SUBCHAPTER III—SERVICEMEMBERS' GROUP LIFE INSURANCE

Editorial Notes

Amendments

1996—Pub. L. 104–275, title IV, §405(b)(2)(A), Oct. 9, 1996, 110 Stat. 3339, substituted "SERVICEMEMBERS' GROUP" for "SERVICEMEN'S GROUP".

§1965. Definitions

For the purpose of this subchapter—

(1) The term "active duty" means—

(A) full-time duty in the Armed Forces, other than active duty for training;

(B) full-time duty (other than for training purposes) as a commissioned officer of the Regular or Reserve Corps ¹ of the Public Health Service;

(C) full-time duty as a commissioned officer of the National Oceanic and Atmospheric Administration; and

(D) full-time duty as a cadet or midshipman at the United States Military Academy, United States Naval Academy, United States Air Force Academy, or the United States Coast Guard Academy.

(2) The term "active duty for training" means—

(A) full-time duty in the Armed Forces performed by Reserves, or by members of the Space Force in a space force active status (as defined in section 101(e)(1) of title 10) but not on sustained duty under section 20105 of title 10, for training purposes;

(B) full-time duty for training purposes performed as a commissioned officer of the Reserve Corps ¹ of the Public Health Service;

(C) full-time duty as a member, cadet, or midshipman of the Reserve Officers Training Corps while attending field training or practice cruises; and

(D) in the case of members of the National Guard or Air National Guard of any State, full-time duty under sections 316, 502, 503, 504, or 505 of title 32, United States Code.

(3) The term "inactive duty training" means—

(A) duty (other than full-time duty) prescribed or authorized for Reserves (including commissioned officers of the Reserve Corps ¹ of the Public Health Service), or for members of the Space Force in a space force active status (as defined in section 101(e)(1) of title 10), which duty is scheduled in advance by competent authority to begin at a specific time and place; and

(B) in the case of a member of the National Guard or Air National Guard of any State, such term means duty (other than full-time duty) which is scheduled in advance by competent authority to begin at a specific time and place under sections 316, 502, 503, 504, or 505 of title 32, United States Code.

(4) The terms "active duty for training" and "inactive duty training" do not include duty performed as a temporary member of the Coast Guard Reserve, and the term "inactive duty training" does not include (A) work or study performed in connection with correspondence courses, or (B) attendance at an educational institution in an inactive status.

(5) The term "member" means—

(A) a person on active duty, active duty for training, or inactive duty training in the uniformed services in a commissioned, warrant, or enlisted rank, or grade, or as a cadet or midshipman of the United States Military Academy, United States Naval Academy, United States Air Force Academy, or the United States Coast Guard Academy;

(B) a person who volunteers for assignment to the Ready Reserve of a uniformed service and is assigned to a unit or position in which such person may be required to perform active duty, or active duty for training, and each year will be scheduled to perform at least twelve periods of inactive duty training that is creditable for retirement purposes under chapter 1223 of title 10 (or under chapter 67 of that title as in effect before the effective date of the Reserve Officer Personnel Management Act);

(C) a person who volunteers for assignment to a mobilization category in the Individual Ready Reserve, as defined in section 12304(i)(1) ² of title 10; and

(D) a member, cadet, or midshipman of the Reserve Officers Training Corps while attending field training or practice cruises.

(6) The term "uniformed services" means the Army, Navy, Air Force, Marine Corps, Coast Guard, the commissioned corps of the Public Health Service, and the commissioned corps of the National Oceanic and Atmospheric Administration.

(7) The terms "widow" or "widower" means a person who is the lawful spouse of the insured member at the time of his death.

(8) The term "child" means a legitimate child, a legally adopted child, an illegitimate child as to the mother, or an illegitimate child as to the alleged father, only if (A) he acknowledged the child in writing signed by him; or (B) he has been judicially ordered to contribute to the child's support; or (C) he has been, before his death, judicially decreed to be the father of such child; or (D) proof of paternity is established by a certified copy of the public record of birth or church record of baptism showing that the insured was the informant and was named as father of the child; or (E) proof of paternity is established from service department or other public records, such as school or welfare agencies, which show that with his knowledge the insured was named as the father of the child.

(9) The term "parent" means a father of a legitimate child, mother of a legitimate child, father through adoption, mother through adoption, mother of an illegitimate child, and father of an illegitimate child but only if (A) he acknowledged paternity of the child in writing signed by him before the child's death; or (B) he has been judicially ordered to contribute to the child's support; or (C) he has been judicially decreed to be the father of such child; or (D) proof of paternity is established by a certified copy of the public record of birth or church record of baptism showing that the claimant was the informant and was named as father of the child; or (E) proof of paternity is established from service department or other public records, such as school or welfare agencies, which show that with his knowledge the claimant was named as father of the child. No person who abandoned or willfully failed to support a child during the child's minority, or consented to the child's adoption may be recognized as a parent for the purpose of this subchapter. However, the immediately preceding sentence shall not be applied so as to require duplicate payments in any case in which insurance benefits have been paid prior to receipt in the administrative office established under subsection 1966(b) of this title of sufficient evidence to clearly establish that the person so paid could not qualify as a parent solely by reason of such sentence.

(10) The term "insurable dependent", with respect to a member, means the following:

(A) The member's spouse.

(B) The member's child, as defined in the first sentence of section 101(4)(A) of this title.

(C) The member's stillborn child.

(Added Pub. L. 89–214, §1(a), Sept. 29, 1965, 79 Stat. 880, §765; amended Pub. L. 91–291, §1, June 25, 1970, 84 Stat. 326; Pub. L. 92–185, §1, Dec. 15, 1971, 85 Stat. 642; Pub. L. 92–315, June 20, 1972, 86 Stat. 227; Pub. L. 93–289, §§3, 10(1), May 24, 1974, 88 Stat. 165, 172; Pub. L. 99–576, title VII, §701(35), Oct. 28, 1986, 100 Stat. 3293; Pub. L. 102–54, §14(b)(16), June 13, 1991, 105 Stat. 284; renumbered §1965 and amended Pub. L. 102–83, §5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 103–337, div. A, title VI, §651(a), title XVI, §1677(d)(1), Oct. 5, 1994, 108 Stat. 2792, 3020; Pub. L. 104–275, title IV, §402(a), Oct. 9, 1996, 110 Stat. 3337; Pub. L. 106–419, title III, §313(a), Nov. 1, 2000, 114 Stat. 1854; Pub. L. 107–14, §4(a)(1), June 5, 2001, 115 Stat. 26; Pub. L. 109–13, div. A, title I, §1032(a)(1), May 11, 2005, 119 Stat. 257; Pub. L. 109–233, title V, §501(c)(1), June 15, 2006, 120 Stat. 415; Pub. L. 110–389, title IV, §402(a), Oct. 10, 2008, 122 Stat. 4174; Pub. L. 118–31, div. A, title XVII, §1723(a)(2), Dec. 22, 2023, 137 Stat. 674.)

Editorial Notes

References in Text

Chapter 67 of title 10 as in effect before the effective date of the Reserve Officer Personnel Management Act, referred to in par. (5)(B), means chapter 67 (§1331 et seq.) of Title 10, Armed Forces, prior to its transfer to part II of subtitle E of Title 10, its renumbering as chapter 1223, and its general revision by section 1662(j)(1) of Pub. L. 103–337. A new chapter 67 (§1331) of Title 10 was added by section 1662(j)(7) of Pub. L. 103–337. For effective date of the Reserve Officer Personnel Management Act (Pub. L. 103–337, title XVI), see section 1691 of Pub. L. 103–337, set out as an Effective Date note under section 10001 of Title 10.

Section 12304(i)(1) of title 10, referred to in par. (5)(C), was redesignated section 12304(j)(1) of title 10 by Pub. L. 109–364, div. A, title V, §522(b), Oct. 17, 2006, 120 Stat. 2192. Section 12304(j)(1) of title 10 was subsequently redesignated section 12304(k)(2) of title 10 by Pub. L. 118–31, div. A, title XV, §1532(2), (7)(A), Dec. 22, 2023, 137 Stat. 563, 564.

Amendments

2023—Par. (2)(A). Pub. L. 118–31, §1723(a)(2)(A), which directed insertion of ", or by members of the Space Force in a space force active status (as defined in section 101(e)(1) of title 10) but not on sustained duty under section 20105 of title 10," after "for Reserves", was executed by making the insertion after "Reserves", to reflect the probable intent of Congress.

Par. (3)(A). Pub. L. 118–31, §1723(a)(2)(B), inserted ", or for members of the Space Force in a space force active status (as defined in section 101(e)(1) of title 10)," after "(including commissioned officers of the Reserve Corps of the Public Health Service)".

2008—Par. (10)(C). Pub. L. 110–389 added subpar. (C).

2006—Par. (11). Pub. L. 109–233 struck out par. (11) which read as follows: "The term 'activities of daily living' means the inability to independently perform 2 of the 6 following functions:

"(A) Bathing.

"(B) Continence.

"(C) Dressing.

"(D) Eating.

"(E) Toileting.

"(F) Transferring."

2005—Par. (11). Pub. L. 109–13 added par. (11).

2001—Par. (10). Pub. L. 107–14 added par. (10).

2000—Par. (5)(C), (D). Pub. L. 106–419 added subpar. (C) and redesignated former subpar. (C) as (D).

1996—Par. (5)(B). Pub. L. 104–275, §402(a)(1), inserted "and" at end.

Par. (5)(C) to (E). Pub. L. 104–275, §402(a)(2), (3), redesignated subpar. (E) as (C) and struck out former subpars. (C) and (D) which read as follows:

"(C) a person assigned to, or who upon application would be eligible for assignment to, the Retired Reserve of a uniformed service who has not received the first increment of retirement pay or has not yet reached sixty-one years of age and has completed at least twenty years of satisfactory service creditable for retirement purposes under chapter 1223 of title 10 (or under chapter 67 of that title as in effect before the effective date of the Reserve Officer Personnel Management Act);

"(D) a person transferred to the Retired Reserve of a uniformed service under the temporary special retirement authority provided in section 1331a of title 10 who has not received the first increment of retirement pay or has not reached sixty-one years of age; and".

1994—Par. (5)(B), (C). Pub. L. 103–337, §1677(d)(1), substituted "chapter 1223 of title 10 (or under chapter 67 of that title as in effect before the effective date of the Reserve Officer Personnel Management Act)" for "chapter 67 of title 10".

Par. (5)(D), (E). Pub. L. 103–337, §651(a), added subpar. (D) and redesignated former subpar. (D) as (E).

1991—Pub. L. 102–83, §5(a), renumbered section 765 of this title as this section.

Par. (4). Pub. L. 102–54, §14(b)(16)(A), redesignated cls. (i) and (ii) as (A) and (B), respectively.

Par. (8). Pub. L. 102–54, §14(b)(16)(B), redesignated cls. (a) to (e) as (A) to (E), respectively.

Par. (9). Pub. L. 102–83, §5(c)(1), substituted "1966(b)" for "766(b)".

Pub. L. 102–54, §14(b)(16)(B), redesignated cls. (a) to (e) as (A) to (E), respectively.

1986—Par. (5)(B). Pub. L. 99–576, §701(35)(A), substituted "such person" for "he".

Par. (9). Pub. L. 99–576, §701(35)(B), substituted "the child's" for "his" in two places.

1974—Par. (1)(C). Pub. L. 93–289, §10(1), substituted "National Oceanic and Atmospheric Administration" for "Environmental Science Services Administration".

Par. (5). Pub. L. 93–289, §3, added cls. (B) and (C), redesignated former cl. (B) as (D), and substituted "midshipman of" for "midshipman at" in cl. (A).

Par. (6). Pub. L. 93–289, §10(1), substituted "National Oceanic and Atmospheric Administration" for "Environmental Science Services Administration".

1972—Par. (1)(D). Pub. L. 92–315, §1(3), added cl. (D).

Par. (5)(A). Pub. L. 92–315, §1(4), expanded definition of "member" to include persons in active duty as a cadet or midshipman at the United States Military Academy, United States Naval Academy, United States Air Force Academy and the United States Coast Guard Academy.

1971—Pars. (7) to (9). Pub. L. 92–185 added pars. (7) to (9) defining, respectively, "widow" or "widower", "child", and "parent".

1970—Pub. L. 91–291 struck out from definition of "active duty" a reference to calls or orders to duty which specify a period of 30 days or less, inserted definitions for "active duty for training" and "inactive duty training", and, in definition of "uniformed services", inserted provisions limiting the scope of that term in the case of personnel of the Public Health Service and the Environmental Science Services Administration to the commissioned corps thereof respectively.

Statutory Notes and Related Subsidiaries

Change of Name

Reference to Reserve Corps of the Public Health Service deemed to be a reference to the Ready Reserve Corps, see section 204(c)(3) of Title 42, The Public Health and Welfare.

Effective Date of 2005 Amendment

Amendment by Pub. L. 109–13 effective on the first day of the first month beginning more than 180 days after May 11, 2005, see section 1032(d)(1) of Pub. L. 109–13, set out as an Effective Date note under section 1980A of this title.

Effective Date of 2001 Amendment

Amendment by Pub. L. 107–14 effective on the first day of the first month that begins more than 120 days after June 5, 2001, see section 4(g)(1) of Pub. L. 107–14, set out as a note under section 101 of this title.

Effective Date of 1994 Amendment

Amendment by section 1677(d)(1) of Pub. L. 103–337 effective Dec. 1, 1994, except as otherwise provided, see section 1691 of Pub. L. 103–337, set out as an Effective Date note under section 10001 of Title 10, Armed Forces.

Effective Date of 1974 Amendment

Pub. L. 93–289, §12(2), May 24, 1974, 88 Stat. 173, provided that: "The amendments relating to Servicemen's Group Life Insurance coverage on a full-time basis for certain members of the Reserves and National Guard shall become effective upon the date of enactment of this Act [May 24, 1974]."

Effective Date of 1971 Amendment

Pub. L. 92–185, §2, Dec. 15, 1971, 85 Stat. 643, provided that: "The provisions of this Act [amending this section] shall apply only to Servicemen's Group Life Insurance in effect on the life of an insured member who dies on or after the date of enactment of this Act [Dec. 15, 1971]."

Effective Date of 1970 Amendment

Amendment by Pub. L. 91–291 effective June 25, 1970, see section 14(a) of Pub. L. 91–291, set out as a note under section 1317 of this title.

Pub. L. 91–291, §14(b), June 25, 1970, 84 Stat. 333, provided that: "The provisions of section 765(7), (8), and (9) [now 1765(7), (8), and (9)] of title 38, United States Code, as added by the first section of this Act shall apply only to servicemen's group life insurance in effect on the life of an insured member who dies on and after the date of enactment of this Act [June 25, 1970]."

Transfer of Functions

For transfer of authorities, functions, personnel, and assets of the Coast Guard, including the authorities and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security, and for treatment of related references, see sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6.

Renaming of Group Life Insurance Program

Pub. L. 104–275, title IV, §405(a), Oct. 9, 1996, 110 Stat. 3339, provided that: "The program of insurance operated by the Secretary of Veterans Affairs under subchapter III of chapter 19 of title 38, United States Code, is hereby redesignated as the Servicemembers' Group Life Insurance program."

References to Servicemen's Group Life Insurance or Advisory Council on Servicemen's Group Life Insurance

Pub. L. 104–275, title IV, §405(d), Oct. 9, 1996, 110 Stat. 3340, provided that: "Any reference to Servicemen's Group Life Insurance or to the Advisory Council on Servicemen's Group Life Insurance in any Federal law, Executive order, regulation, delegation of authority, or other document of the Federal Government shall be deemed to refer to Servicemembers' Group Life Insurance or the Advisory Council on Servicemembers' Group Life Insurance, respectively."

¹ See Change of Name note below.

² See References in Text note below.

§1966. Eligible insurance companies

(a) The Secretary is authorized, without regard to section 6101(b) to (d) of title 41, to purchase from one or more life insurance companies a policy or policies of group life insurance to provide the benefits specified in this subchapter. Each such life insurance company must (1) be licensed to issue life insurance in each of the fifty States of the United States and in the District of Columbia, and (2) as of the most recent December 31 for which information is available to the Secretary, have in effect at least 1 percent of the total amount of group life insurance which all life insurance companies have in effect in the United States.

(b) The life insurance company or companies issuing such policy or policies shall establish an administrative office at a place and under a name designated by the Secretary.

(c) The Secretary shall arrange with the life insurance company or companies issuing any policy or policies under this subchapter to reinsure, under conditions approved by the Secretary, portions of the total amount of insurance under such policy or policies with such other life insurance companies (which meet qualifying criteria set forth by the Secretary) as may elect to participate in such reinsurance.

(d) The Secretary may at any time discontinue any policy or policies which the Secretary has purchased from any insurance company under this subchapter.

(Added Pub. L. 89–214, §1(a), Sept. 29, 1965, 79 Stat. 880, §766; amended Pub. L. 97–295, §4(29), Oct. 12, 1982, 96 Stat. 1307; Pub. L. 99–576, title VII, §701(36), Oct. 28, 1986, 100 Stat. 3293; renumbered §1966 and amended Pub. L. 102–83, §§4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404–406; Pub. L. 111–350, §5(j)(2), Jan. 4, 2011, 124 Stat. 3850.)

Editorial Notes

Amendments

2011—Subsec. (a). Pub. L. 111–350 substituted "section 6101(b) to (d) of title 41" for "section 3709 of the Revised Statutes, as amended (41 U.S.C. 5)".

1991—Pub. L. 102–83 renumbered section 766 of this title as this section and substituted "Secretary" for "Administrator" wherever appearing.

1986—Subsec. (c). Pub. L. 99–576, §701(36)(A), substituted "the Administrator" for "him".

Subsec. (d). Pub. L. 99–576, §701(36)(B), substituted "the Administrator" for "he".

1982—Subsec. (a). Pub. L. 97–295 substituted "percent" for "per centum".

§1967. Persons insured; amount

(a)(1) Subject to an election under paragraph (2), any policy of insurance purchased by the Secretary under section 1966 of this title shall automatically insure the following persons against death:

(A) In the case of any member of a uniformed service on active duty (other than active duty for training)—

(i) the member; and

(ii) each insurable dependent of the member (other than a dependent who is also a member of a uniformed service and, because of such membership, is automatically insured under this paragraph).

(B) Any member of a uniformed service on active duty for training or inactive duty training scheduled in advance by competent authority.

(C) In the case of any member of the Ready Reserve of a uniformed service who meets the qualifications set forth in subparagraph (B) or (C) of section 1965(5) of this title—

(i) the member; and

(ii) each insurable dependent of the member (other than a dependent who is also a member of a uniformed service and, because of such membership, is automatically insured under this paragraph).

(2)(A) A member may elect in writing not to be insured under this subchapter.

(B) A member may elect in writing not to insure the member's spouse under this subchapter.

(3)(A) Subject to subparagraphs (B), (C), and (D), the amount for which a person is insured under this subchapter is as follows:

(i) In the case of a member, $500,000.

(ii) In the case of a member's spouse, $100,000.

(iii) In the case of a member's child, $10,000.

(B) A member may elect in writing to be insured or to insure the member's spouse in an amount less than the amount provided for under subparagraph (A). The member may not elect to insure the member's child in an amount less than $10,000. The amount of insurance so elected shall, in the case of a member, be evenly divisible by $50,000 and, in the case of a member's spouse, be evenly divisible by $10,000.

(C) In no case may the amount of insurance coverage under this subsection of a member's spouse exceed the amount of insurance coverage of the member.

(D) In the case of a member who elects under paragraph (2)(A) not to be insured under this section, or who elects under subparagraph (B) to be insured for an amount less than the maximum amount provided under subparagraph (A), and who is deployed to a combat theater of operations, the member—

(i) shall be insured under this subchapter for the maximum amount provided under subparagraph (A) for the period of such deployment; and

(ii) upon the end of such deployment—

(I) shall be insured in the amount elected by the member under subparagraph (B); or

(II) shall not be insured, if so elected under paragraph (2)(A).

(4)(A) An insurable dependent of a member is not insured under this chapter unless the member is insured under this subchapter.

(B) An insurable dependent who is a child may not be insured at any time by the insurance coverage under this chapter of more than one member. If an insurable dependent who is a child is otherwise eligible to be insured by the coverage of more than one member under this chapter, the child shall be insured by the coverage of the member whose eligibility for insurance under this subchapter occurred first, except that if that member does not have legal custody of the child, the child shall be insured by the coverage of the member who has legal custody of the child.

