Title 38, United States Code, are published in VA Pamphlets 90–5A and 90–12. [24 F.R. 7332, Sept. 11, 1959] Prior Amendments 1958: 23 F.R. 8544, Nov. 1. NATIONAL SERVICE LIFE INSURANCE § 8.102 Crediting of premiums to and payment of benefits from National Service life insurance appropriation. (a) All premiums collected for insurance granted or reinstated pursuant to the second sentence of section 602(c) (2) or the first proviso of section 602 (v) (1) of the National Service Life Insurance Act, as amended, August 1, 1946, shall be credited directly to the National Service life insurance appropriation. (b) Any payment of benefits on insurance granted or deemed to have been granted pursuant to the foregoing provisions of the National Service Life Insurance Act, as amended; section 602(c) (3) of the act, as amended; section 602 (p) of the act, as amended (second sentence); and, any payment of benefits on insurance continued in force as provided in section 602 (m) (2) of the act, as amended, shall be made directly from the National Service life insurance appropriation. [24 F.R. 7332, Sept. 11, 1959] NATIONAL SERVICE LIFE INSURANCE NON PARTICIPATING FUNDS [REVISED] § 8.103 Crediting of premiums to and payment of benefits from the Service-Disabled Veterans' Insurance Fund and the Veterans' Special Term Insurance Fund. (a) All premiums and other collections for insurance issued 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, shall be credited directly to a fund in the Treasury of the United States to be known as the Service-Disabled Veterans' Insurance Fund and any payments on such insurance shall be made directly from such fund. (b) All premiums and other collections for insurance issued under the provisions of section 621 of the National Service Life Insurance Act, as amended, or section 723 (b) of Title 38, United States Code, and any total disability income provision added thereto, shall be The forms of policies of insurance, listed in paragraphs (a) through (q) of this section, are hereby prescribed for use in granting National Service life insurance applied for in accordance with the provisions of the National Service Life Insurance Act of 1940, and the National Service life insurance provisions of Title 38, United States Code, amendments and supplements thereto, and Veterans Administration regulations promulgated pursuant thereto. Contracts of insurance authorized to be made in accordance with the terms and conditions set forth in the forms and policy plans listed in paragraphs (a) through (q) of this section, are subject in all respects to the applicable provisions of Title 38, United States Code, amendments and supplements thereto, and all Veterans Administration regulations promulgated pursuant thereto, all of which together with the insured's application, required evidence of health, including physical examination, if required, and tender of premium shall constitute the contract: Provided, any such policy that has been or is hereafter issued or reinstated under any provision of the law which provides for premiums being credited to other than the National Service Life Insurance Fund shall not participate in any gains or savings of such fund. [Introductory paragraph amended, 24 F.R. 7332, Sept. 11, 1959] (0) Limited convertible five-year level premium term plan (VA Forms 9-4408 and 9-4412). (p) Ordinary life plan; Twenty payment life plan; and Thirty payment life plan; (VA Forms 9-4409 and 9-4412). (q) Twenty year endowment plan; Endowment plan maturing at age 60; and Endowment plan maturing at age 65; (VA Forms 9-4410 and 9-4412). [Paragraphs (o), (p), and (q) added, 24 F.R. 7332, Sept. 11, 1959] NOTE: Policy plans in paragraphs (g) through (q) of this section are nonparticipating. [Note amended, 24 F.R. 7332, Sept. 11, 1959] NATIONAL SERVICE LIFE INSURANCE ISSUED ON OR AFTER APRIL 25, 1951 [REVISED] CODIFICATION: The headnote set forth immediately above was amended, 24 F.R. 7332, Sept. 11, 1959. § 8.110 National Service life insurance issued 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. (a) National Service life insurance on a permanent plan, issued pursuant to the provisions of 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, shall be issued on the same plan and under the same terms and conditions as the National Service life insurance which was surrendered: Provided, That waiver of premiums under section 602(n) of the National Service Life Insurance Act, as amended, or section 712 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 such insurance. The amount of permanent plan National Service life insurance issued pursuant to said section 5, section 623, or section 781 shall not be in excess of the amount of insurance which was surrendered. (b) National Service life insurance on the 5-year level premium term plan, issued pursuant to the provisions of 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, shall be issued under the same terms and conditions as the National Service life insurance 5-year level premium term policy which expired. The