§ 1925. Limited period for acquiring insurance

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1964

   Pub. L. 88–664 § 12(a) · 78 Stat. 1094

   Enacted · 38 U.S.C. § 1925

   Added Pub. L. 88–664, § 12(a), Oct. 13, 1964, 78 Stat. 1096, § 725

   Source evidence

   Code source credit
   Added Pub. L. 88–664, § 12(a), Oct. 13, 1964, 78 Stat. 1096, § 725

   Enacted provision · exact public law section
   (a) Subchapter I of chapter 19 of title 38, United States Code, is amended by adding at the end thereof the following new section: “§ 725. Limited period for acquiring insurance “(a) Any person (other than a person referred to in subsection (f) of this section) heretofore eligible to apply for National Service Life Insurance after October 7, 1940, and before January 1, 1957, who is found by the Administrator to be suffering (1) from a service-connected disability or disabilities for which compensation would be payable if 10 per centum or more in degree and except for which such person would be insurable according to the standards of good health established by the Administrator; or (2) from a nonservice-connected disability which renders such person uninsurable according to the standards of good health established by the Administrator and such person establishes to the satisfaction of the Administrator that he is unable to obtain commercial life insurance at a substandard rate, shall, upon application in writing made within one year after the effective date of this section, compliance with the health requirements of this section and payment of the required premiums, be granted insurance under this section. “(b) If, notwithstanding the applicant’s service-connected disability, he is insurable according to the standards of good health established by the Administrator, the insurance granted under this section shall be issued upon the same terms and conditions as are contained in the standard policies of National Service Life Insurance except (1) five-year level premium term insurance may not be issued; (2) the net premium rates shall be based on the 1958 Commissioners Standard Ordinary Basic Mortality Table, increased at the time of issue by such an amount as the Administrator determines to be necessary for sound actuarial operations, and thereafter such premiums may be adjusted as the Administrator determines to be so necessary but at intervals of not less than two years; (3) an additional premium to cover administrative costs to the Government as determined by the Administrator at times of issue shall be charged for insurance issued under this subsection and for any total disability income provision attached thereto, and thereafter such costs may be adjusted as the Administrator determines to be necessary but at intervals of not less than five years; (4) all cash, loan, extended and paid-up insurance values shall be based on the 1958 Commissioners Standard Ordinary Basic Mortality Table; (5) all settlements on policies involving annuities shall be calculated on the basis of The Annuity Table for 1949; (6) all calculations in connection with insurance issued under this subsection shall be based on interest at the rate of 3% per centum per annum; (7) the insurance shall include such other changes in terms and conditions as the Administrator determines to be reasonable and practicable; (8) the insurance and any total disability income Revolving fund. provision attached thereto shall be on a nonparticipating basis and all premiums and other collections therefor shall be credited to a revolving fund established in the Treasury of the United States and the payments on such insurance and total disability income provision shall be made directly from such fund. “(c) If the applicant’s service-connected disability or disabilities render him uninsurable according to the standards of good health established by the Administrator, or if the applicant has a nonservice-connected disability which renders him uninsurable according to the standards of good health established by the Administrator and such person establishes to the satisfaction of the Administrator that he is unable to obtain commercial life insurance at a substandard rate and such uninsurability existed as of the date of approval of this section, the insurance granted under this section shall be issued upon the same terms and conditions as are contained in standard policies of National Service Life Insurance, except (1) five-year level premium term insurance may not be issued; (2) the premiums charged for the insurance issued under this subsection shall be increased at the time of issue by such an amount as the Administrator determines to be necessary for sound actuarial operations and thereafter such premiums may be adjusted from time to time as the Administrator determines to be necessary; for the purpose of any increase at time of issue or later adjustment the service-connected group and the nonservice-connected group may be separately classified; (3) an additional premium to cover administrative costs to the Government as determined by the Administrator at the time of issue shall be charged for insurance issued under this subsection and for any total disability income provision attached thereto (for which the insured may subsequently become eligible) and thereafter such costs may be adjusted as the Administrator determines to be necessary but at intervals of not less than five years and for this purpose the service-connected and nonservice-connected can be separately classified; (4) the insurance and any total disability income provision attached thereto shall be on a non participating basis; (5) all settlements on policies involving annuities shall be calculated on the basis of The Annuity Table for 1949; (6) all calculations in connection with insurance issued under this subsection shall be based on interest at the rate of 3% per centum per annum: (7) the insurance shall include such other changes in terms and conditions as the Administrator determines to be reasonable and practicable; (8) all premiums and other collections on the insurance and any total disability income provision attached thereto shall be credited to the National Service Life Insurance appropriation, and the payments on such insurance and total disability income provision shall be made directly from such appropriation. Appropriations necessary to carry out the provisions of this subsection are hereby authorized. “(d) (1) There is authorized to be appropriated such sums as may Appropriation. be required to provide capital for the revolving fund to carry out the purpose of subsection (b) of this section. Such appropriations shall be advanced to the revolving fund as needed and shall bear interest as determined by the Secretary of the Treasury, taking into considera-tion the average yield on all marketable interest-bearing obligations of the United States of comparable maturities then forming a part of the public debt and shall be repaid to the Treasury over a reasonable period of time. “(2) The Administrator is authorized to set aside out of the revolving fund established under subsection (b) of this section such reserve amounts as may be required under accepted actuarial principles to meet all liabilities on insurance issued under subsection (b) of this section and any total disability income provision attached thereto. 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 782 of this title, the Administrator shall, from time to time, determine the administrative costs to the Government which in his judgment are properly allocable to insurance issued under this section and any total disability income provision attached thereto, and shall transfer from the revolving fund, or the National Service Life Insurance appropriation, as appropriate, the amount of such cost, allocable to the Veterans’ Administration to the appropriation ‘General Operating Expenses, Veterans’ Administration’, and the remainder of such cost to the general fund receipts in the Treasury. The initial administrative costs of issuing insurance under this section and any total disability income provision attached thereto shall be so transferred over such period of time as the Administrator determines to be reasonable and practicable. “(e) Notwithstanding the provisions of section 782 of this title, a medical examination (including any supplemental examination or tests) when required of an applicant for issuance of insurance under this section or any total disability income provisions attached thereto shall be at the applicant’s own expense by a duly licensed physician. “(f) No insurance shall be granted under this section to any person referred to in section 107 of this title or to any person while on active duty or active duty for training under a call or order to such duty for a period of thirty-one days or more.”

