Settlement of proceeds
If a policy matures as a result of a servicemember’s death or otherwise during the period of protection of the policy under this subchapter, the insurer in making settlement shall deduct from the insurance proceeds the amount of the unpaid premiums guaranteed under this subchapter, together with interest due at the rate fixed in the policy for policy loans.
Interest rate
If the interest rate is not specifically fixed in the policy, the rate shall be the same as for policy loans in other policies issued by the insurer at the time the insured’s policy was issued.
Reporting requirement
The amount deducted under this section, if any, shall be reported by the insurer to the Secretary of Veterans Affairs.
Oct. 17, 1940, ch. 888 Pub. L. 108–189, § 1117 Stat. 2853 (, title IV, § 406, as added , , .)
Editorial Notes
Codification
Section was formerly classified to section 546 of the former Appendix to this title prior to editorial reclassification and renumbering as this section.
Prior Provisions
act Oct. 17, 1940, ch. 888 54 Stat. 1184 Oct. 6, 1942, ch. 581, § 13 56 Stat. 775 Apr. 3, 1948, ch. 170, § 6 62 Stat. 160 Pub. L. 108–189section 3977 of this titleA prior section 406 of , art. IV, ; , ; , , related to guaranty of premiums and interest by United States, settlement of amounts due upon expiration of protection, subrogation of United States, and crediting debt repayments, prior to the general amendment of this Act by . See .
Statutory Notes and Related Subsidiaries
Effective Date
section 3 of Pub. L. 108–189section 3901 of this titleSection applicable to any case not final before , see , set out as a note under .