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

CONTENTS

CHAPTER 10. SURRENDER FOR CASH OR REDUCED PAID-UP INSURANCE

SUBCHAPTER 1. GENERAL

PARAGRAPH PAGE

10.01 Policies With Cash Value 10-l\
10.02 Persons Who May Surrender a Policy 10-1\
10.03 Net Cash Value 10-1\
10.04 Date Cash Value is Established 10-1\
10.05 Premiums Paid in Advance 10-2\
10.06 Date Deductions are Credited 10-2

SUBCHAPTER 2. SURRENDER FOR CASH

10.07 Policies Surrendered for Cash 10-2\
10.08 Indebtedness Recovered on Cash Surrender 10-2\
10.09 Refund of Credits 10-3\
10.10 Effect of Surrender 10-3\
10.11 Requirements 10-3\
10.12 Applications 10-3\
10.13 Disability Waiver 10-3\
10.14 Limited Pay Policies 10-3\
10.15 Lapsed NSLl Policy 10-4\
10.16 Lapsed USGLI Policy 10-4\
10.17 Correction of Action Taken by VA 10-4\
10.18 Payment of Cash Surrender Value 10-4\
10.18.1 Disposition of Unpaid Installments at Death of Insured 10-5\
10.19 Cancellation of Application for Cash Surrender 10-5\
10.20 Automatic Surrender 10-6

SUBCHAPTER 3. SURRENDER FOR REDUCED PAID-UP INSURANCE

10.21 Policies Surrendered for Reduced Paid-Up Insurance 10-6a\
10.22 Timely Applications 10-7\
10.23 Reduced Paid-Up Insurance 10-7\
10.24 Indebtedness Recovered on Surrender for Reduced Paid-Up Insurance
10-7\
10.25 Use of Credits 10-8\
10.26 Effective Date of Surrender for Reduced Paid-Up Insurance 10-8\
10.27 Applications for Surrender for Reduced Paid-Up Insurance 10-8\
10.28 Withdrawal of Application for Reduced Paid-Up Insurance 10-8

10-i

December 22, 1978 M29-1, Part 1\
Change 8

CHAPTER 10. SURRENDER FOR CASH OR REDUCED PAID-UP INSURANCE
SUBCHAPTER 1. GENERAL

10.01 POLICIES WITH CASH VALUE

a\. A term policy has no cash value. All permanent plans of insurance in
force by payment or disability waiver of premiums have cash values upon
completion of the first policy year except the USGLI Five Year
Convertible Term (Whole Life) plan of insurance. That plan has a cash
value at the end of the sixth policy year provided premiums at the Whole
Life (Ordinary Life) rate have been paid beginning with the sixth policy
year following the effective date of the original issue and the policy
is in force by payment or waiver of premiums. The sixth year of a Whole
Life policy is identical to the first year of an Ordinary Life policy.
For each month after the sixth policy year for which month a premium has
been paid (or waived) and earned, the cash value is increased by
one-twelfth of the increase in reserve for the current policy year. On
other permanent plans, the reserve is increased by one-twelfth of the
increase in reserve for the current year for each month a premium has
been paid or waived and earned.

b\. Authority for surrendering a policy for its cash value or for
reduced paid-up insurance is included in:

\(l\) 38 U.S.C. 706 (NSLI).

\(2\) 38 U.S.C. 744 (USGLI).

\(3\) VA Regulations 3427, 3430 and 3512 (NSLI).

\(4\) VA Regulations 3110, 3115, 3116 and 3117 (USGLI).

10.02 PERSONS WHO MAY SURRENDER A POLICY

a\. The insured, if competent.

b\. The insured through an attorney-in-fact, provided the insured gives
specific power of attorney to negotiate

the surrender and specifies the policy or policies to be affected.

c\. The \[ \] legal guardian (committee, \[conservator, curator, or
trustee\]) for an incompetent insured, provided the application is
supported by a court order from the court of jurisdiction, if required
by State law, or an order under local court practice which authorized
the surrender.

10.03 NET CASH VALUE

The net cash value available for cash surrender or reduced paid-up
insurance, is the reserve plus the dividends on deposit minus any
indebtedness which may be recovered from the reserve.

10.04 DATE CASH VALUE IS ESTABLISHED

When a policy is surrendered for cash or for reduced paid-up insurance
the cash value will be established as follows:

a\. **Premiums Paid By Deduction From Service Pay.** When the allotment
is on a month-in-advance basis, the cash value will be established as of
the last day of the premium month in which the application is submitted.
When the allotment is on a current basis, the cash value will be
established as of the last day of the premium month prior to the premium
month in which the application was submitted.