2. 1965

   Pub. L. 89–40 § 1(1) · 79 Stat. 129

   Struck · 38 U.S.C. § 1925(b)

   Pub. L. 89–40, § 1(1), struck out provision from cl. (8) which called for all premiums and other collections for insurance granted under this section to be credited to a revolving fund established in the Treasury of the United States and for payment on such insurance or total disability income provisions to be made directly from that fund

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 89–40, § 1(1), struck out provision from cl. (8) which called for all premiums and other collections for insurance granted under this section to be credited to a revolving fund established in the Treasury of the United States and for payment on such insurance or total disability income provisions to be made directly from that fund.

   Enacted provision · exact public law section
   (1) By placing a period after the word “basis” in clause (8) of subsection (b) and striking all of the remainder of such clause.

3. 1965

   Pub. L. 89–40 § 1(2) · 79 Stat. 129

   1. Struck · 38 U.S.C. § 1925(c)

      Pub. L. 89–40, § 1(2), struck out cl. (8) which provided that all premiums and other collections on the insurance and any total disability income provision attached thereto should be credited to the National Service Life Insurance appropriation, and the payments on such insurance and total disability income provisions should be made directly from such appropriations

   2. Struck · 38 U.S.C. § 1925(c)

      Pub. L. 89–40, § 1(2), struck out sentence which authorized necessary appropriations

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 89–40, § 1(2), struck out cl. (8) which provided that all premiums and other collections on the insurance and any total disability income provision attached thereto should be credited to the National Service Life Insurance appropriation, and the payments on such insurance and total disability income provisions should be made directly from such appropriations, and struck out sentence which authorized necessary appropriations.

