Sec.

6.162b Payment of total disability benefits

6.163

on United States Government 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

provision authorized by section 748 of Title 38, United States Code. 6.164 Total disability provision for United States Government life insurance authorized by section 311 of the World War Veterans' Act, 1924, as amended July 3, 1930, and section 748 of Title 38, United States Code. 6.165 Disabilities deemed to be total. 6.166 Authority for the total permanent disability provision for the special endowment at age 96 plan of United States Government life insurance. 6.167 Application for total permanent disability provision for the special endowment at age 96 plan of United States Government life insurance and the effective date of such provision.

6.168 Total permanent disability provision for United States Government life insurance on the special endowment at age 96 plan policy.

FIVE-YEAR LEVEL PREMIUM TERM PLAN 6.170 Renewal of United States Government life insurance on the 5-year level premium term plan.

PREMIUM WAIVER ON UNITED STATES GOVERNMENT LIFE INSURANCE UNDER SECTION 622, NATIONAL SERVICE LIFE INSURANCE ACT, AS AMENDED, AND SECTION 724 OF TITLE 38, UNITED STATES CODE

6.185 Premium waiver on United States Government life insurance 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, PUBLIC LAW 23, 82d CONGRESS OF PERMANENT PLAN POLICIES IN FORCE LESS THAN ONE YEAR 6.186 Surrender of permanent plan policies of United States Government life insurance, in force for less than one year, under the provisions of section 5. Servicemen's Indemnity Act of 1951.

DETERMINATION OF LIABILITY UNDER SECTIONS 302 AND 313, WORLD WAR VETERANS' ACT, 1924, SECTIONS 607 AND 602(v) (2), NATIONAL SERVICE LIFE INSURANCE ACT, 1940, AS AMENDED, AND SECTIONS 721 AND 757 OF TITLE 38, UNITED STATES CODE

6.190 Establishment of committees on extra hazards of service. Jurisdiction.

6.191

§ 6.2 Applications for insurance_under section 623 of the National Service Life Insurance Act and section 781 of Title 38, United States Code.

(a) Any person who, while in the active service on or after April 25, 1951, and prior to January 1, 1957, surrendered a permanent plan of United States Government life insurance which was in force other than as extended term insurance, for its cash value under the provisions of § 6.115 or under § 6.186 if the policy had no cash value, shall be granted a new policy of United States Government life insurance in accordance with § 6.3 (a), provided a written application signed by the applicant and payment of the required premium are made on or after January 1, 1959, within the period set forth in paragraph (c) of this section and the other conditions of that paragraph are met. insurance shall be granted without medical examination. If the applicant is mentally incompetent, the application for insurance under this paragraph may be made only by the guardian (committee or conservator), and, if required under the State law, after the court shall have authorized the fiduciary to make such application.

Such

(b) Any person having United States Government life insurance on the 5-year level premium term plan, the term of which expired while such person was in the active service after April 25, 1951, or within 120 days after separation from such active service, and in either case

prior to January 1, 1957, shall be granted United States Government life insurance on the 5-year level premium term plan in accordance with § 6.3(b) provided a written application signed by the applicant, payment of the required premium, and evidence of good health satisfactory to the Administrator are submitted on or after January 1, 1959, within the period set forth in paragraph (c) of this section and the other conditions of that paragraph are met.

whose permanent

(c) Any person plan insurance was surrendered or whose term insurance expired under the conditions provided in this section, and who had continuous indemnity protection from the surrender or expiry date to January 1, 1957, continuous active service from January 1, 1957 to January 1, 1959, and continuous active duty thereafter, may make application for insurance under this section while on continuous active duty or within 120 days after separation from such service or duty. A person who reenters active service or duty on the date of separation or the following day shall be deemed to be in continuous active service or on continuous active duty.

(d) An application for insurance hereunder should be made on the form prescribed therefor, but any written statement which in substance meets the requirements of this section may be considered an application.

[21 F.R. 10378, Dec. 28, 1956, as amended at 24 F.R. 7319, Sept. 11, 1959]

UNITED STATES GOVERNMENT LIFE INSURANCE ISSUED PURSUANT TO SECTION 5 OF THE SERVICEMEN'S INDEMNITY ACT, SECTION 623 OF THE NATIONAL SERVICE LIFE INSURANCE ACT OR SECTION 781 OF TITLE 38, UNITED STATES CODE

§ 6.3

United States Government 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) United States Government 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 United States Government life insurance which was surrendered. The amount of perma

nent plan United States Government 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) United States Government 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 United States Government 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 section 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. 7319, Sept. 11, 1959]

EFFECTIVE DATE

§ 6.7 Effective date of United States Government life insurance applied for pursuant to the provisions of section 623 of the National Service Life Insurance Act and section 781 of Title 38, United States Code.

(a) The effective date of United States Government life insurance issued pursuant to the provisions of section 623 of the National Service Life Insurance Act and section 781 of Title 38, United States Code, may be established upon written request of the applicant as follows:

(1) As of the date on which valid application and tender of premiums are made.

(2) As of the first day of the month in which valid application and tender of premiums are made.

(3) As of the first day of the month following the month in which valid application and tender of premiums are made.

