February 13,1979 M29-I, Part II\
Change 15

CONTENTS

CHAPTER 16. FILE MAINTENANCE

PARAGRAPH PAGE

SUBCHAPTER 1. RECONCILIATION

16.01 Reconciliation of Allotment(Deduction Control Records With the
Service Departments\
and the Hines Data Processing Center 16-1

1 6.02 Reconciliation of the Allotment/Deduction Control Records With
the Insurance\
Master Records 16-1

16.03 Reconciliation of Off-Tape Indebtedness 16-4

16.04 Reconciliation of Disability Waiver Accounts-(How Paid 5) With
Certain Insurance Award\
Master Records 16-5

16.05 Reconciliation of Total and Permanent Disability Awards . 16-7\
SUBCHAPTER 2. RECONSTRUCTION OF RECORDS\
16.06 General 16-8\
16.07 (Deleted)\
16.08 Reconstruction of Folders - 16-9\
16.09 Original Folder Found 16-10

SUBCHAPTER 3 **FILING** OF FORMS AND CORRESPONDENCE **IN** THE INSURANCE
FOLDER

16.10 Filing of Unnecessary and Duplicate Material 16-10\
16. ll Filing of Record Printouts 16-10\
16.12 Filing of Documents and Correspondence 16-12

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May 15,1972 M29-1,Part II\
Change 7

\[CHAPTER 16. FILE MAINTENANCE

SUBCHAPTER 1. RECONCILIATION

16.01 RECONCILIATION OF ALLOTMENT/DEDUCTION CONTROL RECORDS WITH THE
SERVICE

DEPARTMENTS AND THE HINES DATA PROCESSING CENTER

a\. The allotment/deduction control records are reconciled annually with
the insurance allotment/deduction records of the Army, Army Retired, Air
Force, Navy, Marines, Coast Guard, and the Hines DPC(data processing
center). A match is made on social security or service serial number
when reconciling with the service departments, and on claim number when
reconciling with the Hines DPC. A comparison is made on name (first
three digits of surname), effective dates of allotment or deduction, and
monetary amounts. On deduction cases, no comparison is made on name.

b\. When discrepancies occur, reject cards are produced for both the
allotment/deduction control records and the service department and Hines
DPC records. An error listing is printed of all discrepancies for use by
the Philadelphia VA center; the service departments, and Hines DPC.
Error listing and reject cards for allotment accounts are used by the
Philadelphia VA center only. DFB account discrepancies are resolved by
the Hines DPC.

16.02 RECONCILIATION OF THE ALLOTMENT/DEDUCTION CONTROL RECORDS WITH THE
INSURANCE MASTER RECORDS

a\. The reconciliation of the allotment/deduction control records with
the insurance master records is accomplished periodically in run 730.

b\. An error listing is printed when there are discrepancies between the
allotment/deduction control file and the master record file. This
listing will show the following types of discrepancies:

\(l\) Control file records which do not match the insurance master
records on file number or file number prefix (code OS-CTRL).

\(2\) Control records and insurance master records which do not match on
money (code AMT), total premiums (code PREM), and effective date of
allotment/deduction (code DAT).

c\. In addition to the listing of discrepancies, the following are
produced:

\(l\) RPO\'s (Record printouts) requests when there are non matches
between the control records and insurance master records on file number,
money, total premium, or effective date of allotment/deduction.

\(2\) Pre punched input cards for run 140 to correct a non match on
claim, service or social security number.

\(3\) Pre punched input cards for runs 160/170 to correct a non match on
name code.

\(4\) Punched cards if the control file records do not have insurance
file numbers (code OS-CTRL), or the insurance master records indicate
how paid 3 or 6, but do not match control records (code OS-MAST). These
punched cards will be merged and sorted by claim, service or social
security number order, and by branch of service or regional office. A
listing will also be prepared.

d\. The sequence of the edit in run 730 is as follows:\
(l) File Number Error Type OS\
(2) Money Fields Error Type AMT

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M29-1, Part II May 15, 1972

Change 7

\(3\) Total Premium Error Type PREM\
(4) Claim, Service Number or Social Security Number Error Type COS\
(5) Effective Date of Deduction Error Type DAT\
(6) Name Code Error Type NAM\
*1* Does not apply to DFB accounts.

e\. When a non match or discrepancy is located during the run, it is
listed. Edits for other non match or discrepancy items on the same
account are not made. When correcting a specific item, check the
reconciliation discrepancy listing for other non matches or
discrepancies according to the sequence of edit. For example: If the
listing shows a non match on money (error type AMT), the line listing
will be checked for a non match on total premium, claim, social security
number or service number, effective date of deduction, and name code.

f\. Processing of the reconciliation discrepancy listing. When the
listing is received it will be referred by the Policy Service Unit
Supervisor to the Miscellaneous Accounts and Service Unit. The
Miscellaneous Accounts and Service Unit will check the pending file of
RPO\'s (cash surrenders, matured endowments and death cases) and the
pending allotment/deduction files for items matching the code OS-CTRL
entries on the listing. The listing will be noted accordingly and
returned. The Policy Service Sections will take action to correct non
match or discrepancy items as follows:

\(I\) Non match on File Number (Error Type OS)

\(a\) Run 730 will produce RPO requests for these discrepancies. The
legend 7304 will appear in the upper right corner of the RPO for
identification and association purposes. One-line items from the
*control tape* with a file number (OS-CTRL) which does not match a
master record will be processed as follows:

i\. Request insurance folder and an RPO.

