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surance Center, Washington, D. C. immediately upon receipt of an application from the insured. From: Name and address of company:

Answer ("Yes" or "No")

If "Yes," give the date

-----, amount &.. and name and address of assignee.

13. Give the name and address of person, firm, corporation, etc., who is now in possession of the policy.

14. Have you made a similar application to have another policy (or policies) protected by the provisions of the Act? Answer "Yes" or "NO"

If "Yes," give the following information about each policy.

Name of insurer
Amount of insurance

Application by the insured must be witnessed by the insured's Commanding Officer, or by a commissioned officer of equal or higher rank than the insured. If the insured is on detached service, the application may be witnessed by the person who has custody of the insured's service record.

The undersigned witnessing officer does hereby certify that the insured is on active duty in the military service of the United States. Signed at

this

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(Rank)

(Organization) If this application is made by a person designated by the insured or by a beneficiary if the insured is outside the continental United States, Alaska and the Panama Canal Zone, it must be signed both in the name of the insured and by the agent or the beneficiary in his own name. When application is made by person designated by the insured, the instrument or other writing authorizing such action must be attached to the application executed by the agent.

Evidence that the insured is in the military service will be procured by the Veterans' Administration.

$ 7.1 Form of report by insurer. In accordance with the provisions of Article IV of the Soldiers' and Sailors' Civil Relief Act Amendments of 1942, a report by the insurer of the receipt and filing of an application for benefits made by the insured will be executed and delivered to the Veterans Administration in form and substance as follows: Veterans Administration Form 9-381.

REPORT BY INSURER Soldiers' and Sailors' Civil Relief Act Amendments of 1942.

A report on each policy will be made by the insurer to the Veterans Administration, In

To: Veterans Administration, Insurance

Center, Washington, D. C. The insurer hereby reports the receipt of an application from insured for protection of his policy under the provisions of Article IV of the Soldiers' and Sailors' Civil Relief Act Amendments of 1942.

1. Date of insured's application:
2. Date received by Insurer:
3. Policy No.
4. Name of insured:
5. Home address:
6. Effective date of insurance:
7. Face amount of insurance, $.
8. Date of birth:
9. Place of birth:
10. Plan of insurance:
11. Age at issue:
12. Amount of annual premium: $-

13. Due date of last premium paid on policy:

14. Due date of first premium to be protected under Article IV:

15. If application for insurance was signed subsequent to October 6, 1942, give the date on which contract was made and first premium paid:.

16. Furnish statement of the cash surrender value on the basis of a policy free of indebtedness, as of the due date of the first premium to be guaranteed. If the cash surrender value includes an amount other than the published cash or loan value of the policy, itemize amounts.

17. Furnish statement of all indebtedness, if any, due the insurer under this policy, with interest calculated to the due date of the first premium to be guaranteed. Itemize amounts.

18. What rate of interest is provided by the policy for policy loans?

%. 19. If it appears that the policy has been assigned to a person, firm, or corporation other than the insurer, give a statement of the facts as shown by the records of your office.

20. Does the policy, application for insurance, certificate of membership, constitution, by-laws or other governing rules and regulations of the insurer contain any provision regarding service by the insured with the military or naval forces of the United States, travel or residence in the tropics or in foreign countries; or any restriction or limitation of coverage in event the insured engages in aviation, submarine service or any other specified hazardous duty, occupation, or activity? (A) As to primary death benefit (Answer “Yes” or “No”)

(B) As to any benefits in addition to the primary death benefit (Answer "Yes" or "No")

If "Yes" as to either, attach hereto a copy of the provision unless a copy has already been furnished to the Veterans' Administration.

UNIVERSITY OF MICHIGAN LIBRARIES

21. Is the premium on this policy (exclusive of any benefits in addition to the primary death benefit) at the standard rate as published by the insurer? (Answer “Yes” or "No")

If "No," give facts about the additional premium:

22. What information does the insurer have about present whereabouts of policy?-----

23. Name of beneficiary as shown on records at home office of insurer at this time.

The insurer hereby certifies the above to be a correct statement regarding the policy as shown on the records at its principal office or place where such records are maintained.

It is understood and agreed that before any dividend is paid or any loan or settlement of any kind or character is made by the insurer while the policy is under the protection of the Act the written consent of the Veterans' Administration will be obtained.