amount of 5-year level premium term insurance issued pursuant to said section 5, section 623, or section 781 shall not be in excess of the amount of term insurance which expired. (c) The amount of insurance granted under said section 5, section 623 or sec tion 781, plus the amount of any other insurance (National Service life-United States Government life-War Risk) in force under premium-paying conditions or as paid-up or extended insurance, shall not exceed $10,000. [24 F.R. 7332, Sept. 11, 1959] § 8.111 National Service life insurance issued under section 620 of the National Service Life Insurance Act, as amended, and section 722 (a) of Title 38, United States Code. (a) National Service life insurance granted under the provisions of section 620 of the National Service Life Insurance Act, as amended, and section 722 (a) of Title 38, United States Code, shall be issued upon the same terms and conditions as are contained in the standard policies of National Service life insurance, except that (1) the premium rates, cash, loan, paid-up, and extended values shall be based upon the Commissioners 1941 Standard Ordinary Table of Mortality with interest at the rate of 24 per centum per annum; (2) all settlements on policies involving annuities shall be calculated on the basis of the annuity table for 1949 with interest at the rate of 24 per centum per annum; (3) all such insurance shall be issued on a nonparticipating basis; and (4) waiver of premiums under section 602(n) of the National Service Life Insurance Act, as amended, or section 712 of Title 38, United States Code, shall not be denied because the service-connected disability of the applicant became total in degree prior to the effective date of such insurance. (b) National Service life insurance granted under section 620 of the National Service Life Insurance Act, as amended, and section 722 (a) of Title 38, United States Code, shall be on one or more of the following plans: 5-year level premium term, ordinary life, 20-payment life, 30-payment life, 20-year endowment, endowment at age 60, and endowment at age 65: Provided, That no insurance shall be issued on an endowment plan if the applicant is totally disabled. Insurance issued under said sections 620 and 722 (a) shall be in an amount of not more than $10,000 nor less than $1,000 in multiples of $500: Provided, That no policy may be issued for less than $1,000: Provided further, That no person may carry at any one time a combined amount of insurance in force in excess of $10,000 under the War Risk Insurance Act, as amended, the World War Veterans' Act, as amended, the National Service Life Insurance Act, as amended, and chapter 19 of Title 38, United States Code. [24 F.R. 22, Jan. 1, 1959] § 8.112 National Service life insurance issued under section 621 of the National Service Life Insurance Act, as amended, and section 723 (b) of Title 38, United States Code. (a) National Service life insurance granted under the provisions of section 621 of the National Service Life Insurance Act, as amended, shall be issued upon the same terms and conditions as are contained in the standard policies of National Service life insurance on the 5-year level premium term plan, except (1) such insurance may not be exchanged for or converted to insurance on any other plan prior to January 1, 1959; (2) the premium rates for such insurance shall be based on the Commissioners 1941 Standard Ordinary Table of Mortality with interest at the rate of 24 per centum per annum; (3) all settlements on policies involving annuities shall be calculated on the basis of the annuity table for 1949, with interest at the rate of 24 per centum per annum; and (4) such insurance and any total disability income provision added thereto shall be nonparticipating. National Service life insurance granted under section 621 of the National Service Life Insurance Act shall be in an amount of not more than $10,000 nor less than $1,000 in multiples of $500: Provided, That no policy shall be issued for less than $1,000. (b) Effective January 1, 1959, 5-year level premium term insurance issued under section 621 of the National Service Life Insurance Act, as amended, may be converted to a permanent plan of insurance or exchanged for a policy of limited convertible five-year level premium term insurance issued pursuant to section 723 (b) of Title 38, United States Code. National Service life insurance issued pursuant to such section of the code shall be issued upon the same terms and conditions as are contained in standard policies of National Service life insurance except (1) after September 1, 1960, limited convertible term insurance may not be issued or renewed after the insured's fiftieth birthday; (2) the premium rates, cash, loan, paid-up and extended values shall be based on table X-18 (1950-54 Intercompany Table of Mortality) with interest at the rate of 22 per centum per annum; (3) all settlements on policies involving annuities shall be calculated on the basis of the annuity table for 1949 with interest at the rate of 21⁄2 