50 U.S.C. § 3976 — Deduction of unpaid premiums

(a) Settlement of proceeds If a policy^* matures as a result of a servicemember’s death or otherwise during the period of protection of the policy under this subchapter, the insurer^* in making settlement must deduct from the insurance proceeds the amount of the unpaid premiums guaranteed under this subchapter, together with interest due at the rate fixed in the policy for policy loans.
(b) Interest rate If the interest rate is not specifically fixed in the policy, the rate must be the same as for policy loans in other policies issued by the insurer at the time the insured’s policy was issued.
(c) Reporting requirement The amount deducted under this section, if any, must be reported by the insurer to the Secretary of Veterans Affairs.