   Enacted provision · exact public law section
   (1) By placing a period after the word “basis” in clause (8) of subsection (b) and striking all of the remainder of such clause.

4. 1965

   Pub. L. 89–40 § 1(3) · 79 Stat. 129

   1. Struck · 38 U.S.C. § 1925(d)(1)

      Pub. L. 89–40, § 1(3), struck out provisions authorizing appropriations to carry out the purposes of subsec. (b) of this section by adding to the revolving fund as needed at interest to be determined by the Secretary of the Treasury

   2. Substituted · 38 U.S.C. § 1925(d)(1)

      Pub. L. 89–40, § 1(3), substituted therefor provisions requiring credit to Veterans Reopened Insurance Fund of all premiums and collections on insurance issued pursuant to this section and disbursements from that fund of all payments on insurance and total disability provisions attached thereto, separate determination for actuarial purposes of the various insured groups under this section, transfer to fund from Veterans Special Term Insurance Fund to provide initial capital of excess funds not exceeding $1,650,000, and repayment over a reasonable time at interest to be determined by the Secretary of the Treasury

   Source evidence

   Code amendment note
   Subsec. (d)(1). Pub. L. 89–40, § 1(3), struck out provisions authorizing appropriations to carry out the purposes of subsec. (b) of this section by adding to the revolving fund as needed at interest to be determined by the Secretary of the Treasury, and substituted therefor provisions requiring credit to Veterans Reopened Insurance Fund of all premiums and collections on insurance issued pursuant to this section and disbursements from that fund of all payments on insurance and total disability provisions attached thereto, separate determination for actuarial purposes of the various insured groups under this section, transfer to fund from Veterans Special Term Insurance Fund to provide initial capital of excess funds not exceeding $1,650,000, and repayment over a reasonable time at interest to be determined by the Secretary of the Treasury.

   Enacted provision · exact public law section
   (1) By placing a period after the word “basis” in clause (8) of subsection (b) and striking all of the remainder of such clause.

5. 1965

   Pub. L. 89–40 § 1(4) · 79 Stat. 129

   Struck · 38 U.S.C. § 1925(d)(2)

   Pub. L. 89–40, § 1(4), struck out reference to subsec. (b) of this section

   Source evidence

   Code amendment note
   Subsec. (d)(2). Pub. L. 89–40, § 1(4), struck out reference to subsec. (b) of this section.

   Enacted provision · exact public law section
   (1) By placing a period after the word “basis” in clause (8) of subsection (b) and striking all of the remainder of such clause.

6. 1965

   Pub. L. 89–40 § 1(5) · 79 Stat. 129

   Struck · 38 U.S.C. § 1925(d)(3)

   Pub. L. 89–40, § 1(5), struck out reference to National Service Life Insurance appropriation

   Source evidence

   Code amendment note
   Subsec. (d)(3). Pub. L. 89–40, § 1(5), struck out reference to National Service Life Insurance appropriation.

   Enacted provision · exact public law section
   (1) By placing a period after the word “basis” in clause (8) of subsection (b) and striking all of the remainder of such clause.

7. 1979

   Veterans’ Disability Compensation and Survivors’ Benefits Amendments of 1979

   Pub. L. 96–128 § 301(a) · 93 Stat. 982

   Struck · 38 U.S.C. § 1925(b)

   Pub. L. 96–128, § 301(a), struck out cl. (8) which required the insurance and any attached total disability income provision to be on a nonparticipatory basis

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 96–128, § 301(a), struck out cl. (8) which required the insurance and any attached total disability income provision to be on a nonparticipatory basis.

