§ 1942. Plans of insurance

Statutory text

Regulations shall provide for the right to convert insurance on the five-year level premium term plan into ordinary life, twenty-payment life, endowment maturing at age sixty-two, and into other usual forms of insurance as may be prescribed by the Secretary. Provision shall be made for reconversion of any such policies to a higher premium rate or, upon proof of good health satisfactory to the Secretary, to a lower premium rate, in accordance with regulations to be issued by the Secretary. No reconversion shall be made to a five-year level premium term policy.

An insured who on or after the insured’s sixty-fifth birthday has a five-year level premium term policy of insurance in force by payment of premiums may exchange such policy for insurance on a special endowment at age ninety-six plan upon written application; payment of the required premium; and surrender of the five-year level premium term policy and any total disability provision attached thereto with all rights, title, and interests thereunder. However, if it is found by the Secretary subsequent to the exchange that prior thereto the term policy matured because of total permanent disability of the insured or that the insured was entitled to total disability benefits under the total disability provision attached to such policy, the insured, upon surrender of the special endowment at age ninety-six policy and any provision for waiver of premiums issued under subsection (c) of this section with all rights, title, and interest thereunder, will be entitled to benefits payable under the prior contract. In such case, the cash value less any indebtedness on the endowment policy shall be refunded together with any premiums paid on a provision for waiver of premiums. Insurance on the special endowment at age ninety-six plan shall be issued at the attained age of the insured upon the same terms and conditions as are contained in standard policies of United States Government Life Insurance except:

the insurance shall not mature and no benefits shall be paid thereunder because of total permanent disability;

the premiums for such insurance shall be as prescribed by the Secretary;

such insurance cannot be exchanged, converted, or reconverted to any other plan of insurance;

all cash, loan, paid-up, and extended term insurance values shall be as prescribed by the Secretary; and

the insurance shall be subject to such other changes in terms and conditions as the Secretary determines to be reasonable and practicable.

The Secretary shall, upon application made by the insured at the same time as the insured exchanges the term policy for an endowment policy issued under the provisions of subsection (b) of this section, and upon payment of such extra premium as the Secretary shall prescribe, include in such endowment policy a provision for waiver of premiums on the policy and on the provision during the total permanent disability of the insured, if such disability began after the date of such application and while the policy and the provision are in force by payment of premiums. The Secretary shall not grant waiver of any premium becoming due more than one year before receipt by the Secretary of claim for the same, except as provided in this subsection. Any premiums paid for months during which waiver is effective shall be refunded. The Secretary shall provide by regulations for examination or reexamination of an insured claiming waiver of premiums under this subsection, and may deny waiver for failure to cooperate. If it is found that an insured is no longer totally and permanently disabled, the waiver of premiums shall cease as of the date of such finding and the policy and provision may be continued by payment of premiums as provided therein. In any case in which the Secretary finds that the insured’s failure to make timely claim for waiver of premiums, or to submit satisfactory evidence of the existence or continuance of total permanent disability was due to circumstances beyond the insured’s control, the Secretary may grant waiver or continuance of waiver of premiums. If the insured dies without filing claim for waiver, the beneficiary, within one year after the death of the insured, or, if the beneficiary is insane or a minor, within one year after removal of such legal disability, may file claim for waiver with evidence of the insured’s right to waiver under this subsection. Policies containing a provision for waiver of premiums issued under this subsection may be separately classified for the purpose of dividend distribution from otherwise similar policies not containing such provision.

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.

