§540. Definitions

As used in this article [sections 540 to 548 of this Appendix]-

(a) The term "policy" shall include any contract of life insurance or policy on a life, endowment, or term plan, including any benefit in the nature of life insurance arising out of membership in any fraternal or beneficial association, which does not provide for the payment of any sum less than the face value thereof or for the payment of an additional amount as premiums if the insured engages in the military service of the United States as defined in section 101 of article I of this Act [section 511 of this Appendix] or which does not contain any limitation or restriction upon coverage relating to engagement in or pursuit of certain types of activities which a person might be required to engage in by virtue of his being in such military service, and (1) which is in force on a premium-paying basis at the time of application for benefits hereunder, and (2) which was made and a premium paid thereon not less than 180 days before the date the insured entered into the military service. The provisions of this Act [sections 501 to 593 of this Appendix] shall not be applicable to policies or contracts of life insurance issued under the War Risk Insurance Act, as amended, the World War Veterans Act, as amended, or the National Service Life Insurance Act of 1940, as amended.

(b) The term "premium" shall include the amount specified in the policy as the stipend to be paid by the insured at regular intervals during the period therein stated.

(c) The term "insured" shall include any person in the military service of the United States as defined in section 101, article I, of this Act [section 511 of this Appendix], whose life is insured under and who is the owner and holder of and has an interest in a policy as above defined.

(d) The term "insurer" shall include any firm, corporation, partnership, or association chartered or authorized to engage in the insurance business and to issue a policy as above defined by the laws of a State of the United States or the United States.

(Oct. 17, 1940, ch. 888, art. IV, §400, 54 Stat. 1183 ; Oct. 6, 1942, ch. 581, §13, 56 Stat. 773 ; July 11, 1956, ch. 570, §1, 70 Stat. 528 ; Pub. L. 102–12, §9(11), Mar. 18, 1991, 105 Stat. 40 .)

References in Text

The War Risk Insurance Act, as amended, referred to in subsec. (a), is act Oct. 6, 1917, ch. 105, 40 Stat. 398 , as amended, which enacted sections 502 and 575 of former Title 38, Pensions, Bonuses, and Veterans' Relief, amended section 241 of former Title 34, Navy, and sections 287 and 357 of former Title 38, and enacted provisions set out as notes under section 211 of this Appendix, and which was repealed by acts June 7, 1924, ch. 320, title VI, §§600(5), 601(1), 43 Stat. 629 , and June 17, 1957, Pub. L. 85–56, title XXII, §2202(96), 71 Stat. 166 . For complete classification of this Act to the Code prior to its repeal, see Tables.

The World War Veterans' Act, as amended, referred to in subsec. (a), probably means act June 7, 1924, ch. 320, 43 Stat. 607 , known as the World War Veterans' Act, 1924, which was classified principally to chapter 10 (§§421 to 574) of former Title 38, Pensions, Bonuses, and Veterans' Relief, and which was repealed by Pub. L. 85–857, §14(51), Sept. 2, 1958, 72 Stat. 1271 . For distribution of sections 421 to 574 of former Title 38 in Title 38, Veterans' Benefits, see Table preceding section 101 of Title 38.

The National Service Life Insurance Act of 1940, as amended, referred to in subsec. (a), is act Oct. 8, 1940, ch. 757, title VI, pt. I, §§601 to 623, 54 Stat. 1008 , as amended, which was classified generally to subchapter I (§§801 to 824) of chapter 13 of former Title 38, Pensions, Bonuses, and Veterans' Relief, and which was repealed by Pub. L. 85–857, §14(75), Sept. 2, 1958, 72 Stat. 1272 , and the provisions thereof reenacted generally as subchapter I (§701 [now 1901] et seq.) of chapter 19 of Title 38, Veterans' Benefits, by the first section of Pub. L. 85–857 which enacted Title 38. Section 5(a) of Pub. L. 85–857 provides that references in other laws to any provision of law replaced by Title 38 shall, where applicable, be deemed to refer also to the corresponding provision of Title 38. For distribution of sections 801 and 824 of former Title 38, see Tables preceding section 101 of Title 38.

Amendments

1991-Subsec. (a). Pub. L. 102–12 substituted "not less than 180 days before" for "before the date of enactment of the Soldiers' and Sailors' Civil Relief Act Amendments of 1942 or not less than one hundred and eighty days before".

1956-Subsec. (a). Act July 11, 1956, substituted "one hundred and eighty" for "thirty" before "days before the date the insured entered into the military service".

1942-Act Oct. 6, 1942, amended section generally, substituting provisions defining "policy", "premium", "insured", and "insurer" for provisions defining the same terms.

Effective Date of 1956 Amendment

Section 2 of act July 11, 1956, provided that: "The amendment made by this Act [amending this section] shall take effect with respect to applications for benefits made after the date of enactment of this Act [July 11, 1956]".

Veterans' Life Insurance Refunds

Pub. L. 85–586, Aug. 1, 1958, 72 Stat. 487 , authorized Administrator of Veterans' Affairs to make refunds, without interest, which were due on account of amounts collected by United States Government by offset or otherwise from persons who made valid application for and were legally entitled to protection of article IV of the Soldiers' and Sailors' Civil Relief Act of 1940 (sections 540 to 554 of this Appendix), as it existed prior to amendments of Oct. 6, 1942, application to be made to Veterans' Administration, within two years after Aug. 1, 1958, and authorized appropriation of additional sums for such purposes.

Section Referred to in Other Sections

This section is referred to in title 5 section 5569.