Under section 402 of the Act Amendments of 1942 the insurer is deemed to have agreed to such modification of the policy as may be required to give the Act full force and effect with respect to such policy. Signed at this

19.--

(Name of company, association, or

organization) By

(Name and official capacity) (13 F. R. 7103, Nov. 27, 1948, as amended at 21 F. R. 9981, Dec. 14, 1956)

§ 7.2 Form of certificate. Veterans' Administration Insurance Form 388

THE UNITED STATES OF AMERICA Certificate Issued Under Authority of Article

IV, Section 407, of the Soldiers' and Sailors' Civil Relief Act of 1940

Issued to the insurer, in the amount dollars, bearing interest at the rate of three per centum per annum from the effective date of this Certificate.

This Certificate representing premiums on policies entered on the monthly difference report for the month of issue, shall be re. deemable by the United States of America subject to the provisions of Article IV of the Soldiers' and Sailors' Civil Relief Act of 1940 (Public No. 861, 76th Congress, 3d Session).

This Certificate shall not be transferred except with the approval of the Administrator of Veterans Affairs, and shall remain with the insurer until settlement is made in accordance with the Act.

Issued in the City of Washington, District of Columbia, effective as of the

day of

$ 7.3 The insured. The term "insured" includes any person on active duty with the military and naval forces of the United States (including Coast Guard service) who is the insured under, and the owner of, a policy as hereinafter defined. The term “holder" shall mean the insured under a policy who has an interest in the policy.

(a) The phrase "persons in military service" as used in section 401 and amplified by the definition of the term “persons in military service," and the term “period of military service", in section 101, (1) and (2), Article I, shall include any person certified by the War Department, the Navy Department or the Coast Guard Service as being on active duty with the land and naval forces of the United States. A statement over the signature of the commanding officer or a commissioned officer of equal or higher rank than the insured, on the application by the insured, may be accepted as a certification. If the insured is on detached service, the application may be witnessed by the person who has custody of the insured's service record. (See $ 7.8 (a).)

$ 7.4 The policy. The term “policy" includes any contract of life insurance on the level premium or legal reserve plan, and any benefit in the nature of life insurance arising out of membership in any fraternal or beneficial association, on which a premium was paid before date of approval of the act or not less than thirty days before entry on active duty, and is not void or voidable by reason of military service (including any limitation or restriction upon the insured's engaging in or pursuing certain types of activities which a person might be required to engage in by virtue of his being in the military service). Policies of United States Government life insurance and National Service life insurance are not included within the provisions of the act.

(a) The provisions of the act shall not apply to a policy which would be void or voidable on account of the military or naval service of the insured; nor to a policy under which the death benefit would not be payable or the amount of the death benefit would be reduced in event of death while in the military or naval service. Any provision in a policy that may limit or eliminate a benefit other than the death benefit, shall not, because of such provision, place the policy out

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Administrator of Veterans' Affairs. Recorded under number

on this 194.-.

Registrar.

side the protection of the act if the death benefit under the policy is not altered in any way by the fact that the insured is in the military or naval service. A policy that requires the payment of an additional amount as premium by reason of the fact that the insured is in the military or naval service, such premium to be paid only by those in such service, will not be entitled to the protection afforded by the act.

(b) A policy may not be brought under the protection of the act if it is subject to a loan or other indebtedness equal to or greater than fifty per centum of the cash surrender value.

(c) The provisions of the act are not applicable to insurance in excess of five thousand dollars on the life of one insured, and a policy (or policies) for a face value exceeding that amount will be divided at the request of the Veterans Administration; however, this shall not delay insurance of the face value of $5,000 from receiving the protection afforded policies under the act, because of administrative procedure or any difficulties encountered in procuring possession of an outstanding policy. If applications are made by an insured on policies exceeding a face value of $5,000 (one or more policies with one or more insurers), without indicating a preference, the Veterans Administration will reject the policy (or policies) having the lesser cash surrender value, and may direct an insurer to divide the insurance into two policies.

(d) An annuity contract, if it provides payment of a substantial death benefit in the nature of life insurance, may be included within the provisions of the act if otherwise eligible. Group insurance carried through or by the means of an association, will not be included unless an individual and separate contract of insurance is completely released to the insured and thereafter comes within the provisions of the act as a policy.