(5) The insurance shall be effective with respect to a member and the insurable dependents of the member on the latest of the following dates:

(A) The first day of active duty or active duty for training.

(B) The beginning of a period of inactive duty training scheduled in advance by competent authority.

(C) The first day a member of the Ready Reserve meets the qualifications set forth in subparagraph (B) or (C) of section 1965(5) of this title.

(D) The date certified by the Secretary to the Secretary concerned as the date Servicemembers' Group Life Insurance under this subchapter for the class or group concerned takes effect.

(E) In the case of an insurable dependent who is a spouse, the date of marriage of the spouse to the member.

(F) In the case of an insurable dependent who is a child, the date of birth of such child or, if the child is not the natural child of the member, the date on which the child acquires status as an insurable dependent of the member.

(b) Any member (other than one who has elected not to be insured under this subchapter for the period or periods of duty involved)—

(1) who, when authorized or required by competent authority, assumes an obligation to perform (for less than thirty-one days) active duty, or active duty for training, or inactive duty training scheduled in advance by competent authority; and

(2) who is rendered uninsurable at standard premium rates according to the good health standards approved by the Secretary, or dies within one hundred and twenty days thereafter, from a disability, or aggravation of a preexisting disability, incurred by such member while proceeding directly to or returning directly from such active duty, active duty for training, or inactive duty training as the case may be;

shall be deemed to have been on active duty, active duty for training, or inactive duty training, as the case may be, and to have been insured under this subchapter at the time such disability was incurred or aggravated, and if death occurs within one hundred and twenty days thereafter as a result of such disability to have been insured at the time of death. In determining whether or not such individual was so authorized or required to perform such duty, and whether or not such member was rendered uninsurable or died within one hundred and twenty days thereafter from a disability so incurred or aggravated, there shall be taken into account the call or order to duty, the orders and authorizations of competent authority, the hour on which the member began to so proceed or to return, the hour on which such member was scheduled to arrive for, or on which such member ceased to perform such duty; the method of travel employed; such member's itinerary; the manner in which the travel was performed; and the immediate cause of disability or death. Whenever any claim is filed alleging that the claimant is entitled to benefits by reason of this subsection, the burden of proof shall be on the claimant.

(c) If a person eligible for insurance under this subchapter is not so insured, or is insured for less than the maximum amount provided for the person under subparagraph (A) of subsection (a)(3), by reason of an election made by a member under subparagraph (B) of that subsection, the person may thereafter be insured under this subchapter in the maximum amount or any lesser amount elected as provided in such subparagraph (B) upon written application by the member, proof of good health of each person (other than a child) to be so insured, and compliance with such other terms and conditions as may be prescribed by the Secretary. Any former member insured under Veterans' Group Life Insurance who again becomes eligible for Servicemembers' Group Life Insurance and declines such coverage solely for the purpose of maintaining such member's Veterans' Group Life Insurance in effect shall upon termination of coverage under Veterans' Group Life Insurance be automatically insured under Servicemembers' Group Life Insurance, if otherwise eligible therefor.

(d) Whenever a member has the opportunity to make an election under subsection (a) not to be insured under this subchapter, or to be insured under this subchapter in an amount less than the maximum amount in effect under paragraph (3)(A)(i) of that subsection, and at such other times periodically thereafter as the Secretary concerned considers appropriate, the Secretary concerned shall furnish to the member general information concerning life insurance. Such information shall include—

(1) the purpose and role of life insurance in financial planning;

(2) the difference between term life insurance and whole life insurance;

(3) the availability of commercial life insurance; and

(4) the relationship between Servicemembers' Group Life Insurance and Veterans' Group Life Insurance.

(e) The effective date and time for any change in benefits under the Servicemembers' Group Life Insurance Program shall be based on the date and time according to the time zone immediately west of the International Date Line.

(f)(1) If a member who is married and who is eligible for insurance under this section makes an election under subsection (a)(2)(A) not to be insured under this subchapter, the Secretary concerned shall notify the member's spouse, in writing, of that election.

(2) In the case of a member who is married and who is insured under this section and whose spouse is designated as a beneficiary of the member under this subchapter, whenever the member makes an election under subsection (a)(3)(B) for insurance of the member in an amount that is less than the maximum amount provided under subsection (a)(3)(A)(i), the Secretary concerned shall notify the member's spouse, in writing, of that election—

(A) in the case of the first such election; and

(B) in the case of any subsequent such election if the effect of such election is to reduce the amount of insurance coverage of the member from that in effect immediately before such election.

(3) In the case of a member who is married and who is insured under this section, if the member makes a designation under section 1970(a) of this title of any person other than the spouse or a child of the member as the beneficiary of the member for any amount of insurance under this subchapter, the Secretary concerned shall notify the member's spouse, in writing, that such a beneficiary designation has been made by the member, except that such a notification is not required if the spouse has previously received such a notification under this paragraph and if immediately before the new designation by the member under section 1970(a) of this title the spouse is not a designated beneficiary of the member for any amount of insurance under this subchapter.

(4) A notification required by this subsection is satisfied by a good faith effort to provide the required information to the spouse at the last address of the spouse in the records of the Secretary concerned. Failure to provide a notification required under this subsection in a timely manner does not affect the validity of any election specified in paragraph (1) or (2) or beneficiary designation specified in paragraph (3).

(Added Pub. L. 89–214, §1(a), Sept. 29, 1965, 79 Stat. 881, §767; amended Pub. L. 91–291, §2, June 25, 1970, 84 Stat. 327; Pub. L. 93–289, §4, May 24, 1974, 88 Stat. 166; Pub. L. 97–66, title IV, §401(a), Oct. 17, 1981, 95 Stat. 1030; Pub. L. 99–166, title IV, §401(a), Dec. 3, 1985, 99 Stat. 956; Pub. L. 99–576, title VII, §701(37), Oct. 28, 1986, 100 Stat. 3293; Pub. L. 102–25, title III, §336(a), Apr. 6, 1991, 105 Stat. 89; renumbered §1967 and amended Pub. L. 102–83, §§4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404–406; Pub. L. 102–568, title II, §201, Oct. 29, 1992, 106 Stat. 4324; Pub. L. 103–160, div. A, title XI, §1175(a), Nov. 30, 1993, 107 Stat. 1768; Pub. L. 103–337, div. A, title VI, §651(b), Oct. 5, 1994, 108 Stat. 2792; Pub. L. 104–106, div. A, title VI, §646, Feb. 10, 1996, 110 Stat. 369; Pub. L. 104–275, title IV, §§402(b), 404, 405(b)(1)(A), Oct. 9, 1996, 110 Stat. 3337, 3339; Pub. L. 106–419, title III, §§312(a), 313(b), Nov. 1, 2000, 114 Stat. 1854, 1855; Pub. L. 107–14, §4(b), June 5, 2001, 115 Stat. 26; Pub. L. 109–13, div. A, title I, §1012(a)–(c)(1), (d), (f), May 11, 2005, 119 Stat. 244–246; Pub. L. 109–80, §§2, 3(a), 4, 5(a), Sept. 30, 2005, 119 Stat. 2045, 2046; Pub. L. 110–389, title IV, §403(a)(1), (2)(A), Oct. 10, 2008, 122 Stat. 4174; Pub. L. 111–275, title X, §1001(d)(1), Oct. 13, 2010, 124 Stat. 2896; Pub. L. 112–239, div. A, title VI, §642, Jan. 2, 2013, 126 Stat. 1783; Pub. L. 115–232, div. A, title VI, §625, Aug. 13, 2018, 132 Stat. 1801; Pub. L. 116–283, div. A, title X, §1081(b), Jan. 1, 2021, 134 Stat. 3873; Pub. L. 117–209, §2(a), Oct. 17, 2022, 136 Stat. 2243.)

Editorial Notes

Amendments

2022—Subsec. (a)(3)(A)(i). Pub. L. 117–209 substituted "$500,000" for "$400,000".

2021—Subsec. (a)(3)(D). Pub. L. 116–283 inserted a comma after "theater of operations" in introductory provisions.

2018—Subsec. (a)(3)(A). Pub. L. 115–232, §625(1), substituted "subparagraphs (B), (C), and (D)" for "subparagraphs (B) and (C)" in introductory provisions.

Subsec. (a)(3)(D). Pub. L. 115–232, §625(2), added subpar. (D).

2013—Subsec. (a)(1)(A)(ii), (C)(ii). Pub. L. 112–239 inserted "(other than a dependent who is also a member of a uniformed service and, because of such membership, is automatically insured under this paragraph)" after "insurable dependent of the member".

2010—Subsec. (a)(3)(B). Pub. L. 111–275 substituted "spouse," for "spouse,,".

2008—Subsec. (a)(1)(C), (5)(C). Pub. L. 110–389 substituted "subparagraph (B) or (C) of section 1965(5) of this title" for "section 1965(5)(B) of this title".

2005—Subsec. (a)(2)(A). Pub. L. 109–13, §1012(d), which directed insertion of ", except with respect to insurance provided under paragraph (3)(A)(i)(III)" before period at end, was repealed by Pub. L. 109–80, §2. See Effective and Termination Dates of 2005 Amendments note below.

Subsec. (a)(2)(C). Pub. L. 109–13, §1012(f)(1), which directed addition of subpar. (C), was repealed by Pub. L. 109–80, §2. See Effective and Termination Dates of 2005 Amendments note below. Subpar. (C) read as follows: "Pursuant to regulations prescribed by the Secretary of Defense, notice of an election of a member with a spouse not to be insured under this subchapter, or to be insured under this subchapter in an amount less than the maximum amount provided under paragraph (3)(A)(i)(I), shall be provided to the spouse of the member."

Subsec. (a)(3)(A). Pub. L. 109–13, §1012(f)(2)(A), which directed substitution of ", (C), and (D)" for "and (C)" in introductory provisions, was repealed by Pub. L. 109–80, §2. See Effective and Termination Dates of 2005 Amendments note below.

Subsec. (a)(3)(A)(i). Pub. L. 109–80, §3(a)(1), substituted "$400,000" for "$250,000".

Pub. L. 109–13, §1012(a)(1), which directed the addition of cl. (i) and the striking of former cl. (i), was repealed by Pub. L. 109–80, §2. See Effective and Termination Dates of 2005 Amendments note below. The cl. (i) added by Pub. L. 109–13 read as follows: "In the case of a member—

"(I) $400,000 or such lesser amount as the member may elect as provided in subparagraph (B);

"(II) in the case of a member covered by subsection (e), the amount provided for or elected by the member under subclause (I) plus the additional amount of insurance provided for the member by subsection (e); or

"(III) in the case of a member covered by subsection (e) who has made an election under paragraph (2)(A) not to be insured under this subchapter, the amount of insurance provided for the member by subsection (e)."

Subsec. (a)(3)(B). Pub. L. 109–80, §5(a), substituted "member, be evenly divisible by $50,000 and, in the case of a member's spouse," for "member or spouse".

Pub. L. 109–13, §1012(b), which directed substitution of "member, be evenly divisible by $50,000 and, in the case of a member's spouse" for "member or spouse", was repealed by Pub. L. 109–80, §2. See Effective and Termination Dates of 2005 Amendments note below.

Subsec. (a)(3)(D), (E). Pub. L. 109–13, §1012(f)(2)(B), which directed addition of subpars. (D) and (E), was repealed by Pub. L. 109–80, §2. See Effective and Termination Dates of 2005 Amendments note below. Subpars. (D) and (E) read as follows:

"(D) A member with a spouse may not elect not to be insured under this subchapter, or to be insured under this subchapter in an amount less than the maximum amount provided under subparagraph (A)(i)(I), without the written consent of the spouse.

"(E) Whenever a member who is not married elects not to be insured under this subchapter, or to be insured under this subchapter in an amount less than the maximum amount provided for under subparagraph (A)(i)(I), the Secretary concerned shall provide a notice of such election to any person designated by the member as a beneficiary or designated as the member's next-of-kin for the purpose of emergency notification, as determined under regulations prescribed by the Secretary of Defense."

Subsec. (d). Pub. L. 109–80, §3(a)(2), substituted "in effect under paragraph (3)(A)(i) of that subsection" for "of $250,000" in introductory provisions.

Pub. L. 109–13, §1012(a)(2), which directed substitution of "$400,000" for "$250,000" in introductory provisions, was repealed by Pub. L. 109–80, §2. See Effective and Termination Dates of 2005 Amendments note below.

Subsec. (e). Pub. L. 109–13, §1012(c)(1), which directed addition of subsec. (e) and redesignation of former subsec. (e) as (f), was repealed by Pub. L. 109–80, §2. See Effective and Termination Dates of 2005 Amendments note below. The subsec. (e) added by Pub. L. 109–13 read as follows:

"(e)(1) A member covered by this subsection is any member as follows:

"(A) Any member who dies as a result of one or more wounds, injuries, or illnesses incurred while serving in an operation or area that the Secretary designates, in writing, as a combat operation or a zone of combat, respectively, for purposes of this subsection.

"(B) Any member who formerly served in an operation or area so designated and whose death is determined (under regulations prescribed by the Secretary of Defense) to be the direct result of injury or illness incurred or aggravated while so serving.

"(2) The additional amount of insurance under this subchapter that is provided for a member by this subsection is $150,000, except that in a case in which the amount provided for or elected by the member under subsection (a)(3)(A)(i)(I) exceeds $250,000, the additional amount of insurance under this subchapter that is provided for the member by this subsection shall be reduced to such amount as is necessary to comply with the limitation in paragraph (3).

"(3) The total amount of insurance payable for a member under this subchapter may not exceed $400,000.

"(4) While a member is serving in an operation or area designated as described in paragraph (1), the cost of insurance of the member under this subchapter that is attributable to $150,000 of insurance coverage shall, at the election of the Secretary concerned—

"(A) be contributed as provided in section 1969(b)(2) of this title, rather through deduction or withholding from the member's pay; or

"(B) if deducted or withheld from the member's pay, be reimbursed to the member through such mechanism as the Secretary concerned determines appropriate."

Subsec. (f). Pub. L. 109–80, §4, added subsec. (f).

Pub. L. 109–13, §1012(c)(1)(A), which directed redesignation of subsec. (e) as (f), was repealed by Pub. L. 109–80, §2. See Effective and Termination Dates of 2005 Amendments note below.

2001—Subsec. (a). Pub. L. 107–14, §4(b)(1), amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: "Any policy of insurance purchased by the Secretary under section 1966 of this title shall automatically insure against death—

"(1) any member of a uniformed service on active duty, active duty for training, or inactive duty training scheduled in advance by competent authority; and

"(2) any member of the Ready Reserve of a uniformed service who meets the qualifications set forth in subparagraph (B) or (C) of section 1965(5) of this title;

in the amount of $250,000, unless such member elects in writing (A) not to be insured under this subchapter, or (B) to be insured in an amount less than $250,000 that is evenly divisible by $10,000. The insurance shall be effective the first day of active duty or active duty for training, or the beginning of a period of inactive duty training scheduled in advance by competent authority, or the first day a member of the Ready Reserve meets the qualifications set forth in subparagraph (B) or (C) of section 1965(5) of this title, or the date certified by the Secretary to the Secretary concerned as the date Servicemembers' Group Life Insurance under this subchapter for the class or group concerned takes effect, whichever is the later date."

Subsec. (c). Pub. L. 107–14, §4(b)(2), inserted first sentence and struck out former first sentence which read as follows: "If any member elects not to be insured under this subchapter or to be insured in any amount less than $250,000, such member may thereafter be insured under this subchapter in the amount of $250,000 or any lesser amount evenly divisible by $10,000 upon written application, proof of good health, and compliance with such other terms and conditions as may be prescribed by the Secretary."

2000—Subsec. (a). Pub. L. 106–419, §313(b), substituted "subparagraph (B) or (C) of section 1965(5) of this title" for "section 1965(5)(B) of this title" in par. (2) and concluding provisions.

Pub. L. 106–419, §312(a), substituted "$250,000" for "$200,000" in two places in concluding provisions.

Subsecs. (c), (d). Pub. L. 106–419, §312(a), substituted "$250,000" for "$200,000" in two places in subsec. (c) and in introductory provisions of subsec. (d).

1996—Subsec. (a). Pub. L. 104–275, §405(b)(1)(A), substituted "Servicemembers' Group" for "Servicemen's Group" in concluding provisions.

Pub. L. 104–275, §402(b)(1)(C), struck out "or the first day a member of the Reserves, whether or not assigned to the Retired Reserve of a uniformed service, meets the qualifications of section 1965(5)(C) of this title, or the first day a member of the Reserves meets the qualifications of section 1965(5)(D) of this title," after "section 1965(5)(B) of this title," in concluding provisions.

Pub. L. 104–106, §646(1), substituted "$200,000" for "$100,000" in two places in concluding provisions.

Subsec. (a)(1). Pub. L. 104–275, §402(b)(1)(A), inserted "and" at end.

Subsec. (a)(3), (4). Pub. L. 104–275, §402(b)(1)(B), struck out pars. (3) and (4) which read as follows:

"(3) any member assigned to, or who upon application would be eligible for assignment to, the Retired Reserve of a uniformed service who meets the qualifications set forth in section 1965(5)(C) of this title; and

"(4) any member assigned to the Retired Reserve of a uniform service who meets the qualifications set forth in section 1965(5)(D) of this title;".

Subsec. (c). Pub. L. 104–275, §405(b)(1)(A), substituted "Servicemembers' Group" for "Servicemen's Group" in two places.

Pub. L. 104–106, §646(1), substituted "$200,000" for "$100,000" in two places.

Subsec. (d). Pub. L. 104–275, §§402(b)(2), 404, added subsec. (d) and struck out former subsec. (d) which read as follows: "Notwithstanding any other provision of this section, any member who on May 1, 1991 is a member of the Retired Reserve of a uniformed service (or who upon application would be eligible for assignment to the Retired Reserve of a uniformed service) may obtain increased insurance coverage in the amount of $100,000 or any lesser amount evenly divisible by $10,000 if—

"(1) the member—

"(A) is insured under this subchapter on May 1, 1991; or

"(B) within one year after May 1, 1991, reinstates insurance under this subchapter that had lapsed for nonpayment of premiums; and

"(2) the member submits a written application for the increased coverage to the office established pursuant to section 1966(b) of this title within one year after May 1, 1991."

Subsec. (e). Pub. L. 104–275, §405(b)(1)(A), substituted "Servicemembers' Group" for "Servicemen's Group".

Pub. L. 104–106, §646(2), (3), redesignated subsec. (f) as (e) and struck out former subsec. (e) which read as follows: "In addition to the amounts of insurance otherwise provided under this section, an eligible member may, upon application, obtain increased coverage beyond that provided under this section in the amount of $100,000, or any lesser amount evenly divisible by $10,000."

Subsec. (f). Pub. L. 104–106, §646(3), redesignated subsec. (f) as (e).

1994—Subsec. (a). Pub. L. 103–337, §651(b)(4), inserted "or the first day a member of the Reserves meets the qualifications of section 1965(5)(D) of this title," after "section 1965(5)(C) of this title," in second sentence.

Subsec. (a)(4). Pub. L. 103–337, §651(b)(1)–(3), added par. (4).

1993—Subsec. (f). Pub. L. 103–160 added subsec. (f).

1992—Subsec. (e). Pub. L. 102–568 added subsec. (e).

1991—Pub. L. 102–83, §5(a), renumbered section 767 of this title as this section.

Subsec. (a). Pub. L. 102–83, §5(c)(1), substituted "1966" for "766", "1965(5)(B)" for "765(5)(B)" in two places, and "1965(5)(C)" for "765(5)(C)" in two places.

Pub. L. 102–83, §4(b)(1), (2)(E), substituted "Secretary" for "Administrator" in introductory provisions and in last sentence.

Pub. L. 102–25, §336(a)(1), substituted "$100,000" for "$50,000" in two places in concluding provisions.

Subsec. (b)(2). Pub. L. 102–83, §4(b)(1), (2)(E), substituted "Secretary" for "Administrator".

Subsec. (c). Pub. L. 102–83, §4(b)(1), (2)(E), substituted "Secretary" for "Administrator".

Pub. L. 102–25, §336(a)(1), substituted "$100,000" for "$50,000" in two places.

Subsec. (d). Pub. L. 102–83, §5(c)(1), substituted "1966(b)" for "766(b)" in par. (2).

Pub. L. 102–54, §336(a)(2), substituted "May 1, 1991" for "January 1, 1986" wherever appearing and "$100,000" for "$50,000" in introductory provisions.

1986—Subsec. (b). Pub. L. 99–576, §701(37)(A), substituted "such member" for "him", "such member" for "he" in three places, and "such member's" for "his".

