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

CONTENTS

CHAPTER 38. POLICY ISSUE, ISSUANCE OF REPLACEMENT POLICIES AND TDIP
RIDERS

PARAGRAPH PAGE\
38.01 General 38-I\
38.02 Initial Processing 38-1\
38.03 Computer Processing-Issue and/or Replacement 38-1\
38.04 Clerical Processing-Issue and/or Replacement 38-3\
38.05 Preparation of USGLI Policies 38-5

38-i

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

CHAPTER 38. POLICY ISSUE, ISSUANCE OF REPLACEMENT POLICIES AND TDIP
RIDERS

38.01 GENERAL

a\. Issuance or replacement of an NSLI or USGLI policy may be approved
if the insurance records disclose that the insurance contract is in
force under premium paying conditions, extended term insurance, or
paid-up insurance.

b\. Issuance or replacement of a TDIP (Total Disability Income
Provision) rider may be approved if the insurance records disclose that
the insurance contract to which the disability provision is attached is
in force under premium paying conditions or paid-up insurance, and that
the disability provision is also in force.

38.02 INITIAL PROCESSING

a\. A request for replacement of a policy or TDIP rider must be over the
signature of the insured or legal guardian except as follows:

**(1)** A third party request for a replacement policy may be honored,
provided the policy is mailed to the insured at the latest address of
record. A policy may not be released to a third party without the signed
consent of the insured.

**(2)** A policy may be released to the latest address of record if the
request for replacement is unsigned, provided it is apparent the request
was made by the insured.

b\. When the insurance is lapsed and not in force under extended
insurance, a replacement policy will not be issued. Instead, the veteran
will be furnished reinstatement requirements, provided the contract is
eligible for reinstatement.

c\. If a TDIP rider is lapsed and the insurance is in force, the rider
will not be replaced. If in order, reinstatement requirements will be
furnished. If the request is for a **\$5** or \$10 age 60 rider,
information and an application for obtaining the age 65 rider will be
included.

d\. When a request is made for a \"T\" certificate and there is no
active (running) award by reason of total permanent disability, the
veteran will be advised that these forms are no longer available and
that this type of insurance is no longer active.

e\. If there is an active \"T\" (running) award due to total permanent
disability, the letter will further advise the applicant that due to the
length of time benefits have been paid, the face value of the contract
has been exhausted and that there are no proceeds available for payment
to any beneficiary.

f\. \"V\" policies will be used for replacement \"H\" policies. The
letter \"V\" will be deleted and replaced with the letter \"H.\"

g\. Replacement policies and/or riders will not be marked as a duplicate
or replacement policy.

38.03 COMPUTER PROCESSING-ISSUE AND/OR REPLACEMENT

a\. The computer system is programed to print policies and guaranteed
values upon acceptance of an underwriting input transaction type **000**
and when RH temporary master records are turned live with input
transaction type **022.**

b\. The types of policies and/or TDIP riders that can be system printed
are as follows:

38-1

M29-1, Part II February 13,1979

Change 15

System Printed Through Ages

Plan Type Policy All 50 59 60 64 65 **83 88**

Term Insurance V-RH-W x\
Modified Life 65 V-H-RH-W-J-JR-JS x\
Modified Life 70 V-RH-W-J-JR-JS x\
V-RH-W x\
Ordinary Life J x\
JR-JS x

Twenty Payment V-RH-W x\
Life J-JR-JS x

V-RH-W x

Thirty Payment \~ x\
Life\
JR-JS x

Twenty **Year** V-RH-W x\
Endowment J-JR-JS x

V-RH-W x

Endowment At 60

J-JR-JS x

V-RH-W x

Endowment At 65

J-JR-JS x

Special Ordinary V-(Age 65 Only)\
Life V-(Age 70 Only)

TDIP Age 60

\$10 Riders V-RS-W-H x

TDIP Age 65

\$10 Rider V-RS-W-H-J x

c\. Input transaction type **000** for policy issue will reject (reason
code UP1) when the insurance master record indicates any of the
following conditions:

\(1\) Incompetent bit is on;

**(2)** How Paid Code is 1,4 or **2;**

**(3)** XC-diary is pending; or

**(4)** More than **5** years has expired from effective date of term
contract to current date.

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

38.04 CLERICAL PROCESSING-ISSUE AND/OR REPLACEMENT

a\. Whenever a policy for issue or replacement purposes or a TDIP rider
cannot be printed by the computer system, it will be clerically
prepared.

b\. The following types of policies and/or TDIP riders for issue and
replacement purposes must be clerically prepared:

\(l\) USGLI (K) policies.

**(2)** USGLI (K) TDIP riders.

**(3)** NSLI (RS) policies.

\(4\) Replacement Ordinary Life (Plans 9 and -9).