**b. Premiums Paid By Deduction From VA Benefits.** The last day of the
premium month in which the application was submitted.

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M29-I, Part I December 22, 1978

Change 8

**c.** **Premiums Paid By Other Methods.** The last day of the premium
month in which the application was submitted if premiums are paid
through that date. When the application is submitted within the grace
period and there is insufficient dividend credit to pay the current
premium, the policy will be surrendered as of the last day of the
premium month prior to the month in which the request for surrender was
submitted.

10.05 PREMIUMS PAID IN ADVANCE

All premiums paid in advance of the date established for the cash value
will be refunded on the basis of their present value.

10.06 DATE DEDUCTIONS ARE CREDITED

All deductions taken from the cash value for payment of premiums, loan,
etc., on another policy will be credited as of the date the request was
submitted.

SUBCHAPTER 2. SURRENDER FOR CASH

10.07 POLICIES SURRENDERED FOR CASH

a\. The effective date of a surrender for cash will be the end of the
premium month in which the application for surrender is delivered to the
VA or as of the date of the check for the cash value, whichever is
later.

b\. A policy on extended term insurance may be surrendered for its cash
value unless the policy lapsed prior to the end of the first policy
year.

c\. A policy previously surrendered for reduced paid-up insurance may be
surrendered for its cash value.

d\. Policies surrendered for cash are not eligible for reinstatement
except those cash surrendered after April 24, 1951, and before January
l, 1957, while the insured was in active service and are reinstated
under the provisions of 38 U.S.C. 781.

e\. There is no waiting period before paid-up additions are eligible for
cash surrender.

f\. When a life policy is surrendered for cash, the paid-up life
additions may be retained if the insured so desires. When an endowment
policy is surrendered for cash, the paid-up endowment additions must be
surrendered also.

g\. When a life policy is surrendered for cash and there are both
paid-up additions on the policy and an outstanding loan, the ratio
between the reserve on the paid-up additions and the reserve on the
basic policy will determine the amount of loan balance on the paid-up
additions after the surrender.

h\. When paid-up additions only are surrendered for cash, the proceeds
are payable in a lump sum.

10.08 INDEBTEDNESS RECOVERED ON CASH SURRENDER

The following types of indebtedness will be recovered from the reserve
of a policy being surrendered for cash:

a\. **Policy Loan.** Outstanding loan on the policy being surrendered.

b\. **Premiums.** Premium lien or shortage on the policy being
surrendered.

10-2

October 1, 1973 M29-1, Part I

Change

c\. Insurance Overpayment. An overpayment lien on any of the insured\'s
contracts will be deducted from the cash value. If the overpayment lien
is on a policy other than the one being surrendered, the insured will be
advised of the action taken. He will be told that if he objects to the
action taken and returns the check representing the cash value of the
surrendered policy, \[the transaction will be canceled and his policy
will be restored\] to the same status it was in before the action was
taken.

d\. Sections 304 and 306 Liens. A section 304 or 306 lien will be
deducted from the reserve if the USGLI policy on which the indebtedness
exists is surrendered for cash.

e\. Finance indebtedness will be deducted from the reserve of a policy
surrendered for cash. The insured will be advised of the action taken.
He will be told that if he objects to the action taken and returns the
check representing the cash value of the surrendered policy \[the
transaction will be canceled and his policy will be restored\] to the
same status it was in before the action was taken.

10-2a

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

10.09 REFUND OF CREDITS

The following credit items will be refunded in a lump sum with the first
**check:**

a\. Unpaid dividends.

b\. Dividend credits and deposits.

**c.** Pure insurance risk credits.

d\. Premium overages.

e\. Unused premiums.

10.10 EFFECT OF SURRENDER

When a policy is surrendered for cash, all rights and privileges under
the policy are surrendered also.

10.11 REQUIREMENTS

The following requirements must be met to surrender a policy for cash:

a\. The application must be completed and signed by the person
authorized to surrender the policy, and

b\. The policy must have cash value.

10.12 APPLICATIONS

The following types of applications may be submitted to request a cash
surrender:

a\. VA Form 29-1546, Application for Cash Surrender Value (Government
Life Insurance), or

b\. VA Form 29-5772, Loan and Cash Surrender Values (Government Life
Insurance), or

c\. Any type of written request which clearly expresses the intent of
the insured. When the intent is not clear and the insured expresses an
urgent need for funds, the document may be accepted and processed as an
informal loan application if all other requirements are met.