(e) The term “face value" will mean the amount of insurance payable only as a death benefit as stated on the face of the policy, or if not so stated it will mean the commuted value of the installments payable as a death benefit, calculated in accordance with the terms of the policy, on the hypothesis of the death of insured as of the date of application for protection under this act: Provided, That any indebtedness, or any extra benefits (such as double indemnity, paid-up additions,

etc.,) that may be added to or taken from the amount payable as the death benefit, will not be used in calculating the face value of a policy.

§ 7.5 The premium. The term “premium" includes the amount specified in the policy to be paid by the insured at regular intervals, and membership dues or assessments in an association.

(a) The premium on a policy will be calculated on an annual basis, and if the annual premium is not stated on the policy, the insurer will make a calculation of the premiums for payment in advance and discounted at not less than 342 per centum, subject to approval by the Veterans' Administration.

(b) The automatic loan provision or other such benefit in a policy shall not operate to avoid the provisions of the act in relation to any premium that became payable not more than 31 days prior to date of application, and thereafter while policy is protected by the provisions of the act.

(c) The phrase "contracts of insurance in force under their terms" as used in section 402 will mean a policy in force under premium paying conditions at time of application by the insured, or on which a premium is not more than 31 days in arrears: Provided, A policy on which premiums are due and unpaid for a period of not more than one year, at the time of application, if reinstated by the insurer and placed in force under premium paying conditions, may be brought within the provisions of the act if otherwise eligible.

$ 7.6 The insurer. The term "insurer” includes any corporation, partnership, or other form of association which secures or provides insurance under a policy, and is required by law to maintain a reserve, or has made provision for collecting from all persons insured a premium to cover the special war risk of those in the military service.

(a) The provisions of section 414 will apply only to insurance companies or associations which are authorized by the laws of the United States or any State thereof, to grant and issue a policy and are subject to the jurisdiction of the Courts of the several States and the United States.

$ 7.7 Calculation of values. (a) The term "cash surrender value” as used in section 402 shall be that amount which the insured would have been entitled to

UNIVERSITY OF MICHIGAN LIBRARIES

receive, on a policy free of indebtedness, upon complete surrender of all rights under the policy as of the date of application for benefits of the act.

(b) The term "cash surrender value" as used in section 410 and section 411 will include dividend accumulations, the value of any paid-up additions, and other amounts that would have been available to the insured upon complete surrender of all rights under the policy.

(c) The term “indebtedness" will include any loan, lien, or other obligation under the policy due by the insured that would be deducted by the insurer at the time of making settlement under the policy as a death claim.

(d) The use of the terms "interest" and “rate of interest” will follow the usual practice and procedure of the insurer but the rate of interest shall not exceed the rate fixed for policy loans. If no rate of interest on indebtedness is specifically fixed in the policy, the rate shall be the rate fixed for policy loans in other policies issued by the insurer at the time the policy brought under the act was issued. Any rate of interest not specifically fixed in the policy will be subject to approval by the Veterans' Administration.

§ 7.8 Application. The provisions of the act will be available only upon application as to each policy made by the insured on a form prescribed by the Veterans' Administration. The form will set forth that the application therein made is a consent by the insured to such modifications of the terms of the contract of insurance as are made necessary by the provisions of the act, and the insurer by receiving and filing the application, shall be deemed to have assented thereto to the extent to which the policy is within the provisions of the act.

(a) The form of application for benefits as prescribed by regulations will be identified as Veterans' Administration Insurance Form 380. A separate form of application will be made by the insured for each policy to be brought under the provisions of the act. An informal application will be supplemented by an application on the prescribed form. The original of the application for benefits will be mailed or delivered by the insured to the insurer at its principal office or to the office or agency to which the last premiums on the policy have been paid. The copy of the application for benefits will be mailed or delivered by the

insured to the Veterans' Administration, Insurance Service, Washington 25, D. C.

(b) When an application for benefits is received by an insurer, a report thereof will be made within 30 days to the Veterans' Administration, Insurance Service, Washington, D. C., on the form prescribed by regulations for that purpose and identified as Veterans' Administration Insurance Form 381. The insurer may submit with the report & statement setting forth any additional information deemed necessary to the adjudication of the application, and any facts and reasoning as to why the policy should or should not be protected under the act.

(c) Upon receipt of a report from the insurer on Form 381, the director of insurance will determine if the policy is entitled to the protection of the act, and the insurer and the insured will be notified of the decision.

$ 7.9 Benefits. Any policy which has been brought within the provisions of the act shall not lapse or be forfeited for the nonpayment of a premium during the period of military service of the insured or one year after the expiration thereof, but this guarantee shall not extend for more than one year after the date when this act ceases to be in force.