   Enacted provision · exact public law section
   (a) Subsection (b) of section 725 is amended— 38 USC 725. (1) by inserting “and” after the semicolon at the end of clause (6); and (2) by striking out the semicolon at the end of clause (7) and all that follows in such subsection and inserting in lieu thereof a period.

   Effective date note
   Amendment by Pub. L. 96–128 effective Nov. 28, 1979, see section 601(b) of Pub. L. 96–128, set out as a note under section 1114 of this title.

8. 1979

   Veterans’ Disability Compensation and Survivors’ Benefits Amendments of 1979

   Pub. L. 96–128 § 301(b) · 93 Stat. 982

   1. Struck · 38 U.S.C. § 1925(c)

      Pub. L. 96–128, § 301(b), struck out cl. (4) which required the insurance and any attached total disability income provision to be on a nonparticipatory basis

   2. Redesignated · 38 U.S.C. § 1925(c)

      Pub. L. 96–128, § 301(b), redesignated former cls. (5) to (7) as (4) to (6), respectively

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 96–128, § 301(b), struck out cl. (4) which required the insurance and any attached total disability income provision to be on a nonparticipatory basis, and redesignated former cls. (5) to (7) as (4) to (6), respectively.

   Enacted provision · exact public law section
   (b) Subsection (c) of such section is amended— (1) by striking out clause (4); (2) by redesignating clauses (5), (6), and (7) as clauses (4), (5), and (6), respectively; and (3) by inserting “and” after the semicolon at the end of clause (5) (as so redesignated).

   Effective date note
   Amendment by Pub. L. 96–128 effective Nov. 28, 1979, see section 601(b) of Pub. L. 96–128, set out as a note under section 1114 of this title.

9. 1979

   Veterans’ Disability Compensation and Survivors’ Benefits Amendments of 1979

   Pub. L. 96–128 § 301(c) · 93 Stat. 982

   Inserted · 38 U.S.C. § 1925(d)(1)

   Pub. L. 96–128, § 301(c), inserted provisions respecting payments of dividends and refunds of unearned premiums from the fund, and interest earned on the assets of the fund

   Source evidence

   Code amendment note
   Subsec. (d)(1). Pub. L. 96–128, § 301(c), inserted provisions respecting payments of dividends and refunds of unearned premiums from the fund, and interest earned on the assets of the fund.

   Enacted provision · exact public law section
   (c) The first sentence of subsection (d) of such section is amended by striking out “shall be made from that fund” and inserting in lieu thereof a comma and “including payments of dividends and refunds of unearned premiums, shall be made from that fund and the interest earned on the assets of that fund”.

   Effective date note
   Amendment by Pub. L. 96–128 effective Nov. 28, 1979, see section 601(b) of Pub. L. 96–128, set out as a note under section 1114 of this title.

10. 1982

    Pub. L. 97–295 § 4(25) · 96 Stat. 1287

    1. Substituted · 38 U.S.C. § 1925(a)

       Pub. L. 97–295, § 4(25), substituted “percent” for “per centum”

    2. Substituted · 38 U.S.C. § 1925(a)

       Pub. L. 97–295, § 4(25), substituted “before May 2, 1966” for “within one year after the effective date of this section”

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 97–295, § 4(25), substituted “percent” for “per centum”, and substituted “before May 2, 1966” for “within one year after the effective date of this section”.

    Enacted provision · exact public law section
    (25) Section 725 is amended— (A) by striking out “per centum” wherever it appears and substituting “percent”; and (B) in subsection (a), by striking out “within one year after the effective date of this section” and substituting “before May 2, 1966”.

11. 1982

    Pub. L. 97–295 § 4(25)(A) · 96 Stat. 1287

    Substituted · 38 U.S.C. § 1925(b); 38 U.S.C. § 1925(c); 38 U.S.C. § 1925(d)(2)

    Pub. L. 97–295, § 4(25)(A), substituted “percent” for “per centum” wherever appearing

    Source evidence

    Code amendment note
    Subsecs. (b), (c), (d)(2). Pub. L. 97–295, § 4(25)(A), substituted “percent” for “per centum” wherever appearing.

