---
kind: "section"
citation: "38 U.S.C. § 1923"
title: "38"
title_heading: "Veterans’ Benefits"
number: "1923"
heading: "Veterans’ Special Life Insurance"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/38/1923"
units:
  - "Part II — General Benefits"
  - "Chapter 19 — Insurance"
  - "Subchapter I — National Service Life Insurance"
---

# §1923. Veterans’ Special Life Insurance

- (a) [Insurance](/usc/38/1901.md?p=1) heretofore granted under the provisions of section 621 of the National Service Life Insurance Act of 1940, against the death of the policyholder occurring while such [insurance](/usc/38/1901.md?p=1) is in force, is subject to the same terms and conditions as are contained in standard policies of National Service Life [Insurance](/usc/38/1901.md?p=1) on the five-year level premium term plan except (1) such [insurance](/usc/38/1901.md?p=1) may not be exchanged for or converted to [insurance](/usc/38/1901.md?p=1) on any other plan; (2) the premium rates for such [insurance](/usc/38/1901.md?p=1) shall be based on the Commissioners 1941 Standard Ordinary Table of Mortality and interest at the rate of 2¼ per centum per annum; (3) all settlements on policies involving annuities shall be calculated on the basis of The Annuity Table for 1949, and interest at the rate of 2¼ per centum per annum; (4) all premiums and other collections on such [insurance](/usc/38/1901.md?p=1) and any total [disability](/usc/38/1701.md?p=1) provisions added thereto shall be credited to a revolving fund in the Treasury of the United States, which, together with interest earned thereon, shall be available for the payment of liabilities under such [insurance](/usc/38/1901.md?p=1) and any total [disability](/usc/38/1701.md?p=1) provisions added thereto, including payments of dividends and refunds of unearned premiums, and for the reimbursement of administrative costs under [subsection (d)](#d).
- (b) Any term [insurance](/usc/38/1901.md?p=1) heretofore issued under section 621 of the National Service Life Insurance Act of 1940, may be converted to a permanent plan of [insurance](/usc/38/1901.md?p=1) or exchanged for a policy of limited convertible five-year level premium term [insurance](/usc/38/1901.md?p=1) issued under this subsection. [Insurance](/usc/38/1901.md?p=1) issued under this subsection shall be issued upon the same terms and conditions as are contained in the standard policies of National Service Life [Insurance](/usc/38/1901.md?p=1) except (1) after September 1, 1960, limited convertible term [insurance](/usc/38/1901.md?p=1) may not be issued or renewed on the term plan after the insured’s fiftieth birthday; (2) the premium rates for such limited convertible term or permanent plan [insurance](/usc/38/1901.md?p=1) shall be based on table X–18 (1950–54 Intercompany Table of Mortality) and interest at the rate of 2½ per centum per annum; (3) all settlements on policies involving annuities on [insurance](/usc/38/1901.md?p=1) issued under this subsection shall be calculated on the basis of The Annuity Table for 1949, and interest at the rate of 2½ per centum per annum; (4) all cash, loan, paid-up, and extended values, and, except as otherwise provided in this subsection, all other calculations in connection with [insurance](/usc/38/1901.md?p=1) issued under this subsection shall be based on table X–18 (1950–54 Intercompany Table of Mortality) and interest at the rate of 2½ per centum per annum; (5) all premiums and other collections on [insurance](/usc/38/1901.md?p=1) issued under this subsection and any total [disability](/usc/38/1701.md?p=1) income provisions added thereto shall be credited directly to the revolving fund referred to in [subsection (a)](#a) of this section, which together with interest earned thereon, shall be available for the payment of liabilities under such [insurance](/usc/38/1901.md?p=1) and any total [disability](/usc/38/1701.md?p=1) provisions added thereto, including payments of dividends and refunds of unearned premiums.
- (c) The [Secretary](/usc/38/101.md?p=1) is authorized to invest in, and the [Secretary](/usc/38/101.md?p=1) of the Treasury is authorized to sell and retire, special interest-bearing obligations of the United States for the account of the revolving fund with a maturity date as may be agreed upon by the two [Secretaries](/usc/38/101.md?p=1). The rate of interest on such obligations shall be fixed by the [Secretary](/usc/38/101.md?p=1) of the Treasury at a rate equal to the rate of interest, computed as of the end of the month preceding the date of issue of such obligations, borne by all marketable interest-bearing obligations of the United States then forming a part of the public debt that are not due or callable until after the expiration of five years from the date of original issue; except that where such average rate is not a multiple of one-eighth of 1 per centum, the rate of interest of such obligations shall be the multiple of one-eighth of 1 per centum nearest such average rate.
- (d)
  - (1) For each fiscal year for which this subsection is in effect, the [Secretary](/usc/38/101.md?p=1) shall, from the [Veterans](/usc/38/1101.md?p=1)’ Special 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)](#d-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 [Veterans](/usc/38/1101.md?p=1)’ Special 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. 1157, § 723; Pub. L. 85–896, Sept. 2, 1958, 72 Stat. 1716; Pub. L. 87–223, Sept. 13, 1961, 75 Stat. 495; Pub. L. 93–289, § 2(a), May 24, 1974, 88 Stat. 165; renumbered § 1923 and amended Pub. L. 102–83, §§ 4(b)(1), (2)(C), (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

