42118 Federal Register / Vol. 87, No. 134 / Thursday, July 14, 2022 / Proposed Rules 

1The Commission voted (4–0–1) to approve this 

document. Chair Hoehn-Saric, Commissioners 

Baiocco, Feldman, and Boyle voted to approve 

publication of the document as drafted. 

Commissioner Trumka did not vote. 

notifies the Commission (or a later date 

specified by the Commission in the 

Federal Register) unless, within 90 days 

after receiving that notice, the 

Commission responds to the 

organization that it has determined that 

the proposed revision does not improve 

the safety of the consumer product 

covered by the standard, and therefore, 

the Commission is retaining its existing 

mandatory consumer product safety 

standard. 15 U.S.C. 2056a(b)(4)(B). 

Under this authority, in 2012 the 

Commission issued a mandatory safety 

rule for infant swings. The rulemaking 

created 16 CFR part 1223, which 

incorporated by reference ASTM 

F2088–12a, Standard Consumer Safety 

Specification for Infant Swings. 77 FR 

66703 (Nov. 7, 2012). The mandatory 

standard included performance 

requirements and test methods, as well 

as requirements for warning labels and 

instructions, to address hazards to 

children. Since promulgation of the 

final rule, ASTM has revised the 

voluntary standard for infant swings six 

times, and the Commission has issued 

three direct final rules to update the 

mandatory standard for infant swings to 

incorporate by reference the latest 

version of ASTM F2088: 

• On June 24, 2013, the Commission 

published a direct final rule to update 

part 1223 to reflect incorporation of 

ASTM F2088–13, with no modifications 

(78 FR 37706). 

• On January 19, 2021, the 

Commission published a direct final 

rule to update part 1223 to reflect 

incorporation of ASTM F2088–20, with 

no modifications (86 FR 4961). 

• On October 28, 2021, the 

Commission published a direct final 

rule to update part 1223 to reflect 

incorporation of ASTM F2088–21, with 

no modifications (86 FR 59609). 

In May 2022, ASTM published a 

revised version of the incorporated 

voluntary standard. On July 05 2022, 

ASTM notified the Commission that it 

had approved and published the revised 

version of the voluntary standard. CPSC 

staff is assessing the revised voluntary 

standard to determine, consistent with 

section 104(b)(4)(B) of the CPSIA, its 

effect on the safety of consumer 

products covered by the standard. The 

Commission invites public comment on 

that question to inform staff’s 

assessment and any subsequent 

Commission consideration of the 

revisions in ASTM F2088–22.1

The existing voluntary standard and 

the revised voluntary standard are 

available for review in several ways. 

ASTM has provided on its website 

(https://www.astm.org/CPSC.htm), at no 

cost, a read-only copy of ASTM F2088– 

22 and a red-lined version that 

identifies the changes made to ASTM 

F2088–21. Likewise, a read-only copy of 

the existing, incorporated standard is 

available for viewing, at no cost, on the 

ASTM website at: https://

www.astm.org/READINGLIBRARY/. 

Interested parties can also download 

copies of the standards by purchasing 

them from ASTM International, 100 

Barr Harbor Drive, P.O. Box C700, West 

Conshohocken, PA 19428–2959; phone: 

610–832–9585; https://www.astm.org. 

Alternatively, interested parties can 

schedule an appointment to inspect 

copies of the standards at CPSC’s 

Division of the Secretariat, U.S. 

Consumer Product Safety Commission, 

4330 East West Highway, Bethesda, MD 

20814, telephone: 301–504–7479; email: 

cpsc-os@cpsc.gov. 

Comments must be received by July 

28, 2022. Because of the short statutory 

time frame Congress established for the 

Commission to consider revised 

voluntary standards under section 

104(b)(4) of the CPSIA, CPSC will not 

consider comments received after this 

date. 

Alberta E. Mills, 

Secretary, Consumer Product Safety 

Commission. 

[FR Doc. 2022–15010 Filed 7–13–22; 8:45 am] 

BILLING CODE 6355–01–P 

DEPARTMENT OF VETERANS 

AFFAIRS 

38 CFR Part 8 

RIN 2900–AR53 

National Service Life Insurance— 

Veterans Affairs Life Insurance 

(VALife) Program Amendments 

AGENCY: Department of Veterans Affairs. 

