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119th Congress

Title 38 — Veterans’ Benefits

Part II · Chapter 19 — Insurance

§ 1952. Optional settlement

Statutory text

(a)

The Secretary may provide in insurance contracts for optional settlements, to be selected by the insured, whereby such insurance may be made payable either in one sum or in installments for thirty-six months or more. A provision may also be included in such contracts authorizing the beneficiary to elect to receive payment of the insurance in installments for thirty-six months or more, but only if the insured has not exercised the right of election as provided in this subchapter. Even though the insured may have exercised the right of election the beneficiary may elect to receive such insurance in installments spread over a greater period of time than that selected by the insured. Notwithstanding any provision to the contrary in any insurance contract, the beneficiary may, in the case of insurance maturing after , and for which the insured has not exercised the right of election of the insured as provided in this subchapter, elect to receive payment of the insurance in one sum.

(b)

Under such regulations as the Secretary may promulgate, the cash surrender value of any policy of insurance or the proceeds of an endowment contract which matures by reason of completion of the endowment period may be paid to the insured (1) in equal monthly installments of from thirty-six to two hundred and forty in number, in multiples of twelve; or (2) as a refund life income in monthly installments payable for such periods certain as may be required in order that the sum of the installments certain, including a last installment of such reduced amount as may be necessary, shall equal the cash value of the contract, less any indebtedness, with such payments continuing throughout the lifetime of the insured. However, all settlements under option (2) above shall be calculated on the basis of The Annuity Table for 1949. If the option selected requires payment of monthly installments of less than $10, the amount payable shall be paid in such maximum number of monthly installments as are a multiple of twelve as will provide a monthly installment of not less than $10.

(c)
(1)

Following the death of the insured and in a case not covered by section 1950 of this title—

(A)

if the first beneficiary otherwise entitled to payment of the insurance does not make a claim for such payment within one year after the death of the insured, payment may be made to another beneficiary designated by the insured, in the order of precedence as designated by the insured, as if the first beneficiary had predeceased the insured; and

(B)

if, within two years after the death of the insured, no claim has been filed by a person designated by the insured as a beneficiary and the Secretary has not received any notice in writing that any such claim will be made, payment may (notwithstanding any other provision of law) be made to such person as may in the judgment of the Secretary be equitably entitled thereto.

(2)

Payment of insurance under paragraph (1) shall be a bar to recovery by any other person.

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. Pub. L. 85–857 · 72 Stat. 1105

    Enacted · 38 U.S.C. § 1952

    Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1161, § 752

    Source evidence

    Code source credit
    Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1161, § 752

  2. Pub. L. 91–291 § 12 · 84 Stat. 326

    1. Amended · 38 U.S.C. § 1952

      Pub. L. 91–291 designated existing provisions as subsec. (a)

    2. Added · 38 U.S.C. § 1952

      Pub. L. 91–291 added subsec. (b)

    Source evidence

    Code amendment note
    Pub. L. 91–291 designated existing provisions as subsec. (a) and added subsec. (b).

    Enacted provision · exact public law section
    Sec. 12. Section 752 of title 38, United States Code, is amended (1) by adding “(a)” before the words “The Administrator”, and (2) by adding at the end thereof the following new subsection: “(b) Under such regulations as the Administrator may promulgate, the cash surrender value of any policy of insurance or the proceeds of an endowment contract which matures by reason of completion of the endowment period may be paid to the insured (1) in equal monthly installments of from thirty-six to two hundred and forty in number, in multiples of twelve; or (2) as a refund life income in monthly installments payable for such periods certain as may be required in order that the sum of the installments certain, including a last installment of such reduced amount as may be necessary, shall equal the cash value of the contract, less any indebtedness, with such payments continuing throughout the lifetime of the insured. However, all settlements under option (2) above shall be calculated on the basis of The Annuity Table for 1949. If the option selected requires payment of monthly installments of less than $10, the amount payable shall be paid in such maximum number of monthly installments as are a multiple of twelve as will provide a monthly installment of not less than $10.”