10.13 DISABILITY WAIVER

When an application for cash surrender pertains to a policy on which
premiums are waived due to total disability, the application will be
disapproved. If there is any question of competency, the application
will be sent to the Insurance Claims Section. Otherwise, a letter
explaining why \[the\] original application for cash surrender has been
disapproved, will be sent to the insured. VA Form 29-1546, Application
for Cash Surrender Value, and VA Form 29-1547, Application for Policy
Loan, will be enclosed. If the insured resubmits an application for cash
surrender, \[the\] request will be referred to the \[Chief, Insurance
Operations Division,\] for consideration.

10.14 LIMITED PAY POLICIES

a\. When an informal application for cash surrender pertains to a
limited payment life policy on which premiums are paid and earned to the
end of the premium-paying period, the application will not be processed
unless it is evident that the insured is fully aware of the pertinent
facts regarding his or her action or has been advised of the advantages
of retaining \[the\] insurance. VA Forms 29-1546 and 29-1547, with a
self-addressed kraft envelope, will be sent to the insured for his or
her use. When the insured expresses an urgent need of funds, the
informal application will be sent to the \[Chief, Policy Service
Section,\] or his or her designee, for approval as an informal loan
application.

10-3

M29-1, Part 1 May 20, 1977

change 7

b\. Formal applications for cash surrender, if in order, will be
processed without delay. This includes applications on limited payment
life policies on which premiums are paid and earned to the end of the
premium-paying period. Conservation letters will not be sent when a
formal application is received unless a disability waiver is in force, a
claim for disability benefits is pending, or total permanent disability
benefits are being paid.

10.15 LAPSED NSLI POLICY

An NSLI policy will be surrendered under extended term insurance
whenever an application for cash surrender is mailed after the
expiration of the 31-day grace period. When a policy is surrendered for
cash under extended term insurance, the cash value will be established
as of the last day of the premium month in which the request is
submitted.

10.16 LAPSED USGLI POLICY

A USGLI policy will be surrendered for its net cash value as of the date
through which premiums are paid if the request is submitted within 3
calendar months from the due date of the premium in default. Otherwise,
it will be surrendered under extended term insurance.

10.17 CORRECTION OF ACTION TAKEN BY VA

When a loan is granted in lieu of cash surrender and the insured
reiterates his or her request for cash surrender within 31 days from the
date of the VA Form 29-\[l468b, Notice of Approval of Policy Loan,\] the
effective date will be based on the original request.

10.18 PAYMENT OF CASH SURRENDER VALUE

a\. A check for the cash surrender value will be made payable to a
competent insured only to the address given on the application or to the
address given by an attorney-in-fact. If the insured is incompetent, the
check will be made payable to the \[court-appointed\] fiduciary (legal
guardian, committee, etc.) of the insured and a VA Form

29-504, Notice of Payment Due Incompetent Veteran, will be sent to the
appropriate \[Veterans Services Officer l except in Philippine account
cases. In \[Philippine\] cases, the check \[must\] be sent to the
\[court-appointed\] fiduciary in care of the \[Veterans Services
Officer\] at the Manila regional office, if the insured is incompetent.

b\. The insured, if competent, or the \[court appointed\] fiduciary, if
the insured is incompetent, may take the cash surrender value in one sum
(option I). Effective January l, 1971, the cash surrender value may be
paid in equal monthly installments (36 to 240) in multiples of 12
(option 2) or in installments under the RLI (refund life income) option.
The payment of a cash surrender value under option 2 and RLI was
authorized by Public Law 91-291. The insured may also select any
combination of two options (cash and either one of the installment
options). In addition, he or she may elect to have all or part of the
cash value applied to pay premiums or reduce a lien or loan on any other
active account(s). \[Applications received with no option selected will
be paid under the cash option (option l).\]

c\. If payments are being made under option 2, the insured may request
the present value of the remaining unpaid installments in one sum. If
payments are being made under the RLI, the insured may request the
present value of the remaining unpaid guaranteed installments in one
sum.

d\. If an RLI option is selected, payments will be made in monthly
installments for such period certain as may be required in order that
the sum of the installments certain, including a last installment of
such reduced amount as may be necessary, shall equal the cash value of
the contract, less any indebtedness, with such payments continuing
throughout the lifetime of the insured. All settlements under RLI shall
be calculated on the basis of the Annuity Table for 1949. The age of the
insured (based on his or her date of birth) as of the date of surrender
is used to determine the amount of the monthly installment for the
refund life income option.

