Chapter 449. To amend section 301 of the World War Veterans’ Act, 1924
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CHAP. 449.— An Act To amend section 301 of the World War Veterans’ Act, 1924.June 2, 1926.[[S. 3997](/us/bill/69/s/3997).][[Public, No. 54](/us/pl/65/54).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*,Military and naval insurance.Vol. 43, p. 1309, amended. That section 301 of the World War Veterans’ Act, 1924, approved June 7, 1924, as amended March 4, 1925, is hereby amended to read as follows: "“Sec. 301.Term insurance to be converted into other forms.
Except as provided in the second paragraph of this section, not later than July 2, 1927,Yearly renews term insurance to cease July 2, 1927 all term yearly renewable insurance held by persons who were in the military service after April 6, 1917, shall be converted, without medical examination, into such form or forms of insurance as may be prescribed by regulations Conversion rights.and as the insured may request. Regulations shall provide for the right to convert into ordinary life, twenty-payment life, endowment maturing at age sixty-two, five-year level premium term, and into other usual forms of insurance, and for reconversion of any such policies to a higher premium rate in accordance with regulations to be issued by the director, and shall prescribe the time and method of payment of the premiums thereon, but payments of premiums in advance shall not be required for periods of more than one month each, and may be deducted from the pay or deposit of the insured or be otherwise made at his election. 687 “All yearly renewable term insurance shall cease on July 2, 1926, except when death or total permanent disability shall have occurred before July 2, 1927: *Provided, however*, That the director may by*Proviso*.Time extension allowed for mental condition or disappearance. regulation extend the time for the continuing of yearly renewable term insurance and the conversion thereof in any case where on July 2, 1927, conversion of such yearly renewable term insurance is impracticable or impossible due to the mental condition or disappearance of the Insured.
“ In case where an insured whose yearly renewable term insuranceInsurance matured by total disability. has matured by reason of total permanent disability is found and declared to be no longer permanently and totally disabled, and where the insured is required under regulations to renew payment ofRenewal authorized if no longer disabled. premiums on said term insurance, and where this contingency is extended beyond the period during which said yearly renewable term insurance otherwise must be converted, there shall be given such insured an additional period of two years from the date on which he is required to renew payment of premiums in which to convert said term insurance as hereinbefore provided: *Provided*,*Proviso*.Additional period on recovery of mental condition or reappearing.
That where the time for conversion has been extended under the second paragraph of this section because of the mental condition or disappearance of the insured, there shall be allowed to the insured an additional period of two years from the date on which he recovers from his mental disability or reappears in which to convert. “The insurance except as provided herein shall be payable in twoMode of payment. hundred and forty equal monthly installments: *Provided*, That when*Proviso*.Cumulation of small amounts. the amount of an individual monthly payment is less than $5, such amount may in the discretion of the director be allowed to accumulate without interest and be disbursed annually.
Provisions for maturityOther provisions authorized. at certain ages, for continuous installments during the life of the insured or beneficiaries, or both, for cash, loan, paid up and extended values, dividends from gains and savings, and such other provisions for the protection and advantage of and for alternative benefits to the insured and the beneficiaries as may be found to be reasonable and practicable, may be provided for in the contract of insurance, or from time to time by regulations.
All calculations shallCalculations, etc. be based upon the American Experience Table of Mortality and interest at 3½ per centum per annum, except that no deduction shall be made for continuous installments during the life of the insured in case his total and permanent disability continues more than two hundred and forty months. Subject to regulations, theChange of beneficiaries allowed. insured shall at all times have the right to change the beneficiary or beneficiaries without the consent of such beneficiary or beneficiaries, but only within the classes herein provided.
“ If no beneficiary within the permitted class be designated byPayment to estate if no beneficiary designated. the insured as beneficiary for converted insurance granted under the provisions of Article IV of the War Risk Insurance Act, or Title III of this Act, either in his lifetime or by his last will and testament, or if the designatedIf beneficiary die without receiving all installments. beneficiary does not survive the insured, then there shall be paid to the estate of the insured the present value of the remaining unpaid monthly installments; or if the designated beneficiary survives the insured and dies before receiving all of the installments of converted insurance payable and applicable, then there shall be paid to the estate of such beneficiary the present value of the remaining unpaid monthly installments: *Provided*, That no*Proviso*.Escheat to United States and credit to fund of payments. payments shall fie made to any estate which under the laws of the residence of the insured or the beneficiary, as the case may be, would escheat, but same shall escheat to the United States and be credited to the United States Government life insurance fund.
“ The bureau may make provision in the contract for convertedOptional lump sum, etc., payments. insurance for optional settlements, to be selected by the insured, 688 whereby such insurance may be made payable either in one sum or Ejection of beneficiary to receive installment payments.in installments for thirty-six months or more. The bureau may also include in said contract a provision authorizing the beneficiary to elect to receive payment of the insurance in installments for thirty-six months or more, but only if the insured has not exercised the right of election as hereinbefore provided; and even though the insured may have exercised his right of election the said contract may authorize the beneficiary to elect to receive such insurance in installments spread over a greater period of time than that selected by the insured.
This section shall be deemed to be in effect as of June 7, 1924.” " Approved, June 2, 1926.