[2]{.underline}. Examine the records to find out why deductions are
being currently received and why there is a non match with a master
record.

[3]{.underline}. When error is located, take corrective action. This may
consist of refunds, full insert of account to tape, or request to a
service department or a regional office for adjustments.

NOTE.- No action is required if Miscellaneous Accounts and Service unit
has a delete RPO control (XC, cash surrender or ME (matured endowment)).

\(b\) Although the file number agrees some two-line items do not match
because the file prefix on the control tape differs from the file prefix
on the master record. Assume the master record is correct and prepare a
VA Form 29-5923, Allotment/DFB Input Card to Run l60, to change the
control tape.

\(2\) Non match on Money Fields (Error Type AMT). Run 730 will produce
RPO requests on a non match in money fields. The legend 730\~1 will
appear in the upper right corner of the RPO for identification and
association purposes. The insurance folder, RPO, and reconciliation
listing will be examined to determine the discrepancy.

\(a\) If the listing and/or RPO indicates a change of distribution is
necessary on the control tape for which distribution has previously been
made, prepare VA Form 29\~5923 to correct the distribution.

\(b\) If the listing and/or RPO indicates distribution on the master
record is incorrect, prepare input to correct master record.

16\~2

May 15, 1972 M29-1, Part II\
Change 7

\(c\) If the listing and/or RPO indicates that clerical distribution
and/or adjustment of distribution of pending allotment deductions is
necessary, prepare VA Form 29-5923 to correct as prescribed in MP-6,
part II, supplement No. 2.1, section 124.00.

\(3\) Non match Total Premium (Error Type PREM). Run 730 will produce
RPO requests on this type of discrepancy. The legend 730-2 will appear
in the upper right corner of the RPO for identification and association
purposes. RPO output for this type discrepancy will, for the most part,
be generated for those accounts that have been reviewed, converted,
reduced or changed and the current deduction has not been increased or
decreased to the adjusted premium rate. Process as follows:

\(a\) Obtain the insurance folder and determine the type of action that
resulted in the change in the premium rate. If action was previously
taken to effect the allotment adjustment and the diary date for the
followup action has not been reached, no further action is necessary.

\(b\) If no action was taken to effect the deduction adjustment, or the
diary date for the action previously taken has expired, process the case
as follows:

l\. If the account is being paid by DFB deductions, prepare a VA Form
29-5926, Request for DFB Action, to effect the deduction adjustment.
Diary the case for the 20th day of the month following the current
accounting month.

[2]{.underline}. If the account is being paid by an allotment from
inservice or retired pay, prepare a VA Form 29-1588, Statement of
Allotment Differences or Request for Allotment Action, to effect the
allotment adjustment. Diary the case for 120 days in advance of the
current date.

\(4\) Non match on claim or Service Number (Error Type COS). Run 730 is
programmed to produce input cards for run 140 to correct the claim,
service or social security number on the master record. However, if a
non match on claim, service or social security number is found on the
reconciliation listing, assume that the number shown on the line listing
from the control tape is correct. Prepare VA Form 29-8530,
Life/Miscellaneous, to correct the number in the master record.

\(5\) Non match on Effective Date of Deduction (Error Type DAT). Run 730
will produce RPO requests on this type of discrepancy. The legend 730-3
will appear in the upper right corner for identification and association
purposes. Process as follows:

\(a\) Obtain the insurance folder, associate it with the RPO, and
determine the correct effective date.

\(b\) If the control tape is incorrect, prepare VA Form 29-5923 to
change the control tape record.

l\. For inservice accounts, explain on a VA Form 3230, Reference Slip,
the need for correction and information to be changed, for example:

Deduction Effective (Month and Year)\
Accounting Period (Month and Year)

[2]{.underline}. For DFB accounts, explain on a VA Form 3230, the need
for correction and information to be changed, for example:

Deduction Effective (Month and Year)

Initial Deduction (\$ )

3\. The VA Forms 3230 will be forwarded to the Accounting Section,
Finance and Data Processing Division.

16-3

M29-1, Part II May 15,1972

Change 7

**(c) If the** control tape is correct, prepare input to change or
insert the effective date of DFB or allotment on the master records Take
necessary adjustment action on the next month due, overage, shortage,
etc.

