---
kind: "section"
citation: "50 U.S.C. § 3976"
title: "50"
title_heading: "War and National Defense"
number: "3976"
heading: "Deduction of unpaid premiums"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/50/3976"
units:
  - "Chapter 50 — Servicemembers Civil Relief"
  - "Subchapter IV — Life Insurance"
---

# §3976. Deduction of unpaid premiums

- (a) **Settlement of proceeds—** If a [policy](/usc/50/3971.md?p=1) matures as a result of a [servicemember](/usc/50/3911.md?p=1)’s death or otherwise during the period of protection of the [policy](/usc/50/3971.md?p=1) under this subchapter, the [insurer](/usc/50/3971.md?p=4) in making settlement shall deduct from the insurance proceeds the amount of the unpaid [premiums](/usc/50/3971.md?p=2) guaranteed under this subchapter, together with interest due at the rate fixed in the [policy](/usc/50/3971.md?p=1) for [policy](/usc/50/3971.md?p=1) loans.
- (b) **Interest rate—** If the interest rate is not specifically fixed in the [policy](/usc/50/3971.md?p=1), the rate shall be the same as for [policy](/usc/50/3971.md?p=1) loans in other [policies](/usc/50/3971.md?p=1) issued by the [insurer](/usc/50/3971.md?p=4) at the time the [insured](/usc/50/3971.md?p=3)’s [policy](/usc/50/3971.md?p=1) was issued.
- (c) **Reporting requirement—** The amount deducted under this section, if any, shall be reported by the [insurer](/usc/50/3971.md?p=4) to the Secretary of Veterans Affairs.

## Source credit

(Oct. 17, 1940, ch. 888, title IV, § 406, as added Pub. L. 108–189, § 1, Dec. 19, 2003, 117 Stat. 2853.)

## Notes

### Editorial Notes

### Codification

Section was formerly classified to section 546 of the former Appendix to this title prior to editorial reclassification and renumbering as this section.

### Prior Provisions

A prior section 406 of act Oct. 17, 1940, ch. 888, art. IV, 54 Stat. 1184; Oct. 6, 1942, ch. 581, § 13, 56 Stat. 775; Apr. 3, 1948, ch. 170, § 6, 62 Stat. 160, related to guaranty of premiums and interest by United States, settlement of amounts due upon expiration of protection, subrogation of United States, and crediting debt repayments, prior to the general amendment of this Act by Pub. L. 108–189. See section 3977 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.