INSURANCE Five resolutions pertaining to Government insurance were adopted, the first of. which reads: "Be it resolved, That no presumption of law arises from a veteran's delay in filing a claim for insurance benefit.' Several Federal courts of superior rank have uttered opinions to the effect that because a veteran delayed some years after the happening of the event upon which he seeks insurance payments, before filing claim, he could not have been totally and permanently disabled. Invariably, when there has been a lapse of some years in the filing of a claim for insurance benefits the defense of laches has been raised by the Government. SPECIFIC LOSS CLAUSE The second resolution on this subject is: "That Congress reinstate the specific-loss clause in all Government insurance policies." Although provision for the maturity of the contract upon the so-called statutory permanent and total disablements are written into the converted insurance policies, this situation is attempted to be covered in term insurance by a regulation of the United States Veterans' Administration. In the case of Madison L. Miller v. The United States, involving this question, the trial court denied payment of the term policy. and upon appeal, the Fifth Circuit Court held the regulation not to be binding upon the courts. This resolution requests legislation whereby the specific loss clause would apply to all Government insurance policies, term as well as converted. The third resolution reads: "Be it resolved, That in order to avoid the defense of fraud in procurement of policies from the United States that the Government should have 2 years in which to determine whether it desires to cancel any policy, and that any policy not canceled within 2 years should be incontestable on the ground of fraud in procurement." The Government insurance contract is incontestable from date of issuance except for fraud, nonpayment of premiums, or because the applicant was not a member of the military or naval forces of the United States. This allows the Government to raise the defense of fraud in the procurement of a policy at any time during the life of the policy. The great majority of the commercial insurance company's policies today carry an incontestable clause after a set time, such as after 1, 2, or 3 years. In addition to being able to raise the question of fraud at any time in the case of Government insurance contracts, the Comptroller General of the United States has ruled that premiums paid to the Government, in cases where fraud in procurement is proved, may not be returned to the policy holder. Another resolution requests "That the Department of Justice be granted the authority to compromise all insurance cases whenever the same are filed." Public, No. 78, Seventy-third Congress, granted this authority as to cases pending in court on March 20, 1933, and this date limitation was placed because it was supposed the Economy Act had repealed all laws pertaining to yearly renewable term insurance. The Supreme Court of the United States, however, in deciding the Lynch and Wilner cases, held the attempted repeal as unconstitutional, but the Department of Justice today has authority only to compromise insurance cases pending in court as of March 20, 1933. This resolution seeks legislation to extend the authority to compromise further suits on term policies and also to compromise suits on converted policies. The fifth resolution reads: COURT COSTS "Be it resolved, That the American Legion, through proper agencies, endeavor to bring about the enactment by Congress of appropriate legislation awarding to successful veterans their court costs arising from suit for recovery of insurance." At the present time the plaintiff must assume the court costs in such suits, even when successful in his suit. WIDOWS AND ORPHANS The American Legion again reaffirmed the fourth point of its four-point program, "That in no event shall the widow and/or dependent children of a deceased World War veteran be without Government protection." The situation in which thousands of dependents of deceased World War veterans will find themselves in the next few years is now more serious and acute due to the fact that thousands of so-called term-insurance payments will expire soon. Practically all veterans took out and paid premiums in the World War on what since has become known as "term insurance." The maximum policy was for $10,000, payable in case of death or total disability in installments of $57.50 a month for 240 months. Only 455 of these policies will expire during the calendar year 1937, but in 1938 a total of 85,561 beneficiaries will receive their final payment under the terms of the insurance contract. The following year there will be 14,805 others also receiving final payments under the insurance policies. The classes of beneficiaries whose payments will cease are as follows: 1 In addition to policies purchased by veterans, Congress approved a later law authorizing several thousand "automatic term insurance" policies to men killed or disabled within 120 days after entering the service but payments were limited to $25 per month. On August 31, 1936, there were in force 594,095 United States Government lifeinsurance policies amounting to $2,590,302,787. The following table shows by fiscal