Subsec. (c). Pub. L. 99–576, §701(37)(B)(i), substituted "such member's" for "his".

Pub. L. 99–576, §701(37)(B)(ii), which directed that subsec. (c) be amended by substituting "such member" for "he", could not be executed, because "he" does not appear in text. See 1985 Amendment note below.

1985—Subsec. (a). Pub. L. 99–166, §401(a)(1), increased the amount of insurance to $50,000 from $35,000 and substituted "an amount less than $50,000 that is evenly divisible by $10,000" for "the amount of $30,000, $25,000, $20,000, $15,000, $10,000, or $5,000".

Subsec. (c). Pub. L. 99–166, §401(a)(2), substituted "any amount less than $50,000, such member may thereafter be insured under this subchapter in the amount of $50,000 or any lesser amount evenly divisible by $10,000" for "the amount of $30,000, $25,000, $20,000, $15,000, $10,000, or $5,000, he may thereafter be insured under this subchapter or insured in the amount of $35,000, $30,000, $25,000, $20,000, $15,000, or $10,000 under this subchapter, as the case may be,".

Subsec. (d). Pub. L. 99–166, §401(a)(3), substituted "January 1, 1986" for "the effective date of this subsection" wherever appearing, and substituted "in the amount of $50,000 or any lesser amount evenly divisible by $10,000" for "up to a maximum of $35,000 (in any amount divisible by $5,000)".

1981—Subsec. (a). Pub. L. 97–66, §401(a)(1), substituted "in the amount of $35,000 unless such member elects in writing (A) not to be insured under this subchapter, or (B) to be insured in the amount of $30,000, $25,000, $20,000, $15,000, $10,000, or $5,000" for "in the amount of $20,000 unless such member elects in writing (A) not to be insured under this subchapter, or (B) to be insured in the amount of $15,000, $10,000, or $5,000".

Subsec. (c). Pub. L. 97–66, §401(a)(2), substituted "insured in the amount of $30,000, $25,000, $20,000, $15,000, $10,000, or $5,000, he may thereafter be insured under this subchapter or insured in the amount of $35,000, $30,000, $25,000, $20,000, $15,000, or $10,000 under this subchapter" for "insured in the amount of $15,000, $10,000, or $5,000, he may thereafter be insured under this subchapter or insured in the amount of $20,000, $15,000, or $10,000 under this subchapter".

Subsec. (d). Pub. L. 97–66, §401(a)(3), added subsec. (d).

1974—Subsec. (a). Pub. L. 93–289, §4(1), authorized insurance for any member of Ready Reserve who meets qualifications set forth in section 765(5)(B) of this title, and any member assigned to, or who upon application would be eligible for assignment to, the Retired Reserve who meets the qualifications set forth in section 765(5)(C) of this title, increased the amount of insurance from $15,000 to $20,000, permitted a member to elect to be insured for $15,000, and prescribed the effective dates of insurance for members of the Ready Reserve and members of the Reserves, whether or not assigned to the Retired Reserves.

Subsec. (b). Pub. L. 93–289, §4(2), substituted "one hundred and twenty days" for "ninety days" in three places.

Subsec. (c). Pub. L. 93–289, §4(3), inserted provisions authorizing members who elected to be insured in amounts of $15,000, $10,000, or $5,000 to increase the amount of insurance to $20,000, and inserted sentence providing for automatic insurance for former members insured under Veterans' Group Life Insurance who decline coverage under Servicemen's Group Life Insurance.

1970—Subsec. (a). Pub. L. 91–291 increased from $10,000 to $15,000 maximum amount of insurance authorized for members of uniformed services and inserted references to active duty for training and inactive duty training scheduled in advance by competent authority.

Subsec. (b). Pub. L. 91–291 added subsec. (b). Former subsec. (b) redesignated (c).

Subsec. (c). Pub. L. 91–291 redesignated former subsec. (b) as subsec. (c) and inserted provisions reflecting the increase from $10,000 to $15,000 in maximum available insurance for members of uniformed services.

Statutory Notes and Related Subsidiaries

Effective Date of 2022 Amendment

Pub. L. 117–209, §2(b), Oct. 17, 2022, 136 Stat. 2243, provided that: "The amendment made by subsection (a) [amending this section] shall take effect on the later of—

"(1) the date that is 60 days after the date of the enactment of this Act [Oct. 17, 2022]; or

"(2) the date on which the Secretary of Veterans Affairs determines that—

"(A) the amount for which a member will be insured pursuant to the amendment made by subsection (a) and the premiums for such amount are administratively and actuarially sound for the Servicemembers' Group Life Insurance program under subchapter III of chapter 19 of title 38, United States Code, and the Veterans' Group Life Insurance program under section 1977 of such title; and

"(B) the increase in such amount carried out pursuant to the amendment will not result in such programs operating at a loss."

Effective Date of 2008 Amendment

Pub. L. 110–389, title IV, §403(e)(1), Oct. 10, 2008, 122 Stat. 4174, provided that: "The amendments made by subsection (a) [amending this section and section 1969 of this title] shall take effect on the date of the enactment of this Act [Oct. 10, 2008]."

Effective and Termination Dates of 2005 Amendments

Pub. L. 109–80, §2, Sept. 30, 2005, 119 Stat. 2045, provided that: "Effective as of August 31, 2005, section 1012 of division A of the Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Tsunami Relief, 2005 (Public Law 109–13; 119 Stat. 244) [amending this section and sections 1969, 1970, and 1977 of this title and enacting provisions set out as a note under this section], including the amendments made by that section, are repealed, and sections 1967, 1969, 1970, and 1977 of title 38, United States Code, shall be applied as if that section had not been enacted."

Pub. L. 109–80, §3(c), Sept. 30, 2005, 119 Stat. 2046, provided that: "The amendments made by this section [amending this section and section 1977 of this title] shall take effect as of September 1, 2005, and shall apply with respect to deaths occurring on or after that date."

Pub. L. 109–80, §4, Sept. 30, 2005, 119 Stat. 2046, provided that the amendment made by that section is effective Sept. 1, 2005.

Pub. L. 109–80, §5(b), Sept. 30, 2005, 119 Stat. 2047, provided that: "The amendment made by subsection (a) [amending this section] shall take effect as of September 1, 2005."

Pub. L. 109–77, §115, Sept. 30, 2005, 119 Stat. 2040, provided that: "The provisions of, and amendments made by, sections 1011, 1012, 1013, 1023, and 1026 of Public Law 109–13 [amending this section, sections 1969, 1970, and 1977 of this title, section 1478 of Title 10, Armed Forces, and section 411h of Title 37, Pay and Allowances of the Uniformed Services, and enacting provisions set out as notes under this section, section 1478 of Title 10, and section 411h of Title 37] shall continue in effect, notwithstanding the fiscal year limitation in section 1011 [119 Stat. 244] and the provisions of sections 1012(i), 1013(e), 1023(c), and 1026(e) of that Public Law [enacting provisions set out as notes under this section, section 1478 of Title 10, and section 411h of Title 37], through the earlier of: (1) the date specified in section 106(3) of this joint resolution [Dec. 31, 2005]; or (2) with respect to any such section of Public Law 109–13, the date of the enactment into law of legislation that supersedes the provisions of, or the amendments made by, that section."

Pub. L. 109–13, div. A, title I, §1012(h), (i), May 11, 2005, 119 Stat. 246, which provided that section 1012 of Pub. L. 109–13, amending this section and sections 1969, 1970, and 1977 of this title, would take effect on the first day of the first month that began more than 90 days after May 11, 2005, and would terminate on Sept. 30, 2005, and that provisions of such sections as in effect on the day before May 11, 2005, would be revived, was repealed by Pub. L. 109–80, §2, Sept. 30, 2005, 119 Stat. 2045, effective Aug. 31, 2005.

Effective Date of 2001 Amendment

Amendment by Pub. L. 107–14 effective on the first day of the first month that begins more than 120 days after June 5, 2001, see section 4(g)(1) of Pub. L. 107–14, set out as a note under section 101 of this title.

Pub. L. 107–14, §5, June 5, 2001, 115 Stat. 30, provided that:

"(a) Applicability of Increase in Benefit.—Notwithstanding subsection (c) of section 312 of the Veterans Benefits and Health Care Improvement Act of 2000 (Public Law 106–419; 114 Stat. 1854) [set out as a note below], the amendments made by subsection (a) of that section [amending this section] shall take effect on October 1, 2000, with respect to any member of the uniformed services who died in the performance of duty (as determined by the Secretary concerned) during the period beginning on October 1, 2000, and ending at the close of March 31, 2001, and who on the date of death was insured under the Servicemembers' Group Life Insurance program under subchapter III of chapter 19 of title 38, United States Code, for the maximum coverage available under that program.

"(b) Definitions.—In this section:

"(1) The term 'Secretary concerned' has the meaning given that term in section 101(25) of title 38, United States Code.

"(2) The term 'uniformed services' has the meaning given that term in section 1965(6) of title 38, United States Code."

Effective Date of 2000 Amendment

Pub. L. 106–419, title III, §312(c), Nov. 1, 2000, 114 Stat. 1854, provided that: "The amendments made by this section [amending this section and section 1977 of this title] shall take effect on the first day of the first month that begins more than 120 days after the date of the enactment of this Act [Nov. 1, 2000]."

Effective Date of 1996 Amendment

Pub. L. 104–106, div. A, title VI, §646, Feb. 10, 1996, 110 Stat. 369, provided that the amendments made by that section are effective Apr. 1, 1996.

Effective Date of 1993 Amendment

Pub. L. 103–160, div. A, title XI, §1175(b), Nov. 30, 1993, 107 Stat. 1768, provided that: "The amendment made by subsection (a) [amending this section] shall apply with respect to amendments to chapter 19 of title 38, United States Code, that take effect after November 29, 1992."

Effective Date of 1992 Amendment

Amendment by Pub. L. 102–568 effective Dec. 1, 1992, see section 205 of Pub. L. 102–568, set out as an Effective Date note under section 1922A of this title.

Effective Date of 1991 Amendment

Pub. L. 102–25, title III, §336(c)(1), Apr. 6, 1991, 105 Stat. 90, provided that: "The amendments made by subsection (a) [amending this section] shall apply with respect to deaths on or after the date of the enactment of this Act [Apr. 6, 1991]."

Effective Date of 1985 Amendment

Pub. L. 99–166, title IV, §401(c), Dec. 3, 1985, 99 Stat. 957, as amended by Pub. L. 99–227, §3, Dec. 28, 1985, 99 Stat. 1745, provided that:

"(1) Except as provided in paragraph (2), the amendments made by subsections (a) and (b) [amending this section and section 777 [now 1977] of this title] shall take effect on January 1, 1986.

"(2) The amendment made by subsection (a)(1)(A) [amending this section] shall be deemed to have taken effect on December 12, 1985, with respect to members who—

"(A) died after December 11, 1985, and before January 1, 1986; and

"(B) were, on the date of death, insured in the amount of $35,000 under subchapter III of chapter 19 of title 38, United States Code."

Effective Date of 1981 Amendment

Amendment by Pub. L. 97–66 effective Dec. 1, 1981, see section 701(b)(2) of Pub. L. 97–66, set out as a note under section 1114 of this title.

Effective Date of 1974 Amendment

Pub. L. 93–289, §12(3), May 24, 1974, 88 Stat. 173, provided that: "The amendments increasing the maximum amount of Servicemen's Group Life Insurance shall become effective upon the date of enactment of this Act [May 24, 1974]."

Effective Date of 1970 Amendment

Amendment by Pub. L. 91–291 effective June 25, 1970, see section 14(a) of Pub. L. 91–291, set out as a note under section 1317 of this title.

Payment of Death Gratuity to SGLI Beneficiaries

Pub. L. 103–139, title VIII, §8134, Nov. 11, 1993, 107 Stat. 1471, required Secretary of Defense to pay death gratuity to each beneficiary under Servicemen's Group Life Insurance policy in case of each deceased member of uniformed services who died on or after Oct. 29, 1992, and before Dec. 1, 1992, and whose death was in performance of duty.

§1968. Duration and termination of coverage; conversion

(a) Each policy purchased under this subchapter shall contain a provision, in terms approved by the Secretary, to the effect that any insurance thereunder on any member of the uniformed services, and any insurance thereunder on any insurable dependent of such a member, unless discontinued or reduced upon the written request of the insured (or discontinued pursuant to section 1969(a)(2)(B) of this title), shall continue in effect while the member is on active duty, active duty for training, or inactive duty training scheduled in advance by competent authority during the period thereof, or while the member meets the qualifications set forth in subparagraph (B) or (C) of section 1965(5) of this title and such insurance shall cease as follows:

(1) With respect to a member on active duty or active duty for training under a call or order to duty that does not specify a period of less than 31 days, insurance under this subchapter shall cease as follows:

(A) 120 days after the separation or release from active duty or active duty for training, unless on the date of such separation or release the member is totally disabled, under criteria established by the Secretary, in which event the insurance shall cease on the earlier of the following dates (but in no event before the end of 120 days after such separation or release):

(i) The date on which the insured ceases to be totally disabled.

(ii) The date that is two years after the date of separation or release from such active duty or active duty for training.

(B) At the end of the thirty-first day of a continuous period of (i) absence without leave, (ii) confinement by civil authorities under a sentence adjudged by a civilian court, or (iii) confinement by military authorities under a courtmartial sentence involving total forfeiture of pay and allowances. Any insurance so terminated as the result of such an absence or confinement, together with any beneficiary designation in effect for such insurance at such termination thereof, shall be automatically revived as of the date the member is restored to active duty with pay or to active duty for training with pay.

(2) With respect to a member on active duty or active duty for training under a call or order to duty that specifies a period of less than 31 days, insurance under this subchapter shall cease at midnight, local time, on the last day of such duty, unless on such date the insured is suffering from a disability incurred or aggravated during such period which, within 120 days after such date, (i) results in death, or (ii) renders the member uninsurable at standard premium rates according to the good health standards approved by the Secretary, in which event the insurance shall continue in force to death, or for 120 days after such date, whichever is the earlier date.

(3) With respect to a member on inactive duty training scheduled in advance by competent authority, insurance under this subchapter shall cease at the end of such scheduled training period, unless at such time the insured is suffering from a disability incurred, or aggravated during such period which, within 120 days after the date of such training, (i) results in death, or (ii) renders the member uninsurable at standard premium rates according to the good health standards approved by the Secretary in which event the insurance shall continue in force to death, or for 120 days after the date such training terminated, whichever is the earlier date.

(4) With respect to a member of the Ready Reserve of a uniformed service who meets the qualifications set forth in subparagraph (B) or (C) of section 1965(5) of this title, insurance under this subchapter shall cease 120 days after separation or release from such assignment, unless on the date of such separation or release the member is totally disabled, under criteria established by the Secretary, in which event the insurance shall cease on the earlier of the following dates (but in no event before the end of 120 days after separation or release from such assignment):

(A) The date on which the insured ceases to be totally disabled.

(B) The date that is two years after the date of separation or release from such assignment.

(5) With respect to an insurable dependent of the member, insurance under this subchapter shall cease—

(A) 120 days after the date of an election made in writing by the member to terminate the coverage; or

(B) on the earliest of—

(i) 120 days after the date of the member's death;

(ii)(I) in the case of a member of the Ready Reserve of a uniformed service who meets the qualifications set forth in subparagraph (B) or (C) of section 1965(5) of this title, 120 days after separation or release from such assignment; or

(II) in the case of any other member of the uniformed services, 120 days after the date of the member's separation or release from the uniformed services; or

(iii) 120 days after the termination of the dependent's status as an insurable dependent of the member.

(b)(1) Each policy purchased under this subchapter shall contain a provision, in terms approved by the Secretary, that, except as hereinafter provided, Servicemembers' Group Life Insurance which is continued in force after expiration of the period of duty or travel under section 1967(b) or 1968(a) of this title, effective the day after the date such insurance would cease—

(A) shall be automatically converted to Veterans' Group Life Insurance (to insure against death of the member only), subject to (i) the timely payment of the initial premium under terms prescribed by the Secretary, and (ii) the terms and conditions set forth in section 1977 of this title; or

(B) at the election of the member, shall be converted to an individual policy of insurance as described in section 1977(e) of this title upon written application for conversion made to the participating company selected by the member and payment of the required premiums.

(2) Automatic conversion to Veterans' Group Life Insurance under paragraph (1) shall be effective only in the case of an otherwise eligible member or former member who is separated or released from a period of active duty or active duty for training or inactive duty training on or after the date on which the Veterans' Group Life Insurance program (provided for under section 1977 of this title) becomes effective.

(3)(A) In the case of a policy purchased under this subchapter for an insurable dependent who is a spouse, upon election of the spouse, the policy may be converted to an individual policy of insurance under the same conditions as described in section 1977(e) of this title (with respect to conversion of a Veterans' Group Life Insurance policy to such an individual policy) upon written application for conversion made to the participating company selected by the spouse and payment of the required premiums. Conversion of such policy to Veterans' Group Life Insurance is prohibited.

(B) In the case of a policy purchased under this subchapter for an insurable dependent who is a child, such policy may not be converted under this subsection.

(Added Pub. L. 89–214, §1(a), Sept. 29, 1965, 79 Stat. 881, §768; amended Pub. L. 91–291, §3, June 25, 1970, 84 Stat. 328; Pub. L. 93–289, §5(a), May 24, 1974, 88 Stat. 166; Pub. L. 97–295, §4(30), Oct. 12, 1982, 96 Stat. 1307; Pub. L. 99–576, title VII, §701(38), Oct. 28, 1986, 100 Stat. 3293; renumbered §1968 and amended Pub. L. 102–83, §§4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404–406; Pub. L. 103–337, div. A, title VI, §651(c), title XVI, §1677(d)(1), Oct. 5, 1994, 108 Stat. 2792, 3020; Pub. L. 104–106, div. A, title VI, §647(b), Feb. 10, 1996, 110 Stat. 370; Pub. L. 104–275, title IV, §§402(c), 403(a), 405(b)(1)(B), Oct. 9, 1996, 110 Stat. 3337–3339; Pub. L. 106–65, div. A, title X, §1066(d)(1), Oct. 5, 1999, 113 Stat. 773; Pub. L. 106–419, title III, §313(b), Nov. 1, 2000, 114 Stat. 1855; Pub. L. 107–14, §4(c), (f), June 5, 2001, 115 Stat. 28, 29; Pub. L. 109–233, title III, §301, June 15, 2006, 120 Stat. 405; Pub. L. 110–389, title IV, §403(b), Oct. 10, 2008, 122 Stat. 4174; Pub. L. 111–275, title IV, §§402(a), 403, Oct. 13, 2010, 124 Stat. 2879.)

Editorial Notes

Amendments

2010—Subsec. (a)(1)(A)(ii). Pub. L. 111–275, §402(a)(1), added cl. (ii) and struck out former cl. (ii) which read as follows: "The date that is—

"(I) two years after the date of separation or release from such active duty or active duty for training, in the case of such a separation or release during the period beginning on the date that is one year before the date of the enactment of Veterans' Housing Opportunity and Benefits Improvement Act of 2006 and ending on September 30, 2011; and

"(II) 18 months after the date of separation or release from such active duty or active duty for training, in the case of such a separation or release on or after October 1, 2011."

Subsec. (a)(4)(B). Pub. L. 111–275, §402(a)(2), added subpar. (B) and struck out former subpar. (B) which read as follows: "The date that is—

"(i) two years after the date of separation or release from such assignment, in the case of such a separation or release during the period beginning on the date that is one year before the date of the enactment of Veterans' Housing Opportunity and Benefits Improvement Act of 2006 and ending on September 30, 2011; and

"(ii) 18 months after the date of separation or release from such assignment, in the case of such a separation or release on or after October 1, 2011."

Subsec. (a)(5)(B)(ii). Pub. L. 111–275, §403, amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: "the date of termination of the insurance on the member's life under this subchapter; or".

2008—Subsec. (a)(5)(B)(ii). Pub. L. 110–389 struck out "120 days after" before "the date".

2006—Subsec. (a)(1). Pub. L. 109–233, §301(a)(2)(A), substituted "shall cease as follows:" for "shall cease—" in introductory provisions.

Subsec. (a)(1)(A). Pub. L. 109–233, §301(a)(1), substantially rewrote subpar. (A). Prior to amendment, subpar. (A) read as follows: "120 days after the separation or release from active duty or active duty for training, unless on the date of such separation or release the member is totally disabled, under criteria established by the Secretary, in which event the insurance shall cease one year after the date of separation or release from such active duty or active duty for training, or on the date the insured ceases to be totally disabled, whichever is the earlier date, but in no event before the end of 120 days after such separation or release; or".

