September 13, 1976 M29-1, Part 11\
Change 13

CONTENTS

CHAPTER 27. CORRESPONDENCE

PARAGRAPH PAGE

27.01 General 27-I\
27.02 Processing Unidentified Mail 27-I\
27.03 Processing Identified Mail - 27-I\
27.04 Release of Information From Insurance Records 27-3\
27.05 Congressional, Complaint and Nuisance Mail 27-4\
27.06 Foreign Mail 27-5\
27.07 Federal or State Tax Inquiries 27-5\
27.08 Soldiers\' and Sailors\' Civil Relief Act Mail 27-5\
27.09 Servicemen\'s Group Life Insurance Mail 27-5\
27.10 Veterans\' Mortgage Life Insurance Mail 27-6\
27. II Processing Mail on a Missing Veterans\'s Insurance Account 27-6\
27.12 Complimentary Mail 27-6\
27.13 Postal Service Form 3577, Correction of Error in Address 27-7\
27. I 4 Processing Mall Concerning Check Information on Disbursements
27-7\
27.15 Notice of Bankruptcy Petitions 27-7\
27.16 Processing Correspondence Indicating Disability, Injury, or
Illness 27-7

27-i

M29-1, Part 11 September 13, 1976\
Change 13

\(4\) N prefix only mail should be returned to the sender with our
reply.

b\. If correspondence is identified with other than an N number, the
Administrative Division will prepare input to request VA Form 29-5886b,
RPO (Insurance Record Printout). If an RPO is generated, the mail will
be sent to the Insurance Operations Division for processing. If an RPO
is not generated because the insurance record is not on tape, the
folder, if available, will be attached and forwarded to the Insurance
Division personnel for processing. If the folder is not available,
indexing will be accomplished through BIRLS. Any new information
furnished by BIRLS will be developed. If BIRLS does not furnish new
information or a negative reply is received, a photo copy of the PRC may
be requested. If the PRC is not located and additional information is
not developed, the correspondent will be advised to the effect that our
records indicate the insurance is not in force. The correspondence will
be returned with our reply.

c\. Incoming identified mail is coded in the Administrative Division and
is used as a source document to prepare input to request an RPO.

\(l\) Remittance-bearing mail will be sent to the Collections and
Cashier Section, Finance Division for processing.

\(2\) Nonremittance bearing mail will be reviewed by designated clerks
in the Policy Service Section who will determine if action, other than a
simple status reply, is required.

\(3\) If no other action is required, VA Form 29-5899, Request for
Record Print Out, or VA Form 29-8529, RPO/Reinstatement/Status,
transaction type 980, coded 8 in card column 3l, will be prepared to
effect release of VA Form 29-5885, Information About Your Insurance. If
the input is rejected, an RPO, reason code 968, will be generated. Upon
receipt of the RPO, the VA Form 29-476, Notice of Premium Account
Status, will be clerically prepare d.

\(4\) If other action is required (not code 8 mail) the RPO and, if
appropriate, the insurance folder will be matched with the
correspondence and sent to the operating element responsible for the
required action.

d\. Transaction history prints will be obtained only when necessary.

e\. Correspondence will be answered by form or form letter provided it
contains sufficient information to constitute a complete reply.
Otherwise, the reply will be dictated, using MTST (Magnetic Tape
Selectric Typewriter) paragraphs whenever possible. The principles of
\~S letter writing will always be followed in preparing dictated
replies.

f\. Supplemental information for inclusion in the basic reply may be
obtained from another operating element, but that information must be in
writing. If separate letters are required, **the** basic reply will be
released and the case referred to the other element involved, recharging
the insurance folder if it is also referred.

g\. \[The name and address will be placed on the letter so that they may
be easily read through the window of the envelope. (See MP-l, pt. II,
ch. 10, app. C, sec. B, par. 4.) The initial instead of the full first
name may be used on letters, forms and form letters except those
released by Medical Determination Section, Insurance Claims Section, and
in the Miscellaneous Accounts and Service activity. Exceptions will also
be made when the full first name would be more appropriate, as in
service addresses or when the last names are of foreign origin. If the
inquirer provides a stamped envelope or postage stamps, they will be
used, if adequate.

h\. When a dictated or MTST letter is being prepared and the beneficiary
designation reel number on the master record is 000 00, the insured will
be advised of the importance of an up-to-date designation of beneficiary
and election of optional settlement. If there is no evidence in the
insurance folder that a VA Form 29-336, Designation of Beneficiary and
Optional Settlement, was sent within the last 2 years, a VA Form 29-336
will be enclosed with the letter.

