October 14,1977 M29-1 Part VI

Change 2

CONTENTS

CHAPTER 22. CLAIM FOR GRATUITOUS INSURANCE (AN) AS AMENDED

BY THE NSLI ACT OF 1940

PARAGRAPH PAGE

22.01 General 22-1\
22.02 Claim for Gratuitous Insurance (AN) 22-1\
22.03 Persons Entitled to Gratuitous Insurance (AN) 22-2\
22.04 Optional Modes of Payment 22-3\
22.05 Initiation of Claim 22-3\
22.06 Establishment of Relationship 22-3\
22.07 Effect of Remarriage, Inference of Remarriage and Annulment of

Remarriage 22-5\
22.08 Proof of Dependency 22-6\
22.09 Payment of Claim 22-8

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May 27, 1980 M29-1, Part VI\
Change 3

CHAPTER 22. CLAIM FOR GRATUITOUS INSURANCE (AN) AS AMENDED BY THE

NSLI ACT OF 1940

22.01 GENERAL

a\. The earlier chapters of this manual dealing with the adjudication of
claims for NSLI are also for use in the adjudication of claims -for
gratuitous NSLI, when applicable. There are, however, certain
differences in the statutory provisions peculiar to gratuitous insurance
only, and such differences are the subject of this chapter and chapter
23. Therefore, adjudication problems not specifically treated in this
part of the manual will be found in earlier chapters.

b\. While other sections of title 38, United States Code, as amended,
are applicable to gratuitous insurance, such insurance was only granted
under three provisions of the NSLI Act of 1940, as amended. They were:

\(l\) **Insurance Granted Under Section 602(d)(2).** This section
provided that any person in the active service on or after October 8,
1940, who, while in such service, died in the line of duty (including
death resulting from disease or injury incurred in the line of duty)
prior to April 20, 1942, without having in force at the time of death at
least \$5,000 of either USGLI or NSLI or both, was deemed to have
applied for and to have been granted insurance in an amount which,
together with any Insurance in force, was not to exceed the total sum of
\$5,000. Thb effective date of such insurance was the date of entry into
active service or October 8, 1940, whichever was the later date.

**(2) Insurance Granted Under Section 602(d)(3)(A).** This section
provided that any person in the active service who, on or after October
8,1940, and prior to April 20,1942, became totally disabled as a result
of injury or disease incurred in the line of duty and such disability
continued for a period of 6 months or until death prior to the end of
the 6-month period, without having in force at the time of incurrence of
such a disability at least \$5,000 of insurance under USGLI or NSLI, or
both, was deemed to have applied for and to have been granted, effective
as of the commencement of such total disability,NSLI in an amount which,
together with any Government insurance in force, was not to exceed the
total sum of \$5,000. This Insurance continued in force without payment
of premiums until 6 months after the insured ceased to be totally
disabled, or September 30, 1945, whichever was the earlier date. This
insurance contract terminated unless the insured made an application in
writing within the prescribed period for the continuance of the
Insurance and submitted evidence of entitlement to [waiver]{.underline}
of premiums or paid the premiums thereafter due. When an application was
made under this section, the insurance became a contract for insurance
even though it may have had an \"AN\" number. All laws and regulations
pertaining to contract insurance govern the adjudication of claims for
benefits based on the insurance.

\(3\) **Insurance Granted Under Section 602(d)(3)(B).** This section
provided that any person In the active service who, on or after December
7, 1941, and prior to April 20, 1942, was captured, besieged, or
otherwise isolated by the forces of an enemy of the United States for a
period of at least 30 consecutive dates and extending beyond April 19,
1942, and at the time of such capture, siege, or isolation by the enemy
did not have in force insurance in the aggregate amount of at least
\$5,000 under USGLI or NSLI or both, was deemed to have applied for and
been granted insurance not to exceed the sum of \$5,000 effective as of
the date of such capture, siege or isolation. Such insurance remained in
force and premiums were waived during the peiod while such person
remained so captured, besieged, or isolated, and for 6 months
thereafter. The insurance contract terminated unless the insured made an
application in writing within the 6-month period for the continuance of
the insurance and submitted evidence of entitlement to waiver of
premiums or paid the premiums thereafter due. Upon submission of the
application, the insurance became a contract for insurance. The
adjudication of claims for death benefits is governed by the laws and
regulations pertaining to contract insurance.

