US Code

Public Law 119-88 (05/04/2026)

38 U.S.C. § 1925

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 , and before , who is found by the Secretary to be suffering (1) from a service-connected disability or disabilities for which compensation would be payable if 10 percent or more in degree and except for which such person would be insurable according to the standards of good health established by the Secretary; or (2) from a non-service-connected disability which renders such person uninsurable according to the standards of good health established by the Secretary and such person establishes to the satisfaction of the Secretary that such person is unable to obtain commercial life insurance at a substandard rate, shall, upon application in writing made before , 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, such person is insurable according to the standards of good health established by the Secretary, 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 Secretary determines to be necessary for sound actuarial operations, and thereafter such premiums may be adjusted as the Secretary 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 Secretary 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 Secretary 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 3½ percent per annum; and (7) the insurance shall include such other changes in terms and conditions as the Secretary determines to be reasonable and practicable.
(c)
If the applicant’s service-connected disability or disabilities render the applicant uninsurable according to the standards of good health established by the Secretary, or if the applicant has a non-service-connected disability which renders the applicant uninsurable according to the standards of good health established by the Secretary and such person establishes to the satisfaction of the Secretary that such person 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 Secretary determines to be necessary for sound actuarial operations and thereafter such premiums may be adjusted from time to time as the Secretary determines to be necessary; for the purpose of any increase at time of issue or later adjustment the service-connected group and the non-service-connected group may be separately classified; (3) an additional premium to cover administrative costs to the Government as determined by the Secretary 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 Secretary determines to be necessary but at intervals of not less than five years and for this purpose the service-connected and non-service-connected can be separately classified; (4) all settlements on policies involving annuities shall be calculated on the basis of The Annuity Table for 1949; (5) all calculations in connection with insurance issued under this subsection shall be based on interest at the rate of 3½ percent per annum; and (6) the insurance shall include such other changes in terms and conditions as the Secretary determines to be reasonable and practicable.
(d)
(1)
All premiums and collections on insurance issued pursuant to this section and any total disability income provision attached thereto shall be credited to the Veterans Reopened Insurance Fund, a revolving fund established in the Treasury of the United States, and all payments on such insurance and any total disability provision attached thereto, 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. For actuarial and accounting purposes, the assets and liabilities (including liabilities for repayment of advances hereinafter authorized, and adjustment of premiums) attributable to the insured groups established under this section shall be separately determined. Such amounts in the Veterans Special Term Insurance Fund in the Treasury, not exceeding $1,650,000 in the aggregate, as may hereafter be determined by the Secretary to be in excess of the actuarial liabilities of that fund, including contingency reserves, shall be available for transfer to the Veterans Reopened Insurance Fund as needed to provide initial capital. Any amounts so transferred shall be repaid to the Treasury over a reasonable period of time with interest as determined by the Secretary of the Treasury taking into consideration the average yield on all marketable interest-bearing obligations of the United States of comparable maturities then forming a part of the public debt.
(2)
The Secretary is authorized to set aside out of the revolving fund established under this section such reserve amounts as may be required under accepted actuarial principles to meet all liabilities on insurance issued under 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 percent, the rate of interest of such obligation shall be the multiple of one-eighth of 1 percent nearest such market yield.
(3)
section 1982 of this title Notwithstanding the provisions of , the Secretary shall, from time to time, determine the administrative costs to the Government which in the Secretary’s 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, the amount of such cost allocable to the Department to the appropriations for “General Operating Expenses and Information Technology Systems, Department of Veterans Affairs”, 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 Secretary determines to be reasonable and practicable.
(e)
section 1982 of this title Notwithstanding the provisions of , 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)
section 107 of this title No insurance shall be granted under this section to any person referred to in 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.

Pub. L. 88–664, § 12(a)78 Stat. 1096 Pub. L. 89–4079 Stat. 130 Pub. L. 96–128, title III, § 30193 Stat. 985 Pub. L. 97–295, § 4(25)96 Stat. 1306 Pub. L. 99–576, title VII, § 701(28)100 Stat. 3292 Pub. L. 102–83105 Stat. 403–406 Pub. L. 111–117, div. E, title II, § 225123 Stat. 3307 (Added , , , § 725; amended , , ; , , ; , , ; , , ; renumbered § 1925 and amended , §§ 4(a)(2)(B)(ii), (3), (4), (b)(1), (2)(E), 5(a), (c)(1), , ; , , .)

Editorial Notes

Amendments

Pub. L. 111–1172009—Subsec. (d)(3). substituted “appropriations for ‘General Operating Expenses and Information Technology Systems, Department of Veterans Affairs’ ” for “appropriation ‘General Operating Expenses, Department of Veterans Affairs’ ”.

Pub. L. 102–83, § 5(a)section 725 of this title1991—, renumbered as this section.

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

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

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).

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

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

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

Pub. L. 99–576, § 701(28)(A)1986—Subsecs. (a), (b). , substituted “such person” for “he”.

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

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

Pub. L. 97–295, § 4(25)1982—Subsec. (a). , substituted “percent” for “per centum”, and substituted “before ” for “within one year after the effective date of this section”.

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

Pub. L. 96–128, § 301(a)1979—Subsec. (b). , struck out cl. (8) which required the insurance and any attached total disability income provision to be on a nonparticipatory basis.

Pub. L. 96–128, § 301(b)Subsec. (c). , 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.

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

Pub. L. 89–40, § 1(1)1965—Subsec. (b). , 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.

Pub. L. 89–40, § 1(2)Subsec. (c). , 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.

Pub. L. 89–40, § 1(3)Subsec. (d)(1). , 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.

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

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

Statutory Notes and Related Subsidiaries

Effective Date of 1979 Amendment

Pub. L. 96–128section 601(b) of Pub. L. 96–128section 1114 of this titleAmendment by effective , see , set out as a note under .

Effective Date of 1965 Amendment

Pub. L. 89–40Pub. L. 89–40 provided that the amendment made by is effective .

Effective Date

Pub. L. 88–664, § 12(d)78 Stat. 1099

“The amendments made by this section [enacting this section and amending section 704 [now 1904] of this title] shall take effect as of the first day of the first calendar month which begins more than six calendar months after the date of enactment of this Act [].”
, , , provided that: