Unless other designation is made by the insured, such person or persons, within the permitted class of beneficiaries, as would under the laws of the place of residence of the insured be entitled to his personal property in case of intestacy shall be deemed designated as the beneficiary or beneficiaries to whom shall be paid any installments remaining unpaid upon the death, or disqualification under the provisions of the act, of any named beneficiary. In case the applicant does not desire the premium to be deducted from his/her pay (or his/her deposit) he/she should so elect in writing at the time of making application; but if no election is made it shall have the effect to provide for such deduction from his/her pay, or if such pay be insufficient, any balance from his/her deposit. 7. Applications for insurance are to be made upon the blanks provided by the bureau, but any writing sufficiently identifying the applicant and specifying the amount of insurance shall be deemed sufficient. Upon request of the bureau, however, the applicant shall fill out and sign the proper blank as of the original date. 8. If a signed writing requesting insurance for less than $4,500 is mailed or delivered before the 12th day of February, 1918, to the Bureau of War Risk Insurance, Washington, D. C., or to any branch thereof or to any officer of the United States authorized to receive the same, such insurance, in the absence of other specification in such writing, shall be and be deemed applied for and the contract made on such 12th day of February, 1918, the provisions of section 401 as to automatic insurance meanwhile continuing in full force; if so mailed or delivered on or after such day, or if for $4,500 or more, though mailed or delivered before such day, the insurance shall, in the absence of other specification in such writing, be and be deemed applied for and the contract made on the day of mailing or delivery. 9. These terms and conditions are subject in all respects to the provisions of such act and of any amendments thereto and of all regulations thereunder now in force or hereafter adopted. WILLIAM C. DE LANOY, Director of the Bureau of War Risk Insurance. WASHINGTON, D. C. October 15, 1917. (Bulletin No. 2) BRIEF OUTLINE OF FAMILY ALLOWANCES, ALLOTMENTS, COMPENSATION, AND INSURANCE FOR THE MILITARY AND NAVAL FORCES OF THE UNITED STATES PROVIDED UNDER ACT OF CONGRESS APPROVED OCTOBER 6, 19171 OCTOBER 16, 1917. By act of Congress approved October 6, 1917, the United States makes certain provisions for the families and dependents of the members of its military and naval forces. The full title of the law, which is sometimes referred to as the soldiers and sailors insurance law, is " "An act to amend an act entitled 'An act to authorize the establishment of a Bureau of War Risk Insurance in the Treasury Department.'" The law provides, in brief, the following: 1. For the support, during the war, of the families and dependents of enlisted men. (a) Allotments of pay.-Certain proportions of pay are to be withheld from the man and paid directly to the families or dependents, or for insurance, or for other purposes. Allotment or deposit of one-half of pay may be required in all cases. (b) Family allowances. In addition to all allotments of pay by the man, the United States will pay monthly allowances to the wife, children, and certain dependents. 2. For the protection of officers and enlisted men and their dependents from the hazards of injury, disease, and death. (a) Compensation.-Monthly payments, for disability and death due to injury and disease incurred in the line of duty. (b) Insurance.-Provided by the United States upon application and payment of premium, without medical examination, against total permanent disability and death. The premium will be at normal peace rates without loading, and the United States will bear the extra cost due to war service. Provision is made for the continuation of the insurance after leaving the service. MILITARY AND NAVAL PAY DEposit fund (seC. 21) 2 A separate fund created in the Treasury, for deposit of allotments of pay for the benefit of the men themselves. These deposits to receive 4 per cent interest, compounded semiannually. The Secretary of War and the Secretary of the Navy may require every enlisted man to deposit in this fund such proportion of his pay, not otherwise allotted, as will, added to the compulsory allotment, equal one-half DEFINITIONS FOR THE PURPOSES OF THE ACT (SEC. 22) pay. "Military or naval forces" means the Army, the Navy, the Marine Corps, the Coast Guard, the Naval Reserves, the National Naval Volunteers, and any other branch of the United States service while serving pursuant to law with the Army or the Navy. "Commissioned officer" includes a warrant officer, but includes only an officer in active service. "Man" or "enlisted man" means person, male or female, in active service in the military or naval forces of the United States, and includes noncommissioned and petty officers and members of training camps. "Injury" includes disease. 