§ 8.81

Maturity by death during total disability of less than 6 months' duration.

In the event of the death of the insured within 6 months after becoming totally disabled, insurance will be deemed in force if such disability commenced (a) subsequent to the date of application for insurance, (b) while the insurance was in force under premiumpaying conditions, and (c) prior to the insured's 60th birthday, and continued without interruption until the insured's death: Provided, That proof of the foregoing facts, satisfactory to the Administrator of Veterans Affairs, is filed by the beneficiary with the Veterans Administration within 1 year after the insured's death: Provided further, That if the beneficiary be insane or a minor, the proof of such facts may be filed within 1 year after removal of such disability: And provided further, That the amount of the unpaid premiums shall be a lien against and deducted from the proceeds of the insurance.

[24 F.R. 7331, Sept. 11, 1959]

AUTOMATIC EXTENSION OF 5-YEAR LEVEL PREMIUM TERM INSURANCE [REVOKED]

§ 8.84 Five-year level premium term insurance as extended by Public Law 118, 79th Congress. [Revoked, 24 F.R. 7331, Sept. 11, 1959]

§ 8.85 Renewal of National Service life insurance on the 5-year level premium term plan and limited convertible 5-year level premium term plan.

(a) Effective July 23, 1953, except as provided in paragraph (c) of this section, all or any part of National Service life insurance on the 5-year level premium term plan or limited convertible 5-year level premium term plan, in any multiple of $500 and not less than $1,000, which is not lapsed at the expiration of any 5-year term period, shall be automatically renewed without application or medical examination for a successive 5-year period at the applicable level premium term rate for the then attained age of the insured: Provided, That in any case in which the insured is shown by evidence satisfactory to the Administrator to be totally disabled at the expiration of the term period of his insurance under conditions which would entitle him to continued insurance protection but for such expiration, such insurance, if subject to renewal under this paragraph, shall be automatically renewed for an additional period of 5 years at the premium rate for the then attained age. The renewal of insurance for any successive 5-year period will become effective as of the day following the expiration of the preceding term period, and the premium for such renewal will be at the applicable level premium term rate for the attained age of the policyholder on that day: Provided further, That no insurance is subject to renewal if the policyholder has exercised his optional right to change to another plan of insurance.

(b) Except as provided in paragraph (c) of this section, a 5-year level premium term policy or limited convertible term policy which lapsed for nonpayment of the premium due for the 59th (95th) or 60th (96th) month and subsequently expired on or after July 23, 1953, while in lapsed status, may be renewed subsequent to the expiration of the old term period provided the insured prior to the expiration of the new term period.

1 Headnote amended, 24 F.R. 21, Jan. 1, 1959.

(c) Limited convertible 5-year level premium term insurance issued under the provisions of section 723 (b) of Title 38, United States Code, may not be renewed after the insured's fiftieth birthday.

CODIFICATION: § 8.85 was amended in the following respects, 24 F.R. 21, Jan. 1, 1959:

1. The section headnote and paragraph (a) were amended.

2. The introductory text of paragraph (b) was amended.

3. Paragraph (c) was added.

SETTLEMENT OF INSURANCE MATURING ON OR AFTER AUGUST 1, 1946

§ 8.88

Payment to designated beneficiaries where insurance matures on or after August 1, 1946.

National Service life insurance maturing on or after August 1, 1946, is payable to the designated beneficiary in 36 monthly installments unless one of the optional settlements as provided in § 8.79, § 8.80, or § 8.80c, whichever is applicable, has been selected by the insured or the designated beneficiary. The monthly installments, without interest, which have accrued since the death of the insured (the first installment being due on the date of the death of the insured), and the monthly installments which thereafter are payable in accordance with the option selected, shall be paid to the designated beneficiary or beneficiaries.

[24 F.R. 21, Jan. 1, 1959]

§ 8.93 Selection of optional settlements for minors and incompetents. When an optional mode of settlement of National Service life insurance heretofore or hereafter matured is available to a beneficiary who is a minor or incompetent, such option may be exercised by his fiduciary, person qualified under section 14 of Title 25, United States Code, or person recognized by the Administrator as having custody of the person or the estate of such beneficiary, and the obligation of the United States under the insurance contract shall be fully satisfied by payment of benefits in accordance with the mode of settlement so selected.

