50 U.S.C. §3957 — Protection of life insurance policy
50 U.S.C. §3957 protects a servicemember's life insurance policy assigned before military service as collateral. The assignee may not act on the assignment during military service or within one year thereafter without a court order.
Verbatim regulatory text
Verbatim provisions from 50 U.S.C. §3957 — Protection of life insurance policy — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
50 U.S.C. §3957(a)
(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.
50 U.S.C. §3957(b)
(b) ExceptionThe 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.
50 U.S.C. §3957(c)
(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.
50 U.S.C. §3957(d)
(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.
50 U.S.C. §3957(e)
(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 note — source credit and editorial notes (not statute text)
(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.)
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Source of record: https://claudeforcompliance.com/regs/scra-50usc-3957/
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