1958
Pub. L. 85–857 · 72 Stat. 1105
Enacted · 38 U.S.C. § 1942
Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1158, § 742
Source evidence
Code source credit
Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1158, § 742
1962
Pub. L. 87–549 · 76 Stat. 219
1. Amended · 38 U.S.C. § 1942
  Pub. L. 87–549 designated existing provisions as subsec. (a)
2. Added · 38 U.S.C. § 1942
  Pub. L. 87–549 added subsecs. (b) and (c)
Source evidence
Code amendment note
Pub. L. 87–549 designated existing provisions as subsec. (a) and added subsecs. (b) and (c).
1986
Pub. L. 99–576 § 701(29)(A) · 100 Stat. 3248
1. Substituted · 38 U.S.C. § 1942(b)
  Pub. L. 99–576, § 701(29)(A), substituted “the insured’s” for “his”
2. Substituted · 38 U.S.C. § 1942(b)
  Pub. L. 99–576, § 701(29)(A), substituted “the insured” for “he”
Source evidence
Code amendment note
Subsec. (b). Pub. L. 99–576, § 701(29)(A), substituted “the insured’s” for “his” and “the insured” for “he”.
Enacted provision · exact public law section
(A) in subsection (b)— (i) by striking out “his” and inserting in lieu thereof “the insured”, and (ii) by striking out “he” and inserting in lieu thereof “the insured”; and
1986
Pub. L. 99–576 § 701(29)(B) · 100 Stat. 3248
1. Substituted · 38 U.S.C. § 1942(c)
  Pub. L. 99–576, § 701(29)(B), substituted “the insured” for “he”
2. Substituted · 38 U.S.C. § 1942(c)
  Pub. L. 99–576, § 701(29)(B), substituted “the term” for “his term”
3. Substituted · 38 U.S.C. § 1942(c)
  Pub. L. 99–576, § 701(29)(B), substituted “the insured’s control” for “his control”
4. Struck · 38 U.S.C. § 1942(c)
  Pub. L. 99–576, § 701(29)(B), struck out “his failure” before “to submit”
Source evidence
Code amendment note
Subsec. (c). Pub. L. 99–576, § 701(29)(B), substituted “the insured” for “he”, “the term” for “his term”, and “the insured’s control” for “his control”, and struck out “his failure” before “to submit”.
Enacted provision · exact public law section
(B) in subsection (c)— (i) by striking out “he” and inserting in lieu thereof “the insured”; (ii) by striking out “his term” and inserting in lieu thereof “the term”; (iii) by striking out “his failure”: and (iv) by striking out “his control” and inserting in lieu thereof “the insured’s control”.
1991
Pub. L. 102–83 § 5(a) · 105 Stat. 378
Changed · 38 U.S.C. § 1942
Pub. L. 102–83, § 5(a), renumbered section 742 of this title as this section
Source evidence
Code amendment note
Pub. L. 102–83, § 5(a), renumbered section 742 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.
1991
Pub. L. 102–83 § 4(b)(1) · 105 Stat. 378
Substituted · 38 U.S.C. § 1942(a); 38 U.S.C. § 1942(b)
Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator” wherever appearing
Source evidence
Code amendment note
Subsecs. (a), (b). 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.
1991
Pub. L. 102–83 § 4(b)(1) · 105 Stat. 378
Substituted · 38 U.S.C. § 1942(c)
Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator” wherever appearing
Source evidence
Code amendment note
Subsec. (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.
1991
Pub. L. 102–83 § 4(a)(2)(C)(iii) · 105 Stat. 378
Substituted · 38 U.S.C. § 1942(c)
Pub. L. 102–83, § 4(a)(2)(C)(iii), substituted “by the Secretary” for “in the Veterans’ Administration”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 102–83, § 4(a)(2)(C)(iii), substituted “by the Secretary” for “in the Veterans’ Administration”.
Enacted provision · exact public law section
(iii) Section 742(c).

10 of 13 references resolved to an enrolled provision · 3 partial

Editorial Notes

Amendments1962–1991 · 3 rounds

1991

Pub. L. 102–83, § 5(a), renumbered section 742 of this title as this section.

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

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

Pub. L. 102–83, § 4(a)(2)(C)(iii), substituted “by the Secretary” for “in the Veterans’ Administration”.

1986

Subsec. (b). Pub. L. 99–576, § 701(29)(A), substituted “the insured’s” for “his” and “the insured” for “he”.

Subsec. (c). Pub. L. 99–576, § 701(29)(B), substituted “the insured” for “he”, “the term” for “his term”, and “the insured’s control” for “his control”, and struck out “his failure” before “to submit”.

1962

Pub. L. 87–549 designated existing provisions as subsec. (a) and added subsecs. (b) and (c).

Credits

1958–1991 · 4 acts

1958Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1158, § 742
1962Pub. L. 87–549, July 25, 1962, 76 Stat. 219
1986Pub. L. 99–576, title VII, § 701(29), Oct. 28, 1986, 100 Stat. 3292
1991renumbered § 1942 and amended Pub. L. 102–83, §§ 4(a)(2)(C)(iii), (b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404–406.

Show as published

(Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1158, § 742; Pub. L. 87–549, July 25, 1962, 76 Stat. 219; Pub. L. 99–576, title VII, § 701(29), Oct. 28, 1986, 100 Stat. 3292; renumbered § 1942 and amended Pub. L. 102–83, §§ 4(a)(2)(C)(iii), (b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404–406.)