  3. Veterans’ Disability Compensation, Housing, and Memorial Benefits Amendments of 1981

    Pub. L. 97–66 title IV § 403(b) · 95 Stat. 1026

    Inserted · 38 U.S.C. § 1952(a)

    Pub. L. 97–66 inserted provision empowering beneficiaries, in the case of insurance maturing after Sept. 30, 1981, and for which the insured has not exercised the right of election of the insured as provided in this subchapter, to elect to receive payment of the insurance in one sum

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 97–66 inserted provision empowering beneficiaries, in the case of insurance maturing after Sept. 30, 1981, and for which the insured has not exercised the right of election of the insured as provided in this subchapter, to elect to receive payment of the insurance in one sum.

    Enacted provision · exact public law section
    (b) Section 752(a) is amended by adding at the end the following 38 USC 752. new sentence: “Notwithstanding any provision to the contrary in any insurance contract, the beneficiary may, in the case of insurance maturing after September 30, 1981, and for which the insured has not exercised the right of election of the insured as provided in this subchapter, elect to receive payment of the insurance in one sum.”.

  4. Pub. L. 99–576 title VII § 701(32) · 100 Stat. 3248

    Substituted · 38 U.S.C. § 1952(a)

    Pub. L. 99–576 substituted “the right” for “his right” in two places

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 99–576 substituted “the right” for “his right” in two places.

    Enacted provision · exact public law section
    (32) Section 752 is amended by striking out “his” each place it appears and inserting in lieu thereof “the”.

  5. Pub. L. 102–83 · 105 Stat. 378

    Substituted · 38 U.S.C. § 1952

    Pub. L. 102–83 renumbered section 752 of this title as this section and substituted “Secretary” for “Administrator” in subsecs. (a) and (b)

    Source evidence

    Code amendment note
    Pub. L. 102–83 renumbered section 752 of this title as this section and substituted “Secretary” for “Administrator” in subsecs. (a) and (b).

  6. Veterans Benefits Act of 2003

    Pub. L. 108–183 title I § 103(b) · 117 Stat. 2651

    Added · 38 U.S.C. § 1952(c)

    Pub. L. 108–183 added subsec. (c)

    Source evidence

    Code amendment note
    Subsec. (c). Pub. L. 108–183 added subsec. (c).

    Enacted provision · exact public law section
    (b) United States Government Life Insurance.— Section 1952 is amended by adding at the end the following new subsection: “(c) (1) Following the death of the insured and in a case not covered by section 1950 of this title— “(A) if the first beneficiary otherwise entitled to payment of the insurance does not make a claim for such payment within two years after the death of the insured, payment may be made to another beneficiary designated by the insured, in the order of precedence as designated by the insured, as if the first beneficiary had predeceased the insured; and “(B) if, within four years after the death of the insured, no claim has been filed by a person designated by the insured as a beneficiary and the Secretary has not received any notice in writing that any such claim will be made, payment may (notwithstanding any other provision of law) be made to such person as may in the judgment of the Secretary be equitably entitled thereto. “(2) Payment of insurance under paragraph (1) shall be a bar to recovery by any other person.” .

  7. Faster Payments to Veterans’ Survivors Act of 2022

    Pub. L. 117–313 § 2(b)(1) · 136 Stat. 4399

    Substituted · 38 U.S.C. § 1952(c)(1)(A)

    Pub. L. 117–313, § 2(b)(1), substituted “one year” for “two years”

    Source evidence

    Code amendment note
    Subsec. (c)(1)(A). Pub. L. 117–313, § 2(b)(1), substituted “one year” for “two years”.

    Enacted provision · exact public law section
    (1) in subparagraph (A), by striking “two years” and inserting “one year”; and

    Effective date note
    Amendment by Pub. L. 117–313 applicable with respect to the death of an insured person occurring on or after the date that is two years before Dec. 27, 2022, see section 2(c) of Pub. L. 117–313, set out as a note under section 1917 of this title.

