§1968. Duration and termination of coverage; conversion

(a) Each policy purchased under this subchapter shall contain a provision, in terms approved by the Secretary, to the effect that any insurance thereunder on any member of the uniformed services, unless discontinued or reduced upon the written request of the insured (or discontinued pursuant to section 1969(a)(2)(B) of this title), shall continue in effect while the member is on active duty, active duty for training, or inactive duty training scheduled in advance by competent authority during the period thereof, or while the member meets the qualifications set forth in section 1965(5)(B) of this title, and such insurance shall cease-

(1) with respect to a member on active duty or active duty for training under a call or order to duty that does not specify a period of less than thirty-one days-

(A) one hundred and twenty days after the separation or release from active duty or active duty for training, unless on the date of such separation or release the member is totally disabled, under criteria established by the Secretary, in which event the insurance shall cease one year after the date of separation or release from such active duty or active duty for training, or on the date the insured ceases to be totally disabled, whichever is the earlier date, but in no event prior to the expiration of one hundred and twenty days after such separation or release; or

(B) at the end of the thirty-first day of a continuous period of (i) absence without leave, (ii) confinement by civil authorities under a sentence adjudged by a civilian court, or (iii) confinement by military authorities under a courtmartial sentence involving total forfeiture of pay and allowances. Any insurance so terminated as the result of such an absence or confinement, together with any beneficiary designation in effect for such insurance at such termination thereof, shall be automatically revived as of the date the member is restored to active duty with pay or to active duty for training with pay;

(2) with respect to a member on active duty or active duty for training under a call or order to duty that specifies a period of less than thirty-one days insurance under this subchapter shall cease at midnight, local time, on the last day of such duty, unless on such date the insured is suffering from a disability incurred or aggravated during such period which, within one hundred and twenty days after such date, (i) results in death, or (ii) renders the member uninsurable at standard premium rates according to the good health standards approved by the Secretary, in which event the insurance shall continue in force to death, or for one hundred and twenty days after such date, whichever is the earlier date;

(3) with respect to a member on inactive duty training scheduled in advance by competent authority insurance under this subchapter shall cease at the end of such scheduled training period, unless at such time the insured is suffering from a disability incurred, or aggravated during such period which, within one hundred and twenty days after the date of such training, (i) results in death, or (ii) renders the member uninsurable at standard premium rates according to the good health standards approved by the Secretary in which event the insurance shall continue in force to death, or for one hundred and twenty days after the date such training terminated, whichever is the earlier date; and

(4) with respect to a member of the Ready Reserve of a uniformed service who meets the qualifications set forth in section 1965(5)(B) of this title, 120 days after separation or release from such assignment, unless on the date of such separation or release the member is totally disabled, under criteria established by the Secretary, in which event the insurance shall cease one year after the date of separation or release from such assignment, or on the date the insured ceases to be totally disabled, whichever is the earlier date, but in no event before the end of 120 days after separation or release from such assignment.

(b)(1) Each policy purchased under this subchapter shall contain a provision, in terms approved by the Secretary, that, except as hereinafter provided, Servicemembers' Group Life Insurance which is continued in force after expiration of the period of duty or travel under section 1967(b) or 1968(a) of this title, effective the day after the date such insurance would cease-

(A) shall be automatically converted to Veterans' Group Life Insurance, subject to (i) the timely payment of the initial premium under terms prescribed by the Secretary, and (ii) the terms and conditions set forth in section 1977 of this title; or

(B) at the election of the member, shall be converted to an individual policy of insurance as described in section 1977(e) of this title upon written application for conversion made to the participating company selected by the member and payment of the required premiums.

(2) Automatic conversion to Veterans' Group Life Insurance under paragraph (1) shall be effective only in the case of an otherwise eligible member or former member who is separated or released from a period of active duty or active duty for training or inactive duty training on or after the date on which the Veterans' Group Life Insurance program (provided for under section 1977 of this title) becomes effective.