10A

December 22,1978 M29-1, Part I\
Change 8

e\. If the option selected requires monthly installments of less than
\$10, the amount payable shall be paid in such maximum number of monthly
installments as are a multiple of 12 as will provide a monthly
installment of not less than \$10.

f\. When a policy is surrendered for cash and the insured requests
payment under option 5 (refund life income), the amount of any dividend
accumulations, dividend credit and/or deposit, will be added to the
reserve and any indebtedness will be deducted. The total amount used to
purchase the annuity may not exceed the face amount of the surrendered
policy. Any cash value in excess of the face amount will be paid in one
sum.

10.18.1 DISPOSITION OF UNPAID INSTALLMENTS AT DEATH OF INSURED

a\. If the insured has elected to receive the proceeds of the cash
surrender in equal monthly installments (option 2) or in installments
under RLI (option 5), the insured nay elect that upon his or her death,
the present value of any remaining unpaid guaranteed installments be
paid to his or her beneficiary in one sum or continue to be paid to the
end of the guaranteed period under the original option.

b\. If the insured dies before receiving all installments due and no
designated beneficiary survives, the present value of the remaining
installments will be paid to the insured\'s estate in one sum, provided
such payment would not escheat.

c\. If the designated beneficiary survives the insured, the present
value of the remaining installments will be paid in one sum to the
beneficiary unless the beneficiary has elected to continue the
installment under the option selected by the insured.

10.19 CANCELLATION OF APPLICATION FOR CASH SURRENDER

a\. All cash surrenders are final as of the end of the policy month in
which the surrender was requested, or as of the date of the surrender
check, whichever is later. However, if a request for cancellation of an
application for cash surrender is received before the issuance of the
surrender check, the application will be disapproved If the cancellation
request is received before the date of the surrender check (the issuance
of which could not be halted), or before the end of the premium month in
which the application was delivered to the VA, the insured will be
allowed l 5 calendar days to return the check.

b\. A cash surrender reversal action will be automatically effected if
the surrender deck (Treasury check) is returned under one of the
conditions listed below:

\(1\) The request for cancellation is mailed within IS calendar days
from the date of the surrender check and it appears that the insured was
misled, or did not understand the surrender action.

\(2\) The request for cancellation is mailed within 16 to 31 calendar
days from the date of the surrender check and the insured states that
there was a misunderstanding. In addition, the insured must furnish an
acceptable reason for the delay in writing to VA concerning the
surrender action. If there was no misunderstanding or the insured
submits no reason for the delay, he or she will be advised that the
surrender is final and the surrender check will be returned to him or
her.

\(3\) The request for cancellation is mailed more than 31 days after the
date of the surrender check and the insured explains the delay and
states his or her misunderstanding of the surrender action. If he or she
fails to do this, advise the insured that the surrender action is final,
and the surrender check will be returned to him or her.

NOTE: A request for cancellation will also be honored if the insured
states that he or she is holding the surrender check and meets one of
the conditions in sub paragraph (l), (2), or (3) above.

10-5

M29-1, Part I December 22, 1978

Change 8

c\. A request for cancellation of a cash surrender will be effected if
the surrender check (Treasury check) is not returned, and there is no
indication as to what disposition has been made of the check and one of
the following conditions are met:

\(l\) The insured requests cancellation of the surrender within 15
calendar days from the date of the surrender check and the letter
clearly indicates a misunderstanding in requesting cash surrender. He or
she will be allowed 15 calendar days to return the surrender check or an
equivalent amount. A loan may be granted as part of the amount required,
if desired.

