§546. Guaranty of premiums and interest by United States; settlement of amounts due upon expiration of protection; subrogation of United States; crediting debt repayments

Payment of premiums and interest thereon at the rate specified in section 405 hereof [section 545 of this Appendix] becoming due on a policy while protected under the provisions of this article [sections 540 to 548 of this Appendix] is guaranteed by the United States, and if the amount so guaranteed is not paid to the insurer prior to the expiration of the period of insurance protection under this article [said sections], the amount then due shall be treated by the insurer as a policy loan on such policy, but if at the expiration of said period the cash surrender value is less than the amount then due, the policy shall then cease and terminate and the United States shall pay the insurer the difference between such amount and the cash surrender value. The amount paid by the United States to an insurer on account of applications approved under the provisions of this article, as amended [said sections], shall become a debt due to the United States by the insured on whose account payment was made and, notwithstanding any other Act, such amount may be collected either by deduction from any amount due said insured by the United States or as otherwise authorized by law. Any moneys received as repayment of debts incurred under this article, as originally enacted and as amended [said sections], shall be credited to the appropriation for the payment of claims under this article [said sections].

(Oct. 17, 1940, ch. 888, art. IV, §406, 54 Stat. 1184 ; Oct. 6, 1942, ch. 581, §13, 56 Stat. 775 ; Apr. 3, 1948, ch. 170, §6, 62 Stat. 160 .)

Amendments

1948-Act Apr. 3, 1948, inserted last sentence.

1942-Act Oct. 6, 1942, amended section generally, substituting provisions relating 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 for provisions relating to reports by insurers to Veterans' Administration.

Cross References

Termination of war for purposes of sections 540 to 548 of this Appendix, see note to section 584 of this Appendix.

Section Referred to in Other Sections

This section is referred to in title 5 section 5569.