Subsec. (a)(1)(B). Pub. L. 109–233, §301(a)(2)(B), substituted "At" for "at" after subpar. designation.

Subsec. (a)(4). Pub. L. 109–233, §301(b), substantially rewrote par. (4). Prior to amendment, par. (4) read as follows: "With respect to a member of the Ready Reserve of a uniformed service who meets the qualifications set forth in subparagraph (B) or (C) of section 1965(5) of this title, insurance under this subchapter shall cease 120 days after separation or release from such assignment, unless on the date of such separation or release the member is totally disabled, under criteria established by the Secretary, in which event the insurance shall cease one year after the date of separation or release from such assignment, or on the date the insured ceases to be totally disabled, whichever is the earlier date, but in no event before the end of 120 days after separation or release from such assignment."

2001—Subsec. (a). Pub. L. 107–14, §4(c)(1)(A), (2)(A), in introductory provisions, inserted "and any insurance thereunder on any insurable dependent of such a member," after "any insurance thereunder on any member of the uniformed services," and substituted "and such insurance shall cease as follows:" for ", and such insurance shall cease—".

Subsec. (a)(1). Pub. L. 107–14, §4(c)(2)(B), (C)(i), in introductory provisions, substituted "With respect" for "with respect" and "31 days, insurance under this subchapter shall cease—" for "thirty-one days—".

Subsec. (a)(1)(A). Pub. L. 107–14, §4(c)(2)(C)(ii), substituted "120 days" for "one hundred and twenty days" and "before the end of 120 days" for "prior to the expiration of one hundred and twenty days".

Subsec. (a)(1)(B). Pub. L. 107–14, §4(c)(2)(C)(iii), substituted a period for semicolon at end.

Subsec. (a)(2). Pub. L. 107–14, §4(c)(2)(B), (D), substituted "With respect" for "with respect", "31 days," for "thirty-one days", and a period for semicolon at end and substituted "120 days" for "one hundred and twenty days" in two places.

Subsec. (a)(3). Pub. L. 107–14, §4(c)(2)(B), (E), substituted "With respect" for "with respect" and a period for "; and" at end, inserted a comma after "competent authority", and substituted "120 days" for "one hundred and twenty days" in two places.

Subsec. (a)(4). Pub. L. 107–14, §4(c)(2)(B), (F) substituted "With respect" for "with respect" and inserted "insurance under this subchapter shall cease" after "section 1965(5) of this title,".

Subsec. (a)(5). Pub. L. 107–14, §4(c)(1)(B), added par. (5).

Subsec. (b)(1)(A). Pub. L. 107–14, §4(c)(3), inserted "(to insure against death of the member only)" after "converted to Veterans' Group Life Insurance".

Subsec. (b)(3). Pub. L. 107–14, §4(f), added par. (3).

2000—Subsec. (a). Pub. L. 106–419 substituted "subparagraph (B) or (C) of section 1965(5) of this title" for "section 1965(5)(B) of this title" in introductory provisions and par. (4).

1999—Subsec. (a). Pub. L. 106–65 made technical amendment to directory language of Pub. L. 104–106, §647(b). See 1996 Amendment note below.

1996—Subsec. (a). Pub. L. 104–275, §402(c)(1)(A), substituted "section 1965(5)(B)" for "subparagraph (B), (C), or (D) of section 1965(5)" in introductory provisions.

Pub. L. 104–106, §647(b), as amended by Pub. L. 106–65, inserted "(or discontinued pursuant to section 1969(a)(2)(B) of this title)" after "upon the written request of the insured" in introductory provisions.

Subsec. (a)(1) to (3). Pub. L. 104–275, §402(c)(1)(B), (C), substituted a semicolon for the period at end of pars. (1) and (2) and "; and" for the period at end of par. (3).

Subsec. (a)(4). Pub. L. 104–275, §402(c)(1)(D)(iv), struck out subpars. (B) and (C) which read as follows:

"(B) unless on the date of such separation or release the member has completed at least twenty years of satisfactory service creditable for retirement purposes under chapter 1223 of title 10 (or under chapter 67 of that title as in effect before the effective date of the Reserve Officer Personnel Management Act) and would upon application be eligible for assignment to or is assigned to the Retired Reserve, in which event the insurance, unless converted to an individual policy under terms and conditions set forth in section 1977(e) of this title, shall, upon timely payment of premiums under terms prescribed by the Secretary directly to the administrative office established under section 1966(b) of this title, continue in force until receipt of the first increment of retirement pay by the member or the member's sixty-first birthday, whichever occurs earlier; or

"(C) unless on the date of such separation or release the member is transferred to the Retired Reserve of a uniformed service under the temporary special retirement authority provided in section 1331a of title 10, in which event the insurance, unless converted to an individual policy under terms and conditions set forth in section 1977(e) of this title, shall, upon timely payment of premiums under terms prescribed by the Secretary directly to the administrative office established under section 1966(b) of this title, continue in force until receipt of the first increment of retirement pay by the member or the member's sixty-first birthday, whichever occurs earlier."

Pub. L. 104–275, §402(c)(1)(D)(i)–(iii), substituted "120 days after separation or release from such assignment, unless on" for "one hundred and twenty days after separation or release from such assignment—

"(A) unless on",

substituted "before the end of 120 days" for "prior to the expiration of one hundred and twenty days", and substituted "such assignment." for "such assignment;".

Subsec. (a)(5), (6). Pub. L. 104–275, §402(c)(1)(E), struck out pars. (5) and (6) which read as follows:

"(5) with respect to a member of the Retired Reserve who meets the qualifications of section 1965(5)(C) of this title, and who was assigned to the Retired Reserve prior to the date insurance under the amendment made by section 5(a) of the Veterans' Insurance Act of 1974 (Public Law 93–289, 88 Stat. 166) is placed in effect for members of the Retired Reserve, at such time as the member receives the first increment of retirement pay, or the member's sixty-first birthday, whichever occurs earlier, subject to the timely payment of the initial and subsequent premiums, under terms prescribed by the Secretary, directly to the administrative office established under section 1966(b) of this title.

"(6) with respect to a member of the Retired Reserve who meets the qualifications of section 1965(5)(D) of this title, at such time as the member receives the first increment of retirement pay, or the member's sixty-first birthday, whichever occurs earlier, subject to the timely payment of the initial and subsequent premiums, under terms prescribed by the Secretary, directly to the administrative office established under section 1966(b) of this title."

Subsec. (b). Pub. L. 104–275, §403(a)(3), substituted "(2) Automatic conversion to Veterans' Group Life Insurance under paragraph (1)" for "Such automatic conversion".

Pub. L. 104–275, §403(a)(2), substituted "would cease—" and subpars. (A) and (B) for "would cease, shall be automatically converted to Veterans' Group Life Insurance subject to (1) the timely payment of the initial premium under terms prescribed by the Secretary, and (2) the terms and conditions set forth in section 1977 of this title."

Pub. L. 104–275, §403(a)(1), inserted "(1)" after "(b)" at beginning of subsec.

Pub. L. 104–275, §402(c)(2), struck out at end "Servicemen's Group Life Insurance continued in force under section 1968(a)(4)(B) or (5) of this title shall not be converted to Veterans' Group Life Insurance. However, a member whose insurance could be continued in force under section 1968(a)(4)(B) of this title, but is not so continued, may, effective the day after the insurance otherwise would cease, convert such insurance to an individual policy under the terms and conditions set forth in section 1977(e) of this title."

Subsec. (b)(1). Pub. L. 104–275, §405(b)(1)(B), substituted "Servicemembers' Group" for "Servicemen's Group".

1994—Subsec. (a). Pub. L. 103–337, §651(c)(1), substituted "subparagraph (B), (C), or (D) of section 1965(5)" for "section 1965(5)(B) or (C)" in introductory provisions.

Subsec. (a)(4)(B). Pub. L. 103–337, §1677(d)(1), substituted "chapter 1223 of title 10 (or under chapter 67 of that title as in effect before the effective date of the Reserve Officer Personnel Management Act)" for "chapter 67 of title 10".

Subsec. (a)(4)(C). Pub. L. 103–337, §651(c)(2), added subpar. (C).

Subsec. (a)(6). Pub. L. 103–337, §651(c)(3), added par. (6).

1991—Pub. L. 102–83, §5(a), renumbered section 768 of this title as this section.

Subsec. (a). Pub. L. 102–83, §5(c)(1), substituted "1965(5)(B)" for "765(5)(B)" in two places, "1977(e)" for "777(e)", "1966(b)" for "766(b)" in two places, and "1965(5)(C)" for "765(5)(C)".

Pub. L. 102–83, §4(b)(1), (2)(E), substituted "Secretary" for "Administrator" wherever appearing.

Subsec. (b). Pub. L. 102–83, §5(c)(1), substituted "1967(b) or 1968(a)" for "767(b) or 768(a)", "1977" for "777" in two places, "1968(a)(4)(B)" for "768(a)(4)(B)" in two places, and "1977(e)" for "777(e)".

Pub. L. 102–83, §4(b)(1), (2)(E), substituted "Secretary" for "Administrator" in two places.

1986—Subsec. (a)(2), (3). Pub. L. 99–576, §701(38)(A), (B), struck out "his" before "death", and substituted "the member" for "his".

Subsec. (b). Pub. L. 99–576, §701(38)(C), substituted "the" for "he" before "insurance otherwise".

1982—Subsec. (a)(5). Pub. L. 97–295 substituted "the amendment made by section 5(a) of the Veterans' Insurance Act of 1974 (Public Law 93–289, 88 Stat. 166)" for "this amendment".

1974—Subsec. (a). Pub. L. 93–289, §5(a)(1)–(3), inserted in opening provisions "or while the member meets the qualifications set forth in section 765(5)(B) or (C) of this title,", substituted "one hundred and twenty days" for "ninety days" wherever appearing in pars. (2) and (3), and added pars. (4) and (5).

Subsec. (b). Pub. L. 93–289, §5(a)(4), substituted provisions requiring policies of Servicemen's Group Life Insurance to contain a provision automatically converting such policy to Veterans' Group Life Insurance, for provisions which required such policies to contain a provision for conversion to an individual policy of insurance, and inserted sentences providing for the effective date of automatic conversion, prohibiting conversion of Servicemen's Group Life Insurance continued in force under section 768(a)(4)(B) or (5) of this title, and authorizing conversion by a member whose insurance could be continued in force under section 768(a)(4)(B) of this title, but is not so continued.

Subsec. (c). Pub. L. 93–289, §5(a)(5), repealed subsec. (c) which related to conversion by eligible insured persons to policies written by companies participating in the program established by this subchapter.

1970—Subsec. (a). Pub. L. 91–291 designated existing provisions as subsec. (a) and substituted provisions covering the duration of coverage for provisions covering termination of coverage. For termination and conversion of insurance see subsecs. (b) and (c) of this section.

Subsecs. (b), (c). Pub. L. 91–291 added subsecs. (b) and (c).

Statutory Notes and Related Subsidiaries

Effective Date of 2010 Amendment

Pub. L. 111–275, title IV, §402(b), Oct. 13, 2010, 124 Stat. 2879, provided that: "The amendments made by subsection (a) [amending this section] shall apply with respect to a person who is separated or released on or after June 15, 2005."

Effective Date of 2008 Amendment

Pub. L. 110–389, title IV, §403(e)(2), Oct. 10, 2008, 122 Stat. 4174, provided that: "The amendment made by subsection (b) [amending this section] shall apply with respect to Servicemembers' Group Life Insurance coverage for an insurable dependent of a member, as defined in section 1965(10) of title 38, United States Code (as amended by section 402 of this Act), that begins on or after the date of the enactment of this Act [Oct. 10, 2008]."

Effective Date of 2001 Amendment

Amendment by Pub. L. 107–14 effective on the first day of the first month that begins more than 120 days after June 5, 2001, see section 4(g)(1) of Pub. L. 107–14, set out as a note under section 101 of this title.

Effective Date of 1999 Amendment

Pub. L. 106–65, div. A, title X, §1066(d)(1), Oct. 5, 1999, 113 Stat. 773, provided that the amendment made by section 1066(d)(1) is effective Apr. 1, 1996.

Effective Date of 1996 Amendment

Pub. L. 104–106, div. A, title VI, §647(c), Feb. 10, 1996, 110 Stat. 370, provided that: "The amendments made by this section [amending this section and section 1969 of this title] shall take effect on April 1, 1996."

Effective Date of 1994 Amendment

Amendment by section 1677(d)(1) of Pub. L. 103–337 effective Dec. 1, 1994, except as otherwise provided, see section 1691 of Pub. L. 103–337, set out as an Effective Date note under section 10001 of Title 10, Armed Forces.

Effective Date of 1974 Amendment

Pub. L. 93–289, §12(4), May 24, 1974, 88 Stat. 173, provided that: "The amendments made by sections 5(a)(4) and (5) of this Act [amending this section], and those enacting a Veterans' Group Life Insurance program [sections 777, 778, and 779 [now 1977, 1978, and 1979] of this title] shall become effective on the first day of the third calendar month following the month in which this Act is enacted [May 1974]."

Effective Date of 1970 Amendment

Amendment by Pub. L. 91–291 effective June 25, 1970, see section 14(a) of Pub. L. 91–291, set out as a note under section 1317 of this title.

Conversion of SGLI to VGLI

Pub. L. 104–275, title IV, §402(e), Oct. 9, 1996, 110 Stat. 3338, provided that: "The Servicemembers' Group Life Insurance of any member of the Retired Reserve of a uniformed service shall be converted to Veterans' Group Life Insurance effective 90 days after the date of the enactment of this Act [Oct. 9, 1996]."

Right of Persons Discharged or Released From Uniformed Services To Convert Servicemen's Group Life Insurance to Individual Policies

Pub. L. 93–289, §5(b), May 24, 1974, 88 Stat. 168, provided that the amendments made by Pub. L. 93–289, enacting sections 777, 778, and 779 [now 1977, 1978, and 1979] of this title and section 707 of Title 37, Pay and Allowances of the Uniformed Services, and amending sections 723, 765, 767, 768, 769, 770, 771, and 774 [now 1923, 1965, 1967, 1968, 1969, 1970, 1971, and 1974] of this title, not be construed to deprive any person discharged or released from the uniformed services of the United States prior to the date on which the Veterans' Group Life Insurance program (provided for under section 777 [now 1977] of this title) became effective of the right to convert Servicemen's Group Life Insurance to an individual policy under the provisions of law in effect prior to such effective date.

§1969. Deductions; payment; investment; expenses

(a)(1) During any period in which a member, on active duty or active duty for training under a call or order to such duty that does not specify a period of less than thirty-one days, is insured under Servicemembers' Group Life Insurance, there shall be deducted each month from the member's basic or other pay until separation or release from such duty an amount determined by the Secretary (which shall be the same for all such members) as the share of the cost attributable to insuring such member under such policy, less any costs traceable to the extra hazard of such duty in the uniformed service.

(2)(A) During any month in which a member is assigned to the Ready Reserve of a uniformed service under conditions which meet the qualifications of (subparagraph (B) or (C) of section 1965(5) of this title, and is insured under a policy of insurance purchased by the Secretary, under section 1966 of this title, there shall be contributed from the appropriation made for active duty pay of the uniformed service concerned an amount determined by the Secretary (which shall be the same for all such members) as the share of the cost attributable to insuring such member under this policy, less any costs traceable to the extra hazards of such duty in the uniformed services. Any amounts so contributed on behalf of any individual shall be collected by the Secretary concerned from such individual (by deduction from pay or otherwise) and shall be credited to the appropriation from which such contribution was made.

(B) If an individual who is required pursuant to subparagraph (A) to make a direct remittance of costs to the Secretary concerned fails to make the required remittance within 60 days of the date on which such remittance is due, such individual's insurance with respect to which such remittance is required shall be terminated by the Secretary concerned. Such termination shall be made by written notice to the individual's official address and shall be effective 60 days after the date of such notice. Such termination of insurance may be vacated if, before the effective date of termination, the individual remits all amounts past due for such insurance and demonstrates to the satisfaction of the Secretary concerned that the failure to make timely remittances was justifiable.

(3) During any fiscal year, or portion thereof, that a member is on active duty or active duty for training under a call or order to such duty that specifies a period of less than thirty-one days, or is authorized or required to perform inactive duty training scheduled in advance by competent authority, and is insured under Servicemembers' Group Life Insurance, the Secretary concerned shall collect from the member (by deduction from pay or otherwise) an amount determined by the Secretary (which shall be the same for all such members) as the share of the cost attributable to insuring such member under such policy, less any costs traceable to the extra hazard of such duty in the uniformed service.

(4) Any amount not deducted from the basic or other pay of a member insured under Servicemembers' Group Life Insurance, or collected from the member by the Secretary concerned, if not otherwise paid, shall be deducted from the proceeds of any insurance thereafter payable. The initial monthly amount under paragraph (1) or (2) hereof, or fiscal year amount under paragraph (3) hereof, determined by the Secretary to be charged under this section for Servicemembers' Group Life Insurance may be continued from year to year, except that the Secretary may redetermine such monthly or fiscal year amounts from time to time in accordance with experience. No refunds will be made to any member of any amount properly deducted from the member's basic or other pay, or collected from the member by the Secretary concerned, to cover the insurance granted under Servicemembers' Group Life Insurance.

(b) For each month for which any member is so insured, there shall be contributed from the appropriation made for active duty pay of the uniformed service concerned an amount determined by the Secretary and certified to the Secretary concerned to be the cost of Servicemembers' Group Life Insurance which is traceable to the extra hazard of duty in the uniformed services. Effective January 1, 1970, such cost shall be determined by the Secretary on the basis of the excess mortality incurred by members and former members of the uniformed services insured under Servicemembers' Group Life Insurance above what their mortality would have been under peacetime conditions as such mortality is determined by the Secretary using such methods and data as the Secretary shall determine to be reasonable and practicable. The Secretary is authorized to make such adjustments regarding contributions from pay appropriations as may be indicated from actual experience.

(c) An amount equal to the first amount due on Servicemembers' Group Life Insurance may be advanced from current appropriations for active-service pay to any such member, which amount shall constitute a lien upon any service or other pay accruing to the person from whom such advance was made and shall be collected therefrom if not otherwise paid. No disbursing or certifying officer shall be responsible for any loss incurred by reason of such advance.

(d)(1) The sums withheld from the basic or other pay of members, or collected from them by the Secretary concerned, under subsection (a) of this section, and the sums contributed from appropriations under subsection (b) of this section, together with the income derived from any dividends or premium rate adjustments received from insurers shall be deposited to the credit of a revolving fund established in the Treasury of the United States. All premium payments and extra hazard costs on Servicemembers' Group Life Insurance and the administrative cost to the Department of insurance issued under this subchapter shall be paid from the revolving fund.

(2) The Secretary is authorized to set aside out of the revolving fund such amounts as may be required to meet the administrative costs to the Department of insurance issued under this subchapter and all current premium payments and extra hazard costs on any insurance policy or policies purchased under section 1966 of this title. The Secretary of the Treasury is authorized to invest in and to sell and retire special interest-bearing obligations of the United States for the account of the revolving fund. Such obligations issued for this purpose shall have maturities fixed with due regard for the needs of the fund and shall bear interest at a rate equal to the average market yield (computed by the Secretary of the Treasury on the basis of market quotations as of the end of the calendar month next preceding the date of issue) on all marketable interest-bearing obligations of the United States then forming a part of the public debt which are not due or callable until after the expiration of four years from the end of such calendar month; except that where such average market yield is not a multiple of one-eighth of 1 per centum, the rate of interest of such obligation shall be the multiple of one-eighth of 1 per centum nearest such market yield.

(3) Notwithstanding the provisions of section 1982 of this title, the Secretary shall, from time to time, determine the administrative costs to the Department which in the Secretary's judgment are properly allocable to insurance issued under this subchapter and shall transfer such cost from the revolving fund to the appropriation "General Operating Expenses, Department of Veterans Affairs".

(e) The Secretary of Defense shall prescribe regulations for the administration of the functions of the Secretaries of the military departments under this section. Such regulations shall prescribe such procedures as the Secretary of Defense, after consultation with the Secretary, may consider necessary to ensure that such functions are carried out in a timely and complete manner and in accordance with the provisions of this section, including specifically the provisions of subsection (a)(2) of this section relating to contributions from appropriations made for active duty pay.