per centum per annum; (4) such insurance and any total disability income provision added thereto shall be nonparticipating. Insurance issued under section 723 (b) of Title 38, United States Code, shall not be in excess of the amount of insurance in force granted under section 621 of the National Service Life Insurance Act and shall be in multiples of 500 but no policy shall be for less than $1,000. (c) No person may carry at any one time a combined amount of insurance in force in excess of $10,000 under the War Risk Insurance Act, as amended, the World War Veterans' Act, as amended, the National Service Life Insurance Act, as amended, and chapter 19 of Title 38, United States Code. [24 F.R. 22, Jan. 1, 1959] PREMIUM WAIVER UNDER SECTION 622 OF THE NATIONAL SERVICE LIFE INSURANCE ACT, AS AMENDED, AND SECTION 724 OF TITLE 38, UNITED STATES CODE1 (d) Premiums tendered on term insurance to cover a period during which waiver is effective under this section shall be refunded without interest. If premiums for the full amount are tendered in payment of permanent plan insurance during a period in which waiver is effective under this section, only that portion of such premiums which represents the cost of pure insurance risk, as determined by the Administrator, shall be refunded, and such refund shall be with interest. (e) National Service life insurance on the 5-year level premium term plan or limited convertible 5-year level premium term plan shall be automatically renewed for an additional 5-year period at the premium rate for the then attained age of the insured, provided the premiums on such insurance are being waived under this section at the expiration of the term period: Provided, That limited 1 Headnote amended, 24 FR. 22, Jan. 1, 1959. convertible term insurance may not be renewed after the insured's fiftieth birthday. The renewal of insurance under this paragraph shall be effective as of the day following the expiration of the preceding term period, and the premium for such renewed insurance will be at the applicable level premium term rate for the attained age of the insured on that day. The premiums on the insurance renewed under this paragraph shall continue to be waived while the insured continues in active service and for 120 days after separation therefrom. (j) If waiver of premiums is granted under section 602 (n) of the National Service Life Insurance Act, as amended, or section 712 of Title 38, United States Code, while premiums are being waived under this section, waiver under this section will be suspended. If the insured is otherwise entitled, upon termination of waiver under section 602 (n) or section 712, waiver of premiums under this section will be resumed for the remainder of the insured's continuous active service and for 120 days thereafter. (k) Waiver of premiums under this section shall not include the premiums due and payable on the total disability income provision attached to such National Service life insurance policy. (1) During any period waiver of premium is effective under this section, the insurance shall be nonparticipating. (m) A 5-year level premium term or limited convertible term policy on which premiums have been waived under this section during any portion of the term period shall have no reserve value. CODIFICATION: In § 8.113, the headnote and paragraphs (d), (e), (j), (k), (1), and (m) were amended, 24 F.R. 22, Jan. 1, 1959. SURRENDER UNDER SECTION 5 OF PUBLIC LAW 23, 82D CONGRESS, OF PERMANENT PLAN POLICIES IN FORCE LESS THAN ONE YEAR [REVISED] § 8.114 Surrender of permanent plan policies of National Service life insurance, in force for less than 1 year, under the provisions of section 5, Servicemen's Indemnity Act of 1951. A permanent plan policy of National Service life insurance in force for less than 1 year by payment or waiver of premiums shall not have a cash value. Such a policy which was not lapsed could be surrendered by the insured while in active service prior to January 1, 1957, with right of replacement pursuant to the provisions of 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, upon written request therefor and upon complete surrender of the insurance with all claims thereunder. [24 F.R. 7333, Sept. 11, 1959] APPLICATIONS FOR GOVERNMENT LIFE INSURANCE UNDER SECTION 623, NATIONAL SERVICE LIFE INSURANCE ACT, MADE BY PERSON IN ACTIVE SERVICE ON JANUARY 1, 1957, BUT FILED PRIOR TO THAT DATE [REVOKED] § 8.116 National Service life insurance granted under section 722(b) of Title 38, United States Code. (a) Any person who is shown by evidence satisfactory to the Administrator to have been eligible to be granted National Service life insurance, on or after April 25, 1951, under the provisions of section 620 of the National Service Life Insurance Act or section 722(a) of Title 38, United States Code, but who died without a valid application having been filed for such insurance shall be deemed to have applied for and to have been granted such insurance as of the date of death, in an amount which, together with any other