22.02 CLAIM FOR GRATUITOUS INSURANCE (AN)

a\. Section 602(d)(5) of the NSLI Act of 1940, as amended, required that
a claim for gratuitous insurance be filed within 7 years after the
insured\'s death; with the provision that persons mentally or legally
incompetent have until 1 year after removal of their disability to file
a timely claim.

b\. Previously, in the adjudication of gratuitous insurance death
claims, a valid and timely claim filed by or on behalf of a preferred
beneficiary was condition of entitlement. A specific \[claim form\] from
or on behalf of the person claiming the benefit was required.

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Change 3

c\. The definition of what constitutes a timely filed claim for
gratuitous insurance benefits has been expanded by two Federal Court
decisions. *(Lames v. U.S. CA No. 23,656 and Augustine Viola v. U.S. 483
F. 2d 1209, 1973)*

d\. Under the Viola Decision, a claim for any VA benefit filed by or on
behalf of a minor child or mentally incompetent person will be
considered a timely filed claim for gratuitous insurance under Section
602(d)(5) of the NSLI Act of 1940, provided it is filed ;within 1 year
subsequent to a child\'s majority or within l year after the removal of
a claimant\'s mental incompetancy.

e\. The Lames Decision holds that a specific claim for gratuitous
insurance filed by an individual on his or her own behalf, which is
denied, will be accepted as a contingent claim for any child who was
listed on the claim\'s form as a child of the insured.

f\. VA Forms 294125a, Claim for Monthiy Payments, National Service Life
Insurance, or predecessor forms filed by a claimant for NSLI In his or
her own right in which a child is listed, will be accepted as an
informal claim for purposes of establishing a filing date for gratuitous
insurance for each such child in the event the person that filed the
formal claim is found ineligible by reason of relationship, failure to
timely file, or for any other reason.

g\. When gratuitous insurance is authorized to a child of the veteran
based on a timely claim having been filed under the above criteria, the
principles set forth in Adm. Dec. (Administrative Decision) 898 are for
application; i.e., prior awards to other beneficiaries of equal or lower
priority will be adjusted as of date of last payment. The settlement to
or on behalf of such child will be effective from the date of the
veteran\'s death and not subject to any deductions because of payments
to prior payees.

h\. The great majority of cases in which these decisions may apply are
under the jurisdiction of the VA regional office, Manlla. The
adjudication of these claims prior to November 1971 were also made in
that office. Any new or contingent claims based on the NSLI Act of 1940,
after that date, are under the jurisdiction of the VA center,
Philadelphia. Any correspondence received in the St. Paul office
concernmg possible entitlement to this benefit will be sent to the
attention of the Chief, Insurance Operations Division (295), in that
office.

i\. No general review will be made to seek out these types of cases.
However, upon receipt of a new clarm by or on behalf of a child, or an
inquiry reopenlng a previously disallowed claim, or a child\'s
entitlement is otherwise noted in the normal course of business,
appropriate adjudication will be taken to determine the child\'s
entitlement under the revised criteria.

j\. Correspondence from the VA center, Philadelphia to residents of the
Republic of the Philippines, wffl be prepared in duplicate: l original
and 1 green file copy (extra copies only as specifically needed).
(Letters to residents of the Philippines may be sent via airmail
directly to the addressee.)

22.03 PERSONS ENTITLED TO GRATUITOUS INSURANCE (AN)

a\. The gratuitous insurance provisions of the NSLI Act (Public Laws 360
and 667, 77th Congress) prescribed a restricted class of beneficiaries
eligible to receive the insurance. The permitted class was composed of:

\(1\) Widow (widower) of the insured (lawful spouse of the insured), if
living, and while unremarried.