\(2\) The insured requests cancellation of the surrender from 16 to 31
days from the date of the surrender check, and the letter clearly
indicates a misunderstanding in requesting cash surrender and a
satisfactory explanation for the delay in requesting cancellation of the
surrender. He or she will be allowed l5 calendar days to return the
surrender check or an equivalent amount. A loan may be granted as part
of the amount required, if desired.

d\. A request for cancellation mailed more than 31 days after the date
of the Treasury check will ordinarily

not be honored. However, this will not preclude favorable action in the
unusual case in which the insured returns

or offers to return the Treasury check, clearly explains a
misunderstanding, and advances reasons beyond his or her control as the
cause of the delay in submitting the request.

e\. If, after being advised that the surrender action is final, the
insured protests the decision, or if unusual circumstances in an
otherwise unadjustable case seem to warrant further consideration; for
example, a question of competence, the case should be briefed and
forwarded for decision to the Chief, Insurance Program Management
Division (290), VA Center, Philadelphia. In these cases, return of the
Treasury check will not be requested.

f\. A cash surrender reversal action will be effected if it is
established that the insured was incompetent at the time the surrender
application was mailed. In these cases, the Treasury check or an amount
equal to the check must be returned to the VA.

g\. Processing of a request for cancellation of a cash surrender will be
expedited in all stages. w

\[h. A cash surrender reversal action will be effected whenever the
check is returned because of death and before the end of the premium
month in which the surrender was made effective, or within the 31-day
grace period of the last due date.

NOTE: If the check for cash surrender is returned after the period
specified above, the ease will be forwarded to the Chief Insurance
Program Management Division (290), VAC Philadelphia, for a determination
as to whether the insurance may be restored.\]

10.20 AUTOMATIC SURRENDER

a\. If the insured was notified 90 days prior to the date the policy
will be terminated by automatic surrender, the policy will cease and
become void the day the loan indebtedness equals or exceeds the policy
reserve, on the parent policy and the paid-up additions, (if attached).
Dividends on deposit are considered part of the policy reserve. Liens
are not considered as part of the indebtedness for automatic surrender.
A policy that is properly terminated for automatic surrender is not
eligible for reinstatement.

b\. When the approaching cancellation date is less than 90 days in the
future, or has passed and the insured was not previously notified of the
condition, the insured will be given 90 days from the date of notice to
reduce the loan indebtedness below the cash value. When a dividend
credit exists, the insured will be requested to give his or her
permission to apply dividend credit against the indebtedness. If
permission is not given and the policy is surrendered, the dividend
credit balance will be refunded. If the insured, without making any
payment to reduce the indebtedness, dies after the automatic surrender
date but prior to the end of the 90-day period from the date of notice,
the insurance is considered in force on the date of death. The
outstanding loan, with interest to the date of death, will be deducted
from the settlement. If it is determined, after the automatic surrender
date, that the insured was not sent a 90-day notice, a letter will be
sent informing him or her that he or she has 90 days from the date of
the letter to reduce the indebtedness to prevent the automatic
surrender. If the insured has died, the insurance will be considered in
force to the date of death. However, if the indebtedness as of the date
of death equals or exceeds the proceeds of the policy, a claim will not
be processed.

c\. If notice to the insured is returned as undeliverable and efforts to
obtain a current address fail, it will be considered that notice was
given. Insurance protection will cease as of the date the loan
indebtedness equals or exceeds the cash value.

SUBCHAPTER 3. SURRENDER FOR REDUCED PAID-UP INSURANCE

10.21 POLICIES SURRENDERED FOR REDUCED PAID-UP INSURANCE

a\. All permanent plan policies that have a cash value and are not
paid-up by their terms may be surrendered for reduced paid-up insurance.
A life policy (Modified Life, Ordinary Life, 20-Payment Life, 30-Payment
Life) will be surrendered for reduced paid-up life insurance. An
endowment policy (20-Year Endowment, 30-Year Endowment, Endowment at Age
60, Endowment at Age 62, Endowment at Age 65, Endowment at Age 96) will
be surrendered for reduced paid-up endowment insurance. The reduced
paid-up endowment insurance will mature on the date the parent policy
would have matured.

b\. Policies surrendered for reduced paid-up insurance are not eligible
for reinstatement.

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October 1, 1973 M29-1, Part 1\
- Change 8

10.22 TIMELY APPLICATIONS

a\. An application for reduced paid-up NSLI will be disapproved if it is
submitted while the policy is in a state of lapse and there are no
credits available to pay the unpaid premium(s).

b\. An application for reduced paid-up USGLI may be approved if it is
submitted within 3 months from the date of any premium in default. The
cash value in such cases will be established as of the last day of the
premium month for which a premium was paid or waived.

