More of this Feature • SCRA Main Menu

Join the Discussion Visit Our Message Forum

Related Resources • SCRA Simplified • Servicemembers Civil Relief Act • SSCRA of 1940 (Old Law)

(a) GUARANTEE OF PREMIUMS AND INTEREST BY THE UNITED STATES-

(1) GUARANTEE- Payment of premiums, and interest on premiums at the rate specified in section 406, which become due on a policy under the protection of this title is guaranteed by the United States. If the amount guaranteed is not paid to the insurer before the period of insurance protection under this title expires, the amount due shall be treated by the insurer as a policy loan on the policy.

(2) POLICY TERMINATION- If, at the expiration of insurance protection under this title, the cash surrender value of a policy is less than the amount due to pay premiums and interest on premiums on the policy, the policy shall terminate. Upon such termination, the United States shall pay the insurer the difference between the amount due and the cash surrender value.

(b) RECOVERY FROM INSURED OF AMOUNTS PAID BY THE UNITED STATES-

(1) DEBT PAYABLE TO THE UNITED STATES- The amount paid by the United States to an insurer under this title shall be a debt payable to the United States by the insured on whose policy payment was made.

(2) COLLECTION- Such amount may be collected by the United States, either as an offset from any amount due the insured by the United States or as otherwise authorized by law.

(3) DEBT NOT DISCHARGEABLE IN BANKRUPTCY- Such debt payable to the United States is not dischargeable in bankruptcy proceedings.

(c) CREDITING OF AMOUNTS RECOVERED- Any amounts received by the United States as repayment of debts incurred by an insured under this title shall be credited to the appropriation for the payment of claims under this title.

Next page > Section 408 - Regulations