[24 F.R. 7331, Sept. 11, 1959]

TOTAL DISABILITY INCOME PROVISIONS

§ 8.95 Authority for the total disability income provision for National Service life insurance.

The total disability income provision for National Service life insurance au

thorized by section 602 (v) of the National Service Life Insurance Act, 1940, as amended, and section 715 of Title 38, United States Code, is subject in all respects to the applicable provisions of Title 38, United States Code, or any amendments thereto and all National Service life insurance regulations now in force or hereafter adopted, all of which together with the insured's application, evidence of good health, tender of premium, and the total disability income provision shall constitute the contract. [24 F.R. 7331, Sept. 11, 1959]

Prior Amendments

1958: 23 F.R. 8543, Nov. 1; 23 F.R. 9181, Nov. 27.

§ 8.95a Withdrawal of the right to issue the total disability income provision (§ 8.98) authorized by section 602 (v) of the National Service Life Insurance Act of 1940, as amended August 1, 1946. Public Law 85-678, effective November 1, 1958, amended section 602 (v) of the National Service Life Insurance Act of 1940 and terminated, as of October 31, 1958, the authority for issuing the total disability income provision incorporated in § 8.98 except for the right to reinstate such provision in accordance with the Veterans Administration regulations and except for the right to reinstate or replace such total disability income provision under § 8.96a (a) and (b). The total disability income provision (§ 8.98) which has been issued and made part of National Service life insurance policies will remain in effect in accordance with the provisions of § 8.98 unless surrendered pursuant to § 8.96 (a).

[23 F. R. 8543, Nov. 1, 1958]

§ 8.96 Application for total disability income provision and application for reinstatement thereof.

(a) Application for the total disability income provision authorized by Public Law 85-678 and section 715 of Title 38, United States Code, and the evidence of good health should be on such forms as may be prescribed by the Veterans Administration, but any statement in writing sufficient to identify the applicant and the amount of insurance applied for, together with evidence of good health satisfactory to the Administrator and remittance to cover the first monthly premium, will be sufficient as an application for the total disability income

provision. Effective November 1, 1958, total disability insurance with benefits at the rate of $10 per month will be granted for each $1,000 of National Service life insurance in force in full multiples of $500, but not to exceed the amount of life insurance, other than extended insurance, in force under the policy at the time of the application, upon compliance with the above requirements: Provided, That the total disability income provision authorized by Public Law 85-678 and section 715 of Title 38, United States Code, shall not be added to a National Service life insurance policy containing the total disability income provision issued under section 602 (v) of the National Service Life Insurance Act, as amended, August 1, 1946, except (1) upon complete surrender of such total disability income provision with all claims thereunder (except as to rights which have matured for a period prior to the surrender), (2) written application signed by the applicant, (3) proof, satisfactory to the Administrator, that the applicant is in good health, and (4) payment of the first monthly premium determined by the Administrator to be required in such cases: Provided further, That no total disability income provision shall be issued on insurance granted under the provisions of section 620 of the National Service Life Insurance Act, as amended, or section 722 (a) of Title 38, United States Code. [Paragraph (a) amended, 24 F.R. 7331, Sept. 11, 1959]

Prior Amendments

1958: 23 F.R. 8543, Nov. 1; 23 F.R. 9181, Nov. 27.

§ 8.96a Application for reinstatement and issue of the total disability income provision pursuant to section 623 of the National Service Life Insurance Act and section 781 of Title 38, United States Code.

(a) Any person having a National Service life insurance policy on a permanent plan with a total disability income provision attached who surrendered such insurance prior to January 1, 1957, pursuant to the provisions of section 5 of the Servicemen's Indemnity Act of 1951 at a time when the total disability income provision was in force, upon meeting the requirements for reinstatement of such insurance pursuant to the provisions of § 8.22(b) may at the same time reinstate the lapsed total disability

income provision without medical examination upon (1) written application signed by any such person, (2) payment of the required reserve and (3) the full premium on the total disability income provision for the month in which application is made.

