§ 1979. Incontestability

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. 1974

   Pub. L. 93–289 § 9(a) · 88 Stat. 165

   Enacted · 38 U.S.C. § 1979

   Added Pub. L. 93–289, § 9(a), May 24, 1974, 88 Stat. 172, § 779

   Source evidence

   Code source credit
   Added Pub. L. 93–289, § 9(a), May 24, 1974, 88 Stat. 172, § 779

   Enacted provision · exact public law section
   (a) Subchapter III of chapter 19 of title 38, United States Code, is amended by adding at the end thereof the following new sections: “§777. Veterans’ Group Life Insurance “(a) Veterans’ Group Life Insurance shall be issued in the amount of $5,000, $10,000, $15,000, or $20,000 only. No person may carry a combined amount of Servicemen’s Group Life Insurance and Veterans’ Group Life Insurance in excess of $20,000 at any one time. Any person Conversion. insured under Veterans’ Group Life Insurance who again becomes insured under Servicemen’s Group Life Insurance may within sixty days after becoming so insured convert any or all of his Veterans’ Group Life Insurance to an individual policy of insurance under subsection (e) of this section. However, if such a person dies within the sixty-day period and before converting his Veterans’ Group Life Insurance, Veterans’ Group Life Insurance will be payable only if he is insured for less than $20,000 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 $20,000. “(b) Veterans’ Group Life Insurance shall (1) provide protection against death; (2) be issued on a nonrenewable 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 Administrator 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 Premiums. established under the criteria set forth in sections 771 (a) and (c) of this title, except that the Administrator may provide for average 38 USC 771. premiums for such various age groupings as he 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 Administrator directly to the administrative office established for such insurance under section 766(b) of this title. In any case in which a member 38 USC 766. or former member who was mentally incompetent on the date he 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 fores on Death payments. any person on the date of his death shall be paid, upon the establishment of a valid claim therefor, pursuant to the provisions of section 770 of this title. However, any designation of beneficiary or beneficiaries Ante, p. 169. for Servicemen’s 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 766(b) of this title. “(e) An insured under Veterans’ Group Life Insurance shall have Conversion. the right to convert such insurance to an individual policy of life insurance upon written application for conversion made to the participating company he 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 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 he again became so insured. Upon request to the administrative Participating life insurance companies, list. 38 USC 766. office established under section 766(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 Administrator and agree to sell insurance to former members in accordance with the provisions of this section. “(f) The provisions of sections 771 (d) and (e) of this title shall be 38 USC 771. Separate accounting procedures. 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 Administrator is authorized to allocate claims and other costs among such programs of insurance according to accepted actuarial principles. “(g) Any person whose Servicemen’s Group Life Insurance was Servicemen’s Group Life Insurance, conversion. 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 777 of this title) became effective, and whose coverage under Servicemen’s 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 his Servicemen’s 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 Servicemen’s 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 766(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 Service-connected disability, waiver. 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 Contribution. service-connected disabilities are waived, is insured under this subsec-tion there shall be contributed to the insurer or insurers issuing the policy or policies from the appropriation ‘Compensation and Pensions, Veterans’ Administration’ 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 Administrator may establish, as he 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 Appropriation. purpose of this section are hereby authorized. “§778. Reinstatement “Reinstatement of insurance coverage granted under this subchapter but lapsed for nonpayment of premiums shall be under terms and conditions prescribed by the Administrator. “§779. Incontestability “Subject to the provision of section 773 of this title, insurance coverage 38 USC 773. granted under this subchapter shall be incontestable from the date of issue, reinstatement, or conversion except for fraud or nonpayment of premium.”

2. 1991

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

   Substituted · 38 U.S.C. § 1979

   Pub. L. 102–83 renumbered section 779 of this title as this section and substituted “1973” for “773”

   Source evidence

   Code amendment note
   Pub. L. 102–83 renumbered section 779 of this title as this section and substituted “1973” for “773”.

   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.

2 of 2 references resolved to an enrolled provision