years the number and amount of yearly renewable term and United States Government life insurance in force: With the monthly payment of $57.50 under the term insurance expiring for 67 widows and widowers during the calendar year 1937, for 10,854 during the calendar year 1938, for 300 parents during the calendar year 1937, and 53,530 during 1938, it will be readily seen that some action must be taken to extend Government protection to alleviate the hardships this situation will cause, particularly to the aged and dependent parents of deceased World War veterans. LEGISLATIVE HISTORY OF WIDOWS' AND ORPHANS' ALLOWANCES Following the enactment of the act of July 3, 1930, which provided allowances for World War veterans suffering from disability not connected with service, the Boston convention of the American Legion, October 6 to 9, 1930, adopted a resolution calling upon the Congress to enact legislation for widows and orphans of World War veterans who died of non-service-connected disabilities. In response to this a number of bills to grant such allowances were introduced in the succeeding Congress. These were referred to the Committee on World War Veterans' Legislation of the House of Representatives and a hearing was held on February 13, 1931. As a result a bill was introduced and favorably reported to the House on February 18, 1931. This proposal would have provided an allowance of $26 a month for a widow with one child, with $6 for each additional child. No allowance was provided for a widow without a child. An orphan without a mother would receive $20 a month with $6 for each additional child. It also provided that for a dependent mother or father 65 years of age or over the sum of $15 a month would be paid, or $20 a month for both parents. The veteran must have entered the service prior to November 11, 1918, and have served 90 days during the World War. Under this act, the term "widow" would not include any but those married to the deceased not later than 9 years after July 2, 1921. Subsequent to the favorable report of February 18, 1931, from the World War Veterans' Legislation Committee, the bill was forwarded to the House Rules Committee where a request was made to provide a rule to authorize a House vote upon it. No action was taken, however, and Congress adjourned 2 weeks later without the House having had an opportunity to vote upon the measure. 1932. In 1932, the so-called Rankin bill to provide allowances for the widows and orphans of World War veterans with 90 days' service was reported from the World War Veterans' Legislation Committee on February 1 and was passed by the House on May 2 by a vote of 316 to 16. The Senate Finance Committee declined to hold hearings and the measure failed of enactment. This measure would have provided pensions for widows, without means of support other than her daily labor and an actual net income not exceeding $250 per year, if she was the deceased veterans' wife and living with him not less than 5 years next before his death or who married him prior to January 1, 1925. It would have paid a widow $20 per month; and to a widow with one child $26 per month, with $6 monthly for each additional child. Payments would continue to a child until it reached the age of 16 years, or married, or during incapacity if unable to support itself by reason of mental or physical defect. In cases where no mother was living, the child would receive $20 monthly, with $6 monthly for each additional child. A dependent father or mother, 65 years old or over, would receive $15 per month, or $20 monthly for both parents. 1934-36.-On June 28, 1934, Public Law No. 484 was approved which fulfilled in part the American Legion's mandate on this subject. Again on June 29, 1936, Public Law No. 844 was approved and it enlarged the group of widows and children of World War veterans to whom benefits will be paid following the death of the veteran. Public Law No. 484, Seventy-third Congress, provided: (a) For the surviving widow and child, or children, of the veteran who served in the World War before November 12, 1918, or if with our forces in Russia before April 2, 1920; (b) The deceased veteran must have been receiving, or entitled to receive, compensation, pension, or retirement pay for 30-percent disability, or more, directly incurred in, or aggravated by service in the World War; (c) The veterans' death must have been from a disease or disability not service connected and not a result of his own misconduct; (d) The act does not apply to any person during the year following any year for which such person was not entitled to an exemption from the payment of a Federal income tax; (e) The term "widow" under this act means a person who is married to the veteran prior to July 3, 1931, and who has not remarried; (f) The term "child" means an unmarried person under 18, unless prior to reaching the age of 18 the child becomes, or has become, permanently incapable of self-support by reason of mental or physical defect. Payments under the act are: Widow, no child, $22 a month; widow and one child, $30 a month, with $4 for each additional child; one child (no widow), $15 a month; two children (no widow), $22 a month, equally divided; three children (no widow), $30 a month, equally divided, with $3 for each additional child. |