(a) For the period during which a policy is protected by the provisions of the act, any dividends, return of premiums, or other such monetary benefits arising out of the contract or by reason thereof, will be held subject to disposal or to be applied as may be approved by the Veterans' Administration.

(b) A policy shall not be removed from the protection of the act by reason of a payment made to the insurer by or on behalf of the insured, but any tender of a premium (in whole or in part) shall be applied on the indebtedness established under authority of the act against the policy, and entered as a credit in the monthly difference report.

$ 7.10 Indemnity. The United States shall have a first lien upon any policy receiving the benefits of the act, subject only to any prior lien and no loan or settlement or payment of dividend may be made by the insurer which will prejudice the security of the Government's lien. Before any dividend is paid or any loan or settlement of any kind or character is made on a policy while protected by the provisions of the act, the written

consent of the Veterans' Administration must be obtained.

$ 7.11 Monthly difference report by insurer. The form of the monthly difference report will be identified as Veterans' Administration Insurance Form 382, and will be rendered within 15 days after the end of each calendar month. This form will be completed in accordance with instructions contained therein.

$ 7.12 Certificate. Upon audit and approval of a monthly difference report (Form 382), the Administrator of Veterans' Affairs will issue to and in the name of the insurer, a certificate of indebtedness for an amount suficient to cover the Government's obligation as shown by said report. Said certificate will be issued effective as of the first day of the month following the month covered by the report and will bear interest at the rate of three per centum per annum.

$ 7.13 Maturity. In the event a policy protected by the provisions of the act is terminated by death of the insured, the amount of any unpaid premiums, with interest at the rate provided for policy loans, shall be deducted from the proceeds of the policy, and shall be included in the next monthly difference report of the insurer as premiums paid.

(a) The phrase "shall be terminated by death” will not include a termination or maturity of a policy as a disability claim, and the policy will continue under the provisions of the act as if there had been no maturity, but the Government shall not be liable for any premiums that the insured would have been relieved of paying under any provisions for payment of premiums in the policy.

(b) If a policy matures as a death claim, or protection under the act is otherwise terminated before expiration of the period fixed by the act, the insurer will immediately notify the Veterans' Administration and will make a complete statement of the account on that particular policy. After audit and approval of the account by the director of insurance, the amount of indebtedness collected by the insurer will be entered as a credit in the monthly difference report. If a policy is not removed from the protection of the act prior to expiration of the period fixed by the act, at that time the insurer shall submit to the Veterans' Administration a statement of account in detail on that particular policy, showing

the Government's obligation and the credits, if any, then available. If there is a balance due by the Government to the insurer, a settlement in favor of the insurer will be certified. However, before such settlement is made with an insurer covering the policies on a monthly difference report, or if all policies on a report are released from operations of this act, then the director of insurance shall demand return of the certificate issued to cover the amount of said report.

$ 7.14 Settlement. If within 1 year after the termination of his period of military service the insured does not pay to the insurer all past due premiums with interest at the rate provided for policy loans, the policy shall immediately lapse and become void, and the insurer shall thereupon become liable to the Government for the cash surrender value of the policy: Provided, That if the insured is in the military service when the act ceases to be in force, such lapse shall occur and surrender value be payable at the expiration of one year after the date when the act ceases to be in force.

$ 7.15 Beneficiary or assignee. In administering the provisions of Article IV of the act, all matters pertaining thereto shall be confined to the interest of the insured, the insurer, and the Government; therefore, it will not be necessary to procure the consent of a beneficiary, or an assignee, or any person, who may have a right or interest, either vested or inchoate, in the proceeds of the policy, as a prerequisite to bringing a policy within the provisions of the article.

§ 7.16 Termination. Section 604 provides that the act shall remain in force until May 15, 1945: Provided, That should the United States be then engaged in a war, the act shall remain in force until such war is terminated by a treaty of peace proclaimed by the President and for six months thereafter. SOLDIERS' AND SAILORS' CIVIL RELIEF ACT

AMENDMENTS OF 1942 $ 7.20 The insured. The term "insured” includes any person on active duty with the military and naval forces of the United States (including Coast Guard) and any member of the Women's Army Auxiliary Corps, whose life is insured under and who is the owner and holder of and has an interest in a policy as hereinafter defined.

UNIVERSITY OF MICHIGAN LIBRARIES

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