Servicemembers’ Group Life Insurance–Veterans’ Group Life Insurance Regulation Update–ABO, VGLI Application, SGLI 2-Year Disability Extension
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Final rule.
CFR Part: "38 CFR Part 9"
RIN Number: "RIN 2900-AO74"
Citation: "79 FR 44297"
"Rules and Regulations"
SUMMARY: This document amends the
DATES: Effective Date: This rule is effective
Applicability Dates: In accordance with the statutory provisions, the applicability dates for the amendments in this final rule are as follows: Under Public Law 111-275, the amendments to 38 CFR 9.2 and 9.5 regarding the SGLI 2-year disability extension are applicable for servicemembers discharged on or after
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION: Title IV of the Veterans' Benefits Act of 2010, Public Law 111-275, 124
38 CFR 9.2 and 9.5
Section 402 of the Act amended 38 U.S.C. 1968(a) by extending the duration of the SGLI disability extension period to 2 years from the date of an insured servicemember's separation or release from duty. Prior to enactment of the Act, the 2-year disability extension period was set to expire on
This rule also amends 38 CFR 9.5(d) to change the language that states "1 year" following termination of duty to "2 years" following termination of duty to reflect the fact that the SGLI disability extension period referenced in this paragraph is now 2 years in duration.
38 CFR 9.14
Title 38, United States Code, section 1980, provides for the payment of an ABO under the SGLI and VGLI programs. ABO is a provision of the SGLI and VGLI programs that allows payment to a terminally ill insured, in the amount requested by the insured, up to 50 percent of his or her insurance coverage. Formerly, 38 U.S.C. 1980(b)(1) required that all ABO payments be reduced by an interest deduction, which is the amount that has been actuarially determined to be the amount of interest lost due to the early payment of the insurance proceeds. Section 405 of the Act eliminated the interest reduction for ABO payments. VA is amending the implementing regulation, 38 CFR 9.14(e), to reflect that change. The phrase "minus the interest reduction" and all references to the ABO interest rate reduction are being deleted wherever they appear in 38 CFR 9.14(e).
We are also amending 38 CFR 9.14 by deleting the reproduction of the ABO claim form from the text of 38 CFR 9.14(f)(2). As a matter of policy, VA no longer includes forms in its regulations. This is because routine minor changes are often made to forms independent of the rulemaking process. Requiring the use of the rulemaking process to make minor, non-substantive changes to widely distributed forms is costly in money, time, and the delivery of benefits and serves no useful purpose. Furthermore, the most recent version of any required insurance form can be found on the
Finally, 38 CFR 9.14(f) is being amended to show that the current address for the
38 CFR 9.20
In 2005,
In 2006,
In 2010,
Administrative Procedure Act
Changes made by this final rule merely reflect current statutory provisions and miscellaneous technical amendments. Therefore, in accordance with 5 U.S.C. 553(b)(B) and (d)(3), the Secretary of
Executive Orders 12866 and 13563
Executive Orders 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, when regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, and other advantages; distributive impacts; and equity). Executive Order 13563 (Improving Regulation and Regulatory Review) emphasizes the importance of quantifying both costs and benefits, reducing costs, harmonizing rules, and promoting flexibility. Executive Order 12866 (Regulatory Planning and Review) defines a "significant regulatory action" requiring review by the
The economic, interagency, budgetary, legal, and policy implications of this regulatory action have been examined, and it has been determined not to be a significant regulatory action under Executive Order 12866. VA's impact analysis can be found as a supporting document at http://www.regulations.gov, usually within 48 hours after the rulemaking document is published. Additionally, a copy of the rulemaking and its impact analysis are available on VA's Web site at http://www1.va.gov/orpm/, by following the link for "VA Regulations Published."
Regulatory Flexibility Act
The Secretary hereby certifies that this final rule will not have a significant economic impact on a substantial number of small entities as they are defined in the Regulatory Flexibility Act, 5 U.S.C. 601-612. This final rule will directly affect only individuals and will not directly affect small entities. Therefore, pursuant to 5 U.S.C. 605(b), this final rule is exempt from the final regulatory flexibility analysis requirements of section 604.
Unfunded Mandates
The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C. 1532, that agencies prepare an assessment of anticipated costs and benefits before issuing any rule that may result in an expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of
Paperwork Reduction Act
This final rule contains no provisions constituting a collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521).
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance number and title for the program affected by this document is 64.103, Life Insurance for Veterans.
Signing Authority
The Acting Secretary of
List of Subjects in 38 CFR Part 9
Life insurance, Military personnel, Veterans.
Dated:
Chief,
For the reasons set forth in the preamble, the
PART 9--SERVICEMEMBERS' GROUP LIFE INSURANCE AND VETERANS' GROUP LIFE INSURANCE
1. The authority citation for part 9 continues to read as follows:
Authority: 38 U.S.C. 501, 1965-1980A, unless otherwise noted.
2. Amend
a. Removing "1-year period" and adding in its place "2-year period";
b. In the last sentence removing "initial premium" and adding in its place "initial
c. In the last sentence removing "termination of duty." and adding in its place "termination of SGLI coverage.".
3. Amend
4. Amend
* * * * *
(e) How much can you receive as an Accelerated Benefit? You can receive as an Accelerated Benefit the amount you request up to a maximum of 50% of the face value of your insurance coverage.
(f) How do you apply for an Accelerated Benefit? (1) You can obtain an application form by writing the
(2) As stated on the application form, you will be required to complete part of the application form and your physician will be required to complete part of the application form. If you are an active duty servicemember, your branch of service will also be required to complete part of the form.
* * * * *
5. Amend
a. In paragraph (b)(1) introductory text, removing "occurring--", and adding in its place "occurring on or after
b. Removing paragraphs (b)(1)(i), (b)(1)(ii), (b)(2)(i), and (b)(2)(ii).
c. Redesignating paragraph (b)(3) as paragraph (b)(2).
d. In paragraph (d)(1), removing "
[FR Doc. 2014-17900 Filed 7-30-14;
BILLING CODE 8320-01-P
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