  8. Faster Payments to Veterans’ Survivors Act of 2022

    Pub. L. 117–313 § 2(b)(2) · 136 Stat. 4399

    Substituted · 38 U.S.C. § 1952(c)(1)(B)

    Pub. L. 117–313, § 2(b)(2), substituted “two years” for “four years”

    Source evidence

    Code amendment note
    Subsec. (c)(1)(B). Pub. L. 117–313, § 2(b)(2), substituted “two years” for “four years”.

    Enacted provision · exact public law section
    (2) in subparagraph (B), by striking “four” and inserting “two”.

    Effective date note
    Amendment by Pub. L. 117–313 applicable with respect to the death of an insured person occurring on or after the date that is two years before Dec. 27, 2022, see section 2(c) of Pub. L. 117–313, set out as a note under section 1917 of this title.

7 of 9 references resolved to an enrolled provision · 2 partial

Editorial Notes

Amendments1970–2022 · 6 rounds

2022

Subsec. (c)(1)(A). Pub. L. 117–313, § 2(b)(1), substituted “one year” for “two years”.

Subsec. (c)(1)(B). Pub. L. 117–313, § 2(b)(2), substituted “two years” for “four years”.

2003

Subsec. (c). Pub. L. 108–183 added subsec. (c).

1991

Pub. L. 102–83 renumbered section 752 of this title as this section and substituted “Secretary” for “Administrator” in subsecs. (a) and (b).

1986

Subsec. (a). Pub. L. 99–576 substituted “the right” for “his right” in two places.

1981

Subsec. (a). Pub. L. 97–66 inserted provision empowering beneficiaries, in the case of insurance maturing after , and for which the insured has not exercised the right of election of the insured as provided in this subchapter, to elect to receive payment of the insurance in one sum.

1970

Pub. L. 91–291 designated existing provisions as subsec. (a) and added subsec. (b).

Statutory Notes and Related Subsidiaries

Effective Date of 2022 Amendment

Amendment by Pub. L. 117–313 applicable with respect to the death of an insured person occurring on or after the date that is two years before , see section 2(c) of Pub. L. 117–313, set out as a note under section 1917 of this title.

Effective Date of 2003 Amendment

Amendment by Pub. L. 108–183 effective , see section 103(c) of Pub. L. 108–183, set out as a note under section 1917 of this title.

Effective Date of 1981 Amendment

Amendment by Pub. L. 97–66 effective , 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 first day of first calendar month which begins more than six calendar months after , see section 14(a) of Pub. L. 91–291, set out as a note under section 1317 of this title.

Transition Provision

For transition provision relating to subsec. (c)(1) of this section, see section 103(d) of Pub. L. 108–183, set out as a note under section 1917 of this title.

Credits

1958–2022 · 7 acts
  1. 1958Pub. L. 85–857, , 72 Stat. 1161, § 752
  2. 1970Pub. L. 91–291, § 12, , 84 Stat. 332
  3. 1981Pub. L. 97–66, title IV, § 403(b), , 95 Stat. 1031
  4. 1986Pub. L. 99–576, title VII, § 701(32), , 100 Stat. 3293
  5. 1991renumbered § 1952 and amended Pub. L. 102–83, §§ 4(b)(1), (2)(E), 5(a), , 105 Stat. 404–406
  6. 2003Pub. L. 108–183, title I, § 103(b), , 117 Stat. 2655
  7. 2022Pub. L. 117–313, § 2(b), , 136 Stat. 4399.
Show as published

(Pub. L. 85–857, , 72 Stat. 1161, § 752; Pub. L. 91–291, § 12, , 84 Stat. 332; Pub. L. 97–66, title IV, § 403(b), , 95 Stat. 1031; Pub. L. 99–576, title VII, § 701(32), , 100 Stat. 3293; renumbered § 1952 and amended Pub. L. 102–83, §§ 4(b)(1), (2)(E), 5(a), , 105 Stat. 404–406; Pub. L. 108–183, title I, § 103(b), , 117 Stat. 2655; Pub. L. 117–313, § 2(b), , 136 Stat. 4399.)

Parsed from the official OLRC USLM XML in data/usc_all/usc38.xml · release point 119-108 · OLRC build 2026-09-09

USLM identifier /us/usc/t38/s1952