Page:United States Statutes at Large Volume 72 Part 1.djvu/1194

 1152

38 USC 802.

PUBLIC LAW 85-857-SEPT. 2, 1958

[72 S T A T.

(b) Such insurance shall be payable only to a widow, widower, child, parent, brother or sister of the insured. Any installments certain of such insurance remaining upaid at the death of any beneficiary shall be paid in equal monthly installments in an amount equal to the monthly installments paid to the first beneficiary, to the person or persons then in being within the following classes, and in the order named, unless designated by the insured in a different order: (1) To the widow or w-idower of the insured, if living. (2) If no widow or widower, to the child or children of the insured, if living, in equal shares. (3) If no wddow, widower, or child, to the parent or parents of the insured who last bore that relationship, if living, in equal shares. (4) If no widow, widower, child, or parent, to the brothers and sisters of the insured, if living, in equal shares. (c) The provisions of this section shall not be construed to enlarge the classes of beneficiaries heretofore authorized under section 692 ((J) of the National Service Life Insurance Act of 1940, for payment of gratuitous insurance. (d) If no beneficiary of insurance which matured before August 1, 1946, was designated by the insured or if the designated beneficiary did not survive the insured, the beneficiary shall be determined in accordance with the order specified in subsection (b) and the insurance shall be payable in equal monthly installments in accordance with subsection (a). The right of any beneficiary to payment of any installments of such insurance shall be conditioned upon his or her being alive to receive such payments. No person shall have a vested right to any installment or installments of any such insurance and any installments not paid to a beneficiary during such beneficiary's lifetime shall be paid to the beneficiary or beneficiaries wnthin the permitted class next entitled to priority, as provided in subsection (b). (e) No installments of insurance which matured before August 1, 1946, shall be paid to the heirs or legal representatives as such of the insured or of any beneficiary, and if no person within the permitted class survives to receive the insurance or any part thereof no payment of the unpaid installments shall be made, except that if the reserve of a contract of converted National Service Life Insurance, together with dividends accumulated thereon, less any indebtedness under such contract, exceeds the aggregate amount paid to beneficiaries, the excess shall be paid to the estate of the insured unless the estate of the insured would escheat under the laws of his place of residence, in which event no payment shall be made. When the amount of an individual monthly payment of such insurance is less than $5, such amount may, in the discretion of the Administrator, be allowed to accumulate without interest and be disbursed annually. (f) Any payments of insurance made to a person, represented by the insured to be within the permitted class of beneficiaries, shall be deemed to have been properly made and to satisfy fully the obligation of the United States under such insurance policy to the extent of such payments. § 717. Insurance maturing on or after August 1, 1946 (a) The insured shall have the right to designate the beneficiary or beneficiaries of insurance maturing on or after August 1, 1946, and shall, subject to regulations, at all times have the right to change the beneficiary or beneficiaries of such insurance without the consent of such beneficiary or beneficiaries. (b) Insurance maturing on or after August 1, 1946, shall be payable in accordance with the following optional modes of settlement: (1) I n one sum.

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