An Act to provide mortgage protection life insurance for service-connected disabled veterans who have received grants for specially adapted housing
PL 92-95 (H.R.943), enacted 08/11/1971

320 
PUBLIC LAW 92-95-AUG. 11, 1971 
[85 STAT. 
Compromise, 
determination. 
Joint action. 
37 Stat. 995. 
Effective date. 
shall be subject to a civil penalty of not to exceed $1,000 for each such 
vdolation for each day that such violation persists. However, the maxi-
nium civil penalty S'hall not exceed $200,000 for any related series of 
violations. 
"Any such civil penalty may be compromised by the commission. 
In determining the amount of such penalty, or the amount agreed 
upon in compromise, the appropriateness of such penalty to the size 
of the business of the person charged, the gravity of the violation, and 
the good faith of the person charged in attempting to achieve com-
pliance, after notification of a violation, shall be considered. The 
amount of such penalty when finally determined, or the amount agreed 
upon in compromise, may be deducted from any sums owing by the 
District of Columbia to the person eharged or may be recovered in a 
civil action in the District of Columbia courts." 
(c) Paragraph 96 (D.C. Code, sec. 43-207) is amended by adding 
the following new paragraph: 
"The commission may act jointly or concurrently with any oiRcial 
board or commission of the United States or any State thereof in any 
proceeding relating to the regulation of any public service company. 
Any such action may be under an interstate compact or agreement, or 
under the concurrent power of the States to regulate interstate com-
merce, or as an agency of the Federal Government, or otherwise." 
SEC. 2. This Act shall take effect on the date of its enactment. 
Approved August 11, 1971. 
Public Law 92-95 
August 11, 1971 
[H. R.9433 
Disabled veter-
ans. 
Mortgage protec-
tion life insur-
ance. 
72 Stat. 1168. 
38 u s e 801, 
AN ACT 
Effective date. 
To provide mortgage protection life insurance for senace-connected disabled 
veterans who have received grants for specially adapted housing. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That chapter 21 of 
title 38, United States Code, is amended by adding at the end thereof 
the following new section: 
"§ 806. Mortgage Protection Life Insurance 
"(a) The Administrator is authorized, without regard to section 
3709 of the Eevised Statutes, as amended (41 U.S.C. 5), to purchase 
from one or more life insurance companies a policy or policies of 
mortgage protection life insurance on a group basis to provide the 
benefits specified in this section. 
" (b) Any policy of insurance purchased by the Administrator under 
this section shall be placed in effect on a date determined by the Admin-
istrator and shall automatically insure any eligible veteran who is or 
has been granted assistance in securing a suitable housing unit under 
this chapter against the death of the veteran, unless the veteran elects 
in writing not to be insured under this section or fails to timely respond 
to a request from the Administrator for information on which his pre-
mium can be based. 
"(c) The initial amount of insurance provided hereunder shall not 
exceed the lesser of the following amounts: (1) $30,000, (2) the amount 
of the loan outstanding on such housing unit on the date insurance 
under this section is placed in effectj or (3) in the case of a veteran 
granted assistance in securing a housing unit on or after such date the 
amount of the original loan. The amount of such insurance shall be 
reduced according to the amortization schedule of the loan and at no 
time shall exceed the amount of the outstanding loan with interest. If 
85 STAT. ] 
PUBLIC LAW 92-95-AUG. 11, 1971 
321 
there is no outstanding loan on the housing unit no insurance shall be 
payable hereunder. If any eligible veteran elects not to be insured 
under this section, he may thereafter be insured hereunder only upon 
application, payment of required premiums, and compliance with such 
health requirements and other terms and conditions as may be pre-
scribed by the Administrator. 
"(d) The premium rates charged a veteran for insurance under 
this section shall be paid at such times and in such manner as the 
Administrator shall prescribe and shall be based on such mortality 
data as the Administrator deems appropriate to cover only the mortal-
ity cost of insuring standard lives. The Administrator is authorized 
and directed to deduct the premiums charged veterans for life insur-
ance under this section from any compensation or other cash benefits 
payable to them by the Veterans' Administration and to pay such 
premiums to the insurer or insurers for such insurance. Any veterans 
insured hereunder not eligible for cash benefits from the Veterans' 
Administration may pay the amount of his premiums directly to the 
insurer or insurers for insurance hereunder. 