1 Prepared for the conference of Army and Navy officers and representatives, Oct. 16-18, 1917, Washington, D. C. Section references cite the sections of the law which are here summarized. "Pay" means the pay for service in the United States according to grade and length of service, excluding all allowances. "Child" is limited to an unmarried person either under 18 years of age, or incompetent, and includes, under certain conditions, a stepchild, adopted child, and illegitimate child. "Parent" includes a parent, grandparent, and step-parent, either of the person in the service or of the spouse. "Brother" and "sister" include brothers and sisters of the half blood as well as those of the whole blood, stepbrothers and stepsisters, and brothers and sisters through adoption. The bureau on request shall furnish information to and act for persons in service with respect to insurance as may be prescribed by regulation, and may on request keep records of policies, companies, etc. (Sec. 24.) Punishment provided for perjury or fraud. (Secs. 25-26.) ALLOTMENTS AND FAMILY ALLOWANCES (Applies to enlisted men, not to officers.) ALLOTMENT OF PAY (SEC. 201) Allotment of pay, compulsory as to wife (divorced wife in certain cases), compulsory as to child, voluntary as to other persons. Monthly compulsory allotment shall be in an amount equal to family allowances hereinafter specified but not more than one-half pay, or less than $15. The enlisted man may allot any proportion or amount of his pay in addition to the compulsory allotment for such purposes and persons as he may direct, subject to regulations. (Sec. 202.) The Secretary of War and the Secretary of Navy may require that any proportion of one-half pay which is not allotted shall be deposited in the military and naval pay deposit fund for the benefit of the man. (Sec. 203.) Compulsory allotment may be waived on written consent of wife, supported by evidence of her ability to support herself and children. (Sec. 201.) Compulsory allotment may be excused for good cause shown, subject to regulations. (Sec. 201.) FAMILY ALLOWANCE (SEC. 204) A family allowance not to exceed $50, in addition to pay allotted by the man, shall be paid by the United States. Family allowance shall be paid upon application, which may be made by the man, or made by or in behalf of the beneficiary. No family allowance shall be made for any period preceding November 1, 1917. Family allowance will be paid from the time of enlistment, but ceases one month after the termination of the war, or at death in, or one month after discharge from the service. BENEFICIARIES ENTITLED TO FAMILY ALLOWANCE, AND SCHEDULES If the enlisted person is a man. Class A. Wife, child, or children: (a) If there be a wife but no child, $15. (b) If there be a wife and one child, $25. (c) If there be a wife and two children, $32.50, with $5 per month additional for each additional child. (d) If there be no wife, but one child, $5. (e) If there be no wife, but two children, $12.50. (f) If there be no wife, but three children, $20. (g) If there be no wife, but four children, $30, with $5 per month additional for each additional child. Class B. Grandchild, parent, brother or sister: (a) If there be one parent, $10. (b) If there be two parents, $20. (c) For each grandchild, brother, sister, and additional parent, $5. If the enlisted person is a woman.—— Class A. (None.) (d) If there be one child, $5. (e) If there be two children, $12.50. (f) If there be three children, $20. (g) If there be four children, $30, with $5 per month additional for each additional child. Family allowances for class A shall be paid only if and while a compulsory allotment is made to a member or members of such class. (Sec. 205.) Family allowances to members of class B shall be paid only if and while the member is dependent in whole or in part on the enlisted man, and only if and while an allotment of pay is made to a member or members of such class. (Sec. 206.) The total monthly allowance to beneficiaries of class B added to the enlisted man's monthly allotment to them shall not exceed the average sum habitually contributed by him to their support monthly. The commissioner after investigation shall make an award, on which the amount of allotments shall be determined. The commissioner shall have continuing jurisdiction over his awards. The amount of each monthly allotment and allowance shall be determined according to the conditions then existing. (Sec. 210.) COMPENSATION FOR DEATH OR DISABILITY (SEC. 300) Compensation is payable to officers and enlisted men and to members of the Army Nurse Corps or of the Navy Nurse Corps when employed