---
kind: "section"
citation: "50 U.S.C. § 3974"
title: "50"
title_heading: "War and National Defense"
number: "3974"
heading: "Policies entitled to protection and lapse of policies"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/50/3974"
units:
  - "Chapter 50 — Servicemembers Civil Relief"
  - "Subchapter IV — Life Insurance"
---

# §3974. Policies entitled to protection and lapse of policies

- (a) **Determination—** The Secretary of Veterans Affairs shall determine whether a [policy](/usc/50/3971.md?p=1) is entitled to protection under this subchapter and shall notify the [insured](/usc/50/3971.md?p=3) and the [insurer](/usc/50/3971.md?p=4) of that determination.
- (b) **Lapse protection—** A [policy](/usc/50/3971.md?p=1) that the Secretary determines is entitled to protection under this subchapter shall not lapse or otherwise terminate or be forfeited for the nonpayment of a [premium](/usc/50/3971.md?p=2), or interest or indebtedness on a [premium](/usc/50/3971.md?p=2), after the date on which the application for protection is received by the Secretary.
- (c) **Time application—** The protection provided by this subchapter applies during the [insured](/usc/50/3971.md?p=3)’s [period of military service](/usc/50/3911.md?p=3) and for a period of two years thereafter.

## Source credit

(Oct. 17, 1940, ch. 888, title IV, § 404, as added Pub. L. 108–189, § 1, Dec. 19, 2003, 117 Stat. 2853.)

## Notes

### Editorial Notes

### Codification

Section was formerly classified to section 544 of the former Appendix to this title prior to editorial reclassification and renumbering as this section.

### Prior Provisions

A prior section 404 of act Oct. 17, 1940, ch. 888, art. IV, 54 Stat. 1184; Oct. 6, 1942, ch. 581, § 13, 56 Stat. 775; Pub. L. 102–12, § 9(15), Mar. 18, 1991, 105 Stat. 40, related to restrictions on payment of dividends and insured’s right to change beneficiary, prior to the general amendment of this Act by Pub. L. 108–189. See section 3975 of this title.

### Statutory Notes and Related Subsidiaries

### Effective Date

Section applicable to any case not final before Dec. 19, 2003, see section 3 of Pub. L. 108–189, set out as a note under section 3901 of this title.