\(2\) Child or children of the insured, if living, in equal shares.

\(3\) If no widow, widower, or child entitled thereto, then to the
dependent mother or father of the insured, if living, in equal shares.

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b\. Originally, an illegitimate child of an Insured was not entitled to
gratuitous insurance. The decision of the United States Court of
Appeals, District of Columbia, in 1961 in the case of the *United States
v. Philippine National Bank as guardian of Salvadore Tranas, Jr., 292 F
2d 743,* held that illegitimate children were eligible beneficiaries for
gratuitous insurance. The changed criteria is now reflected in the
definition of child in VA Regulation 1210(13).

22.04 OPTIONAL MODES OF PAYMENT

a\. Settlement of insurance for gratuitous insurance (AN) is payable as
follows:

\(1\) In 240 equal monthly installments if the beneficiary to whom
payment is first made is under 30 years of age at the time the insured
died (presently option 2).

\(2\) In l20 equal monthly installments if the beneficiary to whom
payment is first made is over 30 years of age at tile time the insured
died (presently option 3).

NOTE: The present option 4 is also available to those beneficiaries
regardless of age at the time the insured died.

b\. Any Installments certain remaining unpaid at the de\'lith of a
preferred beneficiary (or remarriage of a widow or widower) will be paid
to the beneficiary next entitled in the order of preference.

22.05 INITIATION OF CLAIM

a\. When a previously disallowed or a contingent claim for gratuitous
insurance is received in the VA Center, Philadelphia, and the insurance
folder has been combined with the XC-folder in the Manila Regional
Office, a dummy XC-folder will be prepared by the Administrative
activity in that office. An ARS message will be sent to VA Regional
Office Manila, attention: Adjudication Division(2l), requesting the
XC-folder.

b\. When information concerning the preferred beneficiaries is
necessary, such information will be obtained by the use of VA Form
29-541, Certificate Showing Residence and Heirs of Deceased Veteran. If
the veteran\'s records coniaiwa determination that the deceased
serviceperson is survived by an unremarried widow or widower, the VA
Form 29-541 will not be necessary as the widow or widower would-be the
first preferred beneficiary. VA Form 29-541 will be released witli a
dictated letter to the next of kin of the veteran or any other person
who may be in a position to furnish the necessary information. The
letter should advise that the form must be signed by two persons, one of
whom must be a disinterested party. The letter should also advise that
in order for the form to be acceptable, each item on the form must be
completed with an entry after each class of relations and that the word
NONE must be entered if there is no person in any of the classes listed.

c\. When a beneficiary first entitled to gratuitous insurance has been
determined, a VA Form 294125a will be sent to the beneficiary with a
dictated letter. If the beneficiary is a foster parent, VA Form 21-524,
Statement of Person Claiming to Have Stood in Relation of Parent, will
also be enclosed.

d\. If a beneficiary receiving gratuitous insurance payments has died,
or if a widow or widower has remarried, oi- is no longer considered
unremarried, a determination will be made as to the beneficiary next
entitled to the remaining installments of insurance. Information
concerning the preferred beneficiary next entitled will be obtained by
use of a VA Form 29-541 if such information is not of record. A VA Form
294125a will be forwarded, and if the beneficiary is a foster parent, a
VA Form 21-524 will also be enclosed.

22.06 ESTABLISHMENT OF RELATIONSHIP

Proof of the relationship of a beneficiary, whether an initial or
succeeding beneficiary, must be established prior to the approval of an
award and will be established as follows:

a\. **Widow (Widower).** The widow or widower must establish that he or
she is the insured\'s legal spouse by furnishing acceptable evidence of
marriage as set forth in VAR 1205. Payment of gratuitous insurance
benefits termina(e; upon remarriage or when the conduct of the widow or
widower raises the interence of remarriage.

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Change 2

b\. **Child.** Proof of a child\'s relationship will be established in
accordance with VA Regulation 1210.