NOTE: Special attention should be given to cases where the initial
deduction pays more than I month •5 premium.

\(6\) Non match on Name Code (Error Type NAM). Run 730 is programmed to
produce input cards for run 160/170 to correct or insert the name code
on the deduction control tape. However, if a non match of the name
**code is** found on the reconciliation listing, prepare a VA Form
29\~5923 to correct or insert the correct name code on the deduction
control tape. If the name code is not similar or is questionable,
examine the insurance folder to ascertain if the deduction has been
associated with the wrong account.

16.03 RECONCILIATION OF OFF-TAPE INDEBTEDNESS

a\. Off-tape indebtedness are liens on inactive accounts which have been
transferred to the Finance and Data Processing Division for maintenance
and liens maintained by the Insurance activity in the Other Indebtedness
file.

**These** indebtednesses are reconciled once each year. The Other
Indebtedness file consists of:

\(I\) Premium and insurance overpayment liens on active term or
permanent plans which are not maintained on the insurance master record
due to lack of space; or liens on inactive policies with participating
policies on tape.

\(2\) USGLI (U.S. Government Life Insurance) statutory liens.

\(3\) Finance indebtedness.

\(4\) Service department indebtedness.

b\. Finance indebtedness are maintained on VA Form 29A878, Deduction
Authorization Card-Finance. Service department indebtednesses are
maintained on blank punched cards. USGLI statutory liens, premium liens,
and insurance overpayment liens are maintained on VA Form 29-1696, Lien
Record Card. RPO\'s on each indebtedness in the Other Indebtedness file
will be requested for an annual reconciliation.

c\. In the reconciliation of all off-tape indebtednesses, the RPO\'s
will be obtained by modifying the 7080, run 700/8 I 0, to generate an
RPO request if the Other Indebtedness indicator is in the master record.
The reason code will be INDBT. **The** Finance and Data Processing
Division will furnish duplicate punched cards for insurance liens
maintained by that facility.

d\. When the RPO\'s are received, they will be matched with the
indebtednesses in the Other Indebtedness file. Where there is an
indebtedness and no matching RPO, a current RPO \`will be requested.
Processing will be as in the annual reconciliation which is outlined in
paragraph 12.02b of this manual.

**e. The** remaining RPO\'s will be compared with the lien punched cards
furnished by the Finance and Data Processing Division. Where an RPO
matches a lien punched card, no action is required if the insurance
account is inactive and there is no active participating policy on tape
for the individual. If the account has been reinstated, prepare a
memorandum to the Finance and Data Processing Division to delete the
indebtedness from their files. Prepare an appropriate input to reinsert
the lien or the Other Indebtedness indicator in the master record.

f\. If a lien punched card exists for which there is no RPO, request the
insurance folder and examine it to determine if the master record has
been deleted from tape as an inactive account.

\(I\) If there is a delete RPO in the insurance folder and no indication
that the lien has been paid, no action is required. If there is
indication that the lien has been paid, prepare a memorandum to the
Finance and Data Processing Division to delete the indebtedness from
their records.

o\.

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February 13,1979 M29-1, Part II\
Change 15

\(2\) If a delete RPO is not in the insurance folder and there is no
indication that the lien has been paid, request a current RPO. If the
lien has not been transferred to the master record, prepare input
documents to insert the Other Indebtedness indicator in the master
record.

g\. If there are any remaining RPO\'s which indicate Other Indebtedness
and there is no record of an indebtedness in the Other Indebtedness
files, or the lien file maintained by the Finance \[activity \] , and no
record of a tax levy, input documents will be prepared to delete the
Other Indebtedness indicator from the master record.

16.04 RECONCILIATION OF DISABILITY WAIVER ACCOUNTS-(HOW PAID 5) WITH
CERTAIN INSURANCE AWARD MASTER RECORDS

a\. \[Every other year a\] reconciliation between the insurance master
records (How Paid 5) and the insurance award master records will be
conducted as follows:

Type of Award Description

3 Matured endowment with a TDIP (total disability income provision)
optional segment

9 USGLI policy with a TDIP or NSLI policy with a TDIP

6 Benefits payable under the T&P (total and permanent) disability
provision of a USGLI policy, or benefits payable under the TDIP when the
insured is also totally and permanently disabled -

b\. The reconciliation run is scheduled \[ \] in October (of each
even-numbered year\] - It is a tape-to-tape comparison in the 7080, run
930. The inputs are RPO image tapes from runs 810 (insurance master
record) and 270 (insurance award master record).

c\. The tape fields listed below are edited, and RPO\'s are generated
for clerical analysis if certain conditions are not met. If, upon
examination of the records, an overpayment in insurance benefits is
detected, a lien will be placed against the insurance proceeds and the
insured will be requested to pay the indebtedness. If an underpayment is
detected, necessary action will be taken to pay any amount due and
correct future payments.