27-2

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

CHAPTER 27. CORRESPONDENCE

27.01 GENERAL

a\. Correspondence is the VA\'s primary medium of communication and is a
major factor in public relations. The quality of correspondence is
extremely important and constant emphasis must be placed on such
elements as shortness, simplicity, strength, and sincerity. Also, the
tone of the letter should be sympathetic and understanding.

b\. The use of established VA form letters is limited to the purpose for
which each letter was created. *Substantial typewriter alterations of a
printed VA form letter to include other situations is discouraged.
Instead, a dictated letter should be used.* Minor changes or corrections
may be made on form or dictated letters, except congressional or other
special mail.

c\. Every correspondent will be furnished, insofar as the limitations of
the law permit, with a fully informative reply to his or her letter.

d\. Routine correspondence which cannot be answered, within 5 workdays
after receipt will be acknowledged by the release of a FL 30.

e\. When correspondence requiring a reply is to be filed, the file copy
of the reply will bear the name or initial of the dictator and/or other
persons, if any, who reviewed the reply before release. Letters and all
copies will be dated before release. All papers will be securely
fastened in the folder before returning a folder to file.

27.02 PROCESSING UNIDENTIFIED MAIL

a\. Unidentified mail (no insurance number(s)) received at the
Philadelphia and St. Paul VA Centers is indexed locally in the
Administrative Division. If local indexing cannot furnish an insurance
number, BIRLS (Beneficiary Identification and Records Locator) will be
used for indexing by that division.

b\. If the item cannot be identified and a complete response cannot be
prepared without reference to the insurance records, the Administrative
Division will initiate FL 07-2 or a similar type letter to obtain the
necessary identifying data from the correspondent. If a complete
response is possible, without reference to the insurance records, the
letter should he referred to the Insurance Operations Division to be
answered, and the inquiry returned to the sender. No file copies will be
made in these cases.

c\. When an application, designation of beneficiary, or a claim is
received and it cannot be identified with an insurance account, a letter
will be released immediately to the sender, requesting the reason for
the submission of the form or letter. If it develops there is no
insurance in force or if no reply is received to our letter within 31
days, the application, designation of beneficiary or claim will be
returned to the originator.

27.03 PROCESSING IDENTIFIED MAIL

a\. When correspondence is identified with an N insurance number only,
it will usually be possible to reply to an inquiry without requesting a
photocopy of the N PRC (premium record card). Generally, replies will
include one of the following:

\(l\) Insurance contracts with an N number expired after December 31,
1953; therefore, the insurance is no longer in force.

\(2\) Since reinstatement of term insurance must be accomplished within
5 years from the date of lapse, and the last of the N-numbered insurance
contracts expired December 3I, 1953, the insurance is no longer subject
to reinstatement.

\(3\) By law, claims for dividends on N-numbered contracts may no longer
be accepted. (See M29-l, pt. II, par. 6.16d and e.)

27-1

M29-1, Part II May 12, 1980

Change 16

c\. **When** a VA Form 294337 is not of record, but there is a VA Form
23-22, Appointment of Veterans Service Organization as Claimant\'s
Representative, in favor of the service organization, of record in the
\[Insurance\] folder, either by presence of the form itself or a
notation that **the** power of attorney is on file in a regional office
or the service organization representative advises that there is a VA
Form 23-22 on file in the regional office, the information may be
released to the representative.

d\. If it is clear from 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 29-4337 is not of record. A copy of our
correspondence to the third party will be sent to the insured for
information. If there is any question as to whether or not a third party
is actually representing the insured, a VA Form 29-4337 will be
requested. Simultaneously, the requested information will be sent
directly to the insured.

e., When a proper authorization is of record and ilk third party has
requested status or general information not requiring specific action on
the part of the insured, such status or information will be furnished
directly to the third party without communicating with the insured. If
action is required by the insured in order to maintain or protect his or
her rights under the policy, the insured will be notified directly, and
copies of the correspondence will be sent to the authorized third party.

f\. Information will be released to a third party only as requested by
such authorized person. The fact that a VA Form 294337 or its equivalent
may be on file does not mean that the third party will be notified
automatically concerning transactions between the VA and the insured
from time to time. The third party will be given information to which he
or she is entitled only upon request.

g\. When the authorized third party requests that all correspondence or
completed actions be forwarded to him or her the request will generally
be complied **with;** however, when it is not practical to do so, he or
she will be advised. For example, when a computer-generated policy is
sent to the address in the master record, the third party will be
advised as to the action \~ taken and the reason we are unable **to**
comply with **the** request.

h\. VA Forms 294337 and other authorizations will be filed on the left
side of the insurance folder, cleated face down and lengthwise, so that
they may be folded back over subsequently filed material.