\(l\) **Legitimate Child.** Proof of the relationship of a legitimate
child must be established by birth or other records as outlined in VA
Regulations 1204 and 1209. /

\(2\) **Illegitimate Child.** The evidence requirements in VA Regulation
1210(13) are applicable to insurance as well as gratuitous death
benefits. As the establishment of such relationship will necessitate the
retroactive discontinuance of running awards to parents or the reduction
in running awards to legitimate children, previously determined to be
the preferred beneficiaries, extreme caution will be exercised to assure
that the evidence adequately establishes the paternity of the claimant.
When such a determination may adversely affect the rights of the
claimant receiving insurance benefits, the provisions of chapter 20
relating to contested claims are for application.

\(a\) **Development.** The provisions of M2l-l, paragraph 10.05a, are
applicable when a claim is filed by or on behalf of an illegitimate
child or when a previously disallowed claim is noted in the normal
course of adjudication.

\(b\) **Determinations.** When a determination of paternity is required
under VA Regulation 1210(13), a finding, whether favorable or
unfavorable, will be prepared in accordanct\' with the requirements of
M2l-l , paragraph l 0.05b.

\(3\) **Stepchild.** Stepchildren are not within the restricted class of
beneficiaries and may not receive payments of gratuitous insurance.

c\. **Parents.** A mother or father will establish relationship by birth
or other records as outlined in VA Regulations 1204, 1209 and 1210. An
adoptive parent will establish relationship by furnishing a certified
copy of the decree of adoption. A person standing in loco parentis may
eslablish relationship by submitting VA Form 21-524, together with any
other evidence that may be required in a particular case.

\(l\) **Persons Included in the Term, Parent.** The term, parent,
includes a father, mother, father and mother through adoption-and a
person who last stood in loco parentis to the insured at any time prior
to the serviceperson\'s entry into service for a period of not less than
l year. A-stepparent may receive gratuitous insurance benefits only if
he or site can establish a loco-parentis relationship.

\(2\) **Loco Parentis.** A person standing in loco parentis to a child
is one who puts himself or herself ill the situation of a natural parent
by assuming the obligations incident to the parental relation without
goitig through the formalities necessary to a legal adoption. The
relationship is a standing in the place of or instead of a parent, one
charged with a parent\'s rights. duties, and responsibilities. The
assumption of the relationship is primarily a question of intention. to
be shown by the acts, conduct and declarations of the person alleging to
stand in that relationship.

\(3\) **Entitlement of Parent.** If there is no spouse or child of the
veteran entitled to payment of gratuitous insurance, payment will be
made to the person or persons who last stood in relation of parent to
the insured. Such entitlement excludes all other persons who may have
exercised such relationship, whether natural, adoptive, or foster
parent. If a parent who last bore that relationship is dead, was not
dependent, fails to file a daim or cannot be paid for any other valid
reason, a person who previously stood in the relationship of parent,
whether a natural parent, adoptive parent, or foster parent, **is** not
entitled to gratuitous insurance as the next succeeding beneficiary.

\(4\) **Parent of an Illegitimate Insured.** The mother of an
illegitimate insured is included in the term, parent, but the father
must establish that he meets the requirements of loco parentis to be
entitled to gratuitous insurance.

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22.07 EFFECT OF REMARRIAGE, INFERENCE OF REMARRIAGE AND ANNULMENT OF
REMARRIAGE

a\. Remarriage

\(1\) When a widow or widower remarries, monthly payment of gratuitous
insurance will be stopped effective the last installment due preceding
the marnage. Action will be taken to authorize payment of the remaining
installments certain to the beneficiaries next entitled in order of
preference.