in active service under the War or Navy Department. Compensation shall be payable for death or disability resulting from personal injury suffered or disease contracted in line of duty, unless caused by the person's own willful misconduct. The cost of compensation shall be paid by the United States without contributions from the persons protected. COMPENSATION IN CASE OF DEATH (SEC. 301) To family. The only persons entitled to receive compensation in case of death are the widow, children, and dependent widowed mother of the deceased. The monthly sums payable in each case are stated and are not based upon the pay of the deceased. (a) For a widow alone, $25. (b) For a widow and one child, $35. (c) For a widow and two children, $47.50, with $5 for each additional child up to two. (d) If there be no widow, then for one child, $20. (e) For two children, $30. (f) For three children, $40, with $5 for each additional child up to two. (g) For a widowed mother, $20. The amount payable under this subdivision shall not be greater than a sum which, when added to the total amount payable to the widow and children, does not exceed $75. Compensation to a widow or widowed mother shall continue until death or remarriage. Compensation to a child shall cease at the age of 18, or at marriage, unless the child is incompetent. Funeral allowance.-The United States shall pay burial expenses not to exceed $100. COMPENSATION IN CASE OF TOTAL DISABILITY (SEC. 302) During the continuance of total disability, monthly compensation shall be paid to the injured person. person. (a) If he has neither wife nor child living, $30. (b) If he has a wife but no child living, $45. (c) If he has a wife and one child living, $55. (d) If he has a wife and two children living, $65. (e) If he has a wife and three or more children living, $75. (f) If he has no wife but one child living, $40, with $10 for each additional child up to two. (7) If he has a widowed mother dependent upon him for support, then, in addition to the above amounts, $10. To an injured person who is totally disabled and in addition so helpless as to be in constant need of a nurse or attendant, such additional sum shall be paid, but not exceeding $20 per month, as the director may deem reasonable. For certain specified conditions, or if the injured person is permanently bedridden, $100 monthly compensation is provided. (But no allowance for a nurse shall be made.) COMPENSATION IN CASE OF PARTIAL DISABILITY The amount of compensation in case of partial disability is a percentage of the compensation provided in case of total disability. The percentage is equal to the reduction in earning capacity resulting from the injury. A schedule of disability ratings shall be adopted, based upon average impairments of earning capacity in civil occupations resulting from specific injuries of a permanent nature. PROVISIONS RELATING TO DISABILITY In addition to compensation the United States shall furnish medical, surgical, and hospital services, and supplies. Provision is made for frequent examinations of the disabled. Every person in receipt of compensation shall submit to reasonable treatment. (Sec. 303.) Courses of rehabilitation and reeducation may be provided by the United States. If the following of such a course prevents the injured person from earning a living he must (under penalty of suspension of compensation during refusal) enlist in the service, in which case he receives full pay and his family receives allowances and allotments as above provided, in lieu of compensation while the course continues. (Sec. 304.) The bureau has continuing jurisdiction over compensation cases. (Sec. 305.) CONDITIONS GOVERNING COMPENSATION Death or disability, to be compensable, must occur while in the service or within one year after discharg or resignation. Except that, if the injured person, within one year after leaving the service, shall undergo a medical exami nation and obtain a certificate that he is suffering from an injury likely to cause death or disability, compensation shall be payable whenever death or disability resulting from such injury occurs. (Sec. 306.) Compensation shall not be payable for death in the course of the service until the death be officially recorded in the department under which the person may be serving. No compensation shall be payable for a period in which the man has been reported missing and a family allowance has been paid for him. (Sec. 307.) Death inflicted as a punishment for a crime or military offense is not compensable unless it is inflicted by the enemy. Dishonorable discharge is a bar to any compensation. (Sec. 308.) 