"(e) The United States shall bear all of the cost of the insurance 
provided under this section except the amount of the premium rates 
established for eligible veterans under subsection (d) as the mortality 
cost of insuring standard lives. For each month for which any eligible 
veteran is insured under a policy purchased under this section there 
shall be contributed to the insurer or insurers issuing the policy or 
policies from the appropriation 'Compensation and Pensions, Veter-
ans' Administration' an amount necessary to cover the cost of the 
insurance in excess of the premiums established for eligible veterans, 
including the cost of administration and the cost of the excess mor-
tality attributable to the veterans' disabilities. Appropriations to carry 
out the purposes of this section are hereby authorized. 
"(f) Any amount of insurance in force under this section on the 
date of death of an eligible veteran insured hereunder shall be paid 
only to the holder of the mortgage loan, the payment of which such 
insurance was granted, for credit on the loan indebtedness and the 
liability of the insurer under such insurance shall be satisfied when 
such payment is made. If the Administrator is the holder of the 
mortgage loan, the insurance proceeds shall be credited to the loan 
indebtedness and, as appropriate, deposited in either the direct loan 
or loan guaranty revolving fund established by section 1823 or 1824 
of this title, respectively. 
"(g) Each policy purchased under this section shall also provide, 
in terms approved by the Administrator, for the following: 
"(1) reinsurance, to the extent and in a manner to be deter-
mined by the Administrator to be in the best interest of the 
veterans or the Government, with other insurers which meet 
qualifying criteria established by the Administrator as may elect 
to participate in such reinsurance. 
" (2) that at any time the Administrator determines such action 
to be in the best interest of veterans or the Government he may 
(A) discontinue the entire policy, or (B) at his option, exclude 
from coverage under such policy loans made after a date fixed 
by him for such purpose; however, any insurance previously 
issued to a veteran under such policy may not be canceled by the 
insurer solely because of termination of the policy by the Admin-
istrator with respect to new loans. If the policy is wholly dis-
continued, the Administrator shall have the right to require the 
transfer, to the extent and in a manner to be determined by him, 
to any new company or companies wi^h which he has negotiated 
a new policy or policies, the amounts, as determined by the existing 
Premium rates. 
Cost. 
72 Stat. 1214; 
74 Stat. 532. 
Policy provi-
sions. 
322 
PUBLIC LAW 92-95-AUG. 11, 1971 
[85 STAT. 
Regulations. 
Effective date. 
Termination. 
insurer or insurers with the concurrence of the Administrator 
of any policy or contingency reserves with respect to insurance 
previously in force; 
"(3) issuance to each veteran insured under this section of a 
uniform type of certificate setting forth the benefits to w^hich 
he is entitled under the insurance; 
"(4) any other provisions which are reasonably necessary or 
appropriate to carry out the provisions of this section; and 
"(5) an accounting to the Administrator not later than ninety 
days after the end of each policy year which shall set forth, in a 
form approved by the Administrator, (A) the amount of pre-
miums paid by veterans and contributions made by the Veterans' 
Administration accrued under the contract or agreement from its 
date of issue to the end of such contract year; (B) the total of all 
mortality and other claim charges incurred for that period; and 
(C) the amount of the insurer's expense and risk charges, if any, 
for that period. Any excess of the total of item (A) over the sum 
of items (B) and (C) shall be held by the insurer as a contingency 
reserve to be used by such insurer for charges under the contract 
or agreement only. The contingency reserve shall bear interest 
at a rate to be determined in advance of each contract year by the 
insurer, which rate shall be approved by the Administrator if con-
sistent with the rates generally used by the insurer for similar 
funds held under other plans of group life insurance. If and when 
the Administrator determines that such contingency reserve has 
attained an amount estimated by him to make satisfactory pro-
vision for adverse fluctuations in future charges under the con-
tract, the Administrator shall require the insurer to adjust the 
premium rates and contributions so as to prevent any further sub-
stantial accretions to the contingency reserve. If and when the con-
tract or agreement is discontinued and if after all charges have 
been made there is any positive balance remaining in the contin-
gency reserve, such balance shall be payable to the Administrator 
and by him deposited to the appropriation 'Compensation and 
Pensions, Veterans' Administration,' subject to the right of the 
insurer to make such payment in equal monthly installments over 
a period of not more than two years. 