\(2\) Duplicate payments of gratuitous NSLI to the next preferred
beneficiary are not required when, because of mistake of fact, payments
to a remarried widow (widower) have been made in good faith, and without
the VA\'s fault, based on proof of record in accordance with VA
regulations establishing status, and without notice of knowledge of the
remarriage.

b\. Inference of Remarriage

\(l\) For gratuitous insurance purposes, a claimant will not be
considered unreman-ied when his or her conduct in the community where he
or she lives has been suds as to provide a reasonable basis for the
inference that he or she has remarried. A claimant always has the burden
of showing entitlement to the benefit claimed even though the condition
of the claim be such as to require satisfactory evidence that what might
have happened has not taken place. If sufficient information is received
from an apparently reliable source that the claimant\'s conduct is such
as to provide a reasonable basis for the inference that he or she has
remarried, payments, if any, will be stopped pending receipt of a legal
opinion. The application of the rule that the claimant\'s conduct is
such as to provide a basis for the inference of remarriage will not be
applied if the cohabitation took place during the lifetime of the
insured. It will only be applied in those cases if such conduct
continued subsequent or commenced subsequent to the death of the
insured.

\(2\) In the absence of formal proof of marriage, if a claimant has
lived with a man or woman under circumstances in which a marital
relationship might be assumed by the public, a request will be made for
a legal opinion as to whether a claimant\'s conduct warrants an
inference of remarriage, and, if 50 from what date. If the legal opinion
fails to state from which date the claimant\'s conduct warrants an
inference of remarriage, and such date is material, the opinion will be
returned for necessary amendment.

\(3\) If there is a pending claim, or when checks have been\~ssued but
were returned uiicashed, the request for a legal opinion will present
the question whether the claimant\'s conduct warrants an inference of
remarriage and, if so, from what date. The date fixed by the opinion
will then be used fl\~r the purpose of determining the ending date of
tlie award. The award will show as the termination date the due date
preceding the date fixed by the legal opinion.

\(4\) When a widow\'s or widower\'s conduct warrants an inference of
remarriage, payments of gratuitous insurance will be terminated
effective date of last payment, unless the date fixed in the legal
opinion is subsequent to the date on which payments were stopped. In the
latter event, an amended award will be prepared to resume payment
through the due date preceding the date fixed in the opinion.

c\. Annulment of Remarriage

\(l\) When information is received that the remarriage of a widow or
widower of the insured has been annulled, such person will be reqtested
to furnish certified copies of the following evidence:

\(a\) The petition to the court for annulment:

\(b\) The answer. if any;

(c ) A transcript of the testimony , if available : and

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M29-I,Part VI October 14, 1977

Change 2

\(d\) The court decree.

NOTE: Upon receipt of the above evidence, a request will be made to the
District Counsel for a legal opinion as to whether the annulment was in
order for the award to be resumed.

\(2\) If payment to a widow or widower has been stopped because of
remarriage and it is later found by evidence and legal opinion that the
remarriage has been properly annulled, payment of gratuitous insurance
will be resumed to such a person. Any payments being made to the next
beneficiary entitled will be stopped as of the date of the last payment
pending the determination as to the effect of the annulment.

\(3\) An amended award will be prepared to resume monthly payments to
the widow or widower. If, following the widow\'s or widower\'s
remarriage, monthly installments were awarded to the beneficiary next
entitled, the monthly installments to such beneficiary were proper on
the evidence then of record and were based upon the act of the widow or
widower. Therefore, he or she will not be entitled to duplicate payments
upon an annulment decree declaring the claimant\'s remarriage null and
void. Since the payment to the next entitled beneficiary is based on the
widow\'s or widower\'s own action, the claimant would be barred to
assert the right to duplication of payment of any amounts already paid
to that beneficiary. The amended award to the widow or widower will be
authorized subject to the payments made to such payee.

\(4\) When it is determined, not withstanding the annulment, that the
award was properly discontinued by reason of remarriage, a dictated
letter will be sent to the claimant advising of the decision. The letter
will contain the standard appeal notice. Payment will also be resumed to
the beneficiary next entitled.

