August 23, 1974 M29-1, Part 1\
Change 6

CONTENTS\
CHAPTER 12. MISCELLANEOUS\
PARAGRAPH PAGE\
SUBCHAPTER 1. GENERAL\
12.01 Change of Address 12-1\
12.02 Recognition of Representatives of Organizations and Others 12-1\
12.03 Retired Records 12-4\
12.04 Returned Mail 12-4\
12.05 Insurance Service information System 12-5\
SUBCHAPTER 2. VETERANS MORTGAGE LIFE INSURANCE\
12.06 General 12-6\
12.07 Effective Date of Protection 12-6\
12.08 Automatic Insurance 12-7\
12.09 Premiums 12-7\
12.10 Maximum Amount of Insurance 12-8\
12.11 Lifetime Maximum Amount of Insurance 12-9\
12.12 Misstatement of Age 12-9\
12.13 Mortgage Loans Exceeding Maximum Amount of Insurance 12-9\
12.14 Continuing Eligibility 12-9\
12.15 Termination of insurance 12-9\
12.16 Amount of Benefits 12-10\
12.17 Payment of Claims 12-10\
SUBCHAPTER 3. FOREIGN ADDRESS GEOGRAPHIC AND COUNTRY CODES\
12.18 General 12-11\
12.19 Foreign Address Geographic Codes 12-11\
12.20 Foreign Address Country Codes . 12-12

12-i

May 20,1977 M29-1, Part I\
Change 7

CHAPTER 12. MISCELLANEOUS

SUBCHAPTER 1. GENERAL

12.01 CHANGE OF ADDRESS

a\. A notification of change of address which is unsigned or which is
signed by a third party will be accepted for insurance purposes.

b\. Telephonic requests for change of address may be accepted for
insurance purposes. The following rules apply to such requests:

\(1\) The caller will be asked where the insurance records are located.

\(2\) The VA employee receiving the call will complete VA Form 29-889
\[or VA Form 29-5934\] , Change of Address for Insurance Purposes.

\(3\) The employee must exercise good judgment and a certain amount of
caution before completing VA Form 29-889 (or VA Form 29-5934\]. If the
insured or someone acting for him or her is calling, \[the person\]
should be able to furnish the policy number. If the beneficiary of an
insurance claim is calling, he or she should be able to furnish the
\[file\] number.

\(4\) If the employee is not satisfied that the request is authentic, he
or she should instruct the caller to submit \[the\] request in writing.

c\. As a rule, VA Form 29-5934 is enclosed with all clerically prepared
forms, form letters, and dictated letters forwarded to in service
policyholders. The social security number of the insured is included in
his or her in service address. No reference will be made to the VA Form
29-5934 as an enclosure.

d\. When a change of address is received and the insured requests it be
processed at a future date (not more than 120 days), the input (VA Form
29-5934) will be held \[in a designated area\] until the time for
processing.

12.02 RECOGNITION OF REPRESENTATIVES OF ORGANIZATIONS AND OTHERS

a\. By virtue of authority contained in title 38, United States Code,
the organizations listed below have been granted recognition in the
presentation of claims under the statutes administered by the VA:

\(1\) National Service Organizations listed in Title 38, United States
Code, Section 3402, or Chartered by

Congress: Headquarters

American Legion Indianapolis, Indiana 46206\
American National Red Cross Washington, D.C. 20006\
AMVETS Washington, D.C. 20036\
Blinded Veterans Association Washington, D.C. 20037\
Congressional Medal of Honor Society of the U.S.A Braintree,
Massachusetts 02184\
Disabled American Veterans Cincinnati, Ohio 45214\
Legion of Valor of the United States of America, Inc Arlington, Virginia
22204\
Marine Corps League Arlington, Virginia 22201\
Military Order of the Purple Heart Washington, D.C. 20013\
Paralyzed Veterans of America, Inc Washington, D.C. 20420\
United Spanish War Veterans Washington, D.C. 20420\
Veterans of Foreign Wars of the United States Kansas City, Missouri
64111\
Veterans of World War I of the U.S.A. Inc Alexandria, Virginia 22314

12-1

M29-1, Part I May 20, 1977

Change 7

\(2\) Other National Service Organizations Recognized by the VA:

American Veterans Committee Washington, D.C. 20036\
Army and Navy Union, U.S.A Lakemore, Ohio 44250\
Army Mutual Aid Association Arlington, Virginia 22211**\
**Catholic War Veterans of the U.S.A Washington, D.C. 20001\
Coast Guard League Washington, D.C. 20591**\
**Disabled Officers Association Washington, D.C. 20006\
Fleet Reserve Association Washington, D.C. 20036\
Jewish War Veterans of the United States Washington, D.C. 20009\
Military Order of the World Wars Washington, D.C. 20006\
National Jewish Welfare Board New York, NewYork 10010\
National Tribune Washington, D.C. 20013\
Navy Mutual Aid Association Washington, D.C. 20370\
Regular Veterans Association Washington, D.C. 20015\
United Indian War Veterans, U.S.A San Francisco,California 94103