311.) Compensation is not assignable and is exempt from attachment, execution, and from all taxation. (Sec Compensation shall not be paid while the person is in receipt of service or retirement pay. Except as rights have heretofore accrued, existing laws providing payments in the event of death in the service and existing pension laws shall not be applicable to persons now or hereafter in the service. Compensation to members of the Army Nurse Corps or of the Navy Nurse Corps is in lieu of compensation under the act of September 7, 1916. (Sec. 312.) WHEN CLAIM MUST BE FILED In case of disability, claim must be filed within five years after discharge or resignation from the service; or if the disability occur after leaving the service, within five years after the beginning of disability. In case of death during the service, the claim must be filed within five years after the death is officially recorded in the department in which the person is serving. In case of death after discharge or resignation from the service, the claim must be filed within five years after death. (Sec. 309.) No compensation shall be payable for any period more than two years prior to the date of claim. (Sec. 310. INSURANCE Insurance against death or total permanent disability is provided by the United States and made availabl to every officer and enlisted man and to members of the Army Nurse Corps and Navy Nurse Corps wher employed in active service under the War and Navy Departments. Insurance must be in multiples of $500 and not less than $1,000 or more than $10,000. Insurance must be granted upon application to, and payment of premium to, the bureau. Insurance must be applied for within 120 days after enlistment and before discharge or resignation from the service. Persons who are in active service at the time of the publication of terms and conditions may apply at any time within 120 days thereafter, while in service. (This period expires February 12, 1918.) AUTOMATIC INSURANCE Any person in active service on or after the 6th of April, 1917, is insured automatically until February 11 1918, unless he has applied for insurance to take effect at an earlier date. The protection thus given is against death and against total permanent disability occurring, while in activ service, from April 6, 1917, to February 12, 1918, inclusive. If the insured person die, without having become so disabled, during the period stated, monthly installment of $25 each will be paid his wife, child, or widowed mother. These installments are payable to the wife duri her widowhood or to the child or widowed mother while they survive him, but not more than 210 installmen shall be so paid. If the insured person becomes totally and permanently disabled during the period stated he will receive income payable in monthly installments of $25 each during disability. If he die, like installments are payab to the wife during her widowhood or to the child or widowed mother while they survive him, but not more th 240 installments less the number of installments that may have been paid to the insured while disabled shall so paid. (Sec. 401.) INSURANCE DETAILS Insurance shall not be assignable or subject to claims of creditors of the insured or of the beneficiaries. Insurance shall be payable only to a wife or husband, child, grandchild, parent, brother, or sister of the injur or to himself. (Automatic insurance is payable only to a wife, child, or widowed mother.) Insurance shall be payable in 240 monthly installments, except that in the case of total permanent disabili monthly installments will be continued throughout the duration of disability. Provisions for endowment, continuous installments, surrender values, dividends, etc., as may be reasonab may be provided by regulation. The insured has the right to change the beneficiary without consent, but only within the permitted class If no beneficiary within the permitted class be designated by the insured, either in his lifetime or by his will and testament, or if the designated beneficiary does not survive the insured, the insurance (or if any be ficiary survives the insured but does not receive all the installments, then the remaining installment shall payable to such person or persons, within the permitted class of beneficiaries, as would under the laws of the State of the residence of the insured be entitled to his personal property in case of intestacy. If no such person survive the insured, then there shall be paid to the estate of the insured an amount equal to the reserve value, if any, of the insurance at the time of his death. (Sec. 402.) The United States shall bear the expense of administration and the excess mortality and disability cost resulting from hazards of war. Premium rates shall be net rates, based upon the American Experience Table of Mortality, and 31⁄2 per cent interest. Such rates do not include any provision for expenses. (Sec. 403.) During the period of the war and for five years thereafter, unless sooner converted, the insurance shall be term insurance for successive terms of one year