22.08 PROOF OF DEPENDENCY

a\. A determination made by the VA that the parents were dependent on
the date of the serviceperson\'s death or shortly thereafter for death
compensation benefits, will be accepted for gratuitous insurance
purposes without any other further development.

b\. A determination made by the VA that the parents of a serviceperson
were not dependent on the date of the serviceperson\'s death, will be
accepted for gratuitous insurance purposes in the absence of clear and
unmistakable error or submission of new and material evidence.

c\. If no prior determination has been made and the beneficiary of
gratuitous insurance is a mother or father of the insured, proof of
dependency conforming to the old VA Regulations 1057 will be required.
Proof of dependency must be established as of the date of death of the
insured, whether the parent is claiming as first preferred beneficiary
or as a succeeding beneficiary.

d\. The following paragrapks have been extracted from the old VA
Regulation 1057 as they pertain to proof of dependency in their various
editions from October 8, 1940 to May 5, 1948 and will apply in
determining proof of dependency:

\(l\) VA Regulation paragraphs applicable prior to December 9, 1941:

\"(A) Dependency will not be held to exist if the father or mother,or
both, have an income sufficient to provide for their reasonable support
and maintenance, including clothing and necessary medical treatment for
themselves and members of the family under legal age, or of any age if
mentally and physically incapacitated.

\(B\) In determining the amount of income in a given case, account will
be taken of the net income from property of every character owned by the
mother or father or other members of the family under legal age, and of
the earnings received by such father or mother or such other members of
the family under legal age. Account will not be taken of the income of
other members of the family of legal age, but only of the actual
contributions made by such members of the family.

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\(C\) The fact that the veteran has made habitual contributions to his
father or mother, or both, is not conclusive evidence that dependency
existed.

\(D\) The fact that the father or mother or other member of the family
is a beneficiary of any insurance granted under the War Risk Insurance
Act or World War Veterans\' Act, 1924, as amended, will be disregarded
in determining dependency, as will also the receipt of any donations or
assistance from charitable sources.\"

\(2\) VA Regulation paragraphs applicable from December 9, 1941 through
July 9, 1942

\(A\) Same as subparagraph (A) above.

\(B\) Same as subparagraph (B) above.

\(C\) Same as subparagraph (C) above.

\(D\) The fact that the father or motlier or other member of the family
is a beneficiary of any insurance granted under the War Risk Insurance
Act or World War Veterans\' Act, 1924, as amended, or National Service
Life Insurance Act, 1940, or is in receipt of pension or compensation
under the laws administered by the Veterans Administration or receives
benefits under the World War Adjusted Compensation Act, as amended, or
the Adjusted Compensation Payment Act, 1936, will be disregarded in
determining dependency, as will also the receipt of any donations or
assistance from charitable sources.

\(3\) VA Regulation paragraphs applicable from July 10 1942 through July
31, 1944

\(A\) Same as subparagraph (A) above.

\"(B) In determining the amount of income in a given case, account will
be taken of the net income from property of every character owned by the
mother or father or other members of the family under legal age, and of
the earnings received by such father or mother or such other members of
the family under legal age. Account will not be taken of the incomes of
other members of the family oflegal age, but only of the actual
contributions made by such members of the family. Accounts received
under State and Federal laws in the form of old age assistance are to be
considered as income for the purpose of determining the dependency of
parents. If it is considered that the parent is dependent
notwithstanding the income from this or other source, an appropriate
determination may be made to that effect. The entire corpus of the
estate of the claimant as well as income will be considered in
determining dependency.

\(C\) Same as subparagraph (C) above.

\"(D) The fact that the father or mother or other member of the family
is a beneficiary of any insurance granted under the War Risk Insurance
Act or World War Veterans\' Act, 1924, as amended, or NSLI Act. 1940. or
is in receipt of pension or compensation under the laws administered by
the Veterans Administration or receives benefits under the World War
Adjusted Compensation Act, as amended, or the Adjusted Compensation
Payment Act, 1936, will be disregarded in determining dependency, as
will also the receipt of any donations or assistance from charitabIe
sources.

