---
kind: "section"
citation: "38 U.S.C. § 1920"
title: "38"
title_heading: "Veterans’ Benefits"
number: "1920"
heading: "National Service Life Insurance Fund"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/38/1920"
units:
  - "Part II — General Benefits"
  - "Chapter 19 — Insurance"
  - "Subchapter I — National Service Life Insurance"
---

# §1920. National Service Life Insurance Fund

- (a) The National Service Life [Insurance](/usc/38/1901.md?p=1) Fund heretofore created in the Treasury is continued as a permanent trust fund. Except as otherwise provided in this chapter, all premiums paid on account of National Service Life [Insurance](/usc/38/1901.md?p=1) shall be deposited and covered into the Treasury to the credit of such fund, which, together with interest earned thereon, shall be available for the payment of liabilities under such [insurance](/usc/38/1901.md?p=1), including payment of dividends and refunds of unearned premiums, and for the reimbursement of administrative costs under [subsection (c)](#c). Payments from this fund shall be made upon and in accordance with awards by the [Secretary](/usc/38/101.md?p=1).
- (b) The [Secretary](/usc/38/101.md?p=1) is authorized to set aside out of such fund such [reserve](/usc/38/101.md?p=26) amounts as may be required under accepted actuarial principles to meet all liabilities under such [insurance](/usc/38/1901.md?p=1); and the [Secretary](/usc/38/101.md?p=1) of the Treasury is authorized to invest and reinvest such fund, or any part thereof, in interest-bearing obligations of the United States or in obligations guaranteed as to principal and interest by the United States, and to sell such obligations for the purposes of such fund.
- (c)
  - (1) For each fiscal year for which this subsection is in effect, the [Secretary](/usc/38/101.md?p=1) shall, from the National Service Life [Insurance](/usc/38/1901.md?p=1) Fund, reimburse the “General operating expenses” account of the [Department](/usc/38/101.md?p=1) for the amount of administrative costs determined under [paragraph (2)](#c-2) for that fiscal year. Such reimbursement shall be made from any surplus earnings for that fiscal year that are available for dividends on such [insurance](/usc/38/1901.md?p=1) after claims have been paid and actuarially determined [reserves](/usc/38/101.md?p=26) have been set aside. However, if the amount of such administrative costs exceeds the amount of such surplus earnings, such reimbursement shall be made only to the extent of such surplus earnings.
  - (2) The [Secretary](/usc/38/101.md?p=1) shall determine the administrative costs to the [Department](/usc/38/101.md?p=1) for a fiscal year for which this subsection is in effect which, in the judgment of the [Secretary](/usc/38/101.md?p=1), are properly allocable to the provision of National Service Life [Insurance](/usc/38/1901.md?p=1) (and to the provision of any total [disability](/usc/38/1701.md?p=1) income [insurance](/usc/38/1901.md?p=1) added to the provision of such [insurance](/usc/38/1901.md?p=1)).
  - (3) This subsection shall be in effect only with respect to fiscal year 1996.

## Source credit

(Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1154, § 720; renumbered § 1920 and amended Pub. L. 102–83, §§ 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404–406; Pub. L. 104–99, title II, § 201(b), Jan. 26, 1996, 110 Stat. 36.)

## Notes

### Editorial Notes

### Codification

Amendment by Pub. L. 104–99 is based on section 107(1) of H.R. 2099, One Hundred Fourth Congress, as passed by the House of Representatives on Dec. 7, 1995, which was enacted into law by Pub. L. 104–99.

### Amendments

1996—Subsec. (a). Pub. L. 104–99 inserted “, and for the reimbursement of administrative costs under subsection (c)” after “unearned premiums”.

Subsec. (c). Pub. L. 104–99 added subsec. (c).

1991—Pub. L. 102–83 renumbered section 720 of this title as this section and substituted “Secretary” for “Administrator” in two places.