§544. Rights and privileges of insured during period of protection

No dividend or other monetary benefit under a policy shall be paid to an insured or used to purchase dividend additions while a policy is protected by the provisions of this article [sections 540 to 548 of this Appendix] except with the consent and approval of the Secretary of Veterans Affairs. If such consent is not procured, such dividends or benefits shall be added to the value of the policy to be used as a credit when final settlement is made with the insurer. No cash value, loan value, or withdrawal of dividend accumulation, or unearned premium, or other value of similar character shall be available to the insured while the policy is protected under this article [said sections] except upon approval by the Secretary of Veterans Affairs. The insured's right to change a beneficiary designation or select an optional settlement for a beneficiary shall not be affected by the provisions of this article [said sections].

(Oct. 17, 1940, ch. 888, art. IV, §404, 54 Stat. 1184 ; Oct. 6, 1942, ch. 581, §13, 56 Stat. 775 ; Pub. L. 102–12, §9(15), Mar. 18, 1991, 105 Stat. 40 .)

Amendments

1991-Pub. L. 102–12 substituted "Secretary of Veterans Affairs" for "Veterans' Administration" in two places.

1942-Act Oct. 6, 1942, amended section generally, substituting provisions relating to rights and privileges of insured during period of protection for provisions relating to applications on policies exceeding $5,000.

Section Referred to in Other Sections

This section is referred to in title 5 section 5569.