\(3\) State Organizations Recognized by VA:

Alabama-Department of Veterans Affairs Montgomery, Alabama 36102\
Alaska-Division of Veterans Affairs Juneau, Alaska 99811\
American Samoa-Veterans Affairs Office Pago Pago, American Samoa 96920\
Arizona-Department of Economic Security Phoenix, Arizona 85007\
Arkansas-Veterans Service Office Little Rock, Arkansas 72201\
California Department of Veterans Affairs Sacramento, California 95807\
Colorado-Department of Social Services Denver, Colorado 80203\
Connecticut-Soldiers, Sailors, and Marine Fund Hartford, Connecticut
06115\
District of Columbia-Office of Veterans\' Affairs Washington, D.C.
20004\
Florida-Division of Veterans Affairs St. Petersburg, Florida 33731\
Georgia-Department of Veterans Service Atlanta, Georgia 30334\
Guam-Office of Veterans Affairs Agana, Guam 96910\
Hawaii Department of Social Services Honolulu, Hawaii 96809\
Idaho-Division of Veterans Services Boise, Idaho 83707\
Illinois-Department of Veterans Affairs Springfield, Illinois 62705\
Kansas-Veterans Commission Topeka, Kansas 66612\
Kentucky-Center for Veterans Affairs Louisville, Kentucky 40203\
Louisiana Department of Veterans Affairs Baton Rouge, Louisiana 70801\
Maine-Bureau of Veterans\' Services Augusta, Maine 04330\
Maryland-Veterans\' Service Commission Baltimore, Maryland 21201\
Massachusetts-Office of Commissioner of Veterans\' Services Boston,
Massachusetts 02202

Minnesota-Department of Veterans Affairs St. Paul, Minnesota 55101\
Mississippi-Veterans Affairs Commission Jackson, Mississippi 39205**\
**Missouri-Division of Veterans Affairs Jefferson City, Missouri 65101\
Montana-Veterans Affairs Division Helena, Montana 59601\
Nebraska-Department of Veterans\' Affairs Lincoln, Nebraska 65809\
Nevada-Commission for Veterans Affairs Reno, Nevada 89502\
New Hampshire-State Veterans Council Concord, New Hampshire 03306\
New Jersey-Division of Veterans\' Service Trenton, New Jersey 08625\
New Mexico-Veterans\' Service Commission Santa Fe, New Mexico 87501\
New York-Division of Veterans Affairs New York, New York 10047\
North Carolina-Division of Veterans Affairs Raleigh, North Carolina
27601\
North Dakota-Department of Veterans Affairs Fargo, North Dakota 58102**\
**Ohio-Division of Soldiers\' Claims and Veterans\' Affairs Columbus,
Ohio 43215**\
**Oklahoma-Department of Veterans Affairs Oklahoma City, Oklahoma 73105\
Oregon-Department of Veterans Affairs Salem, Oregon 97310

12-2

May 20, 1977 M29-1, Part I\
Change 7

Pennsylvania-Department of Military Affairs Harrisburg, Pennsylvania
17108\
Puerto Rico-Department of Labor, Veterans Office Hato Rey, Puerto Rico
00917\
Rhode Island-Veterans Affairs Providence, Rhode Island 02903\
South Carolina-Department of Veterans Affairs Columbia, South Carolina
29201\
South Dakota-Division of Veterans Affairs Pierre, South Dakota 57501\
Tennessee-Department of Veterans\' Affairs Nashville, Tennessee 37203\
Texas-Veterans Affairs Commission Austin, Texas 78711\
Utah-Office of Veterans Services Salt Lake City, Utah 84111\
Vermont-Veterans Affairs Section, Military Department Montpelier,
Vermont 05602\
Virginia-Division of War Veterans\' Claims Roanoke, Virginia 24011\
Virgin Islands-Department of Veterans Affairs Christiansted, St. Croix,\
Virgin Islands 00820\
Washington-Department of Veterans Services Olympia, Washington 98501\
West Virginia-Department of Veterans Affairs Charleston, West Virginia
25305\
Wisconsin-Department of Veterans Affairs Madison, Wisconsin 53702

b\. Correspondence relative to the recognition of any organization
should be addressed to the General Counsel, Central Office.

c\. VA Regulation 525 provides that an authorized representative of the
insured or the beneficiary after maturity of the insurance by death of
the insured shall, if holding a valid power of attorney, be permitted to
inspect the file for the purpose of assisting the insured or beneficiary
in perfecting a claim for any benefit under the policy.

d\. The necessity of requiring representatives of service organizations
holding powers of attorney to submit VA Form 29A337, Authorization for
Release of Information from Insurance Records, for information from
insurance records is eliminated. Representatives recognized by the VA
and holding a power of attorney (VA Form 23-22 \[Appointment of Service
Organization as Claimant\'s Representative)\] from the insured are
entitled to receive information from insurance records which the insured
is entitled to receive even though there is no claim for insurance
benefits involved. The representative receiving the information will \[
\] be permitted to inspect the file.