(Added Pub. L. 89–214, §1(a), Sept. 29, 1965, 79 Stat. 881 , §768; amended Pub. L. 91–291, §3, June 25, 1970, 84 Stat. 328 ; Pub. L. 93–289, §5(a), May 24, 1974, 88 Stat. 166 ; Pub. L. 97–295, §4(30), Oct. 12, 1982, 96 Stat. 1307 ; Pub. L. 99–576, title VII, §701(38), Oct. 28, 1986, 100 Stat. 3293 ; renumbered §1968 and amended Pub. L. 102–83, §§4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404–406 ; Pub. L. 103–337, div. A, title VI, §651(c), title XVI, §1677(d)(1), Oct. 5, 1994, 108 Stat. 2792 , 3020; Pub. L. 104–106, div. A, title VI, §647(b), Feb. 10, 1996, 110 Stat. 370 ; Pub. L. 104–275, title IV, §§402(c), 403(a), 405(b)(1)(B), Oct. 9, 1996, 110 Stat. 3337–3339 ; Pub. L. 106–65, div. A, title X, §1066(d)(1), Oct. 5, 1999, 113 Stat. 773 .)

Amendments

1999-Subsec. (a). Pub. L. 106–65 made technical amendment to directory language of Pub. L. 104–106, §647(b). See 1996 Amendment note below.

1996-Subsec. (a). Pub. L. 104–275, §402(c)(1)(A), substituted "section 1965(5)(B)" for "subparagraph (B), (C), or (D) of section 1965(5)" in introductory provisions.

Pub. L. 104–106, §647(b), as amended by Pub. L. 106–65, inserted "(or discontinued pursuant to section 1969(a)(2)(B) of this title)" after "upon the written request of the insured" in introductory provisions.

Subsec. (a)(1) to (3). Pub. L. 104–275, §402(c)(1)(B), (C), substituted a semicolon for the period at end of pars. (1) and (2) and "; and" for the period at end of par. (3).

Subsec. (a)(4). Pub. L. 104–275, §402(c)(1)(D)(iv), struck out subpars. (B) and (C) which read as follows:

"(B) unless on the date of such separation or release the member has completed at least twenty years of satisfactory service creditable for retirement purposes under chapter 1223 of title 10 (or under chapter 67 of that title as in effect before the effective date of the Reserve Officer Personnel Management Act) and would upon application be eligible for assignment to or is assigned to the Retired Reserve, in which event the insurance, unless converted to an individual policy under terms and conditions set forth in section 1977(e) of this title, shall, upon timely payment of premiums under terms prescribed by the Secretary directly to the administrative office established under section 1966(b) of this title, continue in force until receipt of the first increment of retirement pay by the member or the member's sixty-first birthday, whichever occurs earlier; or

"(C) unless on the date of such separation or release the member is transferred to the Retired Reserve of a uniformed service under the temporary special retirement authority provided in section 1331a of title 10, in which event the insurance, unless converted to an individual policy under terms and conditions set forth in section 1977(e) of this title, shall, upon timely payment of premiums under terms prescribed by the Secretary directly to the administrative office established under section 1966(b) of this title, continue in force until receipt of the first increment of retirement pay by the member or the member's sixty-first birthday, whichever occurs earlier."

Pub. L. 104–275, §402(c)(1)(D)(i)–(iii), substituted "120 days after separation or release from such assignment, unless on" for "one hundred and twenty days after separation or release from such assignment-

"(A) unless on",

substituted "before the end of 120 days" for "prior to the expiration of one hundred and twenty days", and substituted "such assignment." for "such assignment;".

Subsec. (a)(5), (6). Pub. L. 104–275, §402(c)(1)(E), struck out pars. (5) and (6) which read as follows:

"(5) with respect to a member of the Retired Reserve who meets the qualifications of section 1965(5)(C) of this title, and who was assigned to the Retired Reserve prior to the date insurance under the amendment made by section 5(a) of the Veterans' Insurance Act of 1974 (Public Law 93–289, 88 Stat. 166) is placed in effect for members of the Retired Reserve, at such time as the member receives the first increment of retirement pay, or the member's sixty-first birthday, whichever occurs earlier, subject to the timely payment of the initial and subsequent premiums, under terms prescribed by the Secretary, directly to the administrative office established under section 1966(b) of this title.