\(l\) File number, file prefix, policy number, and policy prefix. When
there is no match between an insurance master record and an insurance
award record, RPO\'s are generated for each master record, or award
record reason code INOMA. Clerical examination is required to determine
why there is no matching record.

\(a\) If there is no match because an endowment plan has matured and the
insurance master record has been deleted from tape, a review of the
insurance folder is not required as these cases are periodically
reviewed by Insurance Claims Section personnel. **The** paper diary file
in the Insurance Claims Section will be checked to ascertain that a
diary for the case is in file.

\(b\) If there is no match because of the death of the insured or the
transfer of the insurance records, the Finance \[activity\] will be
advised.

\(c\) When there is no match because of a difference in file number,
file prefix, policy number, or policy prefix, the correct number or
prefix will be determined. If the discrepant condition is in the
insurance master record, input documents will be prepared to delete and
reinsert or correct the insurance master record. If the discrepant
condition is in the insurance award master record, the material will be
referred to the Finance \[activity\] -

\(d\) If there is no match because of failure to process a stop payment
notice, and only an insurance award master record is in the
reconciliation, the records will be examined for the possibility of an
overpayment.

16-5

M29-1, Part II **February** 13, 1979

Change 15

\(2\) Competency. If the insurance master record and the insurance award
master record do not indicate the same condition (competent or
incompetent), RPO\'s are generated for each record, reason code 2DINC. A
review of the insurance folder is required to determine if the insured
is competent or incompetent.

\(a\) If the insurance master record requires correction, input
documents will be prepared to insert or delete

the incompetency indicator from that record.

\(b\) If the insurance award master record requires correction, the
material will be sent to the Finance \[activity\].

\(3\) Guardian. If the insurance master record and the insurance award
master record do not indicate the same condition (guardian appointed or
guardian not appointed), RPO\'s are generated for each record, reason
code 3DGUA. A review of the insurance folder is required to determine if
the insured has a guardian and if the name and address of the guardian
are the same in both the insurance master record and the insurance award
master record.

\(a\) If the insurance master record requires correction, prepare input
documents to make the necessary correction.

\(b\) If the insurance award master record requires correction, the
material will be sent to the Finance \[activity\].

\(4\) Appropriation Reimbursable. When disability insurance benefits are
payable under a TDIP attached to a V policy or a TDIP attached to a K
policy, the NSLI or USGLI fund is reimbursed by transfers of money from
the Military and Naval Appropriation if total disability is traceable to
the extra hazards of military or naval service. The NSLI fund is also
reimbursed for the cost of waiver of premium. The USGLI fund is not
reimbursed for the cost of waiver of premiums unless the policy was
reinstated or replaced under 38 U.S.C. 781. When an insurance award is
entered on the pending tape, a reimbursable code, as indicated below, is
inserted in the master record.

Code Description

0 Indicates a decision has not been \[made\] by the Extra Hazards
Committee.

1 Indicates that death or disability is not due to the extra hazards of
military or naval service.

2 Indicates that death or disability is due to the extra hazards of
military or naval service.

4 Indicates that a decision as to extra hazards is not applicable (H,
\[RH\], RS/W, J, JR, JS).

The edit in the reconciliation run is made on the compatibility of the
reimbursable codes. If the insurance master record indicates the fund is
reimbursable, the insurance award master record is edited for a code 2.
If the insurance master record does not indicate that the insurance fund
is reimbursable, the insurance award master record is edited for a code
0, 1 or 4. lf there are discrepancies, RPO\'s are generated for each
master record, reason code 4DARE. No provision has been made to suppress
RPO\'s on K policies even though the discrepancy in the reimbursable
status is a correct condition. A review of the insurance folder is
required to determine if the reimbursement information is correct in the
insurance master records and the insurance award master record.

\(a\) If the insurance master record requires correction, prepare input
documents to make the necessary correction, and prepare any accounting
documents that may be required.

\(b\) If the insurance award master record requires correction, the
material will be sent to the Finance \[activity\].

\(5\) Variance in Funds and Controls (NSLI). The TDIP fund code on the
\$ l0 provision in the insurance master record should be 1(V), 2 (RS), 6
(W) or 7 (J) and match the policy fund code. On the \$5 provision,

16-6

February 13,1979 M29-1 Part II\
Change 15

the **TDIP** fund code does not have to match the policy fund code A V
policy may have a **TDIP** fund code of 1 or 4 and an H policy may have
a TDIP fund code of 4 or 1. The insurance awards master record will show
an accounting control of 1 indicating that the TDIP and policy fund
codes match or an 8 indicating that they do not match. In the
reconciliation run, the accounting control is edited for a 1 if the TDIP
and policy fund match or an 8 if they do not match. If a match is not
made, RPO\'s are generated for each master record, reason code 5DACO. A
review of the insurance folder is required to determine if the fund code
is correct.

\(a\) If an error exists in the insurance master record, input documents
will be prepared to correct the error.