e\. When there is no record of a power of attorney in the insurance file
and the claims folder is in another office, \[a copy of the power of
attorney from the insured in favor of the service organization involved,
will be requested by the Chief, Insurance Operations Division for
**the** insurance records. The request\] should be \[made over the\] FTS
\[(Federal Telecommunications System)\] or by teletype.

f\. The \[Chiefs of the Insurance Operations Divisions\] at the two
\[VA\] centers are \[not\] authorized to release premium status to
representatives of service organizations when there is no power of
attorney or authorization from the insured. If there is an unrevoked
power of attorney, no person or organization other than the one named in
the power of attorney will be given information from the file.

g\. VA Regulation 525(B) (2) authorizes the release of insurance
information to third persons when a specific authority is received from
the insured, or, after maturity of the insurance by death of insured, by
the beneficiary. This regulation also covers cases in which there is no
claim involved and the information released is such that the insured or
beneficiary would be entitled to receive. VA Form 29A337 will continue
to be used for this purpose. However, letters from the insured and
various forms in use by veterans\' service organizations and insurance
representatives, which are clear as to intent and are signed by the
insured, are acceptable in lieu of VA Form 29A337.

h\. If it is clear from the correspondence received from an attorney,
trust officer, or insurance agent that he or she is representing the
insured, all necessary transactions in connection with the insurance may
be accomplished through that person as a matter of courtesy, even though
a power of attorney or VA Form 29A337 is not of record. A copy of VA
correspondence to the third party will be sent to the insured for his or
her information. If there is any question as to whether or not the third
party is actually representing the insured, a VA Form 29A337 will be
requested. In any event, to be acceptable documents such as change of
beneficiary, application for insurance, reinstatement, conversion, etc.,
must be over the signature of the insured.

12.03 RETIRED RECORDS

a\. \[ \] To facilitate processing requests for folders, the request
should indicate the office previously maintaining the records. When VA
Form 07-7575, Request for Retired Records or Information, is used, the
letters S (St. Paul), D (Denver), or DA (Dallas), should be entered to
the right of the file number in block 20.

\[NOTE: Folders will not be requested as they have been destroyed.

b\. All V, H, RH and RS folders retired by the St. Paul and Denver \[VA
centers\] are maintained in separate groups at the following address:

Federal (Archives and\] Records Center

General Services Administration

2306 East Bannister Road

Kansas City, Missouri 64131

c\. All T, K, V, H, RH and RS folders retired by the Philadelphia (VA
center\] are located at the following address:

Federal (Archives and\] Records Center

General Services Administration

5000 Wissahickon Avenue

Philadelphia, Pennsylvania (19144\]

d\. All VA Forms 9-361, Premium Record Card, for insurance accounts are
located at the following address:

Veterans Administration

Records Processing Center (RPC)

P.O. Box 172

St. Louis, Missouri 63166

12.04 RETURNED MAIL

a\. All returned mall will be associated with the insurance folder and a
VA Form 29.5886(b, Insurance\] Record Printout, in an effort to obtain a
better address. If a better address is not obtained from these sources,
remail the material with VA Form 29-8395, Change of Address for
Insurance Purposes, with a return envelope. Material pertaining to
deductions from service pay and 38 U.S.C. 724 accounts will not be
remailed.

b\. If mail is returned for a second time, the folder and an RPO will be
reviewed for a better address. If none is located, the returned mall
indicator on the master record will be turned on. Every effort will be
made to obtain the address of the policyholder by preparation and
release of FL 20 to the postmaster at the last known address, FL 29-16
to a third party, FL 29-16a to the bank on which the latest check was
drawn, VA Form 29-5982, Request for Address Information, or other
appropriate request.

c\. When a VA FL 29-5 (advising of eligibility for RH insurance) is
returned to the VA unclaimed, a teletype requesting a better address
will be released to the regional office which furnished the disability
rating. In addition, the carbon copy will be attached to the original.
If the regional office has no better address, the returned VA FL 29-5
will be filed in the insurance folder and the carbon copy destroyed. If
a folder has not been established, the returned letter will be disposed
of in accordance with Records Control Schedule VB-I.