(f)(1) No tax, fee, or other monetary payment may be imposed or collected by any State, or by any political subdivision or other governmental authority of a State, on or with respect to any premium paid under an insurance policy purchased under this subchapter.

(2) Paragraph (1) of this subsection shall not be construed to exempt any company issuing a policy of insurance under this subchapter from the imposition, payment, or collection of a tax, fee, or other monetary payment on the net income or profit accruing to or realized by that company from business conducted under this subchapter, if that tax, fee, or payment is applicable to a broad range of business activity.

(g)(1)(A) During any period in which a spouse of a member is insured under this subchapter and the member is on active duty, there shall be deducted each month from the member's basic or other pay until separation or release from active duty an amount determined by the Secretary as the premium allocable to the pay period for providing that insurance coverage. No premium may be charged for providing insurance coverage for a child.

(B) During any month in which a member is assigned to the Ready Reserve of a uniformed service under conditions which meet the qualifications set forth in subparagraph (B) or (C) of section 1965(5) of this title and the spouse of the member is insured under a policy of insurance purchased by the Secretary under section 1966 of this title, there shall be contributed from the appropriation made for active duty pay of the uniformed service concerned an amount determined by the Secretary as the share of the cost attributable to insuring the spouse of such member under this policy, less any costs traceable to the extra hazards of such duty in the uniformed services. Any amounts so contributed on behalf of any individual shall be collected by the Secretary concerned from such individual (by deduction from pay or otherwise) and shall be credited to the appropriation from which such contribution was made.

(2)(A) The Secretary shall determine the premium amounts to be charged for life insurance coverage for spouses of members under this subchapter.

(B) The premium amounts shall be determined on the basis of sound actuarial principles and shall include an amount necessary to cover the administrative costs to the insurer or insurers providing such insurance.

(C) Each premium rate for the first policy year shall be continued for subsequent policy years, except that the rate may be adjusted for any such subsequent policy year on the basis of the experience under the policy, as determined by the Secretary in advance of that policy year.

(h) Any overpayment of a premium for insurance coverage for an insurable dependent of a member that is terminated under section 1968(a)(5) of this title shall be refunded to the member.

(Added Pub. L. 89–214, §1(a), Sept. 29, 1965, 79 Stat. 881, §769; amended Pub. L. 91–291, §4, June 25, 1970, 84 Stat. 329; Pub. L. 93–289, §§6, 10(2), May 24, 1974, 88 Stat. 168, 172; Pub. L. 97–66, title IV, §402, Oct. 17, 1981, 95 Stat. 1031; Pub. L. 99–576, title VII, §701(39), Oct. 28, 1986, 100 Stat. 3293; Pub. L. 100–322, title III, §332(a), May 20, 1988, 102 Stat. 537; renumbered §1969 and amended Pub. L. 102–83, §§4(a)(3), (4), (b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404–406; Pub. L. 103–337, div. A, title VI, §651(d), Oct. 5, 1994, 108 Stat. 2793; Pub. L. 103–446, title XII, §1201(e)(8), (i)(3), Nov. 2, 1994, 108 Stat. 4685, 4688; Pub. L. 104–106, div. A, title VI, §647(a), Feb. 10, 1996, 110 Stat. 370; Pub. L. 104–275, title IV, §§402(d), 405(b)(1)(C), Oct. 9, 1996, 110 Stat. 3337, 3339; Pub. L. 106–419, title III, §313(b), Nov. 1, 2000, 114 Stat. 1855; Pub. L. 107–14, §4(d), June 5, 2001, 115 Stat. 29; Pub. L. 109–13, div. A, title I, §1012(c)(2), May 11, 2005, 119 Stat. 245; Pub. L. 109–80, §2, Sept. 30, 2005, 119 Stat. 2045; Pub. L. 110–389, title IV, §403(a)(2)(B), (c), Oct. 10, 2008, 122 Stat. 4174.)

Editorial Notes

Amendments

2008—Subsec. (g)(1)(B). Pub. L. 110–389, §403(c), struck out "(which shall be the same for all such members)" after "determined by the Secretary".

Pub. L. 110–389, §403(a)(2)(B), substituted "subparagraph (B) or (C) of section 1965(5) of this title" for "section 1965(5)(B) of this title".

2005—Subsec. (b). Pub. L. 109–13, §1012(c)(2), which directed designation of existing provisions as par. (1) and addition of par. (2), was repealed by Pub. L. 109–80. See Effective and Termination Dates of 2005 Amendments note below. Par. (2) read as follows: "For each month for which a member insured under this subchapter is serving in an operation or area designated as described by paragraph (1)(A) of section 1967(e) of this title, there may, at the election of the Secretary concerned under paragraph (4)(A) of such section, be contributed from the appropriation made for active duty pay of the uniformed service concerned an amount determined by the Secretary and certified to the Secretary concerned to be the cost of Servicemembers' Group Life Insurance which is traceable to the cost of providing insurance for the member under section 1967 of this title in the amount of $150,000."

2001—Subsecs. (g), (h). Pub. L. 107–14 added subsecs. (g) and (h).

2000—Subsec. (a)(2)(A). Pub. L. 106–419 substituted "subparagraph (B) or (C) of section 1965(5) of this title" for "section 1965(5)(B) of this title".

1996—Subsec. (a)(1). Pub. L. 104–275, §405(b)(1)(C), substituted "Servicemembers' Group" for "Servicemen's Group".

Subsec. (a)(2). Pub. L. 104–106 designated existing provisions as subpar. (A) and added subpar. (B).

Subsec. (a)(2)(A). Pub. L. 104–275, §402(d)(1), struck out "is assigned to the Reserve (other than the Retired Reserve) and meets the qualifications of section 1965(5)(C) of this title, or is assigned to the Retired Reserve and meets the qualifications of section 1965(5)(D) of this title," after "qualifications of section 1965(5)(B) of this title,".

Subsec. (a)(3), (4). Pub. L. 104–275, §405(b)(1)(C), substituted "Servicemembers' Group" for "Servicemen's Group" wherever appearing.

Subsecs. (b) to (d)(1). Pub. L. 104–275, §405(b)(1)(C), substituted "Servicemembers' Group" for "Servicemen's Group" wherever appearing.

Subsecs. (e) to (g). Pub. L. 104–275, §402(d)(2), (3), redesignated subsecs. (f) and (g) as (e) and (f), respectively, and struck out former subsec. (e) which related to premiums for Servicemen's Group Life Insurance for members assigned to the Retired Reserve of a uniformed service.

1994—Subsec. (a)(2). Pub. L. 103–337, §651(d)(1), substituted "is assigned to the Reserve" for "or is assigned to the Reserve" and inserted "or is assigned to the Retired Reserve and meets the qualifications of section 1965(5)(D) of this title," after "section 1965(5)(C) of this title,".

Subsec. (d)(3). Pub. L. 103–446, §1201(i)(3), substituted "Department of Veterans Affairs" for "Department".

Subsec. (e). Pub. L. 103–446, §1201(e)(8), substituted "subsections (a) and (c) of section 1971" for "sections 1971(a) and (c)" and "subsections (d) and (e) of section 1971" for "sections 1971(d) and (e)".

Pub. L. 103–337, §651(d)(2), substituted "subparagraph (C) or (D) of section 1965(5)" for "section 1965(5)(C)".

1991—Pub. L. 102–83, §5(a), renumbered section 769 of this title as this section.

Subsec. (a). Pub. L. 102–83, §5(c)(1), substituted "1965(5)(B)" for "765(5)(B)", "1965(5)(C)" for "765(5)(C)", and "1966" for "766" in par. (2).

Pub. L. 102–83, §4(b)(1), (2)(E), substituted "Secretary" for "Administrator" wherever appearing.

Subsec. (b). Pub. L. 102–83, §4(b)(1), (2)(E), substituted "Secretary" for "Administrator" wherever appearing.

Subsec. (d)(1). Pub. L. 102–83, §4(a)(3), (4), substituted "Department" for "Veterans' Administration".

Subsec. (d)(2). Pub. L. 102–83, §5(c)(1), substituted "1966" for "766".

Pub. L. 102–83, §4(b)(1), (2)(E), substituted "Secretary" for "Administrator".

Pub. L. 102–83, §4(a)(3), (4), substituted "Department" for "Veterans' Administration".

Subsec. (d)(3). Pub. L. 102–83, §5(c)(1), substituted "1982" for "782".

Pub. L. 102–83, §4(b)(1), (2)(E), substituted "Secretary" for "Administrator" and "Secretary's" for "Administrator's".

Pub. L. 102–83, §4(a)(3), (4), substituted "Department" for "Veterans' Administration" in two places.

Subsec. (e). Pub. L. 102–83, §5(c)(1), substituted "1965(5)(C)" for "765(5)(C)", "1971(a)" for "771(a)", "1966(b)" for "766(b)", and "1971(d)" for "771(d)".

Pub. L. 102–83, §4(b)(1), (2)(E), substituted "Secretary" for "Administrator" wherever appearing.

Subsec. (f). Pub. L. 102–83, §4(b)(1), (2)(E), substituted "Secretary" for "Administrator".

1988—Subsec. (g). Pub. L. 100–322 added subsec. (g).

1986—Subsec. (a)(1). Pub. L. 99–576, §701(39)(A), substituted "the member's" for "his".

Subsec. (a)(3). Pub. L. 99–576, §701(39)(B), substituted "the member" for "him".

Subsec. (a)(4). Pub. L. 99–576, §701(39)(C), substituted "the member" for "him" in two places and "the member's" for "his".

Subsec. (b). Pub. L. 99–576, §701(39)(D), substituted "the Administrator" for "he" before "shall determine".

Subsec. (d)(3). Pub. L. 99–576, §701(39)(E), substituted "the Administrator's" for "his".

Subsec. (e). Pub. L. 99–576, §701(39)(F), substituted "the Administrator" for "he" before "may determine".

1981—Subsec. (f). Pub. L. 97–66 added subsec. (f).

1974—Subsec. (a)(1). Pub. L. 93–289, §6(1), substituted "is insured under Servicemen's Group Life Insurance" for "is insured under a policy of insurance purchased by the Administrator, under section 766 of this title".

Subsec. (a)(2). Pub. L. 93–289, §6(2), added par. (2). Former par. (2) redesignated (3).

Subsec. (a)(3). Pub. L. 93–289, §6(1), (2), redesignated former par. (2) as (3), and substituted "is insured under Servicemen's Group Life Insurance" for "is insured under a policy of insurance purchased by the Administrator, under section 766 of this title." Former par. (3) redesignated (4).

Subsec. (a)(4). Pub. L. 93–289, §6(2), (3), redesignated former par. (3) as (4), and substituted "paragraph (1) or (2) hereof, or fiscal year amount under paragraph (3) hereof", for "subsection (1) hereof, or fiscal year amount under subsection (2) hereof", and "Servicemen's Group Life Insurance" for "this subchapter" in two places, and for "insurance under this subchapter".

Subsec. (b). Pub. L. 93–289, §6(4), substituted "Servicemen's Group Life Insurance" for "such insurance" in first sentence, and "Servicemen's Group Life Insurance" for "this subchapter" in second sentence.

Subsec. (c). Pub. L. 93–289, §6(5), substituted "Servicemen's Group Life Insurance" for "any such insurance".

Subsec. (d)(1). Pub. L. 93–289, §6(6), substituted "Servicemen's Group Life Insurance" for "any insurance policy or policies purchased under section 766 of this title".

Subsec. (d)(3). Pub. L. 93–289, §10(2), capitalized "Operating Expenses".

Subsec. (e). Pub. L. 93–289, §6(7), added subsec. (e).

1970—Subsec. (a). Pub. L. 91–291, §4(1), separated provisions covering deduction of the cost of insurance from the pay of members into provisions covering such deduction in the case of persons on active duty or active duty for training under a call or order to such duty that does not specify a period of not less than thirty-one days and provisions covering such deduction in the case of persons on active duty or active duty for training under a call or order to such duty specifying a period of less than thirty-one days or persons authorized or required to perform inactive duty training scheduled in advance by competent authority and inserted provision for the collection of sums from individuals by the Secretary concerned.

Subsec. (b). Pub. L. 91–291, §4(1), substituted the mortality which members and former members of the uniform services concerned would have been under peacetime conditions as determined by the Administrator for the mortality of the male civilian population of the United States of the same age as the median age of members of the uniformed services as shown by the records of the uniformed services, the primary insurer or insurers, and the Department of Health, Education, and Welfare as the standard against which the excess mortality suffered by members of the uniformed services would be measured to determine the extent to which the cost of insurance was traceable to the extra hazard of active duty in the uniformed services.

Subsec. (d)(1). Pub. L. 91–291, §4(2), inserted reference to collection of sums by Secretary concerned.

Statutory Notes and Related Subsidiaries

Effective Date of 2008 Amendment

Pub. L. 110–389, title IV, §403(e)(3), Oct. 10, 2008, 122 Stat. 4175, provided that: "The amendment made by subsection (c) [amending this section] shall take effect as if enacted on June 5, 2001, immediately after the enactment of the Veterans' Survivor Benefits Improvements Act of 2001 (Public Law 107–14; 115 Stat. 25)."

Effective and Termination Dates of 2005 Amendments

Amendment by Pub. L. 109–80 effective Aug. 31, 2005, and this section shall be applied as if section 1012 of Pub. L. 109–13 had not been enacted, see section 2 of Pub. L. 109–80, set out as a note under section 1967 of this title.

Amendment by Pub. L. 109–13 effective through the earlier of Dec. 31, 2005, or, with respect to certain sections of Public Law 109–13, the date of the enactment into law of legislation that supersedes the provisions of, or the amendments made by, those sections, see section 115 of Pub. L. 109–77, set out as a note under section 1967 of this title.

Effective Date of 2001 Amendment

Amendment by Pub. L. 107–14 effective on the first day of the first month that begins more than 120 days after June 5, 2001, see section 4(g)(1) of Pub. L. 107–14, set out as a note under section 101 of this title.

Effective Date of 1996 Amendment

Amendment by Pub. L. 104–106 effective Apr. 1, 1996, see section 647(c) of Pub. L. 104–106, set out as a note under section 1968 of this title.

Effective Date of 1988 Amendment

Pub. L. 100–322, title III, §332(b), May 20, 1988, 102 Stat. 537, provided that: "The amendment made by subsection (a) [amending this section] shall take effect with respect to premiums paid for periods beginning after June 30, 1988."

Effective Date of 1981 Amendment

Amendment by Pub. L. 97–66 effective Oct. 17, 1981, see section 701(b)(1) of Pub. L. 97–66, set out as a note under section 1114 of this title.

Effective Date of 1970 Amendment

Amendment by Pub. L. 91–291 effective June 25, 1970, see section 14(a) of Pub. L. 91–291, set out as a note under section 1317 of this title.

§1970. Beneficiaries; payment of insurance

(a) Any amount of insurance under this subchapter in force on any member or former member on the date of the insured's death shall be paid, upon the establishment of a valid claim therefor, to the person or persons surviving at the date of the insured's death, in the following order of precedence:

First, to the beneficiary or beneficiaries as the member or former member may have designated by a writing received prior to death (1) in the uniformed services if insured under Servicemembers' Group Life Insurance, or (2) in the administrative office established under section 1966(b) of this title if separated or released from service, or if assigned to the Retired Reserve, and insured under Servicemembers' Group Life Insurance, or if insured under Veterans' Group Life Insurance;

Second, if there be no such beneficiary, to the widow or widower of such member or former member;

Third, if none of the above, to the child or children of such member or former member and descendants of deceased children by representation;

Fourth, if none of the above, to the parents of such member or former member or the survivor of them;

Fifth, if none of the above, to the duly appointed executor or administrator of the estate of such member or former member;

Sixth, if none of the above, to other next of kin of such member or former member entitled under the laws of domicile of such member or former member at the time of the insured's death.

(b) If any person otherwise entitled to payment under this section does not make claim therefor within one year after the death of the member or former member, or if payment to such person within that period is prohibited by Federal statute or regulation, payment may be made in the order of precedence as if such person had predeceased the member or former member, and any such payment shall be a bar to recovery by any other person.

(c) If, within two years after the death of the member or former member, no claim for payment has been filed by any person entitled under the order of precedence set forth in this section, and neither the Secretary nor the administrative office established by the insurance company or companies pursuant to section 1966(b) of this title has received any notice that any such claim will be made, payment may be made to a claimant as may in the judgment of the Secretary be equitably entitled thereto, and such payment shall be a bar to recovery by any other person.

(d) The member may elect settlement of insurance under this subchapter either in a lump sum or in thirty-six equal monthly installments. If no such election is made by the member the beneficiary or beneficiaries may elect settlement either in a lump sum or in thirty-six equal monthly installments. If the member has elected settlement in a lump sum, the beneficiary or beneficiaries may elect settlement in thirty-six equal monthly installments.

(e) Until and unless otherwise changed, a beneficiary designation and settlement option filed by a member with the member's uniformed service under prior provisions of law will be effective with respect to the increased insurance authorized under the Veterans' Insurance Act of 1974 and the insurance shall be settled in the same proportionate amount as the portion designated for such beneficiary or beneficiaries bore to the amount of insurance heretofore in effect.

(f) Notwithstanding the provisions of any other law, payment of matured Servicemembers' Group Life Insurance or Veterans' Group Life Insurance benefits may be made directly to a minor widow or widower on his or her own behalf, and payment in such case shall be a complete acquittance to the insurer.

(g) Any payments due or to become due under Servicemembers' Group Life Insurance or Veterans' Group Life Insurance made to, or on account of, an insured or a beneficiary shall be exempt from taxation, shall be exempt from the claims of creditors, and shall not be liable to attachment, levy, or seizure by or under any legal or equitable process whatever, either before or after receipt by the beneficiary. The preceding sentence shall not apply to (1) collection of amounts not deducted from the member's pay, or collected from him by the Secretary concerned under section 1969(a) of this title, (2) levy under subchapter D of chapter 64 of the Internal Revenue Code of 1986 (26 U.S.C. 6331 et seq.) (relating to the seizure of property for collection of taxes), and (3) the taxation of any property purchased in part or wholly out of such payments.

(h) Insurance payable under this subchapter may not be paid in any amount to the extent that such amount would escheat to a State. Payment of insurance under this subchapter may not be made to the estate of the insured or the estate of any beneficiary of the insured unless it is affirmatively shown that any amount to be paid will not escheat to a State. Any amount to be paid under this subchapter shall be reduced to the extent necessary to comply with this subsection.

(i) Any amount of insurance in force on an insurable dependent of a member under this subchapter on the date of the dependent's death shall be paid, upon the establishment of a valid claim therefor, to the member or, in the event of the member's death before payment to the member can be made, then to the person or persons entitled to receive payment of the proceeds of insurance on the member's life under this subchapter.

(Added Pub. L. 89–214, §1(a), Sept. 29, 1965, 79 Stat. 883, §770; amended Pub. L. 91–291, §5, June 25, 1970, 84 Stat. 330; Pub. L. 93–289, §7, May 24, 1974, 88 Stat. 169; Pub. L. 97–295, §4(31), Oct. 12, 1982, 96 Stat. 1307; Pub. L. 97–306, title IV, §401(a), Oct. 14, 1982, 96 Stat. 1442; Pub. L. 99–576, title VII, §701(40), Oct. 28, 1986, 100 Stat. 3294; Pub. L. 102–54, §14(b)(17), June 13, 1991, 105 Stat. 284; renumbered §1970 and amended Pub. L. 102–83, §§4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404–406; Pub. L. 104–275, title IV, §405(b)(1)(D), Oct. 9, 1996, 110 Stat. 3339; Pub. L. 105–368, title III, §302(b), Nov. 11, 1998, 112 Stat. 3333; Pub. L. 107–14, §4(e), June 5, 2001, 115 Stat. 29; Pub. L. 109–13, div. A, title I, §1012(g), May 11, 2005, 119 Stat. 246; Pub. L. 109–80, §2, Sept. 30, 2005, 119 Stat. 2045.)

Editorial Notes

References in Text

Veterans' Insurance Act of 1974, referred to in subsec. (e), is Pub. L. 93–289, May 24, 1974, 88 Stat. 165, which enacted sections 777, 778, and 779 [now 1977, 1978, and 1979] of this title, section 707 of Title 37, Pay and Allowances of the Uniformed Services, amended sections 723, 765, 767 to 771, and 774 [now 1923, 1965, 1967 to 1971, and 1974] of this title, and enacted provisions set out as notes under sections 723, 765, 767, and 768 [now 1923, 1965, 1967, and 1968] of this title and section 707 of Title 37. For complete classification of this Act to the Code, see Tables.