"(h) With respect to insurance contracted for under this section, 
the Administrator is authorized to adopt such regulations relating to 
eligibility of the veteran for insurance, maximum amount of insurance, 
maximum duration of insurance, and other pertinent factors not 
specifically provided for in this section, which in his judgment are 
in the best interest of veterans or the Government. Insurance con-
tracted for under this section shall take effect as to eligible veterans 
heretofore granted assistance under this chapter on a date determined 
by the Administrator, and as to eligible veterans hereafter granted 
assistance under this chapter at the time of the closing of his loan. 
The amount of the insurance at any time shall be the amount necessary 
to pay the mortgage indebtedness in full, except as otherwise limited 
by the policy. 
"(i) Insurance contracted for under this section shall terminate 
upon whichever of the following events first occurs: 
" (1) satisfaction of the veteran's indebtedness under the loan 
upon which the insurance is based; 
" ^ 2) the veteran's seventieth birthday; 
"(3) termination of the veteran's ownership of the property 
securing the loan; 
" ^ 4) discontinuance of payment of premiums by the veteran; or 
" (5) discontinuance of the entire contract or agreement, 
"(j) Termination of the mortgage protection life insurance will 
85 STAT. ] 
PUBLIC LAW 92-97-AUG. 11, 1971 
323 
in no way ajffect the guaranty or insurance of the loan by the 
Administrator." 
SEC. 2. The analysis of chapter 21, title 38, United States Code, is 
amended by adding at the end thereof the following: 
"806. Mortgage Protection Life Insurance." 
Approved August 11, 1971. 
Public Law 92-96 
AN ACT 
August 11,1971 
To authorize the disposal of thorium from the supplemental stockpile. 
[s. 753] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled,. That the Admin- 
Di's°'^o"s'^i 
istrator of General Services is hereby authorized to dispose of approxi- 
i^posa . 
mately two hundred and ten short tons (thorium oxide content) of 
thorium nitrate now held in the supplemental stockpile established 
pursuant to section 104(b) of the Agricultural Trade Development 
and Assistance Act of 1954, 68 Stat. 456, as amended by 73 Stat. 607. ^ 7^usc i704 
Such disposition may be made without regard to the requirements 
of section 3 of the Strategic and Critical Materials Stock Piling Act: 
^o ^ta^. ^597. 
Provided, That the time and method of disposition shall be fixed with 
due regard to the protection of the United States against avoidable 
loss and the protection of producers, processors, and consumers against 
avoidable disruption of their usual markets. 
SEC. 2. (a) Disposals of the material covered by this Act may be ^'^^^' 
made only after publicly advertising for bids, except as provided in 
subsection (b) of this section or as otherwise authorized by law. All 
bids may be rejected when it is in the public interest to do so. 
(b) The material covered by this Act may be disposed of without 
Exemptions. 
advertising for bids if— 
(1) the material is to be transferred to an agency of the 
United States; 
(2) the Administrator determines that methods of disposal 
other than by advertising are necessary to protect the United 
States against avoidable loss or to protect producers, processors, 
and consumers against avoidable disruption of their usual 
markets; or 
(3) sales are to be made pursuant to requests received from 
other agencies of the United States in furtherance of authorized 
program objectives of such agencies. 
Approved August 11, 1971. 
Public Law 92-97 
AN ACT 
August 11, 1971 
To authorize the disposal of quartz crystals from the national stockpile and 
[s. 756] 
the supplemental stockpile. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That the Adminis- 
Quartz crystals. 
trator of General Services is hereby authorized to dispose of approxi- 
^^^^ * 
mately three hundred and thirty thousand pounds of quartz crystals 
now held in the national stockpile established pursuant to the Stra-
tegic and Critical Materials Stock Piling Act (50 U.S.C. 98-98h) 
60 stat. 596. 
and the suj)plemental stockpile established pursuant to section 104(b) 
of the Agricultural Trade Development and Assistance Act of 1954, 
68 Stat. 456, as amended by 73 Stat. 607. Such disposition may be 
7 use 1704 
n o t e . 
75-432 O - 72 - 23