12-4

M29-1, Part I\
May 20, 1977 Change 7

12.05 INSURANCE INFORMATION SYSTEM

a\. Arrangements have been made whereby VA Veterans Assistance personnel
or accredited representatives of recognized veterans service
organizations may make inquiries by telephone directly to the Insurance
Special Service Clerks at the Philadelphia and St. Paul VA centers on
all matters pertaining to Government life insurance, including
individual contracts.

b\. The following telephone numbers will be used for this purpose:

Philadelphia Center St. Paul Center

Area Code 215- 612-\
Area Office or exchange \[951\] 725-

Extension 5412-5413 4311\
5415-5416

c\. Prior to placing the call, the person requesting the information
will ascertain which center maintains the insurance records and the
policyholder\'s insurance file number. (The lack of adequate
identification may delay responses.) When placing the call, the caller
will identify himself or herself, state for whom the call is being made
and provide the full name of the policyholder and the file number of the
insurance account. Any other pertinent information that will aid in
servicing the call will be provided. If the caller is other than a VA
employee, \[the caller\] will give assurance that he or she or his or
her organization holds the policyholder\'s power of attorney. If there
is no record of a power of attorney in the insurance file and the claims
folder is in another office, the \[Chiefs of the Insurance Operations
Divisions\] at the two \[VA\] centers, depending upon the information
requested and the circumstances of the particular case, will determine
the necessity of verifying that the service organization involved has a
power of attorney from the insured, or in premium status cases, whether
there is an unrevoked power of attorney of record in the claims folder.
All verifications of the records in the claims folders in another
regional office should be made over the FTS or by teletype. Information
as to premium status may be released to representatives of service
organizations not holding power of attorney when release of such
information is justified to prevent lapse.

d\. It may be possible to answer questions immediately. However, in most
cases a record printout and/or insurance folder will be required in
order to furnish complete information. In these cases the name and
telephone number of the person calling will be taken and as soon as the
records are available, the call will be returned. Normally a reply may
be expected before noon the following day.

e\. Beneficiary designations on living cases will be provided by
telephone only to VA personnel after the veteran requesting the
information has properly identified himself or herself as being the
insured. In all other cases, the caller will be advised that the
beneficiary information will be furnished the insured by letter. This
information is not confidential in death cases and will be furnished, if
available, on telephone inquiries.

f\. When furnishing information about an individual contract, an account
of the call and the information furnished will be recorded. This may be
entered on the RPO, if one is obtained, or on VA Form 119, Report of
Contact. The VA Form 119 or RPO will be filed in the insurance folder.
Written confirmation will be furnished only when it is specifically
requested or the information being furnished is complicated, in that it
involves a large number or series of dates, amounts, etc., and it is
believed by the person furnishing the information that it should be
presented in writing.

g\. Inquiries concerning SGLI (Servicemen\'s Group Life Insurance)
claims and beneficiary information will be addressed to the Office of
Servicemen\'s Group Life Insurance, 212 Washington Street, Newark, NJ
07102. Other questions pertaining to VA supervision of SGLI may be
submitted directly to the Chief, Insurance Program Management Division
(290), VA Center, Philadelphia, at the following numbers: Area Code 215,
Exchange \[951\] ,Extension \[5715\] or \[5716\].

12-5

M29-1, Part I May 20, 1977

Change 7

SUBCHAPTER 2. VETERANS MORTGAGE LIFE INSURANCE

12.06 GENERAL

a\. This insurance was effective for the first time on August 11, 1971,
and was authorized by Public Law 92-95. It is available to veterans who
have received grants from the VA for the purchase, remodeling or
construction of specially adapted housing under 38 U.S.C. chapter 21,
who have a mortgage on such housing, and who have not reached age 70.

b\. The law authorized the Administrator of Veterans Affairs to purchase
from one or more life insurance companies a policy or policies of
mortgage protection life insurance on a group basis to provide the
benefits of the law. The Bankers Life Insurance Company of Nebraska was
selected to be the insurer. The home office of the company is in
Lincoln, Nebraska.

c\. This insurance program is under the supervision of the VA. The VA
Center, St. Paul, was selected to notify eligible veterans about the
insurance, process replies and maintain liaison with the Hines DPC (Data
Processing Center) and the Bankers Life Insurance Company of Nebraska.

d\. The insurance issued under this program cannot be assigned.

e\. To be eligible for VMLI the veteran must:

\(1\) Have received a housing grant under 38 U.S.C. chapter 21;

\(2\) Be obligated for a mortgage loan on the housing unit;

\(3\) Reside or will soon reside in a mortgaged housing unit; and .

\(4\) Not have reached his or her 70th birthday.

12.07 EFFECTIVE DATE OF PROTECTION

a\. If a grant was approved prior to August 11, 1971, and the eligible
veteran was obligated for a mortgage loan on that date, the insurance
was effective on August 11, 1971, and any such veteran was automatically
insured unless he or she elected in writing not to be insured, or failed
to respond within 60 days after the date a final request was made or
mailed to him or her for information on which (the\] premium could be
based.

b\. If a grant is approved on or after August 11, 1971, the insurance
will be effective on the date the grant is approved, if on that date the
eligible veteran is obligated under a mortgage loan, and such veteran is
automatically insured unless he or she elects in writing not to be
insured, or fails to respond within 60 days after the date a final
request is made or mailed to him or her for information on which (the\]
premium can be based.