### References in Text

Section 621 of the National Service Life Insurance Act of 1940, referred to in subsecs. (a) and (b), is section 621 of act Oct. 8, 1940, ch. 757, title VI, pt. I, as added Apr. 25, 1951, ch. 39, pt. II, § 10, 65 Stat. 36, which enacted section 822 of former Title 38, Pensions, Bonuses, and Veterans’ Relief, and which was repealed and the provisions thereof reenacted as this section by Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1105.

### Codification

Amendment by Pub. L. 104–99 is based on section 107(2) 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 (d)” before period at end.

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

1991—Pub. L. 102–83, § 5(a), renumbered section 723 of this title as this section.

Subsec. (c). Pub. L. 102–83, § 4(b)(2)(C), substituted “two Secretaries” for “Administrator and Secretary”.

Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator” after “The”.

1974—Pub. L. 93–289, § 2(a)(1), substituted “Veterans’ Special Life Insurance” for “Veterans’ special term insurance” in section catchline.

Subsec. (a). Pub. L. 93–289, § 2(a)(2), substituted “all premiums and other collections on such insurance and any total disability provisions added thereto shall be credited to a revolving fund in the Treasury of the United States, which, together with interest earned thereof, shall be available for the payment of liabilities under such insurance and any total disability provisions added thereto, including payments of dividends and refunds of unearned premiums” for “such insurance and any total disability provision added thereto shall be on a nonparticipating basis and all premiums and other collections therefor shall be credited to a revolving fund in the Treasury of the United States and the payments on such term insurance and any total disability provision added thereto shall be made directly from such fund” in cl. (4).

Subsec. (b). Pub. L. 93–289, § 2(a)(3), substituted “all premiums and other collections on insurance issued under this subsection and any total disability income provisions added thereto shall be credited directly to the revolving fund referred to in subsection (a) of this section, which together with interest earned thereon, shall be available for the payment of liabilities under such insurance and any total disability provisions added thereto, including payments of dividends and refunds of unearned premiums” for “insurance and any total disability provision added thereto issued under this subsection shall be on a nonparticipating basis and all premiums and other collections therefor shall be credited directly to the revolving fund referred to in subsection (a) and payments on such insurance and any total disability provision added thereto shall be made directly from such fund” in cl. (5).

Subsecs. (d), (e). Pub. L. 93–289, § 2(a)(4), repealed subsecs. (d) and (e) which related to the payment of dividends from the excess funds in the revolving fund, and to the transfer of funds from the revolving fund to general fund receipts in the Treasury.

1961—Subsecs. (d), (e). Pub. L. 87–223 added subsecs. (d) and (e).

1958—Subsec. (b). Pub. L. 85–896, § 1(2), added subsec. (b). Former subsec. (b) redesignated (c).

Subsec. (c). Pub. L. 85–896, § 1(1), redesignated former subsec. (b) as (c) and substituted “equal to the rate of interest, computed as of the end of the month preceding the date of issue of such obligations, borne by all marketable interest-bearing obligations of the United States then forming a part of the public debt that are not due or callable until after the expiration of five years from the date of original issue; except that where such average rate is not a multiple of one-eighth of 1 per centum, the rate of interest of such obligations shall be the multiple of one-eighth of 1 per centum nearest such average rate” for “not exceeding the average interest rate on all marketable obligations of the United States Treasury outstanding as of the end of the month preceding the date of issue of this special obligation”.

### Statutory Notes and Related Subsidiaries

### Effective Date of 1974 Amendment

Pub. L. 93–289, § 12(1), May 24, 1974, 88 Stat. 173, provided that: “The amendments made by section 2 [amending this section], relating to Veterans’ Special Life Insurance, shall become effective upon the date of enactment of this Act [May 24, 1974] except that no dividend on such insurance shall be paid prior to January 1, 1974.”