50 U.S.C. § 3957 — Protection of life insurance policy

FEDERAL · 50 U.S.C. · Chapter 50

Protection of life insurance policy

Current through Pub. L. 119-102

Title 50 — War and National Defense·Ch. 50 — SERVICEMEMBERS CIVIL RELIEF·Subch. III

(a)Assignment of policy protected If a life insurance policy on the life of a servicemember is assigned before military service to secure the payment of an obligation, the assignee of the policy (except the insurer in connection with a policy loan) may not exercise, during a period of military service of the servicemember or within one year thereafter, any right or option obtained under the assignment without a court order.

(b)Exception The prohibition in subsection (a) shall not apply—

(1)if the assignee has the written consent of the insured made during the period described in subsection (a);

(2)when the premiums on the policy are due and unpaid; or

(3)upon the death of the insured.

(c)Order refused because of material affect A court which receives an application for an order requi

Free access — add to your briefcase to read the full text and ask questions with AI

(a) Assignment of policy protected
If a life insurance policy on the life of a servicemember is assigned before military service to secure the payment of an obligation, the assignee of the policy (except the insurer in connection with a policy loan) may not exercise, during a period of military service of the servicemember or within one year thereafter, any right or option obtained under the assignment without a court order.
(b) Exception
The prohibition in subsection (a) shall not apply—
(1) if the assignee has the written consent of the insured made during the period described in subsection (a);
(2) when the premiums on the policy are due and unpaid; or
(3) upon the death of the insured.
(c) Order refused because of material affect
A court which receives an application for an order required under subsection (a) may refuse to grant such order if the court determines the ability of the servicemember to comply with the terms of the obligation is materially affected by military service.
(d) Treatment of guaranteed premiums
For purposes of this subsection, premiums guaranteed under the provisions of subchapter IV of this chapter shall not be considered due and unpaid.
(e) Misdemeanor
A person who knowingly takes an action contrary to this section, or attempts to do so, shall be fined as provided in title 18, or imprisoned for not more than one year, or both.

50 U.S.C. § 3957 (Protection of life insurance policy) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Source Credit

History

(Oct. 17, 1940, ch. 888, title III, §306, as added Pub. L. 108–189, §1, Dec. 19, 2003, 117 Stat. 2850; amended Pub. L. 111–275, title III, §303(b)(6), Oct. 13, 2010, 124 Stat. 2878.)

Editorial Notes

Editorial Notes

Codification
Section was formerly classified to section 536 of the former Appendix to this title prior to editorial reclassification and renumbering as this section.

Prior Provisions
A prior section 306 of act Oct. 17, 1940, ch. 888, art. III, as added Oct. 6, 1942, ch. 581, §12, 56 Stat. 773, related to extension of benefits to dependents, prior to the general amendment of this Act by Pub. L. 108–189. See section 3959 of this title.

Amendments
2010—Subsec. (e). Pub. L. 111–275 amended subsec. (e) generally. Prior to amendment, subsec. (e) related to penalties.

Statutory Notes and Related Subsidiaries

Effective Date
Section applicable to any case not final before Dec. 19, 2003, see section 3 of Pub. L. 108–189, set out as a note under section 3901 of this title.