c\. If a veteran would have been eligible for insurance on August 11,
1971, or on the date of approval of a grant after August 11, 1971, but
such insurance did not become effective because he or she was not
obligated under a mortgage loan on that date, or because he or she
elected in writing not to be insured, or failed to timely respond to a
request for information on which (the\] premium could be based, or for
any other reason, the insurance will be effective on a date agreed upon
by the veteran and the VA, but only if he or she files an application in
writing with the VA, submits evidence that he or she meets the health
requirements of the VA together with information on which (the\] premium
can be based and is or becomes obligated under a mortgage loan upon the
date agreed upon as the effective date of insurance.

d\. When an eligible veteran disposes of the title to a housing unit
purchased, constructed or remodeled, in part, with a grant or a
subsequently acquired housing unit, and becomes obligated under a
mortgage loan on another housing unit occupied or to be occupied by him
or her the insurance will be effective on a date requested by the
veteran and agreed to by the VA, but only if the eligible veteran files
an application for and is entitled to the insurance; submits evidence
that he or she meets the health requirements of the VA; furnishes
information on which \[the\] premium can be based and is obligated under
a mortgage loan on the date the insurance is to become effective.

e\. When a veteran insured under this program refinances the mortgage
loan to avoid a default, to consolidate liens, to renew or extend the
time for payment of the indebtedness, and in cases in which the housing
unit is being bought, built, remodeled or enlarged by increasing the
amount of such an indebtedness, any increase in the amount of insurance
or any change in the rate of reduction of the insurance will be
effective on a date requested by the veteran and agreed to by the VA,
but only if he or she files an application, furnishes the information on
which \[the\] premium can be based and in case of an increase in the
amount of insurance, that he or she is entitled thereto, and submits
evidence that he or she meets the health requirements of the VA.

f\. All insurance will begin immediately after midnight on the
applicable effective date and end immediately before midnight on the
applicable termination date.

12.08 AUTOMATIC INSURANCE

a\. This personal life insurance shall automatically insure the lives of
the following:

\(1\) Any eligible veteran whose grant was approved and fully disbursed
prior to August 11, 1971 and who, on that date, was obligated under a
mortgage loan secured by a lien on the housing unit purchased,
constructed, or remodeled in part with the grant.

\(2\) Any eligible veteran whose grant was approved prior to August 11,
1971, but was not fully disbursed until on or after the date and who on
that date or the date \[the\] grant was Fully disbursed, was obligated
under a mortgage loan secured by a lien on the housing unit purchased,
constructed, or remodeled in part with the grant.

\(3\) Any eligible veteran whose grant was approved and fully disbursed
on or after August 11, 1971 and who on the date the grant was approved
or on the date the grant was fully disbursed, was obligated on a
mortgage loan on the housing unit purchased, constructed, or remodeled
in part with the grant.

b\. However, an eligible veteran will not be automatically insured if:

\(1\) He or she elects in writing not to be insured, or

\(2\) Fails to respond within 60 days after the date a final request is
made or mailed to him or her for information on which \[the\] premium
can be based.

12.09 PREMIUMS

a\. The premium rates are based on the 1958 basic CSO \[(Commissioners
Standard Ordinary)\] table of mortality at 4-314 percent interest for
standard lives. The United States Government bears the cost of the
insurance except for the premiums paid by the insured veterans.

b\. The premium due date for all policies is the 11th of the month.

c\. When the insurance is made effective on a day other than the 11th, a
full monthly premium must be paid for any portion of a month.

d\. Premiums that are deducted from compensation payable by the VA are
payable monthly.

e\. An insured veteran, not receiving compensation payments from the VA,
must pay \[the\] premiums directly to the Bankers Life Insurance Company
of Nebraska in any mode acceptable to the company.

12-7

M29-1, Part I May 20, 1977

Change 7

f\. A grace period of 31 days from the premium due date will be allowed
for the payment of any premium except the first premium. During the
grace period the insurance on the life of the insured will continue in
force. If the premium is not paid before the expiration of the grace
period, the insurance will automatically be discontinued at the end of
the grace period.

12.10 MAXIMUM AMOUNT OF INSURANCE

The maximum amount of insurance in force at any one time shall not
exceed the lesser of the following amounts:

a\. \[\$40,000\]

b\. The reduced lifetime maximum amount of insurance available to an
eligible veteran (see par. 12.11).

c\. When the grant was approved and fully disbursed prior to August 11,
1971, the amount of the unpaid principal of the mortgage loan
outstanding on August 11, 1971, on a housing unit then owned and
occupied by the eligible veteran.

d\. When the housing grant was approved prior to August 11, 1971, but
had not been Fully disbursed as of that date, the amount of the unpaid
principal of the mortgage loan outstanding on that date on a housing
unit then owned and occupied by the eligible veteran, or on a housing
unit then in process of construction or remodeling for him or her. Such
initial amount of insurance may be adjusted upward, subject to the
maximum amount of insurance available to the eligible veteran, or
downward, depending upon the amount of the mortgage loans outstanding on
the date of full disbursement of the grant, or on the date of the final
settlement of the purchase, construction, or remodeling agreement,
whichever date is the later date.

