tion regulations. The total disability income provision (§ 8.99) which has been issued and made a part of National Service life insurance policies will remain in effect in accordance with the provisions of § 8.99 unless surrendered pursuant to § 8.96(a).

[29 F.R. 13810, Oct. 7. 1964]

§ 8.96 Application for total disability in-
come provision and application for
reinstatement thereof.

(a) Application for the total disability
income provision authorized by section
715 of Title 38, United States Code, as
amended by Public Law 88-355, effective
January 1, 1965, must be made prior to
the insured's fifty-fifth birthday except
that prior to January 1, 1966, application
may be made by the insured prior to his
sixtieth birthday. The application and
evidence of good health should be on
such forms as may be prescribed by the
Veterans Administration, but any state-
ment in writing sufficient to identify the
applicant and the amount of insurance
applied for, together with evidence of
good health satisfactory to the Admin-
istrator and a remittance to cover the
first monthly premium will be sufficient
as an application for the total disability
Total disability in-
income provision.
surance 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 ap-
plication, upon compliance with the re-
quirements of this subparagraph. How-
ever, the total disability income provision
authorized by 38 U.S.C. 715, as amended
by Public Law 88-355, effective January
1, 1965, shall not be added to a National
Service life insurance policy containing
the total disability income provision is-
sued under section 602 (v) of the Na-
tional Service Life Insurance Act, as
amended, or the provisions of 38 U.S.C.
715, in effect before January 1, 1965,
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 ap-
plication signed by the applicant; (3)
proof that the applicant is in good
health, if required, satisfactory to the
Administrator; and (4) payment of the
premium determined by the Administra-
tor to be required in such cases or sub-

mission of a signed agreement to pay the required premium or premiums when billed. No total disability income provision shall be included in 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.

(b) Except as provided in § 8.96a, a total disability income provision which is lapsed may be reinstated if the insured meets the same requirements as those for reinstatement of the policy to which the total disability income provision is attached; except that in no event shall the requirement of a health statement or other medical evidence be waived in connection with the reinstatement of the total disability income provision.

[16 F.R. 12995, Dec. 27, 1951, as amended at 29 F.R. 13810, Oct. 7, 1964]

§ 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.

(c) If a total disability income provision was not in force at the time a permanent plan policy of National Service life insurance was surrendered prior to January 1, 1957, pursuant to section 5 of the Servicemen's Indemnity Act of 1951 or if an insured who surrendered a permanent plan policy of National Service life insurance prior to January 1, 1957, pursuant to section 5 of the Servicemen's Indemnity Act of 1951 at a time when the total disability income provision was in force fails to meet the requirements of paragraph (a) or (b) of this section within the time limitations specified for reinstatement or issue of the total disability income provision, the total disability income provision may, if the life insurance is in force under premium-paying conditions, be reinstated in accordance with the provisions of § 8.98, or the insured may be issued a total disability income provision upon compliance with the requirements of § 8.96(a).

(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).

[21 F.R. 10382, Dec. 28, 1956, as amended at 24 F.R. 7331, Sept. 11, 1959]

§ 8.96b Payment of total disability bene

fits on National Service life insurance
issued or reinstated pursuant to sec-
tion 5 of the Servicemen's Indemnity
Act of 1951, section 623 of the Na-
tional 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 Public Law 23, 82d Congress, section 623 of

was

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 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]

§ 8.97

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.

The total disability income provision will be made effective as follows:

(a) If the National Service life insurance policy and the total disability income provision are applied for at the same time and all requirements are complied with, the total disability income provision shall, except as provided in paragraph (b) of this section be effective as of the same date the policy became effective.

(b) If the National Service life insurance policy is dated back, or has been previously issued, and the application is made on other than a due date of the monthly premium on the policy and all requirements are complied with, the total disability income provision shall be effective as of the last prior monthly premium due date.

(c) No protection shall be granted on the total disability income provision issued under 38 U.S.C. 715, as amended by Public Law 88-355 unless the total disability commenced on or after January 1,

1965, and subsequent to the date of application for such provision or the effective date thereof, whichever is later. [13 F.R. 7120, Nov. 27, 1948, as amended at 29 F.R. 13810, Oct. 7, 1964]

§ 8.98 Total disability income provision for National Service life insurance, authorized by the National Service Life Insurance Act of 1940, as amended August 1, 1946.

The total disability income provision for National Service life insurance authorized by the National Service Life Insurance Act of 1940, as amended August 1, 1946, is as follows:

NATIONAL SERVICE LIFE INSURANCE

TOTAL DISABILITY INCOME PROVISION

Attached to and made a part of Policy No.
on the life of
age of insured.

Monthly
Quarterly
Semiannual
Annual

If the insured becomes totally disabled before the anniversary of this policy nearest his sixtieth birthday and remains so disabled for at least six consecutive months, there will be paid to the insured, for as long as the total disability continues, a monthly income of $5 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.

or

(3) The total loss of hearing of both ears,

(4) The organic loss of speech.

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

(1) Before the anniversary of the policy nearest 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 1 year 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 disability, 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, except as provided above in clause (C). 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 provi sion) will become due and payable as provided in the policy and in this provision.

(G) This provision will cease to be in ef fect, and no further premiums for it will be payable, on the anniversary of this policy nearest the insured's 60th birthday, or f 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

411

year 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 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 disability, 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, except as provided above in clause (C). 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 21⁄2 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

19 [s] ADMINISTRATOR OF VETERANS AFFAIRS. [23 F.R. 8543, Nov. 1, 1958, as amended at 23 F.R. 9181, Nov. 27, 1958; 29 F.R. 5003, Apr. 10, 1964; 30 F.R. 3652, Mar. 19, 1965]