"(6) with respect to a member of the Retired Reserve who meets the qualifications of section 1965(5)(D) of this title, at such time as the member receives the first increment of retirement pay, or the member's sixty-first birthday, whichever occurs earlier, subject to the timely payment of the initial and subsequent premiums, under terms prescribed by the Secretary, directly to the administrative office established under section 1966(b) of this title."

Subsec. (b). Pub. L. 104–275, §403(a)(3), substituted "(2) Automatic conversion to Veterans' Group Life Insurance under paragraph (1)" for "Such automatic conversion".

Pub.  L.  104–275,  §403(a)(2),  substituted  "would cease-" and subpars. (A) and (B) for "would cease, shall be automatically converted to Veterans' Group Life Insurance subject to (1) the timely payment of the initial premium under terms prescribed by the Secretary, and (2) the terms and conditions set forth in section 1977 of this title."

Pub. L. 104–275, §403(a)(1), inserted "(1)" after "(b)" at beginning of subsec.

Pub. L. 104–275, §402(c)(2), struck out at end "Servicemen's Group Life Insurance continued in force under section 1968(a)(4)(B) or (5) of this title shall not be converted to Veterans' Group Life Insurance. However, a member whose insurance could be continued in force under section 1968(a)(4)(B) of this title, but is not so continued, may, effective the day after the insurance otherwise would cease, convert such insurance to an individual policy under the terms and conditions set forth in section 1977(e) of this title."

Subsec. (b)(1). Pub. L. 104–275, §405(b)(1)(B), substituted "Servicemembers' Group" for "Servicemen's Group".

1994-Subsec. (a). Pub. L. 103–337, §651(c)(1), substituted "subparagraph (B), (C), or (D) of section 1965(5)" for "section 1965(5)(B) or (C)" in introductory provisions.

Subsec. (a)(4)(B). Pub. L. 103–337, §1677(d)(1), substituted "chapter 1223 of title 10 (or under chapter 67 of that title as in effect before the effective date of the Reserve Officer Personnel Management Act)" for "chapter 67 of title 10".

Subsec. (a)(4)(C). Pub. L. 103–337, §651(c)(2), added subpar. (C).

Subsec. (a)(6). Pub. L. 103–337, §651(c)(3), added par. (6).

1991-Pub. L. 102–83, §5(a), renumbered section 768 of this title as this section.

Subsec. (a). Pub. L. 102–83, §5(c)(1), substituted "1965(5)(B)" for "765(5)(B)" in two places, "1977(e)" for "777(e)", "1966(b)" for "766(b)" in two places, and "1965(5)(C)" for "765(5)(C)".

Pub. L. 102–83, §4(b)(1), (2)(E), substituted "Secretary" for "Administrator" wherever appearing.

Subsec. (b). Pub. L. 102–83, §5(c)(1), substituted "1967(b) or 1968(a)" for "767(b) or 768(a)", "1977" for "777" in two places, "1968(a)(4)(B)" for "768(a)(4)(B)" in two places, and "1977(e)" for "777(e)".

Pub. L. 102–83, §4(b)(1), (2)(E), substituted "Secretary" for "Administrator" in two places.

1986-Subsec. (a)(2), (3). Pub. L. 99–576, §701(38)(A), (B), struck out "his" before "death", and substituted "the member" for "his".

Subsec. (b). Pub. L. 99–576, §701(38)(C), substituted "the" for "he" before "insurance otherwise".

1982-Subsec. (a)(5). Pub. L. 97–295 substituted "the amendment made by section 5(a) of the Veterans' Insurance Act of 1974 (Public Law 93–289, 88 Stat. 166)" for "this amendment".

