(a) If 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, will be deducted from the proceeds of the policy, and will be reported by the insurer to the Veterans' Administration. (b) The phrase "maturity of a policy as a death claim or otherwise" (section 405, Soldiers' and Sailors' Civil Relief Act Amendments of 1942), 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. (c) If a policy matures as a claim, except a death claim, or if protection under the act is otherwise terminated before expiration of the period fixed by the act, the amount of any unpaid premiums, with interest at the rate provided for policy loans, will be deducted and the insurer will immediately notify the Veterans' Administration and will make a complete statement of the account as to that particular policy. (d) If a policy is not removed from the protection of the act prior to the expiration of the period of protection, at that time the insurer will submit to the Veterans' Administration a complete statement of the account as to that particular policy. (e) The statement of account will show the amount of indebtedness by reason of the premiums with interest and the credits, if any, then available and will be subject to audit and approval by the Chief Actuary. The statement of account will include the rate of interest charged on all indebtedness, the dates of debit and credit entries, and such other information as may be deemed necessary in making an audit of the account. If there is a balance due by the United States to the insurer, payment in favor of the insurer will be certified. [13 F.R. 7103, Nov. 27, 1948, as amended at 27 F.R. 656, Jan. 23, 1962] The payment of premiums and interest thereon at the rate fixed in the policy for policy loans while the policy is protected under the provisions of the act is guaranteed by the United States, and if the amount so guaranteed is not paid to the insurer prior to the expiration of the period of protection the amount then due will be treated by the insurer as a loan on the policy. However, if at the expiration of the period of protection the cash surrender value of the policy is less than the amount guaranteed, the policy shall cease and terminate and the United States will pay to the insurer the difference between the cash surrender value of the policy and the amount guaranteed. If the insured is in the military service when the act ceases to be in force, the period of protection of a policy under the act will expire two years after the date when the act ceases to be in force and settlement will be made as above provided. Any amount paid by the United States to an insurer on account of a policy protected under the provisions of the act will become a debt due the United States by the insured on whose account payment was made and such amount will be collected by deduction from any amount due said insured by the United States or as otherwise authorized by law. § 7.31 Policy under protection of act. A policy placed under the protection of Article IV of the Soldiers' and Sailors' Civil Relief Act of 1940 and which was under the protection thereof on October 6, 1942, by reason of a finding having been made prior to that date, will remain subject to the provisions of said act and the regulations published under authority thereof except that the policy will be subject to the benefits and privileges governing the period of protection and settlement as provided in sections 403, 404, and 405 of Article IV of the Soldiers' and Sailors' Civil Relief Act Amendments of 1942. If a policy was protected under the provisions of said act of 1940 and the period of protection terminated prior to October 6, 1942, the provisions of Article IV of the amendments of 1942 and the regulations published under the authority thereof are not applicable to the policy except that any premium which the Government has guaranteed under such policy will be for settlement in accordance with the mode of settlement elected by the insurer as provided in section 408 of the amendments of 1942. § 7.32 Election by insurer. Any insurer holding certificates issued under authority of Article IV of the Soldiers' and Sailors' Civil Relief Act of 1940 on account of policies protected under said Article, may surrender such certificates to the United States on or before January 4, 1943, and elect to receive the guarantee of premiums and the mode of settlement for such policies as provided by Article IV of the Soldiers' and Sailors' Civil Relief Act Amendments of 1942. The insurer desiring to take such action shall state that, pursuant to the provisions of section 408 of Article IV of the Soldiers' and Sailors' Civil Relief Act Amendments of 1942, it elects to receive the guarantee of unpaid premiums and interest thereon and the mode of settlement as provided by said amendments, in lieu of the method of settlement and the requirement for accounts and reports prescribed by Article IV of the Soldiers' and Sailors' Civil Relief Act of 1940, and that it therefore surrenders to the United States all certificates of indebtedness issued to it by the Administrator of Veterans' Affairs under said act, giving the numbers of certificates surrendered and attaching same to the release signed by the insurer. The insurer will also submit to the Veterans' Administration at the earliest practicable date a schedule of all policies which were covered under Article IV of the Soldiers' and Sailors' Civil Relief Act of 1940, giving name of insured, face amount of policy, policy number and date of application for protection under said act. In the case of policies as to which the period of protection expired prior to October 6, 1942, if the insurer has elected to accept the provisions of section 408 (2) of the Soldiers' and Sailors' Civil Relief Act Amendments of 1942 within the time specified therein, the insurer will submit the statement of account provided by $7.29 (d) and (e) and in case there is a balance due by the United States to the insurer, payment in favor of the insurer will be certified. If the insurer does not elect to accept the provisions of section 408 (2) of the Soldiers' and Sailors' Civil Relief Act Amendments of 1942, on or before January 4, 1943, then the provisions of the Soldiers' and Sailors' Civil Relief Act of 1940 and the regulations in this chapter, will govern the accounting as between the insurer and the Government. 