Page:United States Statutes at Large Volume 85.djvu/352

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[85 STAT. 322]
[85 STAT. 322]
PUBLIC LAW 92-000—MMMM. DD, 1971



Effective date.


PUBLIC LAW 92-95-AUG. 11, 1971

[85 STAT.

insurer or insurers with the concurrence of the Administrator of any policy or contingency reserves with respect to insurance previously in force; "(3) issuance to each veteran insured under this section of a uniform type of certificate setting forth the benefits to which he is entitled under the insurance; "(4) any other provisions which are reasonably necessary or appropriate to carry out the provisions of this section; and "(5) an accounting to the Administrator not later than ninety days after the end of each policy year which shall set forth, in a form approved by the Administrator, (A) the amount of premiums paid by veterans and contributions made by the Veterans' Administration accrued under the contract or agreement from its date of issue to the end of such contract year; (B) the total of all mortality and other claim charges incurred for that period; and (C) the amount of the insurer's expense and risk charges, if any, for that period. Any excess of the total of item (A) over the sum of items (B) and (C) shall be held by the insurer as a contingency reserve to be used by such insurer for charges under the contract or agreement only. The contingency reserve shall bear interest at a rate to be determined in advance of each contract year by the insurer, which rate shall be approved by the Administrator if consistent with the rates generally used by the insurer for similar funds held under other plans of group life insurance. If and when the Administrator determines that such contingency reserve has attained an amount estimated by him to make satisfactory provision for adverse fluctuations in future charges under the contract, the Administrator shall require the insurer to adjust the premium rates and contributions so as to prevent any further substantial accretions to the contingency reserve. If and when the contract or agreement is discontinued and if after all charges have been made there is any positive balance remaining in the contingency reserve, such balance shall be payable to the Administrator and by him deposited to the appropriation 'Compensation and Pensions, Veterans' Administration,' subject to the right of the insurer to make such payment in equal monthly installments over a period of not more than two years. " (h) With respect to insurance contracted for under this section, the Administrator is authorized to adopt such regulations relating to eligibility of the veteran for insurance, maximum amount of insurance, maximum duration of insurance, and other pertinent factors not specifically provided for in this section, which in his judgment are in the best interest of veterans or the Government. Insurance contracted for under this section shall take effect as to eligible veterans heretofore granted assistance under this chapter on a date determined by the Administrator, and as to eligible veterans hereafter granted assistance under this chapter at the time of the closing of his loan. The amount of the insurance at any time shall be the amount necessary to pay the mortgage indebtedness in full, except as otherwise limited by the policy. "(i) Insurance contracted for under this section shall terminate upon whichever of the following events first occurs: " (1) satisfaction of the veteran's indebtedness under the loan upon which the insurance is based; " ^ 2) the veteran's seventieth birthday; "(3) termination of the veteran's ownership of the property securing the loan; " ^ 4) discontinuance of payment of premiums by the veteran; or " (5) discontinuance of the entire contract or agreement, " (j) Termination of the mortgage protection life insurance will