Page:United States Statutes at Large Volume 110 Part 1.djvu/328

 110 STAT. 304 PUBLIC LAW 104-106—FEB. 10, 1996 "§ 12530. Payment of benefits " (a) COMMENCEMENT OF PAYMENT.— An insured member who serves in excess of 30 days of covered service shall be paid the amount to which such member is entitled on a monthly basis beginning not later than one month after the 30th day of covered service. Regulations. "(b) METHOD OF PAYMENT.— The Secretary shall prescribe in the regulations the manner in which payments shall be made to the member or to a person designated in accordance with subsection (c). "(c) DESIGNATED RECIPIENTS.— (1) A member may designate in writing another person (including a spouse, parent, or other person with an insurable interest, as determined in accordance with the regulations prescribed by the Secretary) to receive pay- ments of insurance benefits under the insurance program. "(2) A member may direct that payments of insurance benefits for a person designated under paragraph (1) be deposited with a bank or other financial institution to the credit of the designated person. "(d) RECIPIENTS IN EVENT OF DEATH OF INSURED MEMBER. — Any insurance payable under the insurance program on account of a deceased member's period of covered service shall be paid, upon the establishment of a valid claim, to the beneficiary or beneficiaries which the deceased member designated in writing. If no such designation has been made, the amount shall be payable in accordance with the laws of the State of the member's domicile. "§ 12531. Purchase of insurance "(a) PURCHASE AUTHORIZED.— The Secretary may, instead of or in addition to underwriting the insurance program through the Fund, purchase from one or more insurance companies a policy or policies of group insurance in order to provide the benefits required under this chapter. The Secretary may waive any requirement for full and open competition in order to purchase an insurance policy under this subsection. "(b) ELIGIBLE INSURERS.— In order to be eligible to sell insurance to the Secretary for purposes of subsection (a), an insurance company shall— "(1) be licensed to issue insurance in each of the 50 States and in the District of Columbia; and "(2) as of the most recent December 31 for which information is available to the Secretary, have in effect at least one percent of the total amount of insurance that all such insurance companies have in effect in the United States. "(c) ADMINISTRATIVE PROVISIONS. — (1) An insurance company that issues a policy for purposes of subsection (a) shall establish an administrative office at a place and under a name designated by the Secretary. "(2) For the purposes of carrying out this chapter, the Secretary may use the facilities and services of any insurance company issuing any policy for purposes of subsection (a), may designate one such company as the representative of the other companies for such purposes, and may contract to pay a reasonable fee to the designated company for its services. "(d) REINSURANCE.— The Secretary shall arrange with each insurance company issuing any policy for purposes of subsection (a) to reinsure, under conditions approved by the Secretary, portions

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