(b) Any person having a National Service life insurance policy on a permanent plan with a total disability income provision attached who surrendered such insurance prior to January 1, 1957, pursuant to the provisions of section 5 of the Servicemen's Indemnity Act of 1951 at a time when the total disability income provision was in force, upon meeting the requirements for issuance of National Service life insurance pursuant to the provisions of § 8.0(a) (1) may be issued at the same time a total disability income provision without medical examination upon written application signed by the applicant and payment of the required premium: Provided, That the total disability income provision issued pursuant to this paragraph shall be on the same terms and conditions and shall not be in excess of the total disability insurance which lapsed at the time the life insurance was surrendered prior to January 1, 1957, pursuant to section 5 of the Servicemen's Indemnity Act of 1951.

(d) Where no total disability income provision was attached to National Service life insurance surrendered prior to January 1, 1957, under the provisions of section 5 of the Servicemen's Indemnity Act of 1951, such provisions may be added to National Service life insurance issued or reinstated under § 8.0 (a) (1) or § 8.22 (b) upon compliance with the provisions of § 8.96(a).

[Section headnote and paragraphs (a), (b), and (d) amended, 24 F.R. 7331, Sept. 11, 1959]

Prior Amendments

1958: 23 F.R. 8543, Nov. 1.

§ 8.96b Payment of total disability benefits on National Service life insurance issued or reinstated pursuant to section 5 of the Servicemen's Indemnity Act of 1951, section 623 of the National Service Life Insurance Act or section 781 of Title 38, United States Code.

Payment under the total disability income provision (§ 8.98) attached to permanent plan insurance and issued or reinstated pursuant to section 5 of Pub

lic Law 23, 82d Congress, section 623 of the National Service Life Insurance Act, or section 781 of Title 38, United States Code, shall not be denied because the total disability of the applicant commenced prior to the date of his application for issuance or reinstatement of such provision. If the insured was totally disabled at the time of issuance or reinstatement of the total disability income provision and (a) such disability had existed for less than 6 consecutive months, payment will commence in accordance with the provisions of § 8.98, and (b) if such disability had existed for at least 6 consecutive months, payment will commence on the first monthly anniversary date of total disability on or subsequent to the effective date of the issue or reinstatement of such insurance but in no event more than 6 months prior to receipt of required proof: Provided, That on insurance issued or reinstated pursuant to section 623 of the National Service Life Insurance Act, while the applicant is in active service, payment of total disability income benefits shall not commence prior to the first monthly anniversary date of total disability on or after January 1, 1957.

[24 F.R. 7332, Sept. 11, 1959]

(c) No protection shall be granted on the total disability income provision issued under Public Law 85-678 and section 715 of Title 38, United States Code unless the total disability commenced on or after November 1, 1958, and subsequent to the date of application for such provision or the effective date thereof, whichever is later.

CODIFICATION: In § 8.97, the section headnote was amended and paragraph (c) was added, 23 F.R. 8543, Nov. 1, 1958. Subsequently, the section headnote and paragraph (c) were amended, 24 F.R. 7332, Sept. 11, 1959.

§ 8.99 Total disability income provision for National Service life insurance authorized by Public Law 85-678 and section 715 of Title 38, United States Code.

The total disability income provision for National Service life insurance au

If the insured becomes totally disabled before his 60th birthday and remains so disabled for at least 6 consecutive months, there will be paid to the insured, for as long as the total disability continues, a monthly income of $10 for each $1,000 of face amount of this policy, and the payment of the premiums for this provision (as well as for this policy) will be waived, subject to the following clauses (A) to (L):

(A) Total disability is defined as any one of the following:

(1) Any impairment of mind or body which continuously renders it impossible for the insured to follow any substantially gainful occupation,

(2) The permanent loss of the use of both feet, or both hands, or of both eyes, or of one foot and one hand, or of one foot and one eye, or of one hand and one eye, (3) The total loss of hearing of both ears, or

(4) The organic loss of speech.

(B) Total disability must be continuous and must exist for at least 6 consecutive months. It must have started:

(1) Before the insured's 60th birthday, (2) After the date of application for this provision or the effective date hereof, whichever is later, and

(3) While this provision is in effect.

