§545. Deduction of unpaid premiums upon settlement of policies maturing during protection

In the event of maturity of a policy as a death claim or otherwise before the expiration of the period of protection under the provisions of this article [sections 540 to 548 of this Appendix], the insurer in making settlement will deduct from the amount of insurance the premiums guaranteed under this article [said sections], together with interest thereon at the rate fixed in the policy for policy loans. If no rate of interest is specifically fixed in the policy, the rate shall be the rate fixed for policy loans in other policies issued by the insurer at the time the policy brought under the Act [sections 501 to 593 of this Appendix] was issued. The amount deducted by reason of the protection afforded by this article [sections 540 to 548 of this Appendix] shall be reported by the insurer to the Secretary of Veterans Affairs.

(Oct. 17, 1940, ch. 888, art. IV, §405, 54 Stat. 1184 ; Oct. 6, 1942, ch. 581, §13, 56 Stat. 775 ; Pub. L. 102–12, §9(16), Mar. 18, 1991, 105 Stat. 40 .)

Amendments

1991-Pub. L. 102–12 substituted "Secretary of Veterans Affairs" for "Administrator of Veterans' Affairs".

1942-Act Oct. 6, 1942, amended section generally, substituting provisions relating to deduction of unpaid premiums upon settlement of policies maturing during protection for provisions relating to lapse of policies for nonpayment of premiums.

Section Referred to in Other Sections

This section is referred to in section 546 of this Appendix; title 5 section 5569.