National Service life insurance or United States Government life insurance in force or servicemen's indemnity, shall aggregate $10,000 provided the following conditions are met: (1) Such person is determined to have been mentally incompetent from a service-connected disability, (i) at the time of release from active service, or (ii) during any part of the one year period from the date such person is first determined by the Veterans Administration, by a rating made subsequent to discharge, to be suffering from a serviceconnected disability, or (iii) after release from active service but is not rated service-connected disabled by the Veter Page 145 ans Administration until after death, and (2) Such person is determined to have remained continuously so mentally incompetent, (i) from the date of release from active service until date of death, or (ii) from the date such person is determined to have been mentally incompetent during the one year period until date of death, or (iii) if not rated until after death, from the date the mental incompetency began until date of death, and (3) Such person is shown to have died before the appointment of a guardian or within one year after the appointment of a guardian. The date to be used for determining whether such person was insurable according to the standards of good health established by the Administrator, except for the service-connected disability or disabilities, shall be the date of release from active service or the date the person became mentally incompetent, which ever is the later. (b) Written application for payment of insurance granted under section 722(b) of Title 38, United States Code, must be filed with the Veterans Administration by person or persons initially entitled to such payment, within two years after the date of death of the insured or before January 1, 1961, whichever is the later: Provided, That if the person initially entitled fails to file valid application and dies (or remarries, if such person is the insured's spouse) within the two-year period, the beneficiary next entitled has the right to file application within such period: Provided further, That if the person entitled to file application is shown to have been mentally or legally incompetent at the time the right to file application for such death benefits expires, application may be made at any time within one year after the removal of such disability. The death of the insured, the relationship and age of the claimant as of the date of death of the insured, must be established. (c) Insurance granted under section 722(b) shall be payable only to the following permitted class of beneficiaries and in the order named (1) Widow (widower) of the insured (lawful spouse of the insured at the maturity of the insurance), if living and while unremarried. (2) Child or children of the insured (legitimate and adopted child), if living, in equal shares. (3) Parent or parents who last bore such relationship to the insured (including a parent by adoption and persons who stood in loco parentis to the insured for a period of not less than one year at any time prior to entry into active service), if living, in equal shares. (d) Insurance granted under section 722(b) shall be payable at the election of the first beneficiary as follows: (1) In 240 equal monthly installments at the rate of $5.16 per month for each $1,000 of insurance, but, if the first beneficiary dies (or remarries, if the first beneficiary is the insured's spouse) before 240 monthly installments have been paid, the remaining unpaid monthly installments will be payable to the beneficiary or beneficiaries next entitled within the permitted class, or (2) In equal monthly installments for the life of the first beneficiary in accordance with the table of monthly installments set forth in option 3 of § 8.80, but, if such beneficiary dies (or remarries, if the first beneficiary is the insured's spouse) before 120 installments certain have been paid, the remaining unpaid monthly installments certain will be payable to the beneficiary or beneficiaries next entitled within the permitted class, or (3) As a refund life income in monthly installments, as set forth in the table under option 4 of § 8.80 payable throughout the lifetime of the first beneficiary, but, if such beneficiary dies (or remarries, if the first beneficiary is the insured's spouse) before payment of the number of installments certain, as provided in such table, the remaining unpaid monthly installments payable for such period certain as may be required in order that the sum of the installments certain (including a last installment of such reduced amount as may be necessary) shall equal the face value of the insurance less any indebtedness, will be payable to the beneficiary or beneficiaries next entitled within the permitted class. The law does not authorize settlement under this option in any case in which less than 120 installments may be paid. (e) A change in the mode of settlement is not authorized in any case in which payment has commenced, and |