\(b\) If an error exists in the insurance award master record, the
material will be sent to the Finance \[activity\] -

\(6\) Insurance Benefits Payable. If the insurance master record shows a
\$5 TDIP benefit, the insurance award master record should show a 4 as
the type of TDIP. On the \$10 TDIP benefits, the insurance award master
record should show a code 5 or 8. If these conditions do not exist,
RPO\'s are generated for each record, reason code 6DIBP.

\(a\) If an error exists in the insurance master record, input documents
will be prepared to correct the error.

\(b\) If an error exists in the insurance award master record, the
material will be sent to the Finance \[activity\].

\(7\) Amount. The amount of insurance in the insurance master record
should equal the amount of TDIP insurance in the insurance award master
record. An exception to this is when a USGLI policy has been rerated and
the original amount of total disability was restored. If the amounts are
different, RPO\'s are generated for each record, reason code 7DAMT.

\(a\) If an error exists in the insurance master record, input documents
will be prepared to correct the error.

\(b\) If an error exists in the insurance award master record, the
material will be sent to the Finance \[activity\].

\(8\) Pending Award. A pending award master record is automatically
established when the insurance master record has TDIP segment and the
how paid code is changed to 5, disability waiver. When there is a
pending award master record, RPO\'s are generated on **that** record and
the insurance master record, reason code 8DPN. Other items are not
edited. Examine the records to determine if any action should be taken.

\(9\) Office of Jurisdiction. lf the office of jurisdiction on the
insurance master record differs from the office of jurisdiction on the
insurance awards, RPO\'s are generated, reason code 9DKOF. Make the
necessary corrections.

16.05 RECONCILIATION OF TOTAL AND PERMANENT DISABILITY AWARDS

a\. When disability benefits payable are based on T&P disability, the
7080, run 270, will generate punched card requests for VA Form
\[4\]-456, Insurance Award Record Printout, for a reconciliation of type
6 awards which is made every \[ \] year **\[in** September and will
include all cases in which the date of first payment is 13 months prior
to September of the current year\]. Type 6 awards are either benefits
payable under the T&P disability provision of a USGLI policy or benefits
payable under the total disability provision when the insured is also
totally and permanently disabled. However, type 6 awards with the rider
are included in the How Paid 5 reconciliation.

b\. Record printouts will be obtained from the punched card requests.
Insurance folders will be obtained and examined to determine if the
records will show the policyholder totally disabled. The folder will
also be examined to determine if the appropriate entries are on the
insurance award record printout and if the information is correct. The
following fields of the life segment will be examined:

\(1\) File and Policy Number.

\(2\) Name and Address. The name of the payee will be reviewed for
correctness.

\(a\) If the payee is the guardian of an incompetent insured, entries
should be in the Payee Incompetent and Fiduciary Appointed block of the
life segment.

16-7

M29-1, Part I1 February 13,1979

Change 15

\(b\) If the payee is an attorney who is receiving a share of the award
as a result of a court decision, an entry should be in the Payee Is
Attorney block. In these cases, there should also be an insurance awards
master record for the insured with an entry in the Part Award to
Attorney block in the award segment. If the attorney dies while the
insured is receiving T&P benefits, the attorney\'s share \[of\] the
award payments is payable to the heirs.

\(3\) Claim Number. The claim number should be entered when available.

c\. The following fields in the award segment will be reviewed
clerically:

\(I\) Type of Award. The type of award should be 6.

\(2\) Accounting Control. The accounting control should be l.

\(3\) Reimbursement Control. The reimbursement code on K insurance
should be l indicating that disability is not due to the extra hazards
of military or naval service, or 2 indicating that disability is due to
the extra hazard, or 3 indicating a decision has not been \[made\] - The
reimbursement code on T insurance should be 4.

\(4\) Insurance Amount (Share). This should be the amount of insurance
before deduction of indebtedness from the face amount.

\(5\) Net Amount Settled (Share). This should be the amount of insurance
less indebtedness deducted from the face amount of insurance. When an
indebtedness is deducted, the monthly award amount will be based upon
the reduced amount of insurance until the number of months certain has
been paid and the entry AD 967 will be in the unnamed block in the TDIP
segment. If the insured is still permanently and totally disabled at the
time the guaranteed number of payments has been paid, the monthly award
amount is based upon the amount of insurance prior to the deduction of
the indebtedness.

\(6\) Monthly Award Amount. This should be \$5.75 per \$1,000 insurance.

\(7\) Age at Claim. This should be the age of the insured as of the
effective date of the award.

\(8\) Number Payment Certain. This should be 240 unless there is an
entry in Rerated T&P block.

\(9\) Original Award Effective Date. This should be the date the first
installment was due the insured.

\(10\) Current Award Effective Date. This should be the date the first
installment was due the payee.

(ll) (Deleted.)