e\. When the grant is approved on or after August 11, 1971, the amount
of the unpaid principal of the

mortgage loan outstanding on the date of approval of the grant on a
housing unit then owned and occupied by the eligible veteran, or on a
housing unit being or to be constructed or remodeled for him or her.
Such initial amount of insurance may be adjusted upward, subject to the
maximum amount of insurance available to the eligible veteran, or
downward, depending upon the amount of the mortgage loans outstanding on
the date of full disbursement of the grant, or on the date of final
settlement of the purchase, construction, or remodeling agreement,
whichever date is the later date.

f\. When an eligible veteran ceases to own the housing unit purchased in
part with a grant, or a second housing unit that was acquired at a later
date and which was subject to a mortgage loan that resulted in his or
her life being insured under this program and he or she becomes
obligated under a mortgage loan on another housing unit occupied or to
be occupied by him or her, the amount of the unpaid principal
outstanding on the mortgage loan on the newly acquired housing unit on
the date insurance under this program is placed in effect.

g\. When an eligible veteran incurs or refinances a mortgage loan, the
amount of the incurred or refinanced mortgage loan.

h\. When the title to a housing unit is or will be vested in an eligible
veteran and his or her spouse, the amount of insurance shall not exceed
the principal amount of the outstanding mortgage loans. If title to an
undivided interest in a housing unit is or will be vested in a person
other than the spouse of an eligible veteran, the amount of insurance on
the eligible veteran\'s life shall be computed to be such part of the
total of the unpaid principal of the loan outstanding on the housing
unit as is proportionate to the undivided interest of the veteran in the
entire property.

12.11 LIFETIME MAXIMUM AMOUNT OF INSURANCE

a\. The maximum amount of insurance available to an eligible veteran
during his or her lifetime shall be \[\$40,000\], to be used as needed
for insurance on his or her life during \[the\] periods he or she is
obligated under a mortgage loan on a housing unit. Except for the
veterans who received a grant prior to August 11, 1971, the lifetime
maximum amount of insurance for any insured person shall be permanently
reduced simultaneously with the reduction iii the principal of the
mortgage loan, whether or not the mortgage loan is amortized, and if the
mortgage loan is amortized according to the schedule for the reduction
of the principal of the mortgage Loan, whether or not the scheduled
payments are timely made.

b\. When an insured person whose (\$40,000\] lifetime maximum amount of
insurance has not been reduced to zero, disposes of his or her housing
unit, there shall be available to him or her a reduced maximum amount of
insurance which shall be computed by deducting from (\$40,000\] the
amount by which \[the\] mortgage loan had been reduced on the date of
disposal of the housing unit. In no case shall a reduction in the
principal of a mortgage loan resulting from the sale of the housing
unit, or a refinancing of the mortgage loan, reduce the lifetime maximum
of insurance.

12.12 MISSTATEMENT OF AGE

If the age of any insured person has been misstated, a premium
adjustment will be made. If the correct age is younger than the stated
age, the insurer will refund to the insured any overpayment of premiums.
If the correct age is older than the stated age, the insured person must
pay to the insurer the difference between the premiums paid and the
premiums due at the correct age. If the age discrepancy is discovered
after the insurance has matured and the older age is correct, the amount
of insurance payable will be the amount of insurance in force less the
amount of premiums payable based on the correct age of the insured.

12.13 MORTGAGE LOANS EXCEEDING MAXIMUM AMOUNT OF INSURANCE

When the mortgage loan exceeds the maximum amount of insurance for which
an eligible veteran is entitled (\$40,0001 or the reduced maximum amount
of insurance), the amount of insurance in force will remain at a
constant levee until the principal amount of the mortgage loan is
reduced to the amount of insurance in force. At that time, the amount of
insurance in force shall be reduced in accordance with the schedule for
the reduction of the principal of the mortgage loan, whether or not the
scheduled payments are timely made.

12.14 CONTINUING ELIGIBILITY

An eligible veteran who is not automatically insured under this program
and who is obligated or becomes obligated under a mortgage loan on a
housing unit, upon application in writing to the VA for insurance under
this policy, submission of evidence that he or she meets the health
requirements of the VA, together with information on which \[the\]
premium can be based, payment of the required premium, and upon approval
by the VA, will be insured under this program. Subject to the
(\$40,000\] lifetime maximum amount of insurance, and to the reduced
maximum amount of insurance available to him or her and to the other
requirements, an eligible veteran is entitled to be insured under this
program, or to apply for such insurance as often as he or she becomes
obligated under a mortgage loan or a refinanced mortgage loan on a
housing unit or a successor housing unit owned and occupied by him or
her.