7.33 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 placing a policy under the protection of the act. Any existing right of an insured to change a beneficiary designation or select an optional settlement for a beneficiary while the policy is under the protection of the act is not affected by the provisions of the act. § 7.34 Termination. Article IV of the Soldiers' and Sailors' Relief Act shall remain in effect until such time as that act is repealed or otherwise terminated by subsequent act of the Congress. [21 F. R. 9981, Dec. 14, 1956] 8.88 OPTIONAL SETTLEMENTS 8.75 8.76 8.77 Mode of payment where insurance matured prior to August 1, 1946. Selection and revocation of option. Election of optional settlement by beneficiary. 8.89 8.90 8.91 8.92 8.78 8.79 8.93 8.94 8.80 Values for optional settlements. Optional settlements on participating National Service Life Insurance and nonparticipating insurance issued under section 602(c) (2) of the National Service Life Insurance Act, as amended, on which the requirements of good health were waived. Optional settlements on insurance issued under the provisions of section 620 or 621 of the National Service Life Insurance Act, as amended, and section 722 (a) of Title 38, United States Code. TABLES OF INSTALLMENTS WHEN OPTION SELECTED PROVIDES MONTHLY PAYMENTS OF LESS THAN $10 8.80a Payment to a beneficiary where the monthly installment of participating National Service Life Insurance and nonparticipating insurance issued under section 602(c) (2) of the National Service Life Insurance Act, as amended, on which the requirements of good health were waived, is less than $10 under the option selected. 8.80b Payment to a beneficiary where the monthly installment of insurance, Issued under the provisions of section 620 or 621 of the National Service Life Insurance Act, as amended, or section 722 (a) of Title 38, United States Code, is less than $10 under the option selected. 8 80c Optional settlements on insurance 18sued under the provisions of section 723(b) of Title 38, United States Code. 8.80d Payment to a beneficiary where the monthly installment of insurance issued under the provisions of section 723 (b) of Title 38, United State Code, is less than $10 under the option selected. 8.95 Payment to designated beneficiaries Payment to estate of insured. Selection of optional settlements for minors and incompetents. Conditional designation of beneficiary. TOTAL DISABILITY INCOME PROVISIONS Authority for the total disability income provision for National Service Life Insurance. 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. 8.95& 8.95b Withdrawal of the right to issue the total disability income provision (§ 8.99) authorized by Public Law 85-678 and section 715 of Title 38, United States Code, in effect before January 1, 1965. 8.96 Application for total disability income provision and application for reinstatement thereof. 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. 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. Effective date of the total disability income provision authorized by section 715 of Title 38, United States Code, as amended by Public Law 88-355. 8.97 Sec. 8.98 8.99 Total disability income provision for 8.99a Total disability income provision for National Service Life Insurance authorized by section 715 of Title 38, United States Code, as amended by Public Law 88-355, effective January 1, 1965, other than insurance issued under 38 U.S.C. 725. 8.99b Total disability income provision authorized by section 715 of Title 38, United States Code, for National Service Life Insurance issued under section 725 of the code. 8.99c Premium rates for the total disability income provision authorized by section 715 of Title 38, United States Code, as amended by Public Law 88-355. INSURANCE PROVIDED BY SPECIAL LEGISLATION 8.100 Insurance benefits authorized under section 602 (c) (3) of the act, as amended August 1, 1946. NATIONAL SERVICE LIFE INSURANCE APPROPRIATIONS 8.102 Crediting of premiums to and payment of benefits from the National Service Life Insurance appropriation. NATIONAL SERVICE LIFE INSURANCE 8.103 Crediting of premiums to and payment of benefits from the ServiceDisabled Veterans' Insurance Fund, the Veterans' Special Term Insurance Fund and the Veterans Reopened Insurance Fund. NATIONAL SERVICE LIFE INSURANCE POLICY FORMS Sec. 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. 8.112a National Service Life Insurance issued under section 725 of Title 38, United States Code. 8.112b National Service Life Insurance issued on the modified life plan and on the ordinary life plan under section 704 (b), (c), and (d) of Title 38, United States Code. PREMIUM WAIVER UNDER SECTION 622 OF THE NATIONAL SERVICE LIFE INSURANCE ACT, AS AMENDED, AND SECTION 724 OF TITLE 38, UNITED STATES CODE 8.113 Premium waiver under section 622 of the National Service Life Insurance Act, as amended, and section 724 of Title 38, United States Code. SURRENDER UNDER SECTION 5 OF PUBLIC LAW 23, 82D CONGRESS, OF PERMANENT PLAN POLICIES IN FORCE LESS THAN ONE YEAR 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. NATIONAL SERVICE LIFE INSURANCE GRANTED UNDER SECTION 722(b) OF TITLE 38, UNITED STATES CODE 8.114 |