\(12\) Date of Last Payment. Each month when payments are made, the
month and year are updated to show the new date for which payment was
made. On abeyance cases when no installments were paid, the date should
be l month prior to the effective date of the award.

SUBCHAPTER 2. RECONSTRUCTION OF RECORDS

16.06 GENERAL

a\. Records will be reconstructed only when insurance protection is
being provided, including extended insurance, or when an application for
reinstatement has been received.

b\. After the Policy Service Section has made a search for the insurance
folder within the section and it cannot be found, \[ \] a memorandum
\[will be prepared\] for the signature of the Chief, Insurance
operations Division, addressed to the Chief, \[Insurance Files Section\]
, requesting a thorough search be made for the insurance folder.

\[c. After making a thorough search, including indexing through BIRLS
(Beneficiary Identification and Records Locator Subsystem), contacting
the appropriate Federal Archives and Records Center, and searching the
VA center without finding the insurance folder, a memorandum signed by
the Chief, Insurance Files Section, will be sent to \~\~

16-8

February 13, 1979 M29-1, Part II\
Change 15

the Chief, Insurance Operations Division, furnishing the results of the
search and by whom it was conducted. The memorandum will also state the
circumstances involved in the loss of the folder; i.e., to whom the
folder was last charged, the date of that charge, and whether there is
file material in a charge-out jacket which would indicate the last
action taken. Upon receipt of the memorandum, the Chief, Insurance
Operations Division, will review the facts.

\(1\) If further search by the section last having the folder is
warranted, the memorandum will be referred to that section for another
search. The memorandum will be endorsed by that Chief, reflecting what
searching was accomplished and the results.

\(2\) If the results of all searches are negative, the Chief or
Assistant Chief, Insurance Operations Division, will endorse the
memorandum to the Chief, Policy Service Section, authorizing approval to
reconstruct the folder, or the memorandum will be returned to the Chief,
Insurance Files Section, for further search.\]

16.07 \[(Deleted.)\]

16.08 RECONSTRUCTION OF FOLDERS

a\. When the authority to reconstruct the insurance folder is received,
the Policy Service Section will prepare the jacket for the reconstructed
record as follows:

\(l\) Enter the file number in the upper left corner.

\(2\) Enter the insured\'s name, last name, first name and middle
initial after the file number.

\(3\) Enter RECONSTRUCTED RECORD on the upper right side of the short
flap of the folder.

b\. If the account is on the master record, the RPO will be examined for
a beneficiary reel number. If it contains a reel number, a photocopy of
the designation will be obtained from the security film and filed in the
reconstructed folder. If the RPO does not contain a beneficiary reel
number or if the copy obtained from the security film is not current (2
years or more old), a VA Form 29-336, Designation of Beneficiary and
Optional Settlement, will be sent to the insured with a request that a
current designation be submitted. The insured will not be informed that
his or her insurance folder is being reconstructed.

c\. When the account is not on the master record tape and information is
not available from any other source, it may be necessary to obtain a
photocopy of the PRC (Premium Record Card). For information and
instructions on obtaining a photocopy of a PRC, see \[ \] paragraph
27.03b.

d\. It may be necessary to request transaction history information on
some accounts. However, this type of information should not be requested
for a long period of time.

e\. A register will be maintained in the Policy Service Section of all
reconstructed folders. The register will include the following
information:

\(l\) Insurance number and file number.

\(2\) Name of the insured.

\(3\) Amount of insurance involved.

\(4\) Date of the memorandum authorizing reconstruction of the insurance
folder.

\(5\) Date reconstructed folder is released to operating element
concerned.

\[(6) Date original folder is located.\]

16-9

M29-1, Part I1 February 13, 1979

Change 15

16.09 ORIGINAL FOLDER FOUND

\[When the original folder is located, the original and reconstructed
folders will be hand-carried to the Chief, Policy Service Section, for
annotation of the register. All material will be combined and filed in
the original folder.\]

SUBCHAPTER 3. FILING OF FORMS AND CORRESPONDENCE 1N THE INSURANCE FOLDER

16.10 FILING OF UNNECESSARY AND DUPLICATE MATERIAL

a\. Material for which immediate disposal is authorized in the Records
Control Schedule VB-1, part 1, will not be sent to the Insurance \[Files
Section\] for filing.

b\. The following \[are\] guidelines for items that are not to be filed
in the insurance folder:

\(I\) Duplicate copies, except those maintained as official record
copies (including carbon copies of dictated letters that have no record
value).

\(2\) Routing and reference slips that do not contain information of
record value.

\(3\) Envelopes that are of no further value in support of an
application or a claim.

\(4\) Control copies of forms, form letters, correspondence, diary
cards, etc., prepared solely for the purpose of suspense, pending, or
followup action.