Subchapter D of chapter 64 of the Internal Revenue Code of 1986, referred to in subsec. (g)(3), is classified to subchapter D (§6331 et seq.) of chapter 64 of Title 26, Internal Revenue Code.

Amendments

2005—Subsec. (j). Pub. L. 109–13, §1012(g), which directed addition of subsec. (j), was repealed by Pub. L. 109–80. See Effective and Termination Dates of 2005 Amendments note below. Subsec. (j) read as follows: "A member with a spouse may not modify the beneficiary or beneficiaries designated by the member under subsection (a) without providing written notice of such modification to the spouse."

2001—Subsec. (i). Pub. L. 107–14 added subsec. (i).

1998—Subsec. (g). Pub. L. 105–368, in first sentence, substituted "Any payments" for "Payments of benefits" and inserted "an insured or" after "or on account of,".

1996—Subsecs. (a), (f), (g). Pub. L. 104–275 substituted "Servicemembers' Group" for "Servicemen's Group" wherever appearing.

1991—Pub. L. 102–83, §5(a), renumbered section 770 of this title as this section.

Subsec. (a). Pub. L. 102–83, §5(c)(1), substituted "1966(b)" for "766(b)".

Subsec. (c). Pub. L. 102–83, §5(c)(1), substituted "1966(b)" for "766(b)".

Pub. L. 102–83, §4(b)(1), (2)(E), substituted "Secretary" for "Administrator" in two places.

Subsec. (g)(1). Pub. L. 102–83, §5(c)(1), substituted "1969(a)" for "769(a)".

Subsec. (g)(2). Pub. L. 102–54 substituted "Internal Revenue Code of 1986" for "Internal Revenue Code of 1954".

1986—Subsec. (a). Pub. L. 99–576, §701(40)(A), substituted "the insured's" for "his" in two places in introductory text and in one place in par. Sixth.

Subsec. (e). Pub. L. 99–576, §701(40)(B), substituted "the member's" for "his".

1982—Subsec. (c). Pub L. 97–306, §401(a)(1), struck out provision that if, within four years after the death of the member or former member, payment had not been made pursuant to this section and no claim for payment by any person entitled under this section was pending, the amount payable would escheat to the credit of the revolving fund referred to in section 769(d) of this title.

Subsec. (g). Pub. L. 97–295 inserted "(26 U.S.C. 6331 et seq.)" after "Code of 1954".

Subsec. (h). Pub. L. 97–306, §401(a)(2), added subsec. (h).

1974—Subsec. (a). Pub. L. 93–289, §7(1), included in par. First writings received in the administrative office established under section 766(b) of this title if separated or released from service, or if assigned to the Retired Reserve, and insured under Servicemen's Group Life Insurance, or if insured under Veterans' Group Life Insurance.

Subsec. (e). Pub. L. 93–289, §7(2), substituted "the Veterans' Insurance Act of 1974" for "this amendatory Act".

Subsecs. (f), (g). Pub. L. 93–289, §7(3), included payment of benefits under Veterans' Group Life Insurance.

1970—Subsecs. (e) to (g). Pub. L. 91–291 added subsecs. (e) to (g).

Statutory Notes and Related Subsidiaries

Effective and Termination Dates of 2005 Amendments

Amendment by Pub. L. 109–80 effective Aug. 31, 2005, and this section shall be applied as if section 1012 of Pub. L. 109–13 had not been enacted, see section 2 of Pub. L. 109–80, set out as a note under section 1967 of this title.

Amendment by Pub. L. 109–13 effective through the earlier of Dec. 31, 2005, or, with respect to certain sections of Public Law 109–13, the date of the enactment into law of legislation that supersedes the provisions of, or the amendments made by, those sections, see section 115 of Pub. L. 109–77, set out as a note under section 1967 of this title.

Effective Date of 2001 Amendment

Amendment by Pub. L. 107–14 effective on the first day of the first month that begins more than 120 days after June 5, 2001, see section 4(g)(1) of Pub. L. 107–14, set out as a note under section 101 of this title.

Effective Date of 1998 Amendment

Pub. L. 105–368, title III, §302(c), Nov. 11, 1998, 112 Stat. 3333, provided that: "The amendments made by this section [enacting section 1980 of this title and amending this section] shall take effect 90 days after the date of the enactment of this Act [Nov. 11, 1998]."

Effective Date of 1982 Amendment

Pub. L. 97–306, title IV, §401(b), Oct. 14, 1982, 96 Stat. 1442, provided that: "The amendments made by subsection (a) [amending this section] shall take effect on October 1, 1982."

Effective Date of 1970 Amendment

Amendment by Pub. L. 91–291 effective June 25, 1970, see section 14(a) of Pub. L. 91–291, set out as a note under section 1317 of this title.

§1971. Basic tables of premiums; readjustment of rates

(a) Each policy or policies purchased under section 1966 of this title shall include for the first policy year a schedule of basic premium rates by age which the Secretary shall have determined on a basis consistent with the lowest schedule of basic premium rates generally charged for new group life insurance policies issued to large employers, this schedule of basic premium rates by age to be applied, except as otherwise provided in this section, to the distribution by age of the amount of group life insurance under the policy at its date of issue to determine an average basic premium per $1,000 of insurance. Each policy so purchased shall also include provisions whereby the basic rates of premium determined for the first policy year shall be continued for subsequent policy years, except that they may be readjusted for any subsequent year, based on the experience under the policy, such readjustment to be made by the insurance company or companies issuing the policy on a basis determined by the Secretary in advance of such year to be consistent with the general practice of life insurance companies under policies of group life insurance issued to large employers.

(b) The total premiums for Servicemembers' Group Life Insurance shall be the sum of the amounts computed according to the provisions of subsection (a) above and the estimated cost traceable to the extra hazard of active duty in the uniformed services as determined by the Secretary, subject to the provision that such estimated costs traceable to the extra hazard shall be retroactively readjusted annually in accordance with section 1969(b).

(c) Each policy so purchased shall include a provision that, in the event the Secretary determines that ascertaining the actual age distribution of the amounts of group life insurance in force at the date of issue of the policy or at the end of the first or any subsequent year of insurance thereunder would not be possible except at a disproportionately high expense, the Secretary may approve the determination of a tentative average group life premium, for the first or any subsequent policy year, in lieu of using the actual age distribution. Such tentative average premium rate shall be redetermined by the Secretary during any policy year upon request by the insurance company or companies issuing the policy, if experience indicates that the assumptions made in determining the tentative average premium rate for that policy year were incorrect.

(d) Each policy so purchased shall contain a provision stipulating the maximum expense and risk charges for the first policy year, which charges shall have been determined by the Secretary on a basis consistent with the general level of such charges made by life insurance companies under policies of group life insurance issued to large employers. Such maximum charges shall be continued from year to year, except that the Secretary may redetermine such maximum charges for any year either by agreement with the insurance company or companies issuing the policy or upon written notice given by the Secretary to such companies at least one year in advance of the beginning of the year for which such redetermined maximum charges will be effective.

(e) Each such policy shall provide for an accounting to the Secretary not later than ninety days after the end of each policy year, which shall set forth, in a form approved by the Secretary, (1) the amounts of premiums actually accrued under the policy from its date of issue to the end of such policy year, (2) the total of all mortality and other claim charges incurred for that period, and (3) the amounts of the insurers' expense and risk charge for that period. Any excess of the total of item (1) over the sum of items (2) and (3) shall be held by the insurance company or companies issuing the policy as a special contingency reserve to be used by such insurance company or companies for charges under such policy only, such reserve to bear interest at a rate to be determined in advance of each policy year by the insurance company or companies issuing the policy, which rate shall be approved by the Secretary as being consistent with the rates generally used by such company or companies for similar funds held under other group life insurance policies. If and when the Secretary determines that such special contingency reserve has attained an amount estimated by the Secretary to make satisfactory provision for adverse fluctuations in future charges under the policy, any further excess shall be deposited to the credit of the revolving fund established under section 1969(d)(1) of this title. If and when such policy is discontinued, and if after all charges have been made, there is any positive balance remaining in such special contingency reserve, such balance shall be deposited to the credit of the revolving fund, subject to the right of the insurance company or companies issuing the policy to make such deposit in equal monthly installments over a period of not more than two years.

(Added Pub. L. 89–214, §1(a), Sept. 29, 1965, 79 Stat. 884, §771; amended Pub. L. 93–289, §8, May 24, 1974, 88 Stat. 169; renumbered §1971 and amended Pub. L. 102–83, §§4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404–406; Pub. L. 104–275, title IV, §405(b)(1)(E), Oct. 9, 1996, 110 Stat. 3339.)

Editorial Notes

Amendments

1996—Subsec. (b). Pub. L. 104–275 substituted "Servicemembers' Group" for "Servicemen's Group".

1991—Pub. L. 102–83, §5(a), renumbered section 771 of this title as this section.

Subsec. (a). Pub. L. 102–83, §5(c)(1), substituted "1966" for "766".

Pub. L. 102–83, §4(b)(1), (2)(E), substituted "Secretary" for "Administrator" in two places.

Subsec. (b). Pub. L. 102–83, §5(c)(1), substituted "1969(b)" for "769(b)".

Pub. L. 102–83, §4(b)(1), (2)(E), substituted "Secretary" for "Administrator".

Subsecs. (c), (d). Pub. L. 102–83, §4(b)(1), (2)(E), substituted "Secretary" for "Administrator" wherever appearing.

Subsec. (e). Pub. L. 102–83, §5(c)(1), substituted "1969(d)(1)" for "769(d)(1)".

Pub. L. 102–83, §4(b)(1), (2)(E), substituted "Secretary" for "Administrator" wherever appearing.

1974—Subsec. (b). Pub. L. 93–289, §8(1), substituted "premiums for Servicemen's Group Life Insurance" for "premiums for the policy or policies".

Subsec. (e). Pub. L. 93–289, §8(2), substituted "section 769(d)(1) of this title" for "section 766 of this title".

§1972. Benefit certificates

The Secretary shall arrange to have each member insured under a policy purchased under section 1966 of this title receive a certificate setting forth the benefits to which the member is entitled thereunder, to whom such benefit shall be payable, to whom claims should be submitted, and summarizing the provisions of the policy principally affecting the member. Such certificate shall be in lieu of the certificate which the insurance company or companies would otherwise be required to issue.

(Added Pub. L. 89–214, §1(a), Sept. 29, 1965, 79 Stat. 885, §772; renumbered §1972 and amended Pub. L. 102–83, §§4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404–406.)

Editorial Notes

Amendments

1991—Pub. L. 102–83, §5(a), renumbered section 772 of this title as this section.

Pub. L. 102–83, §5(c)(1), substituted "1966" for "766".

Pub. L. 102–83, §4(b)(1), (2)(E), substituted "Secretary" for "Administrator".

§1973. Forfeiture

Any person guilty of mutiny, treason, spying, or desertion, or who, because of conscientious objections, refuses to perform service in the Armed Forces of the United States or refuses to wear the uniform of such force, shall forfeit all rights to Servicemembers' Group Life Insurance and Veterans' Group Life Insurance under this subchapter. No such insurance shall be payable for death inflicted as a lawful punishment for crime or for military or naval offense, except when inflicted by an enemy of the United States.

(Added Pub. L. 89–214, §1(a), Sept. 29, 1965, 79 Stat. 885, §773; renumbered §1973, Pub. L. 102–83, §5(a), Aug. 6, 1991, 105 Stat. 406; amended Pub. L. 104–275, title IV, §405(b)(1)(F), Oct. 9, 1996, 110 Stat. 3339; Pub. L. 110–389, title IV, §403(d), Oct. 10, 2008, 122 Stat. 4174.)

Editorial Notes

Amendments

2008—Pub. L. 110–389 inserted "and Veterans' Group Life Insurance" before "under this subchapter".

1996—Pub. L. 104–275 substituted "Servicemembers' Group" for "Servicemen's Group".

1991—Pub. L. 102–83 renumbered section 773 of this title as this section.

Statutory Notes and Related Subsidiaries

Effective Date of 2008 Amendment

Pub. L. 110–389, title IV, §403(e)(4), Oct. 10, 2008, 122 Stat. 4175, provided that: "The amendment made by subsection (d) [amending this section] shall apply with respect to any act of mutiny, treason, spying, or desertion committed on or after the date of the enactment of this Act [Oct. 10, 2008] for which a person is found guilty, or with respect to refusal because of conscientious objections to perform service in, or to wear the uniform of, the Armed Forces on or after the date of the enactment of this Act."

§1974. Advisory Council on Servicemembers' Group Life Insurance

(a) There is an Advisory Council on Servicemembers' Group Life Insurance. The council consists of—

(1) the Secretary of the Treasury, who is the chairman of the council;

(2) the Secretary of Defense;

(3) the Secretary of Commerce;

(4) the Secretary of Health and Human Services;

(5) the Secretary of Homeland Security; and

(6) the Director of the Office of Management and Budget.

Members of the council shall serve without additional compensation.

(b) The council shall meet at least once a year, or more often at the call of the Secretary of Veterans Affairs. The council shall review the operations of the Department under this subchapter and shall advise the Secretary on matters of policy relating to the Secretary's activities under this subchapter.

(Added Pub. L. 89–214, §1(a), Sept. 29, 1965, 79 Stat. 885, §774; amended Pub. L. 91–291, §6, June 25, 1970, 84 Stat. 331; Pub. L. 93–289, §10(3), May 24, 1974, 88 Stat. 172; Pub. L. 97–295, §4(95)(A), Oct. 12, 1982, 96 Stat. 1313; Pub. L. 99–576, title VII, §701(41), Oct. 28, 1986, 100 Stat. 3294; Pub. L. 102–54, §14(b)(18), June 13, 1991, 105 Stat. 284; renumbered §1974, Pub. L. 102–83, §5(a), Aug. 6, 1991, 105 Stat. 406; Pub. L. 104–275, title IV, §405(b)(1)(G), (2)(B), Oct. 9, 1996, 110 Stat. 3339; Pub. L. 108–183, title VII, §708(a)(4), Dec. 16, 2003, 117 Stat. 2673.)

Editorial Notes

Amendments

2003—Subsec. (a)(5). Pub. L. 108–183 substituted "Secretary of Homeland Security" for "Secretary of Transportation".

1996—Pub. L. 104–275, §405(b)(2)(B), substituted "Servicemembers' Group" for "Servicemen's Group" in section catchline.

Subsec. (a). Pub. L. 104–275, §405(b)(1)(G), substituted "Servicemembers' Group" for "Servicemen's Group" in introductory provisions.

1991—Pub. L. 102–83 renumbered section 774 of this title as this section.

Pub. L. 102–54 amended section generally. Prior to amendment, section read as follows: "There is hereby established an Advisory Council on Servicemen's Group Life Insurance consisting of the Secretary of the Treasury as Chairman, the Secretary of Defense, the Secretary of Commerce, the Secretary of Health and Human Services, the Secretary of Transportation, and the Director of the Office of Management and Budget each of whom shall serve without additional compensation. The Council shall meet once a year, or oftener at the call of the Administrator, and shall review the operations under this subchapter and advise the Administrator on matters of policy relating to the Administrator activities thereunder."

1986—Pub. L. 99–576 substituted "the Administrator" for "his" before "activities".

1982—Pub. L. 97–295 substituted "Health and Human Services" for "Health, Education, and Welfare".

1974—Pub. L. 93–289 substituted "Office of Management and Budget" for "Bureau of the Budget".

1970—Pub. L. 91–291 added the Secretary of Transportation to the membership of the Advisory Council on Servicemen's Group Life Insurance.

Statutory Notes and Related Subsidiaries

Effective Date of 1970 Amendment

Amendment by Pub. L. 91–291 effective June 25, 1970, see section 14(a) of Pub. L. 91–291, set out as a note under section 1317 of this title.

Termination of Advisory Councils

Advisory councils in existence on Jan. 5, 1973, to terminate not later than the expiration of the 2-year period following Jan. 5, 1973, unless, in the case of a council established by the President or an officer of the Federal Government, such council is renewed by appropriate action prior to the expiration of such 2-year period, or in the case of a council established by the Congress, its duration is otherwise provided by law. See sections 1001(2) and 1013 of Title 5, Government Organization and Employees.

§1975. Jurisdiction of District Courts

The district courts of the United States shall have original jurisdiction of any civil action or claim against the United States founded upon this subchapter.

(Added Pub. L. 89–214, §1(a), Sept. 29, 1965, 79 Stat. 885, §775; renumbered §1975, Pub. L. 102–83, §5(a), Aug. 6, 1991, 105 Stat. 406.)

Editorial Notes

Amendments

1991—Pub. L. 102–83 renumbered section 775 of this title as this section.

§1976. Effective date

The insurance provided for in this subchapter and the deductions and contributions for that purpose shall take effect on the date designated by the Secretary and certified by the Secretary to each Secretary concerned.

(Added Pub. L. 89–214, §1(a), Sept. 29, 1965, 79 Stat. 885, §776; amended Pub. L. 99–576, title VII, §701(42), Oct. 28, 1986, 100 Stat. 3294; renumbered §1976 and amended Pub. L. 102–83, §§4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404–406.)

Editorial Notes

Amendments

1991—Pub. L. 102–83, §5(a), renumbered section 776 of this title as this section and substituted "Secretary" for "Administrator" in two places.

1986—Pub. L. 99–576 substituted "the Administrator" for "him" after "certified by".

Statutory Notes and Related Subsidiaries

Interim Coverage Until Effective Date of Group Plan; $5,000 Death Gratuity

Pub. L. 89–214, §3, Sept. 29, 1965, 79 Stat. 886, as amended by Pub. L. 89–730, §6(a)–(d), Nov. 2, 1966, 80 Stat. 1159, provided for payment of a death gratuity of up to $5,000 in certain cases of death of veterans while in active military, naval, or air service during the period from Jan. 1, 1957, to the date immediately preceding the date on which the Servicemen's Group Life Insurance program was placed in effect under this section, and required that an application for such gratuity had to be made within one year after Sept. 29, 1965.

Pub. L. 89–730, §6(e), Nov. 2, 1966, 80 Stat. 1159, provided that any waiver of future benefits executed by any person under section 3(a) of Pub. L. 89–214 (see above), as in effect prior to Nov. 2, 1966, was to have no effect.

Pub. L. 89–730, §6(f), Nov. 2, 1966, 80 Stat. 1159, provided that in any case in which the death gratuity paid to any person under section 3 of Pub. L. 89–214 (see above), was reduced pursuant to clause (B) of subsection (c)(1) of such section, as in effect prior to Nov. 2, 1966, the Administrator of Veterans' Affairs was to pay to such person an amount equal to the amount by which such death gratuity was reduced.

Pub. L. 89–730, §6(g), Nov. 2, 1966, 80 Stat. 1159, provided that notwithstanding the time limitation prescribed in section 3(a) of Pub. L. 89–214 (see above), any application for death gratuity filed under such section shall be valid if filed within one year after Nov. 2, 1966.

§1977. Veterans' Group Life Insurance

(a)(1) Except as provided in paragraph (3), Veterans' Group Life Insurance shall be issued in the amounts specified in section 1967(a) of this title. In the case of any individual, the amount of Veterans' Group Life Insurance may not exceed the amount of Servicemembers' Group Life Insurance coverage continued in force after the expiration of the period of duty or travel under section 1967(b) or 1968(a) of this title. No person may carry a combined amount of Servicemembers' Group Life Insurance and Veterans' Group Life Insurance at any one time in excess of the maximum amount for Servicemembers' Group Life Insurance in effect under section 1967(a)(3)(A)(i) of this title.

(2) If any person insured under Veterans' Group Life Insurance again becomes insured under Servicemembers' Group Life Insurance but dies before terminating or converting such person's Veterans' Group Insurance, Veterans' Group Life Insurance shall be payable only if such person is insured under Servicemembers' Group Life Insurance for less than the maximum amount for such insurance in effect under section 1967(a)(3)(A)(i) of this title, and then only in an amount which, when added to the amount of Servicemembers' Group Life Insurance payable, does not exceed such maximum amount in effect under such section.

(3) Not more than once in each five-year period beginning on the one-year anniversary of the date a person becomes insured under Veterans' Group Life Insurance, such person may elect in writing to increase by $25,000 the amount for which the person is insured if—

(A) the person is under the age of 60; and

(B) the total amount for which the person is insured does not exceed the amount provided for under section 1967(a)(3)(A)(i) of this title.