\(4\) VA Regulation paragraphs applicable from August 1,1944 through May
4, 1948

\"(A) Dependency will be held to exist if the father or mother of the
veteran does not have an income sufficient to provide reasonable
maintenance for such father or mother and members of his or her family
under legal age, and for dependent adult members of the family if the
dependency of such adult members results from mental or physical
incapacity. \'Reasonable maintenance\' includes not only housing, food,
clothing and medical care sufficient to sustain life, but such items
beyond the bare necessities, and as well as other requirements
reasonably necessary to provide those conveniences comforts of living
suitable to and consistent with thc parents\' reasonable mode of life.
\'Members of the family\' will be considered to mean those persons whom
the father or mother is under moral or legal obligation to support.

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\(B\) (1) In determining the amount of income, consideration will be
given to (a) net income from property owned, or business operated, by
the mother or father; (b) earnings of the mother or father and other
members of their family under legal age; (c) actual contributions of any
character to the family expenses by the adult members; (d) so-called
social security benefits; i.e., old age assistance and old age and
survivor\'s insurance; (e) family allowances received pursuant to Public
Law No. 625, 77th Congress (June 23, 1942), as amended by Public Law No.
174, 78th Congress (October 26, 1943).

\(2\) In determining whether other members of the family under legal age
are factors in necessary expenses of the mother or father, consideration
will be given to any income from business or property (including trusts)
actually available, directly or indirectly, to the mother or father, for
the support of the minor, but not to the corpus of the estate or the
income of the minor which is not so available.

\(3\) In determining dependency, amounts received from the following
named sources, by the father or mother, or other members of the family,
will be disregarded, viz., (a) as designated beneficiary or otherwise of
any Insurance under the War Risk Insurance Act, the World War Veterans\'
Act, 1924, as amended, or the National Service Life Insurance Act or any
amendments to either; (b) any pension or compensation under laws
administered by the Veterans Administration: (c) benefits under the
World War Adjusted Compensation Act or the -Adjusted Compensation
Payment Act, or any amendments to either; (d) the 6 months pay made to
the designated beneficiary thereof pursuant to 10 U.S.C. 903, 903(a) and
456; 34 U.S.C. 943, 944 and 855c-2; (e) payments pursuant to
Mustering-Out Payment Act, 1944, Public Law 225, 78th Congress; (f)
donations or assistance from charitable sources.

\(4\) In addition to considering income of a father or mother,
consideration will be given to the corpus of suds claimant\'s estate if
under all the circumstances it is reasonable that the same or some part
thereof be sold and the proceeds consumed for the claimant\'s
maintenance.

\(C\) The fact that the veteran has made habitual contributions to his
father or mother. or both, is not conclusive evidence that dependency
existed, but shall be considered in conneciion with all other
evidence.\"

\(D\) (Not Material)

\"(E) In the absence of evidence indicating the contrary, dependency
will be held td exist when the monthly income from sources proper to
consider does not exceed:

\(a\) \$60 for a mother or father (not living together),

\(b\) \$100 for a mother and father (living together),

\(c\) The amounts stated in (a) or (b) pins \$25 for each additional
member of the family whose support is to be considered under the
criteria indicated in paragraphs (A) and (B) of R&PR-l 057.\"

22.09 PAYMENT OF CLAIM

a\. When an initial award for gratuitous insurance is authorized, a
consecutive five-digit number with the prefix AN will be assigned. The
record book from which this number is assigned is kept in the office of
the Chief, Death Claims Section (295), VA Center, Philadelphia. Pa. The
XC-number. date of assignnient of the AN-number and the Manila regional
office number will be entered in the record book to the right of the
designated AN-number by the appropriate personnel.

b\. VA Form 29444, Award Brief and Authorization for Payment of
Insurance will be clerically prepared in accordance with the
instructions outlined in chapter 5 of this manual.

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October 14,1977 M29-1 ,Part VI\
Change 2

c\. A dictated letter will be released to the beneficiary advising that
settlement of the claim has been made. When settlement is made to a
widow or widower, the letter will include the following statement:

Payments of gratuitous insurance to or for a widow (widower) will be
discontinued upon remarriage or death. if you are the widow (or widower)
of the veteran and you remarry, please do not endorse any check made
payable to you while unremarried. Any such check received should be
retumed with a statement showing the date of your remarriage so that
your account may be adjusted.

22-9