[Code of Federal Regulations]
[Title 38, Volume 1]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 38CFR6.11]

[Page 493]
 
            TITLE 38--PENSIONS, BONUSES, AND VETERANS' RELIEF
 
                CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS
 
PART 6_UNITED STATES GOVERNMENT LIFE INSURANCE--Table of Contents
 
Sec.  6.11  How dividends are paid.

    (a) Regular annual dividends becoming payable on or after December 
31, 1958, shall be payable on the date preceding the anniversary of the 
policy unless the Secretary shall declare them payable on some other 
date.
    (b) If the insured has a National Service Life Insurance policy or 
policies in force, dividends used to pay premiums in advance will be 
held to the credit of the insured, unless otherwise directed by the 
insured.
    (c) In the event premiums on more than one policy having the same 
premium due date are unpaid and the dividend credit of the insured for 
application to payment of premiums is not sufficient to keep all 
policies in force, in the absence of instructions to the contrary by the 
insured, such dividend credit will be applied to pay premiums in such 
manner as will provide the maximum amount of insurance protection.
    (d) Dividend credit of the insured held for payment of premiums as 
provided in section 1946 of title 38 U.S.C., may not be used to satisfy 
any indebtedness due the United States without the insured's consent. If 
the insured requests payment of such dividend credit, or any unused 
portion thereof, in cash, or requests that such credit be left to 
accumulate on deposit, then any indebtedness due the United States, such 
as described in Sec.  6.7 will be recovered therefrom.
    (e) Dividend credit of the insured held for payment of premiums or 
dividends left to accumulate on deposit may be applied to the payment of 
premiums in advance on any National Service Life Insurance policy upon 
written request of the insured made before default in payment of 
premium. Upon maturity of the policy, any unpaid dividend will be paid 
to the person(s) currently entitled to receive payments under the 
policy.

(Authority: 38 U.S.C. 1944)

[24 FR 15, Jan. 1, 1959, as amended at 25 FR 7369, Aug. 5, 1960; 28 FR 
12544, Nov. 23, 1963; 32 FR 13927, Oct. 6, 1967; 48 FR 1962, Jan. 17, 
1983. Redesignated and amended at 61 FR 29025, June 7, 1996]