    Enacted provision · exact public law section
    (A) by striking out “per centum” wherever it appears and substituting “percent”; and

12. 1986

    Pub. L. 99–576 § 701(28)(A) · 100 Stat. 3248

    Substituted · 38 U.S.C. § 1925(a); 38 U.S.C. § 1925(b)

    Pub. L. 99–576, § 701(28)(A), substituted “such person” for “he”

    Source evidence

    Code amendment note
    Subsecs. (a), (b). Pub. L. 99–576, § 701(28)(A), substituted “such person” for “he”.

    Enacted provision · exact public law section
    (A) by striking out “he” each place it appears and inserting in lieu thereof “such person”,

13. 1986

    Pub. L. 99–576 § 701(28)(A) · 100 Stat. 3248

    1. Substituted · 38 U.S.C. § 1925(c)

       Pub. L. 99–576, § 701(28)(A), (B), substituted “the applicant” for “him”

    2. Substituted · 38 U.S.C. § 1925(c)

       Pub. L. 99–576, § 701(28)(A), (B), substituted “such person” for “he”

    Source evidence

    Code amendment note
    Subsec. (c). Pub. L. 99–576, § 701(28)(A), (B), substituted “the applicant” for “him” in two places, and “such person” for “he”.

    Enacted provision · exact public law section
    (A) by striking out “he” each place it appears and inserting in lieu thereof “such person”,

14. 1986

    Pub. L. 99–576 § 701(28)(C) · 100 Stat. 3248

    Substituted · 38 U.S.C. § 1925(d)(3)

    Pub. L. 99–576, § 701(28)(C), substituted “the Administrator’s” for “his”

    Source evidence

    Code amendment note
    Subsec. (d)(3). Pub. L. 99–576, § 701(28)(C), substituted “the Administrator’s” for “his”.

    Enacted provision · exact public law section
    (C) by striking out “his” in subsection (d)(3) and inserting in lieu thereof “the Administrator’s”.

15. 1991

    Pub. L. 102–83 § 5(a) · 105 Stat. 378

    Changed · 38 U.S.C. § 1925

    Pub. L. 102–83, § 5(a), renumbered section 725 of this title as this section

    Source evidence

    Code amendment note
    Pub. L. 102–83, § 5(a), renumbered section 725 of this title as this section.

    Enacted provision · exact public law section
    (a) Redesignation of Sections to Conform to Chapter Numbers.— Each section contained in any of chapters 11 through 23 is redesignated by replacing the first digit of the section number with the number of the chapter containing that section. Each section contained in any of chapters 24 through 42 is redesignated so that the first two digits of the section number of that section are the same as the chapter number of the chapter containing that section.

16. 1991

    Pub. L. 102–83 § 4(b)(1) · 105 Stat. 378

    Substituted · 38 U.S.C. § 1925(a)(c)

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

    Source evidence

    Code amendment note
    Subsecs. (a) to (c). Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator” wherever appearing.

    Enacted provision · exact public law section
    (1) Title 38 is further amended by striking out “Administrator” and “Administrator’s” each place they appear (except as provided in paragraphs (2) and (9) and including where they appear in section headings and tables of sections) and inserting in lieu thereof “Secretary” and “Secretary’s”, respectively.

17. 1991

    Pub. L. 102–83 § 5(c)(1) · 105 Stat. 378

    Substituted · 38 U.S.C. § 1925(d)

    Pub. L. 102–83, § 5(c)(1), substituted “1982” for “782” in par. (3)

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 102–83, § 5(c)(1), substituted “1982” for “782” in par. (3).

    Enacted provision · exact public law section
    (1) Each provision of title 38, United States Code, that contains a reference to a section redesignated by subsection (a) is amended so that the reference refers to the section as redesignated.

