An Act to amend title 38 of the United States Code to provide that dividends may be used to purchase additional paid-up national service life insurance
PL 92-188 (H.R.11334), enacted 12/15/1971

85 STAT. ] 
PUBLIC LAW 92-188-DEC. 15, 1971 
645 
Public Law 92-188 
A N A C T 
December 15, 1971 
To amend title 38 of the United States Code to provide that dividends may be — [ H . R. I I 3 3 4 ] — 
used to purchase additional paid up national service life insurance. 
National serv-
ice life insurance. 
Be it enacted hy the Senate and House of Representatives 
of the 
Z'nited /States of America in Congress assembled, That section T03 
and section 741 of title 38, United States Code, is amended by adding "^use of divl 
at the end thereof the following new sentence: "The limitations of this '
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7
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2
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^ g'tat. 1148. 
section shall not apply to the additional paid up insurance the pur-
chase of which is authorized under section 707 of this title.*' 
SEC. 2. Section 707 of title 38, United States Code, is amended— 
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(1) by striking out "in writing for payment in cash," in sub-
section (a) and inserting in lieu thereof "or directive in writing 
exercising any other dividend option allowable under his policy,"; 
(2) by adding at the end thereof the following new subsection: 
" (c) The Administrator, upon application in writing made by the 
insured for insurance under this subsection, and without proof of 
good health, is authorized to apply any dividend due and payable 
on national service life insurance after the date of such application to 
purchase paid up insurance. Also, the Administrator, upon applica-
tion in writing made by the insured within six calendar months after 
the effective date of this subsection, and without proof of good health, 
is authorized to apply any national service life insurance dividend 
credits and deposits of such insured existing at the date of his appli-
cation to purchase paid up insurance. Any dividends, dividend credits, 
or deposits on endowment policies may be used under this subsection 
only to purchase additional paid up endowment insiirance which 
matures concurrently with the basic policy. Any dividends, dividend 
credits, or deposits on policies (other than endowment policies) may 
be used under this section only to purchase additional paid up whole 
life insurance. The paid up insurance granted under this subsection 
shall be in addition to any insurance otlierwise authorized under this 
title, or under prior provisions of law. The paid up insurance granted 
under this subsection shall be issued on the same terms and conditions 
as are contained in the standard policies of national service life insur-
ance except (1) the premium rates for such insurance and all cash and 
loan values thereon shall be based on such table of mortality and rate 
of interest per annum as may be prescribed by the Administrator; 
(2) the total disability income provision authorized under section 715 
of this title may not be added to insurance issued under this section; 
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and (3) the insurance Shall include such other changes in terms and 
conditions as the Administrator determines to be reasonable and prac-
ticable."; and 
(3) by amending the side heading to read as follows: 
"§ 707. Payment or use of dividends'*. 
SEC. 3. The analysis of chapter 19 of title 38, Laiited States Code, is 
amended by deleting therefrom: 
•'707. Dividends to pay premiums." 
and inserting in lieu thereof 
"707. Payment or use of dividends." 
SEC. 4. The amendments made by this Act shall take effect on a date 
Effective date. 
established by the Administrator but in no event later than the first 
day of the first calendar month which begins more than six calendar 
months after the date of enactment of this Act. 
Approved December 15, 1971. 
Terms and con-
ditions.