(b) Veterans' Group Life Insurance shall (1) provide protection against death; (2) be issued on a renewable five-year term basis; (3) have no cash, loan, paid-up, or extended values; (4) except as otherwise provided, lapse for nonpayment of premiums; and (5) contain such other terms and conditions as the Secretary determines to be reasonable and practicable which are not specifically provided for in this section, including any provisions of this subchapter not specifically made inapplicable by the provisions of this section.

(c) The premiums for Veterans' Group Life Insurance shall be established under the criteria set forth in sections 1971(a) and (c) of this title, except that the Secretary may provide for average premiums for such various age groupings as the Secretary may decide to be necessary according to sound actuarial principles, and shall include an amount necessary to cover the administrative cost of such insurance to the company or companies issuing such insurance. Such premiums shall be payable by the insureds thereunder as provided by the Secretary directly to the administrative office established for such insurance under section 1966(b) of this title. In any case in which a member or former member who was mentally incompetent on the date such member or former member first became insured under Veterans' Group Life Insurance dies within one year of such date, such insurance shall be deemed not to have lapsed for nonpayment of premiums and to have been in force on the date of death. Where insurance is in force under the preceding sentence, any unpaid premiums may be deducted from the proceeds of the insurance. Any person who claims eligibility for Veterans' Group Life Insurance based on disability incurred during a period of duty shall be required to submit evidence of qualifying health conditions and, if required, to submit to physical examinations at their own expense.

(d) Any amount of Veterans' Group Life Insurance in force on any person on the date of such person's death shall be paid, upon the establishment of a valid claim therefor, pursuant to the provisions of section 1970 of this title. However, any designation of beneficiary or beneficiaries for Servicemembers' Group Life Insurance filed with a uniformed service until changed, shall be considered a designation of beneficiary or beneficiaries for Veterans' Group Life Insurance, but not for more than sixty days after the effective date of the insured's Veterans' Group Insurance, unless at the end of such sixty-day period, the insured is incompetent in which event such designation may continue in force until the disability is removed but not for more than five years after the effective date of the insured's Veterans' Group Life Insurance. Except as indicated above in incompetent cases, after such sixty-day period, any designation of beneficiary or beneficiaries for Veterans' Group Life Insurance to be effective must be by a writing signed by the insured and received by the administrative office established under section 1966(b) of this title.

(e) An insured under Veterans' Group Life Insurance shall have the right at any time to convert such insurance to an individual policy of life insurance upon written application for conversion made to the participating company the insured selects and payment of the required premiums. The individual policy will be issued without medical examination on a plan then currently written by such company which does not provide for the payment of any sum less than the face value thereof or for the payment of an additional amount as premiums in the event the insured performs active duty, active duty for training, or inactive duty training. The Veterans' Group Life Insurance policy converted to an individual policy under this subsection shall terminate on the day before the date on which the individual policy becomes effective. Upon request to the administrative office established under section 1966(b) of this title, an insured under Veterans' Group Life Insurance shall be furnished a list of life insurance companies participating in the program established under this subchapter. In addition to the life insurance companies participating in the program established under this subchapter, the list furnished to an insured under this section shall include additional life insurance companies (not so participating) which meet qualifying criteria, terms, and conditions established by the Secretary and agree to sell insurance to former members in accordance with the provisions of this section.

(f) The provisions of subsections (d) and (e) of section 1971 of this title shall be applicable to Veterans' Group Life Insurance. However, a separate accounting shall be required for each program of insurance authorized under this subchapter. In such accounting, the Secretary is authorized to allocate claims and other costs among such programs of insurance according to accepted actuarial principles.

(g) Any person whose Servicemembers' Group Life Insurance was continued in force after termination of duty or discharge from service under the law as in effect prior to the date on which the Veterans' Group Life Insurance program (provided for under section 1977 of this title) became effective, and whose coverage under Servicemembers' Group Life Insurance terminated less than four years prior to such date, shall be eligible within one year from the effective date of the Veterans' Group Life Insurance program to apply for and be granted Veterans' Group Life Insurance in an amount equal to the amount of the insured's Servicemembers' Group Life Insurance which was not converted to an individual policy under prior law. Veterans' Group Life Insurance issued under this subsection shall be issued for a term period equal to five years, less the time elapsing between the termination of the applicant's Servicemembers' Group Life Insurance and the effective date on which the Veterans' Group Life Insurance program became effective. Veterans' Group Life Insurance under this subsection shall only be issued upon application to the administrative office established under section 1966(b) of this title, payment of the required premium, and proof of good health satisfactory to that office, which proof shall be submitted at the applicant's own expense. Any person who cannot meet the good health requirements for insurance under this subsection solely because of a service-connected disability shall have such disability waived. For each month for which any eligible veteran, whose service-connected disabilities are waived, is insured under this subsection there shall be contributed to the insurer or insurers issuing the policy or policies from the appropriation "Compensation and Pensions, Department of Veterans Affairs" an amount necessary to cover the cost of the insurance in excess of the premiums established for eligible veterans, including the cost of the excess mortality attributable to such veteran's service-connected disabilities. The Secretary may establish, as the Secretary may determine to be necessary according to sound actuarial principles, a separate premium, age groupings for premium purposes, accounting, and reserves, for persons granted insurance under this subsection different from those established for other persons granted insurance under this section. Appropriations to carry out the purpose of this section are hereby authorized.

(h)(1) Notwithstanding any other provision of law, members of the Individual Ready Reserve and the Inactive National Guard are eligible to be insured under Veterans' Group Life Insurance. Any such member shall be so insured upon submission of an application in the manner prescribed by the Secretary and the payment of premiums as required under this section.

(2) In accordance with subsection (b), Veterans' Group Life Insurance coverage under this subsection shall be issued on a renewable five-year term basis, but the person insured must remain a member of the Individual Ready Reserve or Inactive National Guard throughout the period of the insurance in order for the insurance of such person to be renewed.

(3) For the purpose of this subsection, the terms "Individual Ready Reserve" and "Inactive National Guard" shall have the meanings prescribed by the Secretary in consultation with the Secretary of Defense.

(Added Pub. L. 93–289, §9(a), May 24, 1974, 88 Stat. 169, §777; amended Pub. L. 97–66, title IV, §401(b), Oct. 17, 1981, 95 Stat. 1031; Pub. L. 99–166, title IV, §401(b), Dec. 3, 1985, 99 Stat. 957; Pub. L. 99–576, title VII, §701(43), Oct. 28, 1986, 100 Stat. 3294; Pub. L. 102–25, title III, §336(b), Apr. 6, 1991, 105 Stat. 90; renumbered §1977 and amended Pub. L. 102–83, §§4(a)(2)(B)(iii), (b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 403–406; Pub. L. 102–568, title II, §202, Oct. 29, 1992, 106 Stat. 4324; Pub. L. 103–446, title XII, §1201(e)(9), Nov. 2, 1994, 108 Stat. 4685; Pub. L. 104–275, title IV, §§403(b), 405(b)(1)(H), 406, Oct. 9, 1996, 110 Stat. 3338–3340; Pub. L. 106–419, title III, §312(b), Nov. 1, 2000, 114 Stat. 1854; Pub. L. 109–13, div. A, title I, §1012(e), May 11, 2005, 119 Stat. 245; Pub. L. 109–80, §§2, 3(b), Sept. 30, 2005, 119 Stat. 2045; Pub. L. 111–275, title IV, §404(a), Oct. 13, 2010, 124 Stat. 2879.)

Editorial Notes

Amendments

2010—Subsec. (a)(1). Pub. L. 111–275, §404(a)(1), inserted "Except as provided in paragraph (3)," before "Veterans' Group Life Insurance shall be".

Subsec. (a)(3). Pub. L. 111–275, §404(a)(2), added par. (3).

2005—Subsec. (a)(1). Pub. L. 109–80, §3(b)(1), substituted "at any one time in excess of the maximum amount for Servicemembers' Group Life Insurance in effect under section 1967(a)(3)(A)(i) of this title" for "in excess of $250,000 at any one time".

Pub. L. 109–13, §1012(e), which directed substitution of "$400,000" for "$250,000" and insertion of "Any additional amount of insurance provided a member under section 1967(e) of this title may not be treated as an amount for which Veterans' Group Life Insurance shall be issued under this section." at end, was repealed by Pub. L. 109–80, §2. See Effective and Termination Dates of 2005 Amendments note below.

Subsec. (a)(2). Pub. L. 109–80, §3(b)(2), substituted "under Servicemembers' Group Life Insurance for less than the maximum amount for such insurance in effect under section 1967(a)(3)(A)(i) of this title" for "for less than $250,000 under Servicemembers' Group Life Insurance" and "does not exceed such maximum amount in effect under such section" for "does not exceed $250,000".

Pub. L. 109–13, §1012(e)(1), which directed substitution of "$400,000" for "$250,000" in two places, was repealed by Pub. L. 109–80, §2. See Effective and Termination Dates of 2005 Amendments note below.

2000—Subsec. (a). Pub. L. 106–419 substituted "$250,000" for "$200,000" in par. (1) and two places in par. (2).

1996—Subsec. (a). Pub. L. 104–275, §403(b)(1), designated existing provisions as par. (1), struck out at end "Any person insured under Veterans' Group Life Insurance who again becomes insured under Servicemen's Group Life Insurance may within 60 days after becoming so insured convert any or all of such person's Veterans' Group Life Insurance to an individual policy of insurance under subsection (e). However, if such a person dies within the 60-day period and before converting such person's Veterans' Group Life Insurance, Veterans' Group Life Insurance will be payable only if such person is insured for less than $200,000 under Servicemen's Group Life Insurance, and then only in an amount which when added to the amount of Servicemen's Group Life Insurance payable shall not exceed $200,000.", and added par. (2).

Subsec. (a)(1). Pub. L. 104–275, §406, struck out "and (e)" after "section 1967(a)" and after "section 1967(b)".

Pub. L. 104–275, §405(b)(1)(H), substituted "Servicemembers' Group" for "Servicemen's Group" in two places.

Subsec. (d). Pub. L. 104–275, §405(b)(1)(H), substituted "Servicemembers' Group" for "Servicemen's Group".

Subsec. (e). Pub. L. 104–275, §403(b)(2), inserted "at any time" after "shall have the right" in first sentence and substituted as third sentence "The Veterans' Group Life Insurance policy converted to an individual policy under this subsection shall terminate on the day before the date on which the individual policy becomes effective." for "The individual policy will be effective the day after the insured's Veterans' Group Life Insurance terminates by expiration of the five-year term period, except in a case where the insured is eligible to convert at an earlier date by reason of again having become insured under Servicemen's Group Life Insurance, in which event the effective date of the individual policy may not be later than the sixty-first day after the insured again became so insured."

Subsec. (g). Pub. L. 104–275, §405(b)(1)(H), substituted "Servicemembers' Group" for "Servicemen's Group" wherever appearing.

1994—Subsec. (f). Pub. L. 103–446 substituted "subsections (d) and (e) of section 1971" for "sections 1971(d) and (e)".

1992—Subsec. (a). Pub. L. 102–568, §202(1), inserted "and (e)" after "1967(a)" and after "1967(b)", substituted "$200,000" for "$100,000" wherever appearing, "60 days" for "sixty days", and "60-day period" for "sixty-day period", and struck out "of this section" after "subsection (e)".

Subsec. (b)(2). Pub. L. 102–568, §202(2), substituted "renewable" for "nonrenewable".

Subsec. (h)(2). Pub. L. 102–568, §202(3), substituted "In accordance with subsection (b)" for "Notwithstanding subsection (b)(2) of this section".

1991—Pub. L. 102–83, §5(a), renumbered section 777 of this title as this section.

Subsec. (a). Pub. L. 102–83, §5(c)(1), substituted "1967(a)" for "767(a)" and "1967(b) or 1968(a)" for "767(b) or 768(a)".

Pub. L. 102–25 substituted "$100,000" for "$50,000" wherever appearing.

Subsec. (b). Pub. L. 102–83, §4(b)(1), (2)(E), substituted "Secretary" for "Administrator".

Subsec. (c). Pub. L. 102–83, §5(c)(1), substituted "1971(a)" for "771(a)" and "1966(b)" for "766(b)".

Pub. L. 102–83, §4(b)(1), (2)(E), substituted "Secretary" for "Administrator" wherever appearing.

Subsec. (d). Pub. L. 102–83, §5(c)(1), substituted "1970" for "770" and "1966(b)" for "766(b)".

Subsec. (e). Pub. L. 102–83, §5(c)(1), substituted "1966(b)" for "766(b)".

Pub. L. 102–83, §4(b)(1), (2)(E), substituted "Secretary" for "Administrator".

Subsec. (f). Pub. L. 102–83, §5(c)(1), substituted "1971(d)" for "771(d)".

Pub. L. 102–83, §4(b)(1), (2)(E), substituted "Secretary" for "Administrator".

Subsec. (g). Pub. L. 102–83, §5(c)(1), substituted "1977" for "777" and "1966(b)" for "766(b)".

Pub. L. 102–83, §4(b)(1), (2)(E), substituted "Secretary" for "Administrator" in two places.

Pub. L. 102–83, §4(a)(2)(B)(iii), substituted "Department of Veterans Affairs" for "Veterans' Administration".

Subsec. (h)(1), (3). Pub. L. 102–83, §4(b)(1), (2)(E), substituted "Secretary" for "Administrator".

1986—Subsec. (a). Pub. L. 99–576, §701(43)(A), substituted "such person's" for "his" in two places and "such person" for "he".

Subsec. (c). Pub. L. 99–576, §701(43)(B), substituted "the Administrator" for "he" in first sentence and "such member or former member" for "he" in third sentence.

Subsec. (d). Pub. L. 99–576, §701(43)(C), substituted "such person's" for "his".

Subsec. (e). Pub. L. 99–576, §701(43)(D), substituted "the insured" for "he" in first and third sentences.

Subsec. (g). Pub. L. 99–576, §701(43)(E), substituted "the insured's" for "his" and "the Administrator" for "he".

1985—Subsec. (a). Pub. L. 99–166, §401(b)(1), substituted "Veterans' Group Life Insurance shall be issued in the amounts specified in section 767(a) of this title. In the case of any individual, the amount of Veterans' Group Life Insurance may not exceed the amount of Servicemen's Group Life Insurance coverage continued in force after the expiration of the period of duty or travel under section 767(b) or 768(a) of this title" for "Veterans' Group Life Insurance shall be issued in the amount of $5,000, $10,000, $15,000, $20,000, $25,000, $30,000 or $35,000 only" and "$50,000" for "$35,000" in three places.

Subsec. (h). Pub. L. 99–166, §401(b)(2), added subsec. (h).

1981—Subsec. (a). Pub. L. 97–66 inserted figures of $25,000, $30,000, and $35,000 to the enumeration of allowable amounts in which Veterans' Group Life Insurance may be issued, and substituted $35,000 for $20,000 as the maximum amount of combined Servicemen's Group Life Insurance and Veterans' Group Life Insurance which a person may carry at any one time and as the figure covering situations in which a person insured under Veterans' Group Life Insurance dies within the sixty-day period after having again become insured under Servicemen's Group Life Insurance before converting his Veterans' Group Life Insurance to an individual policy.

Statutory Notes and Related Subsidiaries

Effective Date of 2010 Amendment

Pub. L. 111–275, title IV, §404(b), Oct. 13, 2010, 124 Stat. 2880, provided that: "Paragraph (3) of section 1977(a) of title 38, United States Code, as added by subsection (a), shall take effect on the date that is 180 days after the date of the enactment of this Act [Oct. 13, 2010]."

Effective and Termination Dates of 2005 Amendments

Amendment by section 2 of Pub. L. 109–80 effective Aug. 31, 2005, and this section shall be applied as if section 1012 of Pub. L. 109–13 had not been enacted, see section 2 of Pub. L. 109–80, set out as a note under section 1967 of this title.

Amendment by section 3(b) of Pub. L. 109–80 effective Sept. 1, 2005, and applicable with respect to deaths occurring on or after that date, see section 3(c) of Pub. L. 109–80, set out as a note under section 1967 of this title.

Amendment by Pub. L. 109–13 effective through the earlier of Dec. 31, 2005, or, with respect to certain sections of Public Law 109–13, the date of the enactment into law of legislation that supersedes the provisions of, or the amendments made by, those sections, see section 115 of Pub. L. 109–77, set out as a note under section 1967 of this title.

Effective Date of 2000 Amendment

Amendment by Pub. L. 106–419 effective on the first day of the first month that begins more than 120 days after Nov. 1, 2000, see section 312(c) of Pub. L. 106–419, set out as a note under section 1967 of this title.

Effective Date of 1992 Amendment

Amendment by Pub. L. 102–568 effective Dec. 1, 1992, see section 205 of Pub. L. 102–568, set out as an Effective Date note under section 1922A of this title.

Effective Date of 1985 Amendment

Amendment by Pub. L. 99–166 effective Jan. 1, 1986, see section 401(c)(1) of Pub. L. 99–166, set out as a note under section 1967 of this title.

Effective Date of 1981 Amendment

Amendment by Pub. L. 97–66 effective Dec. 1, 1981, see section 701(b)(2) of Pub. L. 97–66, set out as a note under section 1114 of this title.

Effective Date

Section effective first day of third calendar month following May 1974, see section 12(4) of Pub. L. 93–289, set out as an Effective Date of 1974 Amendment note under section 1968 of this title.

§1978. Reinstatement

Reinstatement of insurance coverage granted under this subchapter but lapsed for nonpayment of premiums shall be under terms and conditions prescribed by the Secretary.

(Added Pub. L. 93–289, §9(a), May 24, 1974, 88 Stat. 172, §778; renumbered §1978 and amended Pub. L. 102–83, §§4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404–406.)

Editorial Notes

Amendments

1991—Pub. L. 102–83 renumbered section 778 of this title as this section and substituted "Secretary" for "Administrator".

Statutory Notes and Related Subsidiaries

Effective Date

Section effective first day of third calendar month following May 1974, see section 12(4) of Pub. L. 93–289, set out as an Effective Date of 1974 Amendment note under section 1968 of this title.

§1979. Incontestability

Subject to the provision of section 1973 of this title, insurance coverage granted under this subchapter shall be incontestable from the date of issue, reinstatement, or conversion except for fraud or nonpayment of premium.

(Added Pub. L. 93–289, §9(a), May 24, 1974, 88 Stat. 172, §779; renumbered §1979 and amended Pub. L. 102–83, §5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406.)

Editorial Notes

Amendments

1991—Pub. L. 102–83 renumbered section 779 of this title as this section and substituted "1973" for "773".

Statutory Notes and Related Subsidiaries

Effective Date

Section effective first day of third calendar month following May 1974, see section 12(4) of Pub. L. 93–289, set out as an Effective Date of 1974 Amendment note under section 1968 of this title.

§1980. Option to receive accelerated death benefit

(a) For the purpose of this section, a person shall be considered to be terminally ill if the person has a medical prognosis such that the life expectancy of the person is less than a period prescribed by the Secretary. The maximum length of such period may not exceed 12 months.

(b)(1) A terminally ill person insured under Servicemembers' Group Life Insurance or Veterans' Group Life Insurance may elect to receive in a lump-sum payment a portion of the face value of the insurance as an accelerated death benefit.

(2) The Secretary shall prescribe the maximum amount of the accelerated death benefit available under this section that the Secretary finds to be administratively practicable and actuarially sound, but in no event may the amount of the benefit exceed the amount equal to 50 percent of the face value of the person's insurance in force on the date the election of the person to receive the benefit is approved.

(3) A person making an election under this section may elect to receive an amount that is less than the maximum amount prescribed under paragraph (2). The Secretary shall prescribe the increments in which a reduced amount under this paragraph may be elected.

(c) The portion of the face value of insurance which is not paid in a lump sum as an accelerated death benefit under this section shall remain payable in accordance with the provisions of this chapter.

(d) Deductions under section 1969 of this title and premiums under section 1977(c) of this title shall be reduced, in a manner consistent with the percentage reduction in the face value of the insurance as a result of payment of an accelerated death benefit under this section, effective with respect to any amounts which would otherwise become due on or after the date of payment under this section.

(e) The Secretary shall prescribe regulations to carry out this section. Such regulations shall include provisions regarding—

(1) the form and manner in which an application for an election under this section shall be made; and

(2) the procedures under which any such application shall be considered.

(f)(1) An election to receive a benefit under this section shall be irrevocable.

(2) A person may not make more than one election under this section, even if the election of the person is to receive less than the maximum amount of the benefit available to the person under this section.

(g) If a person insured under Servicemembers' Group Life Insurance elects to receive a benefit under this section and the person's Servicemembers' Group Life Insurance is thereafter converted to Veterans' Group Life Insurance as provided in section 1968(b) of this title, the amount of the benefit paid under this section shall reduce the amount of Veterans' Group Life Insurance available to the person under section 1977(a) of this title.