**(5) \$5** TDIP age 60 riders.

\(6\) H policies other than Modified Life Age 65.

\(7\) Issue ages other than stated in paragraph **38.03b.**

**(8)** Policy is going to an address other than the address of record.

c\. The following information will be entered on the VA Form
**29-5886b,** Insurance Record Printout, by the Policy Service
Technician prior to the typing of the policy and/or TDIP rider.

\(I\) VA form number for policy and/or TDIP rider (see M29-l, pt. I,
par. **13.04).**

**(2)** Monthly, quarterly, semiannual and/or annual premiums for
insurance and/or TDIP unless premiums are paid through the
premium-paying period (HP **0)** or policy has been surrendered for
reduced paid-up insurance **(HP 2).**

**(3)** Original face amount of insurance if How Paid Code is 4 or
**2,** or if plan of insurance is 9 or -9 (Reduced Modified Life Ages 65
and 70).

**(4)** Mailing address if policy is going to address other than the
address in the master record.

d\. Clerical preparation of the policy and/or TDIP rider will consist of
the following:

\(l\) Select proper policy and/or TDIP rider.

**(2)** Type the following information in capital letters, without
punctuation, except when information is preprinted or policy does not
provide for the information.

**(a)** Name and address of the insured.

\(b\) File number (include \"F\" prefix).

\(c\) Policy number.

\(d\) Amount of insurance (DO NOT TYPE IN A DOLLAR SIGN (\$)).

\(e\) Effective date of policy; i.e., 10-I-1953(not **10-1-53).**

\(f\) Insuring age.

\(g\) Plan of insurance (type in all capital letters; i.e., **30**
PAYMENT LIFE, not numeric **3).**

\(h\) Premium-paying period or maturity date as follows:

38-3

M29-1, Part II February 13, 1979

Change 15 a

Plan Entry

Term Insurance Life\
Ordinary Life Life\
Modified Life Life\
Twenty Payment Life Twenty Years\
Thirty Payment Life Thirty Years\
Twenty Year Endowment Add twenty years to effective date.\
Endowment at 60 Add number of years to effective date determined\
by subtracting issue age from 60.\
Endowment at 65 Add number of years to effective date determined\
by subtracting issue age from 65.

\(i\) Amount required to pay premiums, enter appropriate premium
amounts. (If replacement policy and How Paid is **\"0\"** or **\"2,\"**
enter \"All Premiums Paid.\")

\(j\) Type in table of guaranteed values when required. Values may be
obtained from the following:

l\. USGLI (K) Policies-VA Pamphlet 90-2.

2\. NSLI V&H Policies-VA Pamphlet 29-5.

[3]{.underline}. NSLI RH Policies-VA Pamphlet **29-8.**

**[4]{.underline}.** NSLI RS & W Policies-VA Pamphlet 29-12.

**[5]{.underline}.** NSLI J Policies-VA Pamphlet 29-15, Supplement II.

[6]{.underline}. NSLI JR Policies-VA Pamphlet 29-18a.

[7]{.underline}. NSLI JS Policies-VA Pamphlet 29-21.

**[8]{.underline}.** Modified Life Age 70-VA Pamphlet 29-72-3.

\(k\) RS Term Policies. The policy must be stamped, typed or affixed
with a label containing the following:

\"IMPORTANT MESSAGE\"

Paragraph 12, nonconversion of this policy, is revoked.. The law now
provides that this policy may be exchanged for a limited convertible
5-year level premium term policy or converted to one of the eight
permanent plans of insurance.

\(1\) Paid-up Policies (How Paid 2). The following paragraph must be
added whenever a paid-up (reduced) policy is requested. It is typed
wherever possible on the insurance policy.

\"In accordance with the election of the insured and the provisions of
the policy, the Paidup Life insurance under this policy is in the amount
of \$\_\_\_\_\_\_\_\_\_\_\_\_

\(m\) When the policy being prepared is a VA Form **9-4408,** Limited
Convertible Five-Year Level Premium Term Plan (NSLI); a VA Form
**9-4409,** Life Permanent Plan Policy for W Insurance (NSLI); or a VA
Form **9-4410,** Endowment Permanent Plan Policy for W Insurance (NSLI),
it will be necessary to attached a VA Form 9-4412, Attachment to New W
Policies, and a VA Form 29-8374, Waiver of Premiums Provision. q

38-4

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

\(n\) When typing VA Form 29-1667, Total Disability Income Provision
(Rider) NSLI Age 65, the following message should be inserted in the
space immediately below the name and address block:

\"This provision is issued only on condition that the insured is not
totally disabled on the effective date. See \`B\' below.\"

38.05 PREPARATION OF USGLI POLICIES

a\. All USGLI insurance policies and total permanent disability or total
disability riders must be clerically prepared. The appropriate policy
and/or disability form can be determined by referring to M29-I, part 1,
chapter 13.

b\. Preparation of the various types of USGLI policies are as follows:

\(1\) SPECIAL ENDOWMENT AT 96 PLAN POLICIES

\(a\) Enter the insured\'s name and address.

