Title 38 — Veterans’ Benefits
Part II · Chapter 19 — Insurance
§ 1971. Basic tables of premiums; readjustment of rates
Statutory text
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.
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).
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.
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.
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.
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.
Pub. L. 89–214 § 1(a) · 79 Stat. 880
Enacted · 38 U.S.C. § 1971
Added Pub. L. 89–214, § 1(a), Sept. 29, 1965, 79 Stat. 884, § 771
Source evidence
Code source credit
Added Pub. L. 89–214, § 1(a), Sept. 29, 1965, 79 Stat. 884, § 771Enacted provision · exact public law section
(1) as a direct result of actions of hostile forces;Pub. L. 93–289 § 8(1) · 88 Stat. 165
Substituted · 38 U.S.C. § 1971(b)
Pub. L. 93–289, § 8(1), substituted “premiums for Servicemen’s Group Life Insurance” for “premiums for the policy or policies”
Source evidence
Code amendment note
Subsec. (b). Pub. L. 93–289, § 8(1), substituted “premiums for Servicemen’s Group Life Insurance” for “premiums for the policy or policies”.Enacted provision · exact public law section
(1) Subsection (b) is amended by deleting “the policy or policies” and inserting in lieu thereof “Servicemen’s Group Life Insurance”.Pub. L. 93–289 § 8(2) · 88 Stat. 165
Substituted · 38 U.S.C. § 1971(e)
Pub. L. 93–289, § 8(2), substituted “section 769(d)(1) of this title” for “section 766 of this title”
Source evidence
Code amendment note
Subsec. (e). Pub. L. 93–289, § 8(2), substituted “section 769(d)(1) of this title” for “section 766 of this title”.Enacted provision · exact public law section
(2) The third sentence of subsection (e) is amended by deleting “section 766” and inserting in lieu thereof “section 769(d)(1)”. Ante, p. 168.Pub. L. 102–83 § 5(a) · 105 Stat. 378
Changed · 38 U.S.C. § 1971
Pub. L. 102–83, § 5(a), renumbered section 771 of this title as this section
Source evidence
Code amendment note
Pub. L. 102–83, § 5(a), renumbered section 771 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.Pub. L. 102–83 § 5(c)(1) · 105 Stat. 378
Substituted · 38 U.S.C. § 1971(a)
Pub. L. 102–83, § 5(c)(1), substituted “1966” for “766”
Source evidence
Code amendment note
Subsec. (a). Pub. L. 102–83, § 5(c)(1), substituted “1966” for “766”.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.Pub. L. 102–83 § 4(b)(1) · 105 Stat. 378
Substituted · 38 U.S.C. § 1971(a)
Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator” in two places
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” in two places.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.Pub. L. 102–83 § 5(c)(1) · 105 Stat. 378
Substituted · 38 U.S.C. § 1971(b)
Pub. L. 102–83, § 5(c)(1), substituted “1969(b)” for “769(b)”
Source evidence
Code amendment note
Subsec. (b). Pub. L. 102–83, § 5(c)(1), substituted “1969(b)” for “769(b)”.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.Pub. L. 102–83 § 4(b)(1) · 105 Stat. 378
Substituted · 38 U.S.C. § 1971(b)
Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator”
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”.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.Pub. L. 102–83 § 4(b)(1) · 105 Stat. 378
Substituted · 38 U.S.C. § 1971(c); 38 U.S.C. § 1971(d)
Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator” wherever appearing
Source evidence
Code amendment note
Subsecs. (c), (d). 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.Pub. L. 102–83 § 5(c)(1) · 105 Stat. 378
Substituted · 38 U.S.C. § 1971(e)
Pub. L. 102–83, § 5(c)(1), substituted “1969(d)(1)” for “769(d)(1)”
Source evidence
Code amendment note
Subsec. (e). Pub. L. 102–83, § 5(c)(1), substituted “1969(d)(1)” for “769(d)(1)”.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.Pub. L. 102–83 § 4(b)(1) · 105 Stat. 378
Substituted · 38 U.S.C. § 1971(e)
Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator” wherever appearing
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” 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.Veterans’ Insurance Reform Act of 1996
Pub. L. 104–275 title IV § 405(b)(1)(E) · 110 Stat. 3322
Substituted · 38 U.S.C. § 1971(b)
Pub. L. 104–275 substituted “Servicemembers’ Group” for “Servicemen’s Group”
Source evidence
Code amendment note
Subsec. (b). Pub. L. 104–275 substituted “Servicemembers’ Group” for “Servicemen’s Group”.Enacted provision · exact public law section
(E) Section 1971(b).
12 of 12 references resolved to an enrolled provision
Editorial Notes
Amendments1974–1996 · 3 rounds
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”.
Credits
1965–1996 · 4 acts
- 1965Added Pub. L. 89–214, § 1(a), , 79 Stat. 884, § 771
- 1974amended Pub. L. 93–289, § 8, , 88 Stat. 169
- 1991renumbered § 1971 and amended Pub. L. 102–83, §§ 4(b)(1), (2)(E), 5(a), (c)(1), , 105 Stat. 404–406
- 1996Pub. L. 104–275, title IV, § 405(b)(1)(E), , 110 Stat. 3339.
Show as published
(Added Pub. L. 89–214, § 1(a), , 79 Stat. 884, § 771; amended Pub. L. 93–289, § 8, , 88 Stat. 169; renumbered § 1971 and amended Pub. L. 102–83, §§ 4(b)(1), (2)(E), 5(a), (c)(1), , 105 Stat. 404–406; Pub. L. 104–275, title IV, § 405(b)(1)(E), , 110 Stat. 3339.)