12.15 TERMINATION OF INSURANCE

a\. Insurance under this program shall terminate (when whichever of the
following events occurs first:

\(1\) Satisfaction of the veteran\'s indebtedness under the loan upon
which the insurance is based;

\(2\) The veteran\'s 70th birthday;

\(3\) Termination of the veteran\'s ownership of the property securing
the loan;

\(4\) Request of the veteran;

\(5\) Discontinuance of payment of premiums by the veteran;

\(6\) Discontinuance of the group contract or agreement; or

\(7\) Expiration of the period of time required for the amortization of
the loan if all payments had been timely made, in cases in which the
insurance is reduced in accordance with the schedule for the reduction
in the principal of the mortgage loan.

b\. Termination of the mortgage protection life insurance will in no way
affect the guaranty or insurance of the loan by the VA.

12.16 AMOUNT OF BENEFITS

a\. The amount of benefits payable will be the lesser of the following
amounts:

\(1\) \[\$40,000\] or

\(2\) The reduced lifetime maximum amount of insurance available to the
veteran, or

\(3\) The amount of the unrepaid principal of the mortgage Loan on the
insured\'s housing unit on the date of his or her death, or

\(4\) The amount of the principal of the mortgage loan on the insured\'s
housing unit that would have remained unpaid on the date of his or her
death had all loan, interest and other payments on the loan, been paid
in full when due.

b\. In addition to the amounts specified in subparagraph a above,
interest will be paid on the amounts, at the loan interest rate, from
the date of the Last( scheduled loan payment preceding the date of death
of the insured to the date of payment of benefits under this insurance
program.

c\. In addition to the interest specified in subparagraph b above and
the amounts specified in sub paragraph a (3) or (4) above, there will be
paid the amount of any prepayment penalty resulting from paying of
benefits of this insurance which, when added to the amounts payable
under subparagraph a (3) or (4) above, does not exceed the amounts
specified in subparagraph a (l) or (2) above, whichever amount is
applicable.

d\. When proof of death is furnished to the Office of Veterans Mortgage
Life Insurance more than 90 days after the date of death of the insured,
the rate of interest payable under subparagraph b above, commencing with
the 91st day following the date of death shall not exceed the rate of
interest applied by the insurer to premiums paid in advance.

e\. No payments shall be made under this insurance when the insurance is
reduced in accordance with the schedule for reduction of the loan
principal for a period of time required to liquidate the Loan, if all
payments had been timely made.

f\. The amount of benefits otherwise payable shall not be reduced
because of any payment made or due on the mortgage loan on the date of
death of the insured.

12.17 PAYMENT OF CLAIMS

Any amount of VMLI in force on the date of death of an eligible veteran
shall be paid only to the holder of the mortgage loan. If the VA is the
holder of the mortgage loan, the insurance proceeds shall be credited to
the Loan indebtedness and, as appropriate, deposited in either the
direct loan or the loan guaranty revolving fund. If there is more than
one mortgage loan on a housing unit at the time the insurance matures,
the proceeds will be payable to the holder of flu mortgage loans in the
order of the priority of the liens.

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August 23, 1974 M29-1 Part I

Change 6

\[SUBCHAPTER 3. FOREIGN ADDRESS GEOGRAPHIC AND COUNTRY CODES

12.18 GENERAL

a\. The foreign address geographic codes are designed to facilitate the
automatic compilation of data by country and major geographic areas. The
codes are an extension of she United States Postal Service domestic ZIP
code and also include those islands, territories and trusteeships of the
Caribbean and Pacific for which no ZIP code was assigned.

b\. The foreign address country codes are three-digit numeric codes
assigned to identify individual State Department Foreign Service posts
in foreign countries for the purpose of delivering Treasury checks.

12.19 FOREIGN ADDRESS GEOGRAPHIC CODES

a\. A five-character alphanumeric code has been assigned for all foreign
countries. The code is a three-digit number preceded by \"FC\" (example:
FC00I-Canada). It appears in the ZIP code area of the VA Form 29-5886b,
Insurance Record Printout, for the purpose of making gold-flow
computations within the system. It is not shown on computer printed or
clerically prepared forms and form letters, and is not used on dictated
and MTST letters.

h\. Each of the major continents are assigned a separate series of
codes, as follows:\
**Continent or Area Code Series**

North America FC001 -FC099\
Central America FC101 -FC199\
West Indies FC201 -FC299\
South America FC301 -FC399\
Europe FC401 -FC499\
Asia FC501 -FC599\
Australia and Oceania FC601 -FC699\
Africa FC701 -FC799\
Non-ZIP-coded Islands, Territories FC999\
and Trusteeships in the Pacific

and Caribbean

c\. When preparing input documents to insert or change a foreign
address, enter the foreign address geographic code assigned to that
country or area. If a new address is received for which a foreign code
has not been assigned, enter the address in the master record and
\"FC000.\" The Chief, Program Management Division (290), VA Center,
Philadelphia, Pennsylvania, will be requested to assign a foreign code.
The Insurance Division of the VA center involved will maintain a record
of the account to insure that the code is entered In the master record
when assigned.

d\. The foreign address geographic codes do not replace the code numbers
used in the German and Italian postal systems or any other mail
distribution coding system which may be adopted by other foreign
countries. Such foreign addresses will continue to be coded under
existing instructions, in addition to entering the applicable foreign
address geographic codes as shown in MP-6, part II, supplement No. 1 A,
appendixes 6A and 6B.