\(5\) Correspondence which consists of inquiries and requests for
information about insurance matters and which does not contain any
information of record value, EXCLUDING correspondence which is to be
filed in the insurance folder. Generally, this correspondence is
disposable because it is of an NAN (no answer necessary) nature or
because a form or form letter was prepared in reply to the inquiry. lf a
form or form letter was used for the reply it will be identified in the
right margin of the correspondence. The letter D will also be entered in
red and large enough to cover the correspondence so that it can be
easily recognized as disposable mail. The correspondence will then be
placed in the destroy mail receptacles. Each day the group head or
designee will review the destroy mail to assure that the inquiry was
properly processed and that disposal is in order. lf the proper action
was taken, the reviewing official will dispose of the correspondence in
accordance with Records Control Schedule VB-1, part I.

16.11 FILING OF RECORD PRINTOUTS

a\. VA Forms 29\~5886b, \[ \] Insurance Record Printout, are generated
by the computer system to furnish the latest contractual and accounting
information and mailing address for those accounts on the master record.
Also, they show all pending transactions on the pending tape.

b\. RPO\'s generated with the following reason codes should be filed in
the insurance folder:

**(l) Reason Code** 319. System unable to calculate when indebtedness
will equal or exceed the reserve or change an action or date. Forward
the RPO to computers for manual calculation of critical date. Lift the
policy freeze and file the RPO with clerical calculation in the
insurance folder if critical date is within 15 months.

**(2) Reason Code** 865. (USGLI) Renewal callup date. Account renewed
and insured is age 65 or older. If informed about Endowment at Age 96
plan within last 3 months, destroy RPO in accordance with Records
Control Schedule VB-1, part l. If not, release FL 29-692 with VA Form
29-358a, Application for Exchange to

Special Endowment at Age 96 Plan, attached. Annotate RPO and file in the
insurance folder. 0•

16-10

**September** 13, 1976 M29-1 ,Part II\
Change 13

\(3\) **Reason Code** 869. First notice, 1 year before expiration of
current term period on \"W\" insurance. Policy not eligible for renewal
at end of current term period. Notify the insured, note RPO and file in
the insurance folder.

\(4\) Reason **Code** 870. Final notice, 90 days before expiration date
of current term period on \"W\" insurance. Notify the insured, note RPO
and file in the insurance folder.

\(5\) Reason **Code** 904. Final notice of automatic surrender 1 month
after the surrender date. Note RPO to indicate release of forms as well
as necessary input documents, date, initial and file in the insurance
folder.

\(6\) Reason **Code** 996. **(USGLI)** Insured will reach his or her
65th birthday in 1 month. If insured was informed of the Special
Endowment at Age 96 Plan, destroy RPO. If not informed, release FL
29-646 with VA Form 29-358a attached. Annotate RPO and file in the
insurance folder.

\(7\) Reason **Code** APPPND. Application for disability waiver
received. File RPO in insurance folder.

\(8\) Reason **Code** DLT. Policy deleted from the master record. Not
matured endowment or death claim. File RPO in the insurance folder.

\(9\) Reason **Code** FLD. A policy has been inserted in the master
record or a new life premium amount has been stored in the master
record. The RPO will be filed in the insurance folder.

\(10\) Reason **Code** MELTR. (NSLI only) Endowment policy due to mature
during 6th calendar month following current processing month. System did
not release VA Form 29-8654. Clerically release **the** form letter to
the insured, if appropriate, annotate the RPO and file RPO in the
insurance folder.

\(11\) Reason **Code** RDN. Transaction to correct redundancy (invalid
data) processed. Invalid data was corrected. RPO indicates the status of
the account after clearing of invalid data. File the RPO in the
insurance folder.

\(12\) Reason **Code** REI. Reinstatement automatically processed by the
system under provisions of VA Regulation 3422. File RPO in the insurance
folder.

\(13\) Reason **Code** RV. Tape-to-tape transfer of master record
accomplished in receiving office. File in insurance folder when it is
received.

\(14\) **Reason Code** TV. Tape-to-tape transfer of insurance records at
transferring office. File the RPO in the insurance folder with the RV
RPO.

\(15\) **Reason Code** WTC. Automatic purge of a \"W\" contract
indicating cancellation was processed by the system. Forward RPO for
filing in the insurance folder.

c\. The description of the RPO reason codes in subparagraph b above is
not complete and is furnished only for the purpose of indicating the
kind of RPO\'s that should be filed in the insurance folder. For a
complete description of RPO reason codes, see MP-6, part ll, supplement
No. 1.4, chapter 1.

d\. The following type of RPO\'s will be filed in the insurance folder
after any necessary action has been completed:

\(l\) RPO\'s used in connection with refunds that are routed to Voucher
Audit activity for review.

\(2\) RPO\'s which contain calculations made by the computer clerk or
Policy Service technician that have significant record value.

\(3\) RPO\'s received in connection with nonnegotiable or uncollectible
checks.

16-11

M29-1, Part II **September** 13, 1976

Change 13

\(4\) RPO\'s reflecting an action taken which will not appear on the
transaction history list (e.g. reinstatement under VA Regulation 3422).

