2015 US Code
Title 50 - War and National Defense (Sections 1 - 4705)
Chapter 50 - Servicemembers Civil Relief (Sections 3901 - 4043)
Subchapter IV - Life Insurance (Sections 3971 - 3979)
Sec. 3975 - Policy restrictions

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Metadata

Publication TitleUnited States Code, 2012 Edition, Supplement 3, Title 50 - WAR AND NATIONAL DEFENSE
CategoryBills and Statutes
CollectionUnited States Code
SuDoc Class NumberY 1.2/5:
Contained WithinTitle 50 - WAR AND NATIONAL DEFENSE
CHAPTER 50 - SERVICEMEMBERS CIVIL RELIEF
SUBCHAPTER IV - LIFE INSURANCE
Sec. 3975 - Policy restrictions
Containssection 3975
Date2015
Laws In Effect As Of DateJanuary 3, 2016
Positive LawNo
Dispositionstandard
Source CreditOct. 17, 1940, ch. 888, title IV, §405, as added Pub. L. 108-189, §1, Dec. 19, 2003, 117 Stat. 2853.
Statutes at Large References54 Stat. 1184
56 Stat. 775
105 Stat. 40
117 Stat. 2853
Public and Private LawsPublic Law 102-12, Public Law 108-189

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50 U.S.C. § 3975 (2015)

§3975. Policy restrictions

(a) Dividends

While a policy is protected under this subchapter, a dividend or other monetary benefit under a policy may not be paid to an insured or used to purchase dividend additions without the approval of the Secretary of Veterans Affairs. If such approval is not obtained, the dividends or benefits shall be added to the value of the policy to be used as a credit when final settlement is made with the insurer.

(b) Specific restrictions

While a policy is protected under this subchapter, cash value, loan value, withdrawal of dividend accumulation, unearned premiums, or other value of similar character may not be available to the insured without the approval of the Secretary. The right of the insured to change a beneficiary designation or select an optional settlement for a beneficiary shall not be affected by the provisions of this subchapter.

(Oct. 17, 1940, ch. 888, title IV, §405, as added Pub. L. 108–189, §1, Dec. 19, 2003, 117 Stat. 2853.)

CODIFICATION

Section was formerly classified to section 545 of the former Appendix to this title prior to editorial reclassification and renumbering as this section.

PRIOR PROVISIONS

A prior section 405 of act Oct. 17, 1940, ch. 888, art. IV, 54 Stat. 1184; Oct. 6, 1942, ch. 581, §13, 56 Stat. 775; Pub. L. 102–12, §9(16), Mar. 18, 1991, 105 Stat. 40, related to deduction of unpaid premiums upon settlement of policies maturing during protection, prior to the general amendment of this Act by Pub. L. 108–189. See section 3976 of this title.

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