\(1\) Foreign address code \"FC413\" is used for all Germany addresses,
unless the address is identifiable as being in East Germany or the
Soviet Section of Berlin. East Germany addresses (\"FC4I2\") can be
identified when one of the following is shown as part of the address:

\(a\) DDR (Deutsche Demokratische Republik)

\(b\) Deutsche Demokratische Republik

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M29-1, Part I August 23, 1974

Change 6

\(c\) German Democratic Republic.

\(2\) Federal Republic of Germany addresses must be coded as follows:
The four-digit post office number must be entered in the first four
spaces of the first line of the address followed by the street address
or town or city. When assigned code numbers are less than four digits,
add zeros at the end to compete a four-digit number.

EXAMPLE:

Hans Keller

6701 Hardenburg (code and city)

Alboinstrasse 59 (Street and Number)

Germany - 944

\(3\) Italy\'s coding system is a number composed of five digits and Is
assigned to each of the Italian postal districts.

\(a\) Correspondence going to Italy should include the international
Italian automobile abbreviation \"I\" separated by a space from the numb
et which should be written to the left of the city and coded as follows:

Sandra Gollini

Villa del Tigli

1-55049 Viareggio

Italy - 700

\(b\) The Italian Post Office Guide is located in the Office of the
Chief, Policy Service Section, VA Center, Philadelphia, Pennsylvania.

12.20 FOREIGN ADDRESS COUNTRY CODES .

a\. The Treasury Department must punch and print foreign country codes
on all foreign checks. Therefore, the foreign geographic codes were
supplemented by adding a numeric country code. The three-digit numeric
code is entered on address input documents in the last three positions
of the last line of address, preceded by a dash (-).

(Example: Paris, France - 912) The codes are printed on PPO\'s and are
used only for disbursing Treasury checks. They will not be included in
the address for any other mail being released to the insured.

b\. The country codes are obtained from the State Department lists which
are periodically updated to show changes, deletions and assignment of
new codes. In some instances, a thorough clerical review is required to
determine the code to which the check should be delivered based on
geographical location.

c\. On October 29, 1971, the country codes were entered in the insurance
master records. These codes are to be maintained currently.

\(l\) The addresses, including the country code, will be entered in the
master record, using transaction type 081 on the input documents.

\(2\) If a wrong country code is entered in the master record, causing
the Treasury check to be delivered to the wrong State Department Foreign
Service post, the check will be delivered but the VA center will be
advised by that post of the correct code. The records will be changed as
shown in subparagraph (l) above.

d\. The MP-6, part II, supplement No. 1 A, appendix 6A (Foreign Address
Geographic and Country Codes (Numeric Listing)), and appendix 6B
(Alphabetic List of Foreign Address Geographic and Country Codes) have
been expanded to include the numeric country codes

12-12

532519

**April 14, 1971 M29-1, Part\
Change I**

CONTENTS\
SECTION II. UNDERWRITING\
\
13. GENERAL INFORMATION PERTAINING TO

UNDERWRITING ACTIONS 13-1

14\. RH INSURANCE 38 U.S.C. 722(a) 14-1\
15. ARH INSURANCE\-\--38 U.S.C. 722(b) 15-1

16\. TOTAL DISABILITY INCOME PROVISION

(NSLI AND USGLI) 16-1

17\. REPLACEMENT OR REINSTATEMENT OF INSURANCE SURRENDERED OR EXPIRED
WHILE IN ACTIVE SERVICE -38 U.S.C. 781 17-1

18\. CONVERSION 18-1**\
**19. CHANGE OF PLAN 19-1

20\. REINSTATEMENTS-INSURANCE AND TOTAL\
DISABILITY INCOME PROVISION 20-I

21\. EXCHANGE-RS TO WAND K TERM TO SPECIAL\
ENDOWMENT AT AGE 96 PLAN 21-1

22\. CORRECTION OF DATE OF BIRTH 22-1\
23. REDUCTION AND DIVISION 23-1\
24. CHANGE OR CORRECTION OF NAME 24-1

25\. MISCELLANEOUS UNDERWRITING\
ACTIONS-CONSOLIDATION,\
RESTORATION (REVIVAL), CHANGE\
OF EFFECTIVE DATE, COMBINATION\
OF INSURANCE FOLDERS, DIVISION\
OF AN INSURANCE CONTRACT 25-1

26\. BENEFICIARY AND OPTIONAL SETTLEMENT 26-1\
27. ISSUANCE OF REPLACEMENT POLICIES AND RIDERS 27-1\
28. CANCELLATION, FRAUD OR FORFEITURE 28-1\
29. TOTAL PERMANENT DISABILITY (USGLI) 29-1\
30. RECONSTRUCTION OF RECORDS (NSLI AND USGLI) 30-1

12-1