culation will become a lien against the policy. (7) The provisions of this section may be applied if, on the date of death, the insurance is in force under the extended term insurance provision (§ 6.105) and a policy loan was outstanding on the date of lapse or a dividend deposit balance was included in the cash value as determined at time of lapse. (8) If accrued dividends under paragraph (a)(1) of this section and/or amounts due and payable under paragraph (a)(2) of this section exist in connection with more than one policy of the same veteran and one or more policies lapsed prior to the date of death or date of commencement of total permanent or total disability, the amounts available will be related first to the policy or policies on which they arose if such policy or policies are lapsed. Any amount available under paragraph (a)(1) or (2) of this section which is not required to place in force the policy upon which it arose which is insufficient to place in force the policy upon which it arose, may be combined with similar amounts available on any other policy whenever the total of such amounts is sufficient to place another policy in force. or (9) Where more than one policy is involved and credits are not needed or are insufficient to revive the policy on which the credits arose, the credits will be used insofar as they are sufficient to revive the policy or policies under which the most insurance is payable. (10) No total disability income provision will be considered in force under this section unless it lapsed at the same time as the life insurance contract and both the life insurance and total disability income provision can be considered in force through the same date and benefits are payable under the total disability income provision. An exception will be a paid-infull limited pay contract on which total disability income provision premiums continue to be due and payable. (11) When a total disability income provision lapsed at the same time as the life insurance, the premium for the provision will be considered sepa rately in determining if the amounts available are equal to or in excess of the monthly premiums which have become due. In such a case if the amounts available are sufficient, both the life insurance and the provision will be revived. If the amounts are insufficient for that purpose, they will be applied to revive the policy or policies with the greatest amount payable in death cases or the policy or policies providing the greatest life insurance and total disability benefit in total disability cases. (12) Accrued dividends and/or credits on any policy of U.S. Government or National Service life insurance held by the policyholder may be considered for the purpose of this section. (b) If the sole reason death or total permanent or total disability benefits under a policy of U.S. Government life insurance cannot be granted is that the policy had lapsed, the insurance will be considered in force on the date of death or date of commencement of total permanent or total disability if, (1) The policyholder died or became totally or totally and permanently disabled within 61 days of the due date of the unpaid premiums, and, (2) The policy prior to the lapse had been in force for 5 years or more. In determining in-force status under this subparagraph if the original effective date of the insurance (when necessary, include predecessor contracts involving renewal, conversion or replacement/reinstatement under 38 U.S.C. 781) is 5 years or more earlier than the date of death or date of total or total and permanent disability-and during the 5 years immediately preceding the date of lapse the insurance has not been lapsed at any one time in excess of 6 months, the requirement will be satisfied. When insurance is considered in force under this section the amount of the monthly premium due on the date of lapse and the following monthly premium(s) will become a lien against the policy. (3) The provisions of this section may be applied if, on the date of death, the insurance is in force under the extended term insurance provision (§ 6.105) and a policy loan was outstanding on the date of lapse or a dividend deposit balance was included in the cash value as determined at time of lapse. [33 FR 17915, Dec. 3, 1968] § 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. (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. (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. [14 FR 6856, Nov. 15, 1949, as amended at 24 FR 7320, Sept. 11, 1959; 25 FR 8183, Aug. 26, 1960; 28 FR 1542, Feb. 19, 1963] § 6.21 Authorization for deduction of insurance premiums from compensation, retirement pay, or pension. (c) The authorization may be canI celed 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. 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 FR 7320, Sept. 11, 1959] § 6.22 Premiums to be deducted from compensation, retirement pay, or 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 FR 7320, Sept. 11, 1959] § 6.23 Termination of the authorization to deduct insurance premiums from compensation, retirement pay, or pension. 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 FR 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 FR 9600, Sept. 28, 1962] § 6.25 Waiver of payment of premiums on the due date. Subject to the conditions hereinafter set out, the yearly renewable term insurance and United States Government life insurance shall be deemed not to lapse by reason of the nonpayment of premiums on the due date thereof and unless paid by the insured, payment of such premiums on the due date thereof shall be waived in the cases of the following persons: (a) Those who are confined in a hospital as patients of the Veterans' Administration for a compensable disability during the period while so confined. (b) Those who are rated temporarily totally disabled by reason of an injury or disease entitling them to compensa tion, during the period of such total disability and while they are so rated. (c) Those who are mentally incompetent and for whom no legal guardian has been appointed and who allowed their insurance to lapse while mentally incompetent. An application for waiver shall not be required in such cases and such waiver is to be retroactive to cover the premiums for the period of incompetency. [13 FR 7090, Nov. 27, 1948, as amended at 13 FR 7348, Dec. 2, 1948] § 6.26 Application for waiver of payment of premium on due date. If the privilege of waiver of payment of insurance premiums on the due date thereof is desired by any person whose cases comes within the