\(b\) Enter insurance file number preceded by the letter \"F.\" (F 129
62 62.)

\(c\) Enter policy number (K 129 62 62).

\(d\) Enter face amount of insurance **(10,000).**

\(e\) Enter effective date of policy in numerals (10/1/1963).

\(f\) Enter insurance age as shown on insurance record printout.

\(g\) Maturity Date. Enter anniversary date nearest the insured\'s 96th
birthday.

\(h\) Enter appropriate premium amounts.

\_ (i) Sign name of current Administrator of Veterans Affairs.

\~ (j) Type in the table of guaranteed values as given in VA Pamphlet
90-2A or insert printed tables, if available.

\(k\) If insurance plan code on RPO is \"6,\" prepare VA Form 9-1667a,
Attachment to Special Endowment at Age 96 for Total Permanent Disability
Provision, and attach to the policy.

**(2)** USGLI \"LIFE\" POLICIES

\(a\) Enter age of insured in numerals.

\(b\) Enter amount of monthly, quarterly, semiannual and/or annual
premiums.

\(c\) **Amount of Insurance.** Enter amount of insurance in capital
letters (TEN THOUSAND).

\(d\) **Insured.** Enter insured\'s name in capital letters.

\(e\) **Premium.** Enter amount for monthly premium and due date if
required by policy format.

\(f\) **Mode of Payment at Death or Disability.** Enter amount of
monthly payment (\$5.75 times amount of

insurance in thousands; **\$5.75 X 10 = \$57.50** for **\$10,000**
policy).

\(g\) **Beneficiary.** Leave Blank.

\(h\) Other entries on face of policy are completed as follows:

\"This policy takes effect on the ([1st]{.underline}) day of
([November)]{.underline} , Nineteen Hundred and
([Twenty-Three]{.underline}) .\"

([Signature of Current Administrator]{.underline})

Administrator of Veterans Affairs

Countersigned at Philadelphia, PA

Examined ([Current Date)]{.underline} ,[19]{.underline}

([Signature of Policy Service Technician]{.underline}) Registrar

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M29-1, Part II February 13, 1979

Change 15

\(i\) **Table of Guaranteed Values.** Type in values as given in VA
Pamphlet **90-2.** Values for 5-year convertible term policy (plan code
**0)** are the same as for ordinary life (plan code 1).

**(j) Reverse of Policy.** Enter in appropriate spaces the policy
number, amount of insurance, and the insured\'s name.

**(3)** USGLI ENDOWMENT POLICIES

\(a\) Enter age of insured and premium amounts in numerals.

\(b\) **Amount of Insurance.** Enter insurance amount in capital letters
(TEN THOUSAND).

\(c\) **Premium.** Enter in numerics the amount of one monthly premium.

\(d\) **Endowment to Insured.** Enter amount in numerics **(10,000),**
month in script (November), and year in script (Eighty-Nine)

NOTE: Maturity date is determined as follows:

20 Year Endowment-add 20 years to effective date.

30 Year Endowment-add 30 years to effective date.

Endowment at 62-add number of years to effective date determined by
subtracting issue age from 62.

\(e\) **Mode of Payment at Death or Disability.** Enter amount
determined by multiplying \$5.75 times amount of insurance in thousands
(\$5.75 X **10 = \$57.50** for a **\$10,000** policy).

\(f\) **Beneficiary.** Leave Blank.

\(g\) \"This policy takes effect on the ([1st)]{.underline} day of
([November)]{.underline} ,Nineteen Hundred and
([Seventy-Five).\"]{.underline}

([Signature of Current Administrator]{.underline})

Administrator of Veterans Affairs

Countersigned at Philadelphia, PA

Examined ([Current Date)]{.underline} ,[19]{.underline}

([Signature of Policy Service Technician]{.underline}) Registrar

\(h\) **Table of Guaranteed Values.** Type in the table of guaranteed
values as given in VA Pamphlet **90-2** for the appropriate plan.

\(i\) On the reverse side of the policy enter the policy number, amount
of insurance, and the insured\'s name in the appropriate spaces.

c\. Most USGLI policies require preparation of an envelope for mailing
due to no provision on the policy for the insured\'s address.

d\. The completed policy will be returned to the Policy Service
Technician for review and signature prior to release to the insured.

38-6