**i.** VA Regulation 507 authorizes that Members of Congress shall be
furnished, in their official capacity, information contained in VA files
as may be requested for official use. If the congressional mail is
accompanied by an unauthorized third party request, the information will
not be furnished to the Member of Congress. Information concerning the
beneficiary designation of a United **States** Government Life Insurance
or National Service Life Insurance policy is deemed confidential and
privileged and during the insured\'s lifetime shall not be disclosed to
anyone other than the insured or a duly appointed fiduciary unless the
insured or the fiduciary authorizes the release of such information. The
above statement concerning the beneficiary designation during the
insured\'s lifetime relates to releasing **the** information to anyone
outside the VA. A beneficiary designation is available to any VA
employee who, in line with his or her duties, has need to know such
information. Each employee is subject to the provisions of VA Regulation
507 with respect to the release of such information to persons who are
not VA employees.

j\. **If** the mail is received from a third party and there is no
consent or authorization in writing over the insured\'s signature, flee
information or action requested will not be furnished.

27.05 CONGRESSIONAL, COMPLAINT AND \[HIGHLY REPETITIOUS\] MAIL

a\. Congressional, VA Congressional Liaison, and White House referrals
will be acknowledged within 2 workdays if a complete reply cannot be
made within 5 workdays. If a complete reply cannot be made within 3l
calendar days, an interim reply will be made **at** the end of **that**
period, briefly explaining the reason for delay.

b\. All complaint mail including anonymous, obscene and threatening
communications will be given priority handling and forwarded directly to
the Director\'s office.

**M29-1,** Part II May 12, 1980

change 16

c\. \[Repetitious\] mail need not be answered in flagrant cases. when an
insured or other correspondent has been informed repeatedly of the
status of the case but persists in writing on the same subject without
submitting any new facts or evidence, \[additional correspondence on the
same subject may be initialed \"NAN\" as further response would serve no
useful purpose. Authority to initial such correspondence \"NAN\" may not
be delegated to a supervisor lower than the Chief, Insurance Operations
Division. The correspondence marked \"NAN\" and initialed by the Chief,
Insurance Operations Division will be filed in the insurance folder\]

27.06 FOREIGN MAIL

a\. Correspondence, including computer-generated mail, will be sent
direct to the addressees residing outside the continental United States
via airmail. This includes persons living in countries where the United
States does not maintain diplomatic or consular representation, but
excluding the Philippines. Correspondence to addresses in the Republic
of the Philippines will be sent by blanket mail to the Manila regional
office for remailing. The original of the correspondence only will be
furnished, unless extra copies are specifically needed. If the
correspondence is to be remailed by registered or certified mail, a VA
Form 3230, Reference Slip, will be prepared (typed) to provide these
instructions and attached to flee correspondence.

b\. The Department of State may be requested to perform specific
services, such as arranging for physical examination, making
investigations, performing services in connection with registered or
certified mail with return receipt requested when the United States
maintains diplomatic and consular representation with the country
involved. The request should be addressed and mailed directly to flu
Foreign Service post having jurisdiction over the locality where the
addressee resides. If the consular jurisdiction is unknown, the
correspondence should be sent by blanket mail, without an individual
envelope, to the Director, Veterans Assistance Service (272), Central
Office, for addressing and remailing.

27.07 FEDERAL OR STATE TAX INQUIRIES

a\. Generally, the proceeds of Government life insurance and annual
dividends are exempt from taxation, except in certain claims of the
United States (38 U.S.C. 3101). This exemption does not extend to any
property purchased in part or wholly out of such payments. Such proceeds
are included in the insured\'s gross estate for Federal Estate tax
purposes. Dividend interest is taxable.

b\. If the above will not answer a tax question, the correspondent will
be advised to refer his or her question to the Director of Internal
Revenue for the area in which the insured resides, or to the State or
local authorities, as appropriate.