ACTION: Proposed rule. 

SUMMARY: The Department of Veterans 

Affairs (VA) proposes to amend its 

regulations that govern National Service 

Life Insurance (NSLI), among other 

things, to accomplish the following: 

implement provisions contained in 

legislation that authorized a new 

program of insurance; clarify which 

individuals are eligible to take actions 

on an insurance policy; elucidate on 

various provisions regarding coverage 

and benefits under the new insurance 

program; and state which individuals 

are ineligible to benefit from the 

unlawful and wrongful killing of a 

veteran policyholder. 

DATES: Comments must be received on 

or before September 12, 2022. 

ADDRESSES: Comments may be 

submitted through www.regulations.gov. 

Comments should indicate that they are 

submitted in response to ‘‘RIN 2900– 

AR53—National Service Life 

Insurance—Veterans Affairs Life 

Insurance (VALife) Program 

Amendments.’’ Comments received will 

be available at regulations.gov for public 

viewing, inspection or copies. 

FOR FURTHER INFORMATION CONTACT: Paul 

Weaver, Insurance Specialist, 

Department of Veterans Affairs 

Insurance Service (310/290B), 5000 

Wissahickon Avenue, Philadelphia, PA 

19144, (215) 842–2000, ext. 4263. (This 

is not a toll-free number.) 

SUPPLEMENTARY INFORMATION: Section 

1922B of title 38, United States Code, 

requires VA to issue policies under a 

new program of veterans’ life insurance 

beginning on January 1, 2023. 

Consistent with 38 U.S.C. 1922B and 

other statutes in the NSLI subchapter 

(38 U.S.C. 1901–1929), VA proposes to 

implement this new program of 

insurance by amending 38 CFR part 8 as 

set forth below. 

1. Definition of Part 8 Terms 

Guardian 

Current 38 CFR 8.0(e) defines the term 

‘‘guardian’’ to mean ‘‘any representative 

certified by the appropriate Veterans 

Service Center Manager, under [38 CFR 

13.55], to receive benefits in a fiduciary 

capacity on behalf of the insured or the 

beneficiary, or to take the actions listed 

in [38 CFR] 8.32.’’ We note that § 13.55 

was removed in 2018, see 83 FR 32716, 

32738 (July 13, 2018), but current 

§ 8.0(e) essentially refers to a VAappointed fiduciary, as defined in 

current § 13.20 (defining the term 

‘‘fiduciary’’ as ‘‘an individual or entity 

appointed by VA to receive VA benefits 

on behalf of a beneficiary for the use 

and benefit of the beneficiary and the 

beneficiary’s dependents’’). The current 

definition of ‘‘guardian,’’ therefore, only 

allows a VA-appointed fiduciary to take 

the actions that are enumerated in 

§ 8.32. Some of these actions include 

applying for a life insurance policy, 

reinstating a lapsed policy, and cash 

surrendering a policy. 38 CFR 8.32(a), 

(b), (f). Private insurers allow stateappointed guardians and attorneys-infact who hold power of attorney for an 

individual as their principal to take 

these same actions. VA proposes to 

revise § 8.0(e) to include within the 


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definition of the term ‘‘guardian,’’ not 

only VA-appointed fiduciaries, but also 

state-appointed guardians and 

conservators, as well as attorneys-in-fact 

(i.e., persons holding power of attorney). 

However, VA also proposes to clarify 

that if a VA-appointed fiduciary and 

either a state-appointed guardian/ 

conservator or attorney-in-fact are not 

the same individual and both attempt to 

take conflicting actions on an 

incompetent insured’s policy, the VAappointed fiduciary shall have the 

exclusive authority to take actions on 

the policy. In that scenario, VA would 

not allow the state-appointed guardian/ 

conservator or attorney-in-fact to take 

actions on the insurance policy unless 

VA removes the policyholder’s fiduciary 

or the state-appointed guardian/ 

conservator or attorney-in-fact is 

appointed as the VA fiduciary. These 

amendments would align VA 

procedures with commercial insurance 

practices and would afford those caring 

for incompetent insureds—whether they 

are VA-appointed fiduciaries, stateappointed guardians/conservators, or 

attorneys-in-fact—greater authority over 

VA life insurance actions. The 

amendments would also resolve 

potential conflicts between a VAappointed fiduciary and either a stateappointed guardian/conservator or an 

attorney-in-fact. 