(4) As of the first day of any month, but not more than 6 months prior to the month in which valid application and tender of premiums are made: Provided, That there be paid (i) an amount equal to the full reserve on the insurance at

the end of the month prior to the month in which application is made, and (ii) the full premium on the amount of insurance for the month in which application is made.

(b) Unless otherwise specified by the applicant, the effective date of such United States Government life insurance shall be established as of the date on which valid application and tender of premiums are made.

[24 F.R. 7320, Sept. 11, 1959]

§ 6.12

AGE

Misstatement of age.

If the age of the insured under a United States Government life insurance policy has been understated, the amount of the insurance payable under the policy shall be such exact amount as the premium paid would have purchased at the correct age; if overstated, the excess of premiums paid shall be refunded without interest. Guaranteed surrender and loan values will be modified accordingly. The age of the insured will be admitted by the Veterans' Administration at any time upon satisfactory proof. [13 F.R. 7089, Nov. 27, 1948]

PREMIUMS

§ 6.13 Premium rate.

United States Government life insurance is granted at the premium rate for the age nearest birthday anniversary of the applicant at the time the policy becomes effective in accordance with the premium rates published in VA Pamphlet 9-2 entitled "Premium Rates and Policy Values for United States Government Life Insurance" and VA Pamphlet 902A for the Special Endowment at Age 96 plan policy.

[27 F.R. 9600, Sept. 28, 1962]

§ 6.14 Premiums on United States Government life insurance.

United States Government life insurance is granted in consideration of and subject to the terms and conditions set forth in the policy and further consideration of the payment of the monthly premium due and payable on the day the policy takes effect and on the same day of each succeeding month during the lifetime of the insured or for the period for which premiums are due and payable as provided by the terms and conditions of the policy contract. [13 F.R. 7089, Nov. 27, 1948]

§ 6.15 Due date of premiums.

Premiums on United States Government life insurance are due and payable monthly in advance in legal tender of the United States of America to the Veterans Administration in the city of Washington, District of Columbia, or any office of the Veterans Administration authorized to receive premium payments. Premiums may be paid annually, semiannually, or quarterly, in advance, in which case the premium payable will be the sum of the monthly premiums for the period discounted at 31⁄2 percent per annum. The discounted premiums for these periods are stated on the first page of the policy. At maturity by death or otherwise, the discounted value at 32 percent per annum of the premiums paid in advance beyond the current calendar month shall be refunded to the insured, if living; otherwise to the beneficiary. If any premium be not paid when due, the policy shall cease and become void except as otherwise provided.

[24 F.R. 7320, Sept. 11, 1959]

§ 6.16 Payment of premiums; insured in active service or entitled to retirement pay.

Premiums on United States Government life insurance may be paid by persons in the active military, naval, or Coast Guard service or by persons entitled to retirement pay from such services (a) by direct remittance to the Veterans' Administration, or (b) by allotment of service pay or retirement pay. [16 F.R. 12983, Dec. 27, 1951]

§ 6.17 Payment of insurance premiums by mail.

When it appears by proof satisfactory to the Administrator of Veterans Affairs that the person to whom United States Government life insurance has been granted, or any person acting on his behalf, has deposited in the mail within the grace period or in accordance with § 6.18 an envelope addressed to the Veterans Administration, Washington 25, D.C. or any field station of the Veterans Administration, containing money, check, draft, or money order, in payment of a premum, such insurance will not lapse for nonpayment of such premium: Provided, That any such check or draft is paid on presentation for payment or the conditions of § 6.17a are met. [25 F.R. 1126, Feb. 9, 1960]

(a) Where timely tender of the required premium is made by check or draft which is not paid on presentation for payment, but it is shown by evidence satisfactory to the Administrator that such nonpayment was due to an error on the part of the bank on which such check or draft was drawn, or was the result of an error in the instrument, and not for lack of funds, the insured will be given an additional period of 31 days from the date of letter notifying him of such nonpayment, in which to tender an amount sufficient to pay all premiums through the current month.

(b) Where timely tender of the required premium is made by check or draft which may not be presented for payment because of an error in execution thereof, but it is shown by evidence satisfactory to the Administrator that the remitter had sufficient funds in the bank on which such check or draft was drawn which would have enabled the bank to make payment had it been properly executed and presented, the insured will be given an additional period of 31 days from the date of letter notifying him of such error, in which to tender an amount sufficient to pay all premiums through the current month.

[18 F.R. 1184, Mar. 3, 1953]

§ 6.18

Acceptance of a late premium. Where a premium on United States Government life insurance is not paid within the grace period but payment is tendered during the lifetime of the insured and within 15 days after the date of expiration of the grace period, such tender may be regularly applied as a timely premium payment.

[25 F.R. 1126, Feb. 9, 1960]

§ 6.20 Deduction of insurance premiums from compensation, retirement pay, or pension.

The insured under a United States Government life insurance policy which is not lapsed, may authorize the monthly deduction of premiums from disability compensation, death compensation, dependency and indemnity compensation, retirement pay, disability pension, or death pension that may be due and payable to him under any laws administered by the Veterans Administration in accordance with the following provisions.

