sum which, together with the reserve of the policy at the time of maturity by total permanent disability or death, will equal the then value of such benefits. When a person receiving total permanent disability benefits under a United States Government life insurance policy recovers from such disability and is then entitled to continue a reduced amount of insurance, the Secretary shall transfer to the military and naval insurance appropriation all of the loss reserve to the credit of such policy claim except a sum sufficient to set up the then required reserve on the reduced amount of the insurance that may be continued, which sum shall be retained in the United States Government Life Insurance Fund for the purpose of such reserve.

(c)Whenever benefits under the total disability provision become, or have become, payable because of total disability of the insured as a result of disease or injury traceable to the extra hazard of the military or naval service, as such hazard may be determined by the Secretary, the liability shall be borne by the United States, and the Secretary shall transfer from the military and naval insurance appropriation to the United States Government Life Insurance Fund from time to time any amounts which become or have become payable to the insured on account of such total disability, and shall transfer from the United States Government Life Insurance Fund to the military and naval insurance appropriation the amount of the reserve held on account of the total disability benefit. When a person receiving such payments on account of total disability recovers from such disability and is then entitled to continued protection under the total disability provision, the Secretary shall transfer to the United States Government Life Insurance Fund a sum sufficient to set up the then required reserve on such total disability benefit.

(d)Any disability for which a waiver was required as a condition to tendering a person a commission under Public Law 816, Seventy-seventh Congress, shall be deemed to be a disability resulting from an injury or disease traceable to the extra hazard of military or naval service for the purpose of applying this section.

Notes & Related Subsidiaries

Editorial Notes

References in Text

Public Law 816, Seventy-seventh Congress, referred to in subsec. (d), is act Dec. 18, 1942, ch. 768, §§ 1, 2, 56 Stat. 1066. section 1 of that Act enacted section 853c–5 of former Title 34, Navy, and was repealed by act July 9, 1952, ch. 608, pt. VIII, § 803, 66 Stat. 505. section 2 of that Act enacted section 853c–6 of former Title 34, and was omitted from the Code in the general revision and reenactment of Title 10, Armed Forces, by act Aug. 10, 1956, ch. 1041, 70A Stat. 1.

Amendments

1991—Pub. L. 102–83 renumbered section 757 of this title as this section and substituted “Secretary” for “Administrator” wherever appearing in subsecs. (b) and (c).

§1957 Extra Hazard Costs