§1963 — Title 38 Veterans' Benefits | U.S. Code

Summary

The Secretary can pay interest on money from a United States Government Life Insurance policy. The interest runs from when the policy becomes due until the money is paid to the beneficiary, or, for an endowment policy, until it is paid to the policyholder. The Secretary may only pay that interest if doing so is administratively workable and actuarially sound for the particular settlement option. Any interest paid must use the same rate the Secretary sets for dividends held on credit or deposit in policyholders’ accounts.

Title 38, §1963

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 United States Government Life 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) shall be at the rate that is established by the Secretary for dividends held on credit or deposit in policyholders’ accounts.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1991—Pub. L. 102–83 renumbered section 763 of this title as this section and substituted “Secretary” for “Administrator” wherever appearing.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective with respect to insurance policies maturing after Nov. 18, 1988, see section 1401(a)(3) of Pub. L. 100–687, set out as a note under section 1928 of this title.

§1963 Authority for Payment of Interest on Settlements