provisions of § 6.25 (a) and (b) and not within the provisions of § 6.25(c), then written application shall be made by the applicant during his lifetime and such waiver shall not include the premium for any month prior to the month in which the application is made. [13 FR 7090, Nov. 27, 1948] § 6.27 Period covered by waiver of payment of premiums on due date. The waiver of the payment of premiums on yearly renewable term insurance and United States Government life insurance on the due date thereof in accordance with the provisions of Veterans' Administration regulations, shall operate for full calendar months as follows: (a) Beginning with the months of confinement to a hospital as a Veterans' Administration patient for a compensable disability and ending with the last day of the last month during the half or major fraction of which the insured is confined in a hospital as a Veterans' Administration patient for a compensable disability. (b) Beginning with the month in which the temporary total disability rating is made effective and ending with the last day of the last month during the half or major fraction of which the insured is rated temporarily totally disabled. (c) Beginning with the month in which the rating shows the person to have become mentally incompetent and ending with the last day of the last month during the half or major fraction of which the insured continues to be so rated and until the guardian has notified the Veterans' Administration of his qualification, but not later than six months after appointment as guardian. [13 FR 7090, Nov. 27, 1948, as amended at 13 FR 7348, Dec. 2, 1948] § 6.28 Premiums paid while waiver is effective. Where a person entitled to waiver of the payment of insurance premiums on the due date, pays any amount on account of the premiums waived on his insurance, such amount shall not be refunded but his right to waiver of premiums during such period shall not terminate and a new application shall not be required. [13 FR 7090, Nov. 27, 1948] § 6.29 Premiums and interest to be an indebtedness against the insurance. In all cases where the payment of premiums on yearly renewable term insurance and United States Government life insurance on the due date thereof has been waived as provided by §§ 6.25, 6.26, and 6.27, the premium so waived shall bear interest at the rate of 5 percent per annum, compounded annually, from the due date of such premium, and if not paid the amount shall be an indebtedness against the policy to be deducted from the proceeds of insurance in any settlement thereunder or from the cash value when such value is taken in cash or used for the purpose of purchasing paid-up or extended insurance or making a loan: Provided, however, That the unpaid premiums with interest shall not be considered such an indebtedness as is set forth in paragraph 5(D) of the contract of Government converted insurance, or paragraph 8 of the special endowment at age 96 plan policy, to cause the policy to cease and become void if the amount (premiums with interest) is greater than the cash surrender value, so long as premiums are paid by the insured or the payment on the due date thereof is waived by regulations of the Veterans Administration. [27 FR 9600, Sept. 28, 1962] § 6.30 Lapse after expiration of waiver. Yearly renewable term insurance and United States Government life insurance will lapse after the termination of a waiver of the payment of premiums on the due date thereof as provided in § 6.27, if premiums are not paid on the due date or within the grace period of 31 days. [13 FR 7090, Nov. 27, 1948] CALCULATION OF TIME PERIOD § 6.31 Calculation of time period. If the last day of a time period specified in § 6.17a, § 6.18 or § 6.19 or allowed for filing an application for U.S. Government life insurance or for applying for reinstatement thereof, or paying premiums due thereon, falls on a Saturday, Sunday, or legal holiday, the time period will be extended to include the following workday. [33 FR 17915, Dec. 3, 1968] GRACE PERIOD § 6.35 Establishment of grace period. For the payment of any premium under a U.S. Government life insurance policy, a grace period of 31 days without interest will be allowed, during which time the policy will remain in force; but if the policy shall become a claim within the grace period, the unpaid premium shall be deducted from the amount of insurance payable. [36 FR 4382, Mar. 5, 1971] § 6.36 Computation of grace period. For the purpose of § 6.35 the grace period shall be computed to include 31 days from and after the date on which the premium was due. When a payment of premium is mailed the postmark date will be accepted as the date on which the payment was tendered. The monthly premium when paid within the grace period shall continue the insurance in force for the month for which the premium was due. If a premium is not paid before the expira tion of the grace period, the effective date of lapse shall be the due date of the unpaid premium. [33 FR 17915, Dec. 3, 1968] POLICIES § 6.40 Forms of policies. The forms of policies of insurance described and designated in this section are hereby prescribed for use in granting United States Government life insurance. Contracts of insurance authorized to be made in accordance with the terms and conditions set forth in the forms of policies described and designated in this section are subject in all respects to the applicable provisions of title 38, United States Code, amendments and supplements thereto, and all Veterans Administration regulations promulgated pursuant thereto. Ordinary life policy (VA Form 9-741). Twenty-payment life policy (VA Form 9747). Thirty-payment life policy (VA Form 9748). Twenty-year endowment policy (VA Form 9-749). Thirty-year endowment policy (VA Form 9750). year endowment policy (VA Form 9 751). Special endowment at age 96 plan policy (VA Form 9-341). The 5-year level premium term policy (VA Form 9-735) is substituted for the 5-year convertible term policy (VA Form 9-745). Additions to or modifications of said policies may hereafter be made by the Administrator of Veterans Affairs. [27 FR 9600, Sept. 28, 1962] § 6.45 Incontestability of United States Government life insurance. (a) A United States Government life insurance policy shall be incontestable from the date of issuance, reinstatement or conversion, except for fraud, nonpayment of premiums, or on the ground that the applicant was not a member of the military or naval forces of the United States, and the policy is issued free of restrictions as to travel, residence, occupation, or military or |