each. For five years after the termination of the war the insured shall have the right to convert this term insurance into any of the usual forms of insurance at the net premium rate for such forms of insurance. No medical examination can be required as a condition of converting the insurance. Unless the privilege of conversion is exercised the insurance can not be continued after the expiration of the 5-year period. To carry out the privilege of conversion, ordinary life insurance, 20-payment life insurance, endowment maturing at age 62, and other usual forms of insurance shall be provided. Premiums shall not be required for more than one month in advance and may be deducted from the pay or deposit of the insured. (Bulletin No. 3) FAMILY ALLOWANCES, ALLOTMENTS, COMPENSATION, AND INSURANCE FOR THE MILITARY Explanation submitted by Hon. Julian W. Mack, of the provisions of the military and naval insurance act, presented at a conference of officers and enlisted men of the Army and Navy, held in Washington on October 16, 17, and 18, 1917. This explanation has the full approval of the Bureau of War Risk Insurance. WILLIAM C. DE LANOY, Director. Approved: W. G. MCADOO, Secretary of the Treasury. SCOPE AND MEANING OF ACT OF OCTOBER 6, 1917, PROVIDING FOR FAMILY ALLOWANCES, ALLOTMENTS, COMPENSATION, AND INSURANCE FOR THE MILITARY AND NAVAL FORCES OF THE UNITED STATES Hon. Julian W. Mack Hon. JULIAN W. MACK. Mr. Chairman and gentlemen, I think that it would be well for all of you to read through the bill. I assume that very few of you are lawyers, and it may seem to you highly technical. And yet you will have to read it through, and you will have to read it through a great many times, so you might just as well begin right now. While you can not grasp it at a first reading, and probably will not grasp all of the details at a tenth reading-none of us have been able to do that-yet you must thoroughly acquaint yourselves with the words and the interpretation of the act, and with all of the bulletins that are going to be sent out by the bureau explanatory of the act, if you are to perform the duty for which you were called here. The essential purpose of this meeting is to acquaint some men from each cantonment as thoroughly as may be possible in a three days' session, of course relying primarily upon their own efforts to acquaint them with the purpose and scope of this bill, not, however, for their own good, but that they may be torchbearers to their fellows in the various camps and cantonments. It The bureau purposes, of course, sending out literature, but there is nothing like the human touch and the human word personally delivered to bring to men a message such as this, for it is a real human message. aims to do justice to the men. The underlying thought of the framers of this act, the underlying thought of the Secretary of the Treasury in advocating this act, and the underlying thought of Congress in enacting the law in the shape in which it has emerged, has been this: That a fair and reasonable measure of justice to the men and to their families is the least that is due them from the entire people represented by the Government. And it is that thought that we are going to endeavor to bring home to you, that thought which we hope through you to bring home to every man in the military or naval forces of the United States; because unless the men thoroughly understand the fundamental principle of this act, they will not take advantage, as we want them to take advantage, of all of the benefits and privileges that the act grants to them. Now, gentlemen, I have the one distinct purpose of trying as best I may to acquaint you with this law, acquaint you with it fully, and then to answer the doubts and difficulties that will naturally present themselves to you. It is not at all easy to grasp a law that covers so many different things as this does and that is so detailed in its provisions as this necessarily had to be. And yet it is absolutely essential for you to understand not only the broad outline but every single detail of most of the sections of the act. But before starting on an explanation of the law it behooves me without the slightest degree of undue humility to say that the remarks that were made about me this morning as to my connection with the law were greatly exaggerated. I do not underestimate them at all. I deem it the greatest opportunity, the greatest privilege of my life, to have been given this opportunity to do my bit toward the war service in this particular constructive way. But it is not my law at all; I was only one of many. Happening to be selected as chairman of a committee, naturally I had to guide the drafting of the measure and the piloting of it through Congress. But a great many had a larger or smaller share in the work; it is no one man's law, and no one man's name ought |