27.08 SOLDIERS\' AND SAILORS\' CIVIL RELIEF ACT MAIL

a\. VA Forms 29-380, Application for Protection of Commercial Life
Insurance Policy, or any other forms or correspondence received which
pertain to protection of commercial life insurance under the Soldiers\'
and Sailors\' Civil Relief Act of 1940, as amended, are to be referred
to the Office of Chief Actuarial Staff (299), VA Center, Philadelphia.
No attempt will be made to identify the correspondent or to associate
the material with NSLI (National Service Life Insurance) or USGLI (U.S.
Government Life Insurance) records. Immediately upon recognition of such
material, it will be transmitted to the Chief Actuary (299), VA Center,
Philadelphia, with a covering VA Form 3230 identifying the subject
matter.

27.09 SERVICEMEN\'S GROUP LIFE INSURANCE

a\. when correspondence is received that relates to SGLI (Servicemen\'s
Group Life Insurance) and VGLI (Veterans Group Life Insurance), it will
be sent to the Chief, \[Insurance\] Program Management Division (290),
VA Center, Philadelphia for acknowledgment and reply.

b\. Congressional correspondence or an inquiry float relates to
eligibility, entitlement, or coverage under SGLI (and VGLI) will be
acknowledged and sent to the Chief, \[Insurance\] Program Management
Division (290).

c\. When the inquiry involves SGLI, VGLI, NSLI and/or USGLI the inquiry
pertaining to Government life insurance will be answered by the
Insurance Operations Division and the correspondent advised that the
additional information will be sent under separate cover. A photocopy
will be prepared of the original request. It will be properly annotated
as to the action

27-5

M29-1, Part II May 12, 1980

Change 16

taken and forwarded to Chief, Insurance Program Management Division
(290) for further reply regarding the inquiry for SGLI or VGLI.

27.10 VETERANS\' MORTGAGE LIFE INSURANCE MAIL

Forms or correspondence that pertain to Veterans\' Mortgage Life
Insurance which are received in the VA Center, Philadelphia will be
**sent** immediately to VA Center (292M), **St.** Paul, with a VA Form
3230 attached, identifying the subject matter. No attempt will be made
to identify the correspondent or to associate the material with **NSLI**
or USGLI records.

27.11 PROCESSING MAIL ON **A** MISSING VETERAN\'S INSURANCE ACCOUNT

a\. The criteria to determine responsibility for processing mail on a
missing veteran\'s insurance account are as follows:

\(l\) Until a determination of death **has** been made or is about to be
made, the correspondence will be processed by the Policy Service
Section.

\(2\) After a determination of death has been made the correspondence
will be processed by flee **Death** Claims activity. Also,
correspondence received shortly before (60 days or less) the usual 7
years of continuous absence will be considered as an informal
application for death benefits.

b\. **Status** of an insurance account may be furnished when **the**
correspondent is **the** beneficiary if it appears that it will serve
the best interests of the **missing** insured. Determination as to
whether such data would or would not be in **the** insured\'s best
interests must be based on the information available in each case.

\(l\) If the account is active, the reply to the beneficiary will
include a statement about the importance of continuing payments during
the period the insured **is** considered missing. In such cases, **the**
address of record will be changed to **that** of \~ the beneficiary. (If
such action has not been taken previously, input will be prepared, if
necessary, to change **the** dividend \~ option from cash to PL-36.)
This will permit the system to release premium notices but will prevent
disbursements to the beneficiary. If the beneficiary complains of
nonreceipt of dividends, explain **that** he or she is not entitled to
receive them.

\(2\) When the correspondent **is** other than the beneficiary but is
eligible to receive the requested information (see par. 27.04), such
information will be furnished.

\(3\) When it is determined that a third party is **not** entitled to
**the** requested information, our letter will advise that **the**
requested information is considered privileged and confidential (38
**U.S.C.** 3301). However, if the best interests of the insured indicate
the advisability of contacting the beneficiary, such a letter will be
initiated.

27.12 COMPLIMENTARY **MAIL**

When correspondence is received in the Insurance Operations Division and
it contains sincere and spontaneous compliments for the service rendered
by the center or another station or the VA in general, it will be
photocopied and the photocopy sent to the Assistant Director for
Insurance (29), VA Center, Philadelphia.

