§3975 — Title 50 War and National Defense | U.S. Code

Summary

While a policy has this protection, the insurer cannot pay dividends or other money from the policy to the insured or use them to buy dividend additions unless the Secretary of Veterans Affairs agrees. If the Secretary does not approve, those amounts must stay in the policy and be applied when the insurer makes the final payment. While protected, cash value, loan value, dividend withdrawals, unearned premiums, and similar values cannot be taken out without the Secretary’s approval. The insured still has the right to change who gets the policy or to choose an optional way for a beneficiary to be paid.

Title 50, §3975

War and National Defense — Source: USLM XML via OLRC

(a)While a policy is protected under this subchapter, a dividend or other monetary benefit under a policy may not be paid to an insured or used to purchase dividend additions without the approval of the Secretary of Veterans Affairs. If such approval is not obtained, the dividends or benefits shall be added to the value of the policy to be used as a credit when final settlement is made with the insurer.

(b)While a policy is protected under this subchapter, cash value, loan value, withdrawal of dividend accumulation, unearned premiums, or other value of similar character may not be available to the insured without the approval of the Secretary. The right of the insured to change a beneficiary designation or select an optional settlement for a beneficiary shall not be affected by the provisions of this subchapter.

Notes & Related Subsidiaries

Editorial Notes

Codification Section was formerly classified to section 545 of the former Appendix to this title prior to editorial reclassification and renumbering as this section.

Prior Provisions

A prior section 405 of act Oct. 17, 1940, ch. 888, art. IV, 54 Stat. 1184; Oct. 6, 1942, ch. 581, § 13, 56 Stat. 775; Pub. L. 102–12, § 9(16), Mar. 18, 1991, 105 Stat. 40, related to deduction of unpaid premiums upon settlement of policies maturing during protection, prior to the general amendment of this Act by Pub. L. 108–189. See section 3976 of this title.

Statutory Notes and Related Subsidiaries

Effective Date

Section applicable to any case not final before Dec. 19, 2003, see section 3 of Pub. L. 108–189, set out as a note under section 3901 of this title.

§3975 Policy Restrictions