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 United States Code (Last Updated: May 24, 2014)
 AppendixAA 50a. WAR AND NATIONAL DEFENSE
 Level SERVICEMEMBERS CIVIL RELIEF ACT
 CompiledAct ACT OCT. 17, 1940, CH. 888, 54 STAT. 1178
 Title III. RENT, INSTALLMENT CONTRACTS, MORTGAGES, LIENS, ASSIGNMENT, LEASES, TELEPHONE SERVICE CONTRACTS

  § 536. Protection of life insurance policy  

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  • (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) 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. (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 title IV of this Act [sections 541 to 549 of this Appendix] 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, United States Code, or imprisoned for not more than one year, or both.
(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.)

Prior Provisions

Prior Provisions

A prior section 536, act Oct. 17, 1940, ch. 888, art. III, § 306, 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 538 of this Appendix.

Amendments

Amendments

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