27-6

VA Regional Office and Insurance Center Circular 29-84-I

\~ Philadelphia, PA July 13, 1984

[PROCEDURE FOR CHECK RECERTIFICATION]{.underline}

1\. ORGANIZATIONAL ELEMENTS AFFECTED: Insurance Operations Division\
Insurance Program Management Division\
Finance Division

2\. REFERENCE: M29-1, Part II, Chapter 27.14, Chapter 6.18.

3 PURPOSE: To furnish new procedures for processing claims by payees
(insured\'s) or beneficiaries) alleging nonreceipt, loss, theft,
destruction, mutilation or forgery of U.S. Treasury checks. The
effective date of Treasury\'s new Check Recertification System is July
9, 1984. VA Form Letters 4-162 and 4-163 are rescinded as of July 6,
1984. Standard Form (SF) 1184, Unavailable Check Cancellation rev. 6-84
will be used for nonreceipt procedures effective July 6, 1984. SF 1180,
Request for Stop Payment, and SF 1181, Request for Removal of Stop
Payment, are also rescinded as of July 9, 1984.

4\. PROCEDURE:

A. Insurance Operations Division:

\(1\) Policy Service Technicians and Insurance Awards Accounts Clerks
will complete an SF 1184 (see Attachment 1) when:

a\. The payee claims nonreceipt of his/her U.S. Treasury check.

b\. The payee\'s check has been lost, stolen, destroyed, mutilated or
forged.

c\. The payee is no longer entitled to proceeds of the check.

e.g. Payee died before the issue date.

d\. A photocopy or the payment status of the check is needed for
administrative purposes.

\(2\) An SF 1184 is to be completed as follows:\
a. CK Symbol - Leave blank.\
b. CK Serial - Leave blank.

NOTE: CK Symbol and CK Range are to be typed at top of block entitled
\"For Agency Use.\"

c\. CK Amount - Enter the full amount of the check authorized.

d\. CK Date - Enter six (6) digit number for year (two digits), month
(two digits), and day (two digits).

e\. Agency/Payee Identification Number - Enter insurance file number.

f\. Line Code - Enter total number of lines in payee \`s name and
address.

g\. Stop Code - Enter appropriate one letter stop reason code:

\- Payee entitled; do not issue substitute.

\- Deceased.

\- Nonentitlement; payee not entitled to all or part of the proceeds of
the check.

\- Lost or stolen; endorsed by payee.

\- Photocopy.

h\. Agency Code - Enter the letter \"V\".

i\. Payee Name - Enter payee \`s name on first line.

j\. Address - Enter payee\'s address.

k\. Name of Decedent - Enter name of decedent when stop reason code is
\"E\".

l\. Date of Death - Enter date of death when stop reason code is \"E\".

m\. Amount to be Reclaimed - Enter full amount of check.

n\. Agency Location Code - Enter 36 00 0310.

o\. Agency Output - Enter the number \"2\".

p\. Agency Reference - This is a 19 digit combination number developed
for cross referencing. Enter as follows:

First two digits - Year. Digits 3, 4, 5 - Julian Date. Digit 6 - \"1\"
(Insurance). Digits 7, 8, 9, 10 - Sequence Number

(Assigned by Control Clerk).

Digits 11, 12. 13 - Station Number \"310\". Digits 14, 15, 16 -
Originating Element

e.g. 292 - Policy Service. Digits 17, 18, 19, 20 - Type of Payment:

Dividend - \"DIV\"

Loan - \"LOAN\"

Matured Endowment -

Death Award - \"DAWD\"

TDIP Payment - \"\`I\'D 1P\"

Premium Refund - \"PREM\"

\(3\) The SF 1184 is a four part carbon form which must be typed and
signed by the station\'s Fiscal Officer. A photocopy of the completed
original SF 1184 must be kept on file by the section chief\'s secretary
(Policy Service or Death Claims). The entire SF 1184 will be forwarded
from the Insurance Operations Division to the Finance Division (241) for
the Fiscal Officer\'s signature. The Finance Division will retain the
\"Administrative Agency Copy\" and forward the Original, Disbursing
Office Copy and Agency Receipt Copy to the Treasury Disbursing Office.
All responses from the Treasury will be received by Finance Division
(241) and forwarded to Insurance Operations.

\(4\) The Treasury\'s Disbursing Office will search their records and,
based on their findings, will mark the appropriate box in the \"For D.O.
Use\" block, return the \"Agency Receipt Copy\" to this station and
forward the original to the Division of Check Claims (DCC).

