Service-Disabled Veterans' Insurance

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 8

RIN 2900-AF69

Service-Disabled Veterans' Insurance

AGENCY: Department of Veterans Affairs.

ACTION: Final regulations.

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SUMMARY: This document amends the Department of Veterans Affairs

regulations relating to Service-Disabled Veterans' Insurance (S-DVI)

prefixed ``RH'' (pertaining to life insurance acquired by veterans with

service-connected disabilities) and ``ARH'' (pertaining to gratuitous

life insurance benefits provided to veterans with service-connected

disabilities who are not competent to apply for such insurance) to

reflect that the statute regarding such insurance has been amended by

the Veterans' Benefits Programs Improvement Act of 1991 to provide for

a two-year eligibility period and to provide that ARH gratuitous

insurance benefits must be paid in one lump sum. These amendments are

necessary to conform the regulations to statutory provisions.

EFFECTIVE DATE: September 1, 1991.

FOR FURTHER INFORMATION CONTACT:

Mr. Gregory C. Hosmer, Senior Insurance Specialist/Attorney, Department

of Veterans Affairs Regional Office and Insurance Center, P.O. Box

8079, Philadelphia, Pennsylvania 19101, (215) 951-5710 .

SUPPLEMENTARY INFORMATION: Section 201(b) of the ``Veterans' Benefits

Programs Improvement Act of 1991,'' Public Law 102-86, in part, amended

38 U.S.C. 1922 to increase the S-DVI eligibility period from one year

to two years for veterans found to be eligible for S-DVI on or after

September 1, 1991. Section 202 of Public Law 102-86 amended 38 U.S.C.

1922 to provide that S-DVI ``ARH'' benefits must be paid in one lump

sum. VA, accordingly, hereby amends 38 CFR 8.0 and 8.116 to reflect

these statutory changes. VA has determined that prior publication for

notice and public comment is unnecessary since the amendments merely

reflect statutory changes and are not subject to rule-making

requirements.

The Secretary of Veterans Affairs hereby certifies that these final

regulations will not have a significant impact on a substantial number

of small entities as they are defined in the Regulatory Flexibility Act

(RFA), 5 U.S.C. 601-612. The reason for this certification is that

these final regulations merely reflect statutory changes.

The Catalog of Federal Domestic Assistance Program number for these

regulations is 64.103.

List of Subjects in 38 CFR Part 8

National Service Life Insurance.

Approved: November 8, 1994.

Jesse Brown,

Secretary of Veterans Affairs.

For the reasons set out in the preamble, 38 CFR part 8 is amended

as set forth below:

PART 8--NATIONAL SERVICE LIFE INSURANCE

1. The authority citation for Part 8 is revised to read as follows:

Authority: 38 U.S.C. 501, 1901-1929, 1981-1988, unless otherwise

noted.

2. In Sec. 8.0, paragraph (b)(1)(iii) is revised and an authority

citation added to read as follows:

Sec. 8.0 Eligibility.

* * * * *

(b) * * *

(1) * * *

(iii) Written application for such insurance must be submitted

within two years from the date service connection for any disability as

determined by the Department of Veterans Affairs is established based

on the promulgation of a rating subsequent to discharge. If it is shown

by satisfactory evidence that the applicant was mentally incompetent

during any part of the two-year period, application may be filed within

two years after a guardian is appointed or within two years after the

removal of such mental incompetency, whichever is the earlier date. If

service connection for a disability is based on a rating promulgated

prior to September 1, 1991, then the written application must be

submitted within one year of the date the rating establishing service

connection for the disability was promulgated.

(Authority: 38 U.S.C. 1992)

* * * * *

3. Section 8.116 is amended as follows:

a. In paragraph 8.116(a)(1) the phrase ``1-year'' is removed and

the phrase ``two year'' is added in place thereof. Also in paragraph

8.116(a)(1) the phrase ``(this subparagraph is effective on or after

Jan. 1, 1959)'' is deleted.

b. In paragraph 8.116(a)(2) the phrase ``one year'' is removed and

the phrase ``two year'' is added in place thereof.

c. In paragraphs 8.116(a)(3) and 8.116(b) the phrase ``one year''

is removed and the phrase ``two years'' is added in place thereof.

d. Paragraphs 8.116(d) and 8.116(e) are revised, and paragraphs

8.116(f) and 8.116(g) are removed to read as follows:

Sec. 8.116 National Service Life Insurance granted under section

1922(b) of title 38 U.S.C.

* * * * *

(d) Insurance granted under section 1922(b) shall be payable in one

lump sum.

(e) The right of any beneficiary to payment shall be conditioned

upon his or her being alive to receive such payment. No person shall

have a vested right to insurance granted under section 1922(b) and no

insurance shall be paid to the heirs, creditors, or legal

representatives as such of the insured or of any beneficiary. If no

person within the permitted class survives to receive the insurance or

any part thereof, no payment shall be made.

* * * * *

e. Paragraph (h) is redesignated as paragraph (f), and

f. The following authority citation is added after the newly

redesignated paragraph (f):

(Authority: 38 U.S.C. 1922)

[FR Doc. 94-28605 Filed 11-21-94; 8:45 am]

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