1974-Subsec. (a). Pub. L. 93–289, §5(a)(1)–(3), inserted in opening provisions "or while the member meets the qualifications set forth in section 765(5)(B) or (C) of this title,", substituted "one hundred and twenty days" for "ninety days" wherever appearing in pars. (2) and (3), and added pars. (4) and (5).

Subsec. (b). Pub. L. 93–289, §5(a)(4), substituted provisions requiring policies of Servicemen's Group Life Insurance to contain a provision automatically converting such policy to Veterans' Group Life Insurance, for provisions which required such policies to contain a provision for conversion to an individual policy of insurance, and inserted sentences providing for the effective date of automatic conversion, prohibiting conversion of Servicemen's Group Life Insurance continued in force under section 768(a)(4)(B) or (5) of this title, and authorizing conversion by a member whose insurance could be continued in force under section 768(a)(4)(B) of this title, but is not so continued.

Subsec. (c). Pub. L. 93–289, §5(a)(5), repealed subsec. (c) which related to conversion by eligible insured persons to policies written by companies participating in the program established by this subchapter.

1970-Subsec. (a). Pub. L. 91–291 designated existing provisions as subsec. (a) and substituted provisions covering the duration of coverage for provisions covering termination of coverage. For termination and conversion of insurance see subsecs. (b) and (c) of this section.

Subsecs. (b), (c). Pub. L. 91–291 added subsecs. (b) and (c).

Effective Date of 1999 Amendment

Pub. L. 106–65, div. A, title X, §1066(d)(1), Oct. 5, 1999, 113 Stat. 773 , provided that the amendment made by section 1066(d)(1) is effective Apr. 1, 1996.

Effective Date of 1996 Amendment

Section 647(c) of Pub. L. 104–106 provided that: "The amendments made by this section [amending this section and section 1969 of this title] shall take effect on April 1, 1996."

Effective Date of 1994 Amendment

Amendment by section 1677(d)(1) of Pub. L. 103–337 effective Dec. 1, 1994, except as otherwise provided, see section 1691 of Pub. L. 103–337, set out as an Effective Date note under section 10001 of Title 10, Armed Forces.

Effective Date of 1974 Amendment

Section 12(4) of Pub. L. 93–289 provided that: "The amendments made by sections 5(a)(4) and (5) of this Act [amending this section], and those enacting a Veterans' Group Life Insurance program [sections 777, 778, and 779 [now 1977, 1978, and 1979] of this title] shall become effective on the first day of the third calendar month following the month in which this Act is enacted [May 1974]."

Effective Date of 1970 Amendment

Amendment by Pub. L. 91–291 effective June 25, 1970, see section 14(a) of Pub. L. 91–291, set out as a note under section 1317 of this title.

Conversion of SGLI to VGLI

Section 402(e) of Pub. L. 104–275 provided that: "The Servicemembers' Group Life Insurance of any member of the Retired Reserve of a uniformed service shall be converted to Veterans' Group Life Insurance effective 90 days after the date of the enactment of this Act [Oct. 9, 1996]."

Right of Persons Discharged or Released From Uniformed Services To Convert Servicemen's Group Life Insurance to Individual Policies

Section 5(b) of Pub. L. 93–289 provided that the amendments made by Pub. L. 93–289, enacting sections 777, 778, and 779 [now 1977, 1978, and 1979] of this title and section 707 of Title 37, Pay and Allowances of the Uniformed Services, and amending sections 723, 765, 767, 768, 769, 770, 771, and 774 [now 1923, 1965, 1967, 1968, 1969, 1970, 1971, and 1974] of this title, not be construed to deprive any person discharged or released from the uniformed services of the United States prior to the date on which the Veterans' Group Life Insurance program (provided for under section 777 [now 1977] of this title) became effective of the right to convert Servicemen's Group Life Insurance to an individual policy under the provisions of law in effect prior to such effective date.

Section Referred to in Other Sections

This section is referred to in sections 1977, 1980 of this title.