' s response to the event or circumstance involved a psychological or psycho - physiological state of fear , helplessness or horror . Generally , veterans are presumed to have entered service in sound condition as to their health . 38 U . S . C . A . § 1111 ( West 2014 ) This presumption attaches only where there has been an induction examination in which the later complained - of disability was not detected . See Bagby v . Derwinski , 1 Vet . App . 225 , 227 ( 1991 ) . The regulations provide expressly that the term " noted " denotes " [ o ] nly such conditions as are recorded in examination reports , " 38 C . F . R