(h) Notwithstanding any other provision of law, the amount of the accelerated death benefit received by a person under this section shall not be considered income or resources for purposes of determining eligibility for or the amount of benefits under any Federal or federally-assisted program or for any other purpose.

(Added Pub. L. 105–368, title III, §302(a)(1), Nov. 11, 1998, 112 Stat. 3332; amended Pub. L. 111–275, title IV, §405(a), Oct. 13, 2010, 124 Stat. 2880.)

Editorial Notes

Amendments

2010—Subsec. (b)(1). Pub. L. 111–275 struck out "reduced by an amount necessary to assure that there is no increase in the actuarial value of the benefit paid, as determined by the Secretary" after "death benefit".

Statutory Notes and Related Subsidiaries

Effective Date of 2010 Amendment

Pub. L. 111–275, title IV, §405(b), Oct. 13, 2010, 124 Stat. 2880, provided that: "The amendment made by subsection (a) [amending this section] shall apply with respect to a payment of an accelerated death benefit under section 1980 of title 38, United States Code, made on or after the date of the enactment of this Act [Oct. 13, 2010]."

Effective Date

Section effective 90 days after Nov. 11, 1998, see section 302(c) of Pub. L. 105–368, set out as an Effective Date of 1998 Amendment note under section 1970 of this title.

§1980A. Traumatic injury protection

(a)(1) A member of the uniformed services who is insured under Servicemembers' Group Life Insurance shall automatically be insured for traumatic injury in accordance with this section. Insurance benefits under this section shall be payable if the member, while so insured, sustains a traumatic injury on or after December 1, 2005, that results in a qualifying loss specified pursuant to subsection (b)(1).

(2) If a member suffers more than one such qualifying loss as a result of traumatic injury from the same traumatic event, payment shall be made under this section in accordance with the schedule prescribed pursuant to subsection (d) for the single loss providing the highest payment.

(b)(1) A member who is insured against traumatic injury under this section is insured against such losses due to traumatic injury (in this section referred to as "qualifying losses") as are prescribed by the Secretary by regulation. Qualifying losses so prescribed shall include the following:

(A) Total and permanent loss of sight.

(B) Loss of a hand or foot by severance at or above the wrist or ankle.

(C) Total and permanent loss of speech.

(D) Total and permanent loss of hearing in both ears.

(E) Loss of thumb and index finger of the same hand by severance at or above the metacarpophalangeal joints.

(F) Quadriplegia, paraplegia, or hemiplegia.

(G) Burns greater than second degree, covering 30 percent of the body or 30 percent of the face.

(H) Coma or the inability to carry out the activities of daily living resulting from traumatic injury to the brain.

(2) For purposes of this subsection:

(A) The term "quadriplegia" means the complete and irreversible paralysis of all four limbs.

(B) The term "paraplegia" means the complete and irreversible paralysis of both lower limbs.

(C) The term "hemiplegia" means the complete and irreversible paralysis of the upper and lower limbs on one side of the body.

(D) The term "inability to carry out the activities of daily living" means the inability to independently perform two or more of the following six functions:

(i) Bathing.

(ii) Continence.

(iii) Dressing.

(iv) Eating.

(v) Toileting.

(vi) Transferring.

(3) The Secretary may prescribe, by regulation, conditions under which coverage otherwise provided under this section is excluded.

(4) A member shall not be considered for the purposes of this section to be a member insured under Servicemembers' Group Life Insurance if the member is insured under Servicemembers' Group Life Insurance only as an insurable dependent of another member pursuant to subparagraph (A)(ii) or (C)(ii) of section 1967(a)(1) of this title.

(c)(1) A payment may be made to a member under this section only for a qualifying loss that results directly from a traumatic injury sustained while the member is covered against loss under this section and from no other cause.

(2)(A) A payment may be made to a member under this section for a qualifying loss resulting from a traumatic injury only for a loss that is incurred during the applicable period of time specified pursuant to subparagraph (B).

(B) For each qualifying loss, the Secretary shall prescribe, by regulation, a period of time to be the period of time within which a loss of that type must be incurred, determined from the date on which the member sustains the traumatic injury resulting in that loss, in order for that loss to be covered under this section.

(d)(1) Payments under this section for qualifying losses shall be made in accordance with a schedule prescribed by the Secretary, by regulation, specifying the amount of payment to be made for each type of qualifying loss, to be based on the severity of the qualifying loss. The minimum payment that may be prescribed for a qualifying loss is $25,000, and the maximum payment that may be prescribed for a qualifying loss is $100,000.

(2) As the Secretary considers appropriate, the schedule required by paragraph (1) may distinguish in specifying payments for qualifying losses between the severity of a qualifying loss of a dominant hand and of a qualifying loss of a nondominant hand.

(e)(1) During any period in which a member is insured under this section and the member is on active duty, there shall be deducted each month from the member's basic or other pay until separation or release from active duty an amount determined by the Secretary (which shall be the same for all such members) as the share of the cost attributable to provided coverage under this section, less any costs traceable to the extra hazards of such duty in the uniformed services.

(2) During any month in which a member is assigned to the Ready Reserve of a uniformed service under conditions which meet the qualifications set forth in section 1965(5)(B) of this title and is insured under a policy of insurance purchased by the Secretary under section 1966 of this title, there shall be contributed from the appropriation made for active duty pay of the uniformed service concerned an amount determined by the Secretary (which shall be the same for all such members) as the share of the cost attributable to provided coverage under this section, less any costs traceable to the extra hazards of such duty in the uniformed services. Any amounts so contributed on behalf of any member shall be collected by the Secretary concerned from such member (by deduction from pay or otherwise) and shall be credited to the appropriation from which such contribution was made in advance on a monthly basis.

(3) The Secretary shall determine the premium amounts to be charged for traumatic injury protection coverage provided under this section.

(4) The premium amounts shall be determined on the basis of sound actuarial principles and shall include an amount necessary to cover the administrative costs to the insurer or insurers providing such insurance.

(5) Each premium rate for the first policy year shall be continued for subsequent policy years, except that the rate may be adjusted for any such subsequent policy year on the basis of the experience under the policy, as determined by the Secretary in advance of that policy year.

(6) The cost attributable to insuring members under this section for any month or other period specified by the Secretary, less the premiums paid by the members, shall be paid by the Secretary concerned to the Secretary. The Secretary shall allocate the amount payable among the uniformed services using such methods and data as the Secretary determines to be reasonable and practicable. Payments under this paragraph shall be made on a monthly basis or at such other intervals as may be specified by the Secretary and shall be made within 10 days of the date on which the Secretary provides notice to the Secretary concerned of the amount required.

(7) For each period for which a payment by a Secretary concerned is required under paragraph (6), the Secretary concerned shall contribute such amount from appropriations available for active duty pay of the uniformed service concerned.

(8) The sums withheld from the basic or other pay of members, or collected from them by the Secretary concerned, under this subsection, and the sums contributed from appropriations under this subsection, together with the income derived from any dividends or premium rate adjustments received from insurers shall be deposited to the credit of the revolving fund established in the Treasury of the United States under section 1869(d)(1) of this title.

(f) When a claim for benefits is submitted under this section, the Secretary of Defense or, in the case of a member not under the jurisdiction of the Secretary of Defense, the Secretary concerned, shall certify to the Secretary whether the member with respect to whom the claim is submitted—

(1) was at the time of the injury giving rise to the claim insured under Servicemembers' Group Life Insurance for the purposes of this section; and

(2) has sustained a qualifying loss.

(g)(1) Payment for a loss resulting from traumatic injury may not be made under the insurance coverage under this section if the member dies before the end of a period prescribed by the Secretary, by regulation, for such purpose that begins on the date on which the member sustains the injury.

(2) If a member eligible for a payment under this section dies before payment to the member can be made, the payment shall be made to the beneficiary or beneficiaries to whom the payment would be made if the payment were life insurance under section 1967(a) of this title.

(h) Coverage for loss resulting from traumatic injury provided under this section shall cease at midnight on the date of the termination of the member's duty status in the uniformed services that established eligibility for Servicemembers' Group Life Insurance. The termination of coverage under this section is effective in accordance with the preceding sentence, notwithstanding any continuation after the date specified in that sentence of Servicemembers' Group Life Insurance coverage pursuant to section 1968(a) of this title for a period specified in that section.

(i) Insurance coverage provided under this section is not convertible to Veterans' Group Life Insurance.

(j) Regulations under this section shall be prescribed in consultation with the Secretary of Defense.

(k) Designation of Fiduciary or Trustee.—(1) The Secretary concerned, in consultation with the Secretary, shall develop a process for the designation of a fiduciary or trustee of a member of the uniformed services who is insured against traumatic injury under this section. The fiduciary or trustee so designated would receive a payment for a qualifying loss under this section if the member is medically incapacitated (as determined pursuant to regulations prescribed by the Secretary concerned in consultation with the Secretary) or experiencing an extended loss of consciousness.

(2) The process under paragraph (1) may require each member of the uniformed services who is insured under this section to—

(A) designate an individual as the member's fiduciary or trustee for purposes of subsection (a); or

(B) elect that a court of proper jurisdiction designate an individual as the member's fiduciary or trustee for purposes of subsection (a) in the event that the member becomes medically incapacitated or experiences an extended loss of consciousness.

(l)(1) If a claim for benefits under this section is denied, the Secretary concerned shall provide to the member at the same time as the member is informed of such denial a description of the following:

(A) Each reason for that denial, including a description of all the information upon which the denial is based and a description of the applicable laws, regulations, or policies, with appropriate citations, and an explanation of how such laws, regulations, or policies affected the denial.

(B) Each finding that is favorable to the member.

(2) Any finding favorable to the member as described in paragraph (1)(B) shall be binding on all subsequent reviews or appeals of the denial of the claim, unless clear and convincing evidence is shown to the contrary to rebut such favorable finding.

(Added Pub. L. 109–13, div. A, title I, §1032(a)(2), May 11, 2005, 119 Stat. 257; amended Pub. L. 109–233, title V, §501(a), June 15, 2006, 120 Stat. 411; Pub. L. 110–181, div. A, title XVII, §1711, Jan. 28, 2008, 122 Stat. 495; Pub. L. 111–275, title IV, §406(a)(1), title X, §1001(d)(2), Oct. 13, 2010, 124 Stat. 2880, 2896; Pub. L. 116–315, title II, §2005, Jan. 5, 2021, 134 Stat. 4974.)

Editorial Notes

Amendments

2021—Subsec. (l). Pub. L. 116–315 added subsec. (l).

2010—Subsec. (d). Pub. L. 111–275, §406(a)(1), designated existing provisions as par. (1) and added par. (2).

Subsec. (h). Pub. L. 111–275, §1001(d)(2), inserted "section" before "1968(a)".

2008—Subsec. (k). Pub. L. 110–181 added subsec. (k).

2006—Subsec. (a). Pub. L. 109–233, §501(a)(1), amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: "A member who is insured under subparagraph (A)(i), (B), or (C)(i) of section 1967(a)(1) shall automatically be issued a traumatic injury protection rider that will provide for a payment not to exceed $100,000 if the member, while so insured, sustains a traumatic injury that results in a loss described in subsection (b)(1). The maximum amount payable for all injuries resulting from the same traumatic event shall be limited to $100,000. If a member suffers more than 1 such loss as a result of traumatic injury, payment will be made in accordance with the schedule in subsection (d) for the single loss providing the highest payment."

Subsec. (b)(1). Pub. L. 109–233, §501(a)(2)(A), substituted "insured against traumatic injury under this section is insured against such losses due to traumatic injury (in this section referred to as 'qualifying losses') as are prescribed by the Secretary by regulation. Qualifying losses so prescribed shall include the following:" for "issued a traumatic injury protection rider under subsection (a) is insured against such traumatic injuries, as prescribed by the Secretary, in collaboration with the Secretary of Defense, including, but not limited to—" in introductory provisions, capitalized first letter of first word in subpars. (A) to (H), substituted a period for the semicolon at the end of subpars. (A) to (F), and substituted a period for "; and" at the end of subpar. (G).

Subsec. (b)(2). Pub. L. 109–233, §501(a)(2)(B), substituted "subsection:" for "subsection—" in introductory provisions, "The" for "the" at the beginning of subpars. (A) to (C), "four limbs." for "4 limbs;" in subpar. (A), a period for "; and" in subpar. (B), and "one side" for "1 side" in subpar. (C), and added subpar. (D).

Subsec. (b)(3). Pub. L. 109–233, §501(a)(2)(C), struck out ", in collaboration with the Secretary of Defense," after "The Secretary" and substituted "may prescribe" for "shall prescribe" and "conditions under which coverage otherwise provided under this section is excluded" for "the conditions under which coverage against loss will not be provided".

Subsec. (b)(4). Pub. L. 109–233, §501(a)(2)(D), added par. (4).

Subsec. (c). Pub. L. 109–233, §501(a)(3), amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: "A payment under this section may be made only if—

"(1) the member is insured under Servicemembers' Group Life Insurance when the traumatic injury is sustained;

"(2) the loss results directly from that traumatic injury and from no other cause; and

"(3) the member suffers the loss before the end of the period prescribed by the Secretary, in collaboration with the Secretary of Defense, which begins on the date on which the member sustains the traumatic injury, except, if the loss is quadriplegia, paraplegia, or hemiplegia, the member suffers the loss not later than 365 days after sustaining the traumatic injury."

Subsec. (d). Pub. L. 109–233, §501(a)(4), substituted "qualifying losses shall be made in accordance with a schedule prescribed by the Secretary, by regulation, specifying the amount of payment to be made for each type of qualifying loss, to be based on the severity of the qualifying loss. The minimum payment that may be prescribed for a qualifying loss is $25,000, and the maximum payment that may be prescribed for a qualifying loss is $100,000." for "losses described in subsection (b)(1) shall be—

"(1) made in accordance with a schedule prescribed by the Secretary, in collaboration with the Secretary of Defense;

"(2) based on the severity of the covered condition; and

"(3) in an amount that is equal to not less than $25,000 and not more than $100,000."

Subsec. (e). Pub. L. 109–233, §501(a)(5), substituted "Secretary concerned" for "Secretary of the concerned service" in par. (2) and "Secretary" for "Secretary of Veterans Affairs" wherever appearing in pars. (1) to (5), struck out "as the premium allocable to the pay period for providing traumatic injury protection under this section" before "(which shall be the same for all such members)" in par. (1), added pars. (6) to (8), and struck out former pars. (6) to (8), which read as follows:

"(6) The cost attributable to insuring such member under this section, less the premiums deducted from the pay of the member's uniformed service, shall be paid by the Secretary of Defense to the Secretary of Veterans Affairs. This amount shall be paid on a monthly basis, and shall be due within 10 days of the notice provided by the Secretary of Veterans Affairs to the Secretary of the concerned uniformed service.

"(7) The Secretary of Defense shall provide the amount of appropriations required to pay expected claims in a policy year, as determined according to sound actuarial principles by the Secretary of Veterans Affairs.

"(8) The Secretary of Defense shall forward an amount to the Secretary of Veterans Affairs that is equivalent to half the anticipated cost of claims for the current fiscal year, upon the effective date of this legislation."

Subsec. (f). Pub. L. 109–233, §501(a)(6), amended subsec. (f) generally. Prior to amendment, subsec. (f) read as follows: "The Secretary of Defense shall certify whether any member claiming the benefit under this section is eligible."

Subsec. (g). Pub. L. 109–233, §501(a)(7), designated first sentence as par. (1), substituted "may not be made under the insurance coverage under this section" for "will not be made" and "a period prescribed by the Secretary, by regulation, for such purpose that begins on the date" for "the period prescribed by the Secretary, in collaboration with the Secretary of Defense, which begins on the date", designated second sentence as par. (2), and substituted "If a member eligible for a payment under this section" for "If the member", "shall be" for "will be", and "to the beneficiary or beneficiaries to whom the payment would be made if the payment were life insurance under section 1967(a) of this title." for "according to the member's most current beneficiary designation under Servicemembers' Group Life Insurance, or a by law designation, if applicable."

Subsec. (h). Pub. L. 109–233, §501(a)(8), substituted "termination of the member's duty status in the uniformed services that established eligibility for Servicemembers' Group Life Insurance" for "member's separation from the uniformed service" in first sentence, added second sentence, and struck out former second sentence which read as follows: "Payment will not be made for any loss resulting from injury incurred after the date a member is separated from the uniformed services."

Subsec. (j). Pub. L. 109–233, §501(a)(9), added subsec. (j).

Statutory Notes and Related Subsidiaries

Effective Date of 2010 Amendment

Pub. L. 111–275, title IV, §406(a)(2), Oct. 13, 2010, 124 Stat. 2880, provided that: "The amendments made by paragraph (1) [amending this section] shall take effect on October 1, 2011."

Effective Date

Pub. L. 109–13, div. A, title I, §1032(d), May 11, 2005, 119 Stat. 259, provided that:

"(1) In general.—The amendments made by this section [enacting this section and amending section 1965 of this title] shall take effect on the first day of the first month beginning more than 180 days after the date of enactment of this Act [May 11, 2005].

"(2) Rulemaking.—Before the effective date described in paragraph (1), the Secretary of Veterans Affairs, in collaboration with the Secretary of Defense, shall issue regulations to carry out the amendments made by this section."

Payments for Qualifying Losses Incurred Before October 13, 2010

Pub. L. 111–275, title IV, §406(b), Oct. 13, 2010, 124 Stat. 2880, provided that:

"(1) In general.—To the extent necessary, the Secretary of Veterans Affairs shall prescribe in regulations mechanisms for payments under section 1980A of title 38, United States Code, for qualifying losses incurred before the date of the enactment of this Act [Oct. 13, 2010], by reason of paragraph (2) of subsection (d) of such section (as added by subsection (a)(1) of this section).

"(2) Qualifying loss defined.—In this subsection, the term 'qualifying loss' means—

"(A) a loss specified in the second sentence of subsection (b)(1) of section 1980A of title 38, United States Code; and

"(B) any other loss specified by the Secretary of Veterans Affairs pursuant to the first sentence of that subsection."

Retroactive Provision

Pub. L. 109–233, title V, §501(b), June 15, 2006, 120 Stat. 414, as amended by Pub. L. 111–275, title IV, §408(a), Oct. 13, 2010, 124 Stat. 2881, provided that:

"(1) Eligibility.—A member of the uniformed services who during the period beginning on October 7, 2001, and ending at the close of November 30, 2005, sustains a traumatic injury resulting in a qualifying loss is eligible for coverage for that loss under section 1980A of title 38, United States Code.

"(2) Certification of persons entitled to payment.—The Secretary concerned shall certify to the life insurance company issuing the policy of life insurance for Servicemembers' Group Life Insurance under chapter 19 of title 38, United States Code, the name and address of each person who the Secretary concerned determines to be entitled by reason of paragraph (1) to a payment under section 1980A of title 38, United States Code, plus such additional information as the Secretary of Veterans Affairs may require.

"(3) Funding.—At the time a certification is made under paragraph (2), the Secretary concerned, from funds then available to that Secretary for the pay of members of the uniformed services under the jurisdiction of that Secretary, shall pay to the Secretary of Veterans Affairs the amount of funds the Secretary of Veterans Affairs determines to be necessary to pay all costs related to payments to be made under that certification. Amounts received by the Secretary of Veterans Affairs under this paragraph shall be deposited to the credit of the revolving fund in the Treasury of the United States established under section 1969(d) of title 38, United States Code.

"(4) Qualifying loss.—For purposes of this subsection, the term 'qualifying loss' means—

"(A) a loss specified in the second sentence of subsection (b)(1) of section 1980A of title 38, United States Code, as amended by subsection (a); and

"(B) any other loss specified by the Secretary of Veterans Affairs pursuant to the first sentence of that subsection.

"(5) Secretary concerned.—For purposes of this subsection, the term 'Secretary concerned' has the meaning given that term in paragraph (25) of section 101 of title 38, United States Code."

[Pub. L. 111–275, title IV, §408(c), Oct. 13, 2010, 124 Stat. 2881, provided that: "The amendments made by this section [amending section 501(b)(1) of Pub. L. 109–233, set out above] shall take effect on October 1, 2011."]

Pub. L. 109–13, div. A, title I, §1032(c), May 11, 2005, 119 Stat. 259, which provided for retroactive traumatic injury benefits, was repealed by Pub. L. 109–233, title V, §501(c)(2), June 15, 2006, 120 Stat. 415.