VA Amends Veterans Group Life Insurance Regulation
Targeted News Service |
Servicemembers' Group Life Insurance-Veterans' Group Life Insurance Regulation Update-ABO, VGLI Application, SGLI 2-Year Disability Extension
A Rule by the
Publication Date:
Agency:
Entry Type: Rule
Action: Final rule.
Document Citation: 79 FR 44297
Page: 44297 -44299 (3 pages)
CFR: 38 CFR 9
RIN: 2900-AO74
Document Number: 2014-17900
Shorter URL: https://federalregister.gov/a/2014-17900
Action
Final Rule.
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
[*Federal RegisterVJ 2014-07-31]
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