LIFE INSURANCE PROGRAMS.

SEC. 1401. LIFE INSURANCE PROGRAMS. (a) Authority for Payment of Interest on Insurance Settlements.—(1) Subchapter I of chapter 19 is amended by adding at the end the following new section: “§ 728. 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 participating National Service Life Insurance, Veterans’ Special Life Insurance, and Veterans Reopened 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 policyholder. “(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) of this section shall be at the rate that is established by the Administrator for dividends held on credit or deposit in policyholders’ accounts under the insurance program involved.”. (2) Subchapter II of chapter 19 is amended by adding at the end the following new section: 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 policyholder. “(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 respect to insurance policies maturing after the date of the enactment of this Act. (b) Authority To Adjust Discount Rates for Advance Payment of Premiums.—(1) Subchapter I of chapter 19, as amended by subsection (a)(1), 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 life 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 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: “728. Authority for payment of interest on settlements. “729. Authority to adjust premium discount rates.”; and (2) by inserting after the item relating to section 762 the following new item: “763. Authority for payment of interest on settlements.”.