(C) The insured must file written application for total disability income benefits and must file the required proof that clauses (A) and (B) above have been fulfilled. The required proof must be filed while this provision is in force or within 1 year after this provision has ceased to be in effect. In the event the insured dies without filing application and the Administrator finds that the insured's failure to file such application was due to circumstances beyond the insured's control, the application and required proof may be filed by the beneficiary within 6 months after the date of death of the insured. In such cases, except for total disability which is due to one of the specific causes listed in (A) (2), (A) (3), and (A) (4) above, the monthly income payments may relate back to a date not exceeding 6 months prior to the date of death of the insured.

(D) The disability income payments will be paid from the first day of the seventh consecutive month of continuous total dis

ability, except that if the total disability is not due to one of the specific causes listed in (A) (2), (A) (3), and (A) (4) above, the disability income payments will not relate back to a date more than 6 months prior to receipt at the Veterans Administration of the required proof. Any disability income payments due the insured and not paid during his lifetime will be paid to the person entitled to the proceeds of this policy.

(E) Waiver of the payment of premiums for this provision (as well as for this policy) will be made effective with the first monthly premium due after the start of the continuous total disability, except that premiums due more than 1 year prior to receipt of claim will be waived only if the Administrator finds that the insured's failure to submit timely claim or satisfactory evidence of continuance of total disability was due to circumstances beyond the insured's control. Waiver of premiums will continue for as long as the total disability continues. Premiums paid to cover a period during which waiver of premiums is effective will be refunded without interest to the insured if living, otherwise to the person entitled to the proceeds of this policy.

(F) Notwithstanding the fact that proof of total disability may have been accepted as satisfactory, the Administrator may at any time require proof of continuance of total disability. If the insured fails to furnish evidence satisfactory to the Administrator of the continuance of such total disability, or if it appears to the Administrator that the insured is not totally disabled, no further total disability income payments will accrue and no further waiver of the payment of premiums will be granted. Thereafter, premiums on this policy (including this provision) will become due and payable as provided in the policy and in this provision.

(G) This provision will cease to be in effect on the insured's 60th birthday, or if this policy or this provision lapses, or if this policy is surrendered for its net cash value, or for extended term insurance, or is surrendered for paid-up life insurance of less than $1,000, or if the policy matures as an endowment, or expires as term insurance.

(H) If this policy is surrendered for paidup life insurance of not less than $1.000 face amount, this provision may be continued by the payment of the required premiums as they become due. In that event the face amount of this policy, for the purposes of this provision only, will be the largest multiple of $500 which does not exceed the amount of the paid-up life insurance.

(I) If this provision has lapsed, it may be reinstated provided the following requirements are met:

(1) A written application signed by the insured, and evidence of health satisfactory to the Administrator must be furnished.

(2) The required premiums and interest must be paid.

(J) If there is a change of plan under this policy which results in a larger premium for this provision, then in order to continue this provision there must be paid (1) the differences between the premiums already paid for this provision and those that would have been paid for this provision had this policy been in force on the new plan when this provision originally became effective, and (2) interest on such differences at the rate of 22 percent a year compounded annually on insurance issued under section 723 (b) of Title 38, United States Code, and on other National Service life insurance at the rate of 3 percent a year compounded annually. To this extent the provision entitled "Change of Plan" is modified.

(K) The benefits provided for in this provision will be in addition to all other benefits and privileges under this policy. If the policy to which this provision is attached is a participating policy, it may be separately classified for the purpose of dividend distribution from otherwise similar policies not containing such benefit. Disability income payments made under this provision will not reduce the face amount of this policy.

(L) This provision is granted in consideration of the application, evidence of good health, and payment of the monthly premium shown above (in addition to the monthly premium stated on the face of this policy), and the payment thereafter of the same amount on each succeeding monthly premium due date of this policy. Except as otherwise provided herein, premiums for this provision are payable to the insured's 60th birthday or until the end of the premium paying period of this policy, if earlier. If any premium for this provision is not paid before the end of the 31-day grace period, this provision will lapse as of the due date of that premium. Premiums for this provision may be paid quarterly, semiannually, or annually, in advance, but must be paid in the same manner as the premiums for this policy.

This provision takes effect on this day of.

[s] ADMINISTRATOR OF VETERANS AFFAIRS.