\(5\) RPO\'s containing calculations, or instructions for preparation of
**forms or form** letters, if the employee processing the RPO determines
it should be retained.

\(6\) RPO\'s noted to reflect release of forms or form letters **of
record** value.

e\. Operating personnel are responsible for preventing the filing of
unnecessary material in the insurance folders. Particular attention
should be given to RPO\'s attached to other file material to **see**
that they are **removed** prior to filing, if they are not the type that
should be retained for record purposes. An exception to this instruction
is filing material that is too small to file in the folder. Material of
this nature may be attached to RPO\'s even though the reason code is one
which would usually not be filed in the insurance folder. Unnecessary
material will be removed as it is found during routine processing of the
folder. However, folders will not be reviewed for the sole purpose of
removing this type of material.

f\. Requested and generated RPO\'s not meeting the above criteria will
be disposed of in accordance with Records Control Schedule VB-l, part 1.

16.12 FILING OF DOCUMENTS AND CORRESPONDENCE

a\. Official documents, including formal and informal applications will
be filed inside the left flap of the insurance folder. All
correspondence, except informal applications will be filed inside the
right flap of the insurance folder.

b\. When copies of marriage, or birth, divorce decrees or a similar
certificate is received from the insured or a representative indicating
a desire to have them made part of the insurance records, they will be
accepted and filed in the insurance folder.

c\. Such copies of documents will not be perforated, stapled or noted in
any way. They will be filed in the insurance folder in an envelope and
noted to indicate its contents.

I6\~12

August 18, 1977 )

Assistant Director for Insurance (29)

Reconstruction of Records

Chief, Insurance Operationns Division (291)

1\. This will confirm our disussion of August 17 on the above subject.
Effective immediately, a register will be provided the

Policy Service Section which will reflect all reconstructed folders.

2\. In accordance with the provisions of M29-1, Part 2, paragraph
16.08e, the register will contain the following information:

1\) Insurance number and file number

3\) \~0unto\' of insurance i \`uD\'

i4) Date of memorandum autho reconstru of d o the insur folder .\` \` d
id ido D.o

\~\` \`\~5),\' Date reconstruct folder is released to the operating
element involved

; 3. o The pract of havin 1noi\~-\~\~\'\~\~£\~£\~-\~ iui\~\~

SL\'\~\~LiQfl

d e(iue\~iin0gior\~c\~nst\~uction of a folder by means of an over
printed 3230 will be disco. The reconstru of a folder from now
0Th\'e\~\~ only be autho- rized the Chief or Assistan Chief, Insurance
0perations Division.

4\. In the future, when a\'u 00folder cannbi be located, a i d
I\'t0C\'flora0\'h\~()um to the Chief, Insur bperationon DiVdsion\~ will

be prep\<\~r\~\~d by the Chie\"f, insurance files Section. This
m\~\~\~i£\~ooranduri. will state the circumstances involved iD.c the
loss of the folder, i.e., to wh()m1\'0ias \~the. folder last

i c\~1\~1i2:qod, ttlioe date 0f th\'at cI\~rqe, is th\~rei;0 file
material 0£\' o in the charge-o jacket which w0ould indicate last action

taken01 what searching has been done,has a, o\~\~ar\'ch10bee\~n made in.
the Federal Records Center and who cond oot, or) ti\~te 5(:\~harth Upon
reco0ipt of the 0mse\'i;\~ra\~cju\~ma\~ im\~i th\~\~ \~O\'ffiico oo\'if
tlie Cj•iief, insurance O;)erations1 \`\~fl\"ivih\~jon:,00 .t0-h\~
f\'actn In t\'be \`n\'er\~0\~randum will be revics.0ed. if a further\'0
\~\`0eL\'\~\~\'C\~ \`is 0warrante\~s\' by \`the \~£3eetion last having
the folder, tI\~L\~h n\'.eri\~or\~-\~nd\'im \`n15\~i(:)uld b-e

•0

\~.

0 i i i o i i s d 0 i

\~0\~D At

Chief, icsurance 0peration\~ Division (291)

referred to that, S\~\~ttion for further search and ecdorsen5\~ent
reflecting what searchicg was\~accomplishod and the r\~1scltn of t)\~o
search.

5\. if results of all searching are negative, the Chief or Aq•sistant
Chief, inscrance Operationsi Division will endorse th\~o r\'..emornnduw
to the Chief,\' Policy \<3service Section autI\~orizincj approval or
returning the n\'?tmoaand\~rn to the Chief, Insur•\~nee Files Section
for further dearth.

(;. Upon locati0n of the original folder after reconstruction has been
acto\~mplishcd, both foldert will be. I\~acd carried to the Cj\'\~icf,
Polity Service election and annotatioc **of** t)\~e Reconm\~\~trcction
i\~egister.

-GLFjNN C. J0IIN5O\~\~

s i 2.

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