\(5\) The DCC will process the SF 1184 and notify this station (Finance
Division) of the check\'s status by means of a DAS (Daily Advice of
Status) form. A \"Status Message\" will be provided which indicates the
payment status of the check and the action to be taken by Treasury (see
Attachment 2).

\(6\) Incorrect or illegible SF 1184\'s will be returned by the Treasury
using an above mentioned DAS. The \"Status Message\" will indicate the
reason for rejection and a corrected SF 1184 will have to be submitted.

\(7\) When the DAS contains Status Message Code - 32; OUTSTANDING -
CHECK CANCELLED, it means that this check has not been cashed and
Treasury has canceled the check in order to issue a credit to the VA.
The Technician/Accounts Clerk will refer the SF 1184 photocopy and DAS
to their immediate supervisor for authorization on issuing a replacement
check.

\(8\) If the check has been paid, the DAS will contain Status Message
Code 11, 13, 14, 15, 16, 17 or 18 (see Attachment 3), a photocopy of the
paid check, a Claim Form (see Attachment 4) and a Claims Document (see
Attachment 5) will be provided. Photocopies are usually available within
60 days.

\(9\) Upon receipt in this station of the photocopy of the paid check,
the Claim Form and the Claims Document, the Technician/Accounts Clerk
will make a photocopy of the check. One photocopy of the check and the
Claim Form will be sent to the claimant. The Claims Document and
remaining photocopy of the check will be kept on file by the section
chief\'s secretary (Control Clerk). Mailing labels will be provided by
the Treasury on the Claims Document.

\(10\) If the claimant contends that the signature on the check is not
his, he must complete, sign and return the Claim Form. When it is
received in the Insurance Activity, it will be reviewed by the
Technician/Accounts Clerk to ensure that: (a) all questions have been
answered; (b) the payee (or both payees, if the check is drawn jointly)
has signed the claim in the required places; and (c) the payee\'s
signature has been witnessed.

\(11\) Properly completed Claim Forms will be forwarded to DCC with the
DCC Copy of the Claims Document and the photocopy of the check in the
business reply envelope provided by DCC. The copy of the Claim Form
marked \"Agency Copy\" will be retained in the section chief\'s log
since it will be needed to request any follow-up information on a claim.

\(12\) The DCC will analyze the payee\'s signature and other information
on the Claim Form to determine the validity of the claim. If DCC
determines that the payee was involved in the negotiation of the check,
the claim is denied and this station will be notified by means of the
Claims Disposition Notice (see Attachment 6) that the payee was
involved. The Technician/Accounts Clerk will notify the claimant by mail
of the Treasury\'s finding.

\(13\) If the payee states that he never lived or received mail at the
address on the check, the photocopy of the check and the claim form
should be forwarded to the Insurance Program Management Division (290A).

\(14\) In the event that the photocopy of the check is not available
after 60 days and the Stop Reason Code indicated a nonreceipt situation.
DCC will send a Modified Claim Form (see Attachment 7) to this Center.
This form will then be sent to the claimant. If the claimant continues
to allege noninvolvement in the negotiation of the check, he/she will
complete and return the Modified Claim Form. Upon receipt of this form
in the proper Insurance Operations\' Section, the Technician/Accounts
Clerk will review this form for completeness and forward it to DCC. An
incomplete form would be returned to the claimant for completion. A copy
of the Modified Claim Form will be inserted in the insured\'s file and a
check in the amount of the claim will be authorized.

\(15\) In situations other than nonreceipt where the photocopy is
unavailable after 60 days, DCC will notify the station that no further
action can be taken by Treasury. Forward all information and documents
to the Insurance Program Management Division (290).

\(16\) In the event that a replacement check has been authorized and
subsequently the payee admits to negotiating the original but contends
nonreceipt of the replacement, an SF 1184 will be prepared with Stop
Reason Code F. If the check has been paid, a photocopy of the check,
Claim Form and Claims Document will be sent to this station and
processed as described in paragraphs 9 through 14.

\(17\) If DCC determines that the payee does not appear to have been
involved in the negotiation of the check, this station will be notified
by means of the Claims Disposition Notice to reissue payments in
settlement of claims which appear to be in order. We will be notified if
further investigation is required on the claim and again when the
investigation is completed.

\(18\) All payments will be authorized on VA Form 4-706.

