National Service Life Insurance–Veterans Affairs Life Insurance (VALife) Program
Final rule.
CFR Part: "38 CFR Part 8"
RIN Number: "RIN 2900-AR53"
Citation: "87 FR 73652"
Page Number: "73652"
"Rules and Regulations"
Agency: "
SUMMARY: The
DATES: This final rule is effective
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION: On
Executive Orders 12866 and 13563
Executive Orders (E.O.) 12866 and 13563 direct agencies to assess the 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). E.O. 13563 (Improving Regulation and Regulatory Review) emphasizes the importance of quantifying both costs and benefits, reducing costs, harmonizing rules, and promoting flexibility.
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 would generally be small business neutral as it implements statutory provisions that only allow
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 the expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of
Paperwork Reduction Act
This final rule includes provisions constituting new collections of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521) that require approval by the
Assistance Listing
The Assistance Listing number and title for the program affected by this document is 64.103, Life Insurance for Veterans.
Congressional Review Act
Pursuant to Congressional Review Act) (5 U.S.C.
List of Subjects in 38 CFR Part 8 Life insurance, Veterans.
Signing Authority
Assistant Director,
For the reasons stated in the preamble, the
PART 8--NATIONAL SERVICE LIFE INSURANCE
1. The authority citation for part 8 continues to read as follows:
Authority:38 U.S.C. 501, 1901-1929, 1981-1988.
2. Amend
a. Revising paragraph (e); and
b. Adding paragraphs (f), (g), and (h).
The revision and additions read as follows:
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(e) What does the term "guardian" mean? The term guardian means any state-appointed guardian or conservator, attorney-in-fact, or
Note 1 to paragraph (e): If a
(f) What does the term "
(g) What does the term "application for VALife" mean? The term application for VALife means a properly completed application form submitted online or through another medium prescribed by the Secretary.
(h) What does the term "beneficiary" mean? The term "beneficiary" means a principal or contingent beneficiary designated by the insured.
3. Amend
a. Revising the section heading and paragraph (a);
b. In paragraph (b), adding Note 3;
c. In paragraph (c) introductory text, removing the word "Yes," and adding in its place "For insurance other than VALife,".
The revision and addition read as follows:
(a) What is the effective date of the policy? The effective date is the date policy coverage begins. Benefits due under a policy issued under section 1922(a) are payable any time after the effective date. Benefits due under a policy issued under section 1922B are payable any time two years after the effective date.
(b) * * *
Note 3 to paragraph (b):If you apply for insurance coverage through an electronic medium, the date of delivery of the premium payment will be the date you authorize payment of the initial premium. In cases where the authorization does not result in the required premium payment because there were insufficient funds to cover the full initial premium, the delivery date of the premium payment will be the date your full initial premium is received by
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4. Amend
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(e) What happens if a policyholder enrolled in VALife dies, surrenders or cancels coverage during the two-year enrollment period? If a policyholder enrolls in VALife for an amount less than the statutory maximum and elects to apply for additional coverage at a later date and dies before completing the two-year waiting period for the additional VALife coverage amount, the beneficiary shall be refunded premiums that were paid for the additional VALife coverage, plus interest, in accordance with 38 U.S.C. 1922B(c)(3)(A). If a policyholder surrenders or cancels a VALife policy during the two-year waiting period imposed by 38 U.S.C. 1922B(c)(2) before coverage is in force,
5. Revise
(a) If the last day of a time period specified in
(b) For VALife, the premium will be determined using the age of the veteran at his or her nearest birthday on the effective date of the policy.
(c) For purposes of determining a veteran's eligibility for VALife under 38 U.S.C. 1922B(a)(3)(A), the age of the veteran at his or her last birthday prior to the date of application will be used.
(d) For purposes of determining a veteran's eligibility for VALife under 38 U.S.C. 1922B(a)(3)(B), with respect to a veteran who has attained 81 years of age, an initial grant of service connection for a new or secondary condition for which the veteran applied for disability compensation before attaining 81 years of age will satisfy the eligibility criteria; however,
6. Amend
a. Revising the section heading;
b. In paragraph (a), in the first sentence, removing the phrase "Any policy" and adding, in its place, the phrase "Subject to paragraph (e), any policy"; and
c. Adding paragraph (e).
The revision and addition read as follows:
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(e) Coverage issued under VALife that lapses for non-payment of premiums may only be reinstated if the former policyholder submits all premiums in arrears from their respective due dates, plus interest, to reinstate the coverage within two years of the date of the lapse and has not yet reached age 81.
(
7. Amend
(a) * * *
(3) Issued under sections 1904(c), 1922(a), and 1922B of title 38 U.S.C.
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8. Amend
a. Revising the section heading;
b. In paragraph (a), adding a sentence at the end of the paragraph:
c. In paragraph (b), removing "Upon" and adding, in its place, "For insurance other than VALife, upon"; and
d. Adding paragraphs (j) and (k).
The revision and additions read as follows:
(a) * * * This paragraph shall not apply to VALife.
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(j) Cash values that accrue for VALife will be developed using a multiple of the 1941 Commissioners Standard Ordinary Mortality Table and an interest rate of 3.5 percent per annum. Cash values will not accrue and will not be payable until the completion of the two-year waiting period imposed by 38 U.S.C. 1922B(c)(2). If a VALife policy lapses or is surrendered before completion of the two-year waiting period, then any amounts that
(k)
(
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9. Amend
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(e) For VALife,
10. Amend
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(d) VALife shall not be extended automatically as term insurance until the insured has paid the required premiums during the two-year waiting period that is imposed by 38 U.S.C. 1922B(c)(2) before VALife coverage is in force.
11. Amend
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(b)
12. Amend
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(b) If a beneficiary has been determined to have intentionally and wrongfully killed the insured, the provisions found in 38 CFR 9.5(e) shall be followed.
13. Add
An insured under a
(Authority: 38 U.S.C. 501, 1901-1929, 1981-1988)
(
14. Add
An insured who elects less than the maximum amount of VALife coverage under 38 U.S.C. 1922B(a)(4)(A) shall remain eligible to purchase additional VALife coverage up to the VALife statutory maximum. Any insured who elects to apply for additional VALife coverage shall be subject to the two-year waiting period imposed by 38 U.S.C. 1922B(c)(2) before such additional VALife coverage is in force.
(Authority: 38 U.S.C. 501, 1901-1929, 1981-1988)
(
[FR Doc. 2022-25426 Filed 11-30-22;
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