---
kind: "section"
citation: "38 U.S.C. § 1966"
title: "38"
title_heading: "Veterans’ Benefits"
number: "1966"
heading: "Eligible insurance companies"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/38/1966"
units:
  - "Part II — General Benefits"
  - "Chapter 19 — Insurance"
  - "Subchapter III — Servicemembers’ Group Life Insurance"
---

# §1966. Eligible insurance companies

- (a) The [Secretary](/usc/38/101.md?p=1) is authorized, without regard to [section 6101(b)](/usc/38/6101.md?p=b) to (d) of [title 41](/usc/41.md), to purchase from one or more life [insurance](/usc/38/1901.md?p=1) companies a policy or policies of group life [insurance](/usc/38/1901.md?p=1) to provide the benefits specified in this subchapter. Each such life [insurance](/usc/38/1901.md?p=1) company must (1) be licensed to issue life [insurance](/usc/38/1901.md?p=1) in each of the fifty [States](/usc/38/101.md?p=20) of the United States and in the District of Columbia, and (2) as of the most recent December 31 for which information is available to the [Secretary](/usc/38/101.md?p=1), have in effect at least 1 percent of the total amount of group life [insurance](/usc/38/1901.md?p=1) which all life [insurance](/usc/38/1901.md?p=1) companies have in effect in the United States.
- (b) The life [insurance](/usc/38/1901.md?p=1) company or companies issuing such policy or policies shall establish an administrative office at a place and under a name designated by the [Secretary](/usc/38/101.md?p=1).
- (c) The [Secretary](/usc/38/101.md?p=1) shall arrange with the life [insurance](/usc/38/1901.md?p=1) company or companies issuing any policy or policies under this subchapter to reinsure, under conditions approved by the [Secretary](/usc/38/101.md?p=1), portions of the total amount of [insurance](/usc/38/1901.md?p=1) under such policy or policies with such other life [insurance](/usc/38/1901.md?p=1) companies (which meet qualifying criteria set forth by the [Secretary](/usc/38/101.md?p=1)) as may elect to participate in such reinsurance.
- (d) The [Secretary](/usc/38/101.md?p=1) may at any time discontinue any policy or policies which the [Secretary](/usc/38/101.md?p=1) has purchased from any [insurance](/usc/38/1901.md?p=1) company under this subchapter.

## Source credit

(Added Pub. L. 89–214, § 1(a), Sept. 29, 1965, 79 Stat. 880, § 766; amended Pub. L. 97–295, § 4(29), Oct. 12, 1982, 96 Stat. 1307; Pub. L. 99–576, title VII, § 701(36), Oct. 28, 1986, 100 Stat. 3293; renumbered § 1966 and amended Pub. L. 102–83, §§ 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404–406; Pub. L. 111–350, § 5(j)(2), Jan. 4, 2011, 124 Stat. 3850.)

## Notes

### Editorial Notes

### Amendments

2011—Subsec. (a). Pub. L. 111–350 substituted “section 6101(b) to (d) of title 41” for “section 3709 of the Revised Statutes, as amended (41 U.S.C. 5)”.

1991—Pub. L. 102–83 renumbered section 766 of this title as this section and substituted “Secretary” for “Administrator” wherever appearing.

1986—Subsec. (c). Pub. L. 99–576, § 701(36)(A), substituted “the Administrator” for “him”.

Subsec. (d). Pub. L. 99–576, § 701(36)(B), substituted “the Administrator” for “he”.

1982—Subsec. (a). Pub. L. 97–295 substituted “percent” for “per centum”.