10.23 REDUCED PAID-UP INSURANCE

a\. When a policy is surrendered for reduced paid-up insurance, the
amount of paid-up insurance is that amount that the net cash value will
purchase when applied as a net single premium at the insured\'s attained
age. The attained age is the age on the birthday anniversary nearest to
the effective date of the policy plus the number of years and months
from that date to the date the paid-up insurance becomes effective.

b\. When an insured requests that his insurance be surrendered for a
specified amount of paid-up insurance and payment in cash of the
remaining reserve, such requests will be honored. An insured may also
request that his insurance be surrendered with a certain amount of
reserve paid in cash and the balance used to purchase paid-up insurance.

c\. Any existing premium credits will be refunded unless the credit is
less than \$1 or is needed to prevent lapse of another policy.

d\. A TDIP (total disability income provision) may be continued on a
reduced paid-up policy provided the amount of paid-up insurance is not
less than \$1,000, by paying the required premiums as they become due.
The amount of the total disability income provision will be the highest
multiple of \$500 that is not in excess of the amount of paid-up
insurance.

e\. While dividends on deposit may be used with the reserve to purchase
reduced paid-up insurance, the amount of reduced paid-up insurance may
not exceed the face amount of the parent policy.

f\. A new policy is not issued when a surrender for paid-up insurance is
processed. Instead, a VA Form 29-1546a, Notice-Surrender for Paid-Up
Insurance Approved, showing the amount of paid-up insurance, will be
furnished.

g\. When surrendering a policy for reduced paid-up insurance, the
insured must first be told the amount of paid-up insurance he will
receive. If dividends on deposit are involved, the letter will also
explain that the dividends will be applied to purchase additional
paid-up insurance unless a refund is requested within 15 days.

h\. If the parent policy earned dividends the reduced paid-up policy
will also earn them. Also, all reduced paid-up policies have cash and
loan values.

10.24 INDEBTEDNESS RECOVERED ON SURRENDER FOR REDUCED PAID-UP INSURANCE

a\. The following types of indebtedness will be recovered from the
reserve of a policy being surrendered for reduced paid-up insurance:

\(l\) Policy Loan. Outstanding loan on the policy being surrendered.

\(2\) Premiums. Premium lien or shortage on the policy being
surrendered.

\(3\) Insurance Overpayment. Overpayment lien on the policy being
surrendered for reduced paid-up insurance except that a lien that
resulted from overpayment of an accelerated dividend will not be
deducted from the reserve -

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M29-1, Part I October 1,1973

Change 8

\(4\) Section 306 Lien. A section 306 lien will be deducted from the
reserve of the USGLI policy surrendered for reduced paid-up insurance.

b\. In addition, there is an administrative charge on policies in the J,
JR and JS series surrendered for reduced paid-up insurance. The
administrative charge of \$2 per \$1,000 or \$2 per \$500 (see par.
1.05) is a charge against the reserve of the policy being surrendered.

\[c. When a policy is surrendered for reduced paid-up insurance and
there are both paid-up additions on the policy and an outstanding loan,
the ratio between the reserve on the paid-up additions and the reserve
on the surrendered basic policy will determine the amount of loan that
will be collected from the surrendered basic policy and the amount of
loan balance on the paid-up additions after the surrender.

10.25 USE OF CREDITS

While dividends held on deposit become part of the reserve of cash value
when a policy is surrendered for reduced paid-up insurance, other
credits may not be used to purchase a larger amount of reduced paid-up
insurance.

10.26 EFFECTIVE DATE OF SURRENDER FOR REDUCED PAID-UP INSURANCE

The effective date of reduced paid-up insurance will be the premium due
date following the last premium month **on** which the cash value is
established.

10.27 APPLICATIONS FOR SURRENDER FOR REDUCED PM-UP INSURANCE

Application for reduced paid-up insurance may be made on:

a\. VA Form 29-1546, Application For Cash Surrender Value, or

b\. Any type of document which clearly expresses the intent of the
insured.

10.28 WITHDRAWAL OF APPLICATION FOR REDUCED PAID-UP INSURANCE

a\. When the VA Form 29-1546a, Notice-Surrender For Paid-Up Insurance
Approved, is returned by the insured, if competent, or by the fiduciary,
if the insured is incompetent, advising that the surrender is not
desired, and the postmark date of the request is before the expiration
of the period premiums have been paid for and earned, the surrender will
be canceled.

b\. In all other instances where the insured expresses dissatisfaction
with the surrender for paid-up insurance, the insurance folder and a
current RPO (record printout) will be forwarded to the \[Chief,
Insurance Program Management Division (290C), VA Center Philadelphia\]
for review and decision.

c\. When it is determined that the insurance may not be restored, the
insured will be advised that the surrender was granted in accordance
with his request, and cannot be canceled.