18. 1991

    Pub. L. 102–83 § 4(b)(1) · 105 Stat. 378

    1. Substituted · 38 U.S.C. § 1925(d)

       Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator” wherever appearing in pars. (1) to (3)

    2. Substituted · 38 U.S.C. § 1925(d)

       Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary’s” for “Administrator’s” wherever appearing in pars. (1) to (3)

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator” and “Secretary’s” for “Administrator’s” wherever appearing in pars. (1) to (3).

    Enacted provision · exact public law section
    (1) Title 38 is further amended by striking out “Administrator” and “Administrator’s” each place they appear (except as provided in paragraphs (2) and (9) and including where they appear in section headings and tables of sections) and inserting in lieu thereof “Secretary” and “Secretary’s”, respectively.

19. 1991

    Pub. L. 102–83 § 4(a)(3) · 105 Stat. 378

    Substituted · 38 U.S.C. § 1925(d)

    Pub. L. 102–83, § 4(a)(3), (4), substituted “Department” for first reference to “Veterans’ Administration” in par. (3)

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 102–83, § 4(a)(3), (4), substituted “Department” for first reference to “Veterans’ Administration” in par. (3).

    Enacted provision · exact public law section
    (3) Such title is further amended by striking out “Veterans’ Administration” each place it appears (other than as amended under paragraphs (1) and (2) and as specified in paragraph (4)) and inserting in lieu thereof “Department”.

20. 1991

    Pub. L. 102–83 § 4(a)(2)(B)(ii) · 105 Stat. 378

    Substituted · 38 U.S.C. § 1925(d)

    Pub. L. 102–83, § 4(a)(2)(B)(ii), substituted “Department of Veterans Affairs” for second reference to “Veterans’ Administration” in par. (3)

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 102–83, § 4(a)(2)(B)(ii), substituted “Department of Veterans Affairs” for second reference to “Veterans’ Administration” in par. (3).

    Enacted provision · exact public law section
    (ii) Section 725(d)(3) (the second place “Veterans’ Administration” appears),

21. 1991

    Pub. L. 102–83 § 5(c)(1) · 105 Stat. 378

    Substituted · 38 U.S.C. § 1925(e)

    Pub. L. 102–83, § 5(c)(1), substituted “1982” for “782”

    Source evidence

    Code amendment note
    Subsec. (e). Pub. L. 102–83, § 5(c)(1), substituted “1982” for “782”.

    Enacted provision · exact public law section
    (1) Each provision of title 38, United States Code, that contains a reference to a section redesignated by subsection (a) is amended so that the reference refers to the section as redesignated.

22. 2009

    Department of Housing and Urban Development Appropriations Act, 2010

    Pub. L. 111–117 div. E title II § 225 · 123 Stat. 3034

    Substituted · 38 U.S.C. § 1925(d)(3)

    Pub. L. 111–117 substituted “appropriations for ‘General Operating Expenses and Information Technology Systems, Department of Veterans Affairs’ ” for “appropriation ‘General Operating Expenses, Department of Veterans Affairs’ ”

    Source evidence

    Code amendment note
    Subsec. (d)(3). Pub. L. 111–117 substituted “appropriations for ‘General Operating Expenses and Information Technology Systems, Department of Veterans Affairs’ ” for “appropriation ‘General Operating Expenses, Department of Veterans Affairs’ ”.

    Enacted provision · exact public law section
    Sec. 225. No official or employee of the Department of Housing and Urban Development shall be designated as an allotment holder unless the Office of the Chief Financial Officer has determined that such allotment holder has implemented an adequate system of funds control and has received training in funds control procedures and directives. Deadline. Designation. The Chief Financial Officer shall ensure that, not later than 90 days after the date of enactment of this Act, a trained allotment holder shall be designated for each HUD subaccount under the headings “Executive Direction” and heading “Administration, Operations, and Management” as well as each account receiving appropriations for “personnel compensation and benefits” within the Department of Housing and Urban Development.

28 of 28 references resolved to an enrolled provision