5\. RECISSION: None

R. J. VOGEL

Director

Distribution:

Al

DI

E1-2-3

F1-4-6-8-12-15-21-22-25-30

.

September 13, 1976 M29-I, Part 11\
change 13

27.13 POSTAL SERVICE FORM 3577, CORRECTION OF ERROR IN ADDRESS

a\. When the Postal Service makes a service adjustment (change of ZIP
code, house number, name of street), which causes realignment of
delivery service affecting the mailing address of an insured,
notification of such change is received on Postal Service Form 3577.

b\. Change of address is authorized upon receipt of Postal Service Form
3577. Policyholders\' and other payees\' records will be changed
accordingly.

27.14 PROCESSING MAIL CONCERNING CHECK INFORMATION ON DISBURSEMENTS

When an insured claims nonreceipt of a recently authorized disbursement,
a FL 29481 will be prepared, if appropriate.

b\. If the insured has had sufficient time to receive the check since it
was authorized and the claim is within 6 years from the date of issue,
prepare FL 4162 if the insured claims non-receipt and a Fl4-162 if he or
she claims the check was lost or destroyed. The form letters will be
completed as outlined in paragraph 6.18.

c\. For off-tape payments made during the current or preceding fiscal
year, the FL 4-162 and FL 4-163 be prepared in the usual manner and
routed to the Accounting Section, Finance Division for entering the
check number. For all prior fiscal year payments the form letter will be
routed to the Records Management Unit, Administrative Division for
entering the check number(s).

d\. Effective February l, 1975, the Philadelphia Disbursing Center
converted to the Treasury Department\'s OCR (Optical Character
Recognition) System for processing vouchers and schedules of payments.
Therefore, all miscellaneous (off-tape) payments previously processed by
the Philadelphia Center will be processed by the Washington Disbursing
Center. In these cases, when a FL 4-162 and FL 4-163 prepared for
nonreceipt or loss of a check, the form letter should be mailed to the
appropriate Disbursing Center.

27.15 NOTICE OF BANKRUPTCY PETITIONS

a\. Periodically, notices of bankruptcy will be received from U. S.
District Courts. Generally, these notices do not describe the nature of
the debt. However, the majority of notices are the result of the
bankrupt declaring a loan on Government Insurance as a debt, and lists
the VA with the court as one of his or her creditors. Notices of this
type require no action, and will be filed (NAN) in the insurance folder.

b\. When insurance records disclose the existence of an overpayment
indebtedness such as dividend overpayments, compensation or pension
overpayments, an award overpayment to a beneficiary, or a loan guaranty
indebtedness, the notice of bankruptcy will be forwarded to the Chief,
Insurance Operations Division, who will determine whether the notice
should be directed to the District Counsel. A 3230 will be attached
identifying the subject matter.

27.16 PROCESSING CORRESPONDENCE INDICATING DISABILITY, INJURY, OR
ILLNESS

a\. When information is received from an insured or a third party
indicating disability, illness or injury of the insured, the following
action will be taken:

\(I\) If not previously released, a VA Form 29-357c, Claim for
Disability Insurance Benefits, will be sent to the insured. Note letter
or source of information [VA Form 29-357c released]{.underline}
([date)]{.underline}.

\(2\) If previous action was taken to release the form, note the current
correspondence.

b\. The correspondence will be filed in the insurance folder.\]

Veterans Administration Center Change #1

Philadelphia, Pa. 19101 Insurance Division Memorandum 69-106\
February 15, 1972

[PROCESSING OF VA FORMS 29-178. REQUEST FOR INSURANCE
STATUS]{.underline}

1\. ORGANIZATIONAL ELEMENTS AFFECTED: Insurance Division

2\. REFERENCES: Letter Field Director, Area #3 (2OIC) dated January 21,
1972.

3\. PURPOSE: To amend the basic instructions due to \"N\" insurance
folders being placed in dead storage.

4\. PROCEDURE:

a\. Delete paragraph 4b(l)(a) of the basic memorandum and substitute the
following:

\"(a) Complete all items in Part III of the VA Form 29-178. File the
duplicate in the folder and release the original to the originating
office. When \"N\" insurance only is involved return both copies to the
originating office if received in duplicate.\"

Insurance Officer

DISTRIBUTION:

A-I

C-l

D-l

F-l-2-4-5-8-9-lO-12-l3-14-19-24-25-26-27-3O

J-2

R-l-2

5-1

T-2