Page:United States Statutes at Large Volume 102 Part 5.djvu/123

 PUBLIC LAW 100-687—NOV. 18, 1988

102 STAT. 4129

"§ 763. Authority for payment of interest on settlements "(a) Subject to subsection (b) of this section, the Administrator may pay interest on the proceeds of a United States Government Life Insurance policy from the date the policy matures to the date of payment of the proceeds to the beneficiary or, in the case of an endowment policy, to the polic^holder. "(b)(1) The Administrator may pay interest under subsection (a) of this section only if the Administrator determines that the payment of such interest is administratively and actuarially sound for the settlement option involved. "(2) Interest paid under subsection (a) shall be at the rate that is established by the Administrator for dividends held on credit or deposit in policyholders' accounts/'. (3) The amendments made by this subsection shall take effect with 38 USC 728 note. respect to insurance policies maturing after the date of the enactment of this Act (b) AuTHOBrry To ADJUST DISOOUNT RATES FOR ADVANCE PAYMENT OF PREMIUIIS.—(1) Subchapter I of chapter 19, as amended by subsection (a)(D, is further amended by adding at the end the following new section: "§ 729. Authority to adjust premium discount rates "(a) Notwithstanding sections 702, 723, and 725 of this title and subject to subsection (b) of this section, the Administrator may from time to time adjust the discount rates for premiums paid in advance on National Service l i f e Insurance, Veterans' Special Life Insurance, and Veterans Reopened Insurance. "(b)(1) In adjusting a discount rate pursuant to subsection (a) of this section, the Administrator may not set such rate at a rate lower than the rate authorized for the program of insurance involved under section 702,723, or 725 of this title. "(2) The Administrator may make an adjustment under subsection (a) of this section only if the Administrator determines that the adjustment is administratively and actuarially sound for the program of insurance involved.". (2) The amendment made by paragraph (1) shall take effect with 38 USC 729 note. respect to premiums paid after the date of the enactment of this Act. (c) CLERICAL AMENDMENTS.—The table of sections at the beginning of chapter 19 is amended— (1) by inserting after the item relating to section 727 the following new items: '^28. Autfaority for payment of interest on settlements. "729. Authority to adjust premium disoount rates.";

and (2) by inserting after the item relating to section 762 the following new item: "763. Authority for payment of interest on settlements.". SEC 1402. INCOME EXCLUSION FOR CASUALTY LOSS REIMBURSEMENTS.

(a) PARENTS DIG.—Clause (1) of section 415(0(1) is amended to read as follows: "(1) reimbursements of any kind for any casualty loss (as Regulations. defined in regulations which the Administrator shall prescribe), but the amount excluded under this clause may not exceed the greater of the fair market value or the reasonable replacement

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