(a) The authorization must be in writing over the signature of the insured, or his legal representative, and,

whenever practicable on such forms as may be prescribed by the Veterans Administration. If insured is incompetent and has no legal representative and has a wife to whom benefits are being paid pursuant to section 3202 (f) of Title 38, United States Code, and § 13.57 of this chapter, she may authorize payment of insurance premiums through the deduction system. If insured is incompetent and has no legal representative and an institutional award has been made in his behalf, the authorization may be executed by the Director of the field station in which the insured is hospitalized or receiving domiciliary care, and, in appropriate cases, by the chief officers of State hospitals or other institutions to whom similar awards may have been approved.

(b) The monthly disability compensation, death compensation, dependency and indemnity compensation, retirement pay, disability pension, or death pension so due and payable must be equal to, or in excess of, the amount of the insurance premium figured on a monthly basis.

(c) The authorization may be canceled by the insured at any time by notice in writing to the Veterans' Administration. Such cancellation will be effective on the first day of the month following the month in which it is received by the Veterans' Administration.

(d) If the benefits payable to the insured are apportioned under the regulations of the Veterans' Administration now in effect or hereafter issued, the deduction authorized by the insured shall be from that portion awarded to the insured under such regulations.

[14 F.R. 6856, Nov. 15, 1949, as amended at 24 F.R. 7320, Sept. 11, 1959; 25 F.R. 8183, Aug. 26, 1960; 28 F.R. 1542, Feb. 19, 1963]

§ 6.21

Authorization for deduction of insurance premiums from compensation, retirement pay, or pension. The authorization for deductions from disability compensation, death compensation, dependency and indemnity compensation, retirement pay, disability pension, or death pension to be acceptable for the payment of insurance premiums must be executed and mailed or otherwise delivered to the Veterans Administration while the insurance is not lapsed. Such an authorization will be effective against the benefit payment for the month in which it is mailed or otherwise delivered to the Veterans Administration unless the insured elects to have the authorization become effective

against the benefit payment for a succeeding month. However, the deduction made from the benefit payment for the month in which the authorization becomes effective shall be for the insurance premium due in the succeeding calendar month. When premium deductions are authorized in accordance with the provisions of Veterans Administration regulations, the Veterans Administration will make monthly deductions from the benefit payment due and payable to the insured of an amount sufficient to pay the monthly insurance premium. Such deductions will continue so long as the benefit payment due and payable to the insured is sufficient to pay the monthly insurance premium or until the authorization is revoked by the veteran or otherwise terminated.

[24 F.R. 7320, Sept. 11, 1959]

§ 6.22

or

Premiums to be deducted from compensation, retirement pay, pension, treated as paid, for purpose of preventing lapse.

When premium deductions are authorized by the insured under United States Government life insurance in accordance with the provisions of Veterans Administration regulations, the insurance premium will be treated as paid for the purpose of preventing lapse of the insurance, although such deduction is not in fact made, if upon the due date of the premium there is due and payable to the insured an amount of disability compensation, death compensation, dependency and indemnity compensation, retirement pay, disability pension, or death pension sufficient to provide the payment. Any premium authorized to be deducted from such compensation, retirement pay, or pension due and payable to the insured and not actually paid shall be deducted from the amount of such current compensation, retirement pay, or pension that may become due and payable to the insured. The amounts so deducted for premiums shall be deposited and covered into the Treasury to the credit of the United States Government Life Insurance Fund.

[24 F.R. 7320, Sept. 11, 1959]

§ 6.23 Termination of the authorization to deduct insurance premiums from compensation, retirement pay, pension.

or

Deduction of insurance premiums on United States Government life insurance shall cease and the authorization shall

terminate if the disability compensation, death compensation, dependency and indemnity compensation, retirement pay, disability pension, or death pension becomes insufficient to provide the premium or if such compensation, retirement pay, or pension is no longer due and payable to the insured. If authorization was executed by the Director of a Veterans Administration hospital or domiciliary or chief officer of a State hospital or other institution to make deductions from an institutional award, the authorization will cease and terminate at the termination of the institutional award, and, if subsequent premiums are to be paid by deduction from monthly benefit payments, another authorization must be executed by the insured or his legal representative or his wife. (See § 6.20 (a).) The insurance shall lapse after the termination or cancellation of the authorization to deduct premiums from compensation, retirement pay, or pension, unless the premium be otherwise paid within the grace period. The insured will be notified, by letter directed to his last address of record, of the termination of the authorization to deduct premiums; but the failure to give such notice or the failure to receive such notice shall not prevent lapse of the insurance.

[28 F.R. 1542, Feb. 19, 1963]

§ 6.24 Deduction of premiums on total disability insurance or total permanent disability provision.

An authorization to deduct premiums on a contract of United States Government life insurance in accordance with the provisions of §§ 6.20, 6.21, 6.22, and 6.23 will be deemed to include the premiums on any contract of total disability insurance or the total permanent disability provision that may be attached to said contract of United States Government life insurance, and the provisions of said sections shall be applicable jointly and inseparably to both contracts as though they were one contract. [27 F.R. 9600, Sept. 28, 1962]