Veterans’ Affairs Life Insurance (VALife) 

VA proposes to add a new paragraph 

(f) to 38 CFR 8.0 that would define the 

term ‘‘Veterans’ Affairs Life Insurance 

(VALife)’’ to mean ‘‘insurance that is 

issued under section 1922B of title 38 

U.S.C.’’ The title of the legislation that 

created VALife, ‘‘Modernization of 

Service-Disabled Veterans Insurance,’’ 

and its statutory heading in section 

1922B, ‘‘Service-Disabled Veterans 

Insurance,’’ are similar to the name of 

VA’s existing life insurance program for 

service-disabled veterans, which 

Congress renamed ‘‘Legacy ServiceDisabled Veterans’ Insurance’’ when it 

authorized the creation of VALife. See 

38 U.S.C. 1922; Public Law 116–315, 

Title II, § 2004(b)(1), (c)(1) (2021). VA 

has issued policies for Legacy ServiceDisabled Veterans’ Insurance, formerly 

known as Service-Disabled Veterans’ 

Insurance (SDVI), since 1951 and will 

continue to provide such insurance 

coverage even after it closes to new 

issues on December 31, 2022. See 38 

U.S.C. 1922(d)(1) (‘‘The Secretary may 

not accept any application by a Veteran 

to be insured under this section after 

December 31, 2022.’’). Policyholders 

could be confused by the similarities in 

program names and legislative and 

statutory headings. For purposes of 

clarity, VA proposes to define VALife to 

mean the new program of life insurance 

authorized by 38 U.S.C. 1922B to 

distinguish it from the renamed SDVI 

program. 

Application for Insurance Issued Under 

38 U.S.C. 1922B 

VA would require veterans applying 

for VALife to submit an application 

online or through another medium 

prescribed by the Secretary. Therefore, 

VA proposes to add a new paragraph (g) 

to § 8.0 that would define an application 

for VALife as a properly completed 

application form submitted online or 

through another medium prescribed by 

the Secretary. Cf. 84 FR 138, 139 (Jan. 

18, 2019) (defining a ‘‘claim’’ for 

benefits under 38 CFR part 3); see also, 

e.g., Veterans Justice Grp., LLC v. Sec’y 

of Veterans Affairs, 818 F.3d 1336, 1350 

(Fed. Cir. 2016) (holding that 38 U.S.C. 

5101(a)(1) affirmatively grants the 

Secretary authority to prescribe the 

forms of application by claimants). 

Beneficiary 

VA proposes to define the term 

‘‘beneficiary’’ that is contained in 38 

U.S.C. 1922B(e) to include both 

principal and contingent beneficiaries. 

Although section 1922B(e) refers 

broadly to ‘‘a beneficiary,’’ we interpret 

that reference to include both principal 

and contingent beneficiaries because 

both commercial industry insurers and 

all existing Government life insurance 

programs allow insureds to name both 

types of beneficiaries. In the event that 

the insured has designated a contingent 

beneficiary, and the principal 

beneficiary does not file a claim, 

predeceases the insured, or is barred 

from receiving payment by operation of 

the slayer’s rule, then the contingent 

beneficiary will be paid before an 

alternate beneficiary in the order of 

precedence is eligible to file a claim and 

receive payment. 

2. Effective Date for an Insurance Policy 

Issued Under 38 U.S.C. 1922(a) or 

1922B 

Current 38 CFR 8.1(b) states that the 

effective date of an insurance policy that 

is issued under 38 U.S.C. 1922(a) is the 

date that a valid application and 

premium payment are delivered to VA. 

VA proposes to amend the heading of 

current 38 CFR 8.1 to clarify that 

insurance policies issued under VALife 

would have the same effective date as 

policies issued under SDVI. This 

amendment is consistent with the 

longstanding VA practice of 

determining the effective date of 

coverage for other Government life 

insurance programs based on the 

delivery of an application and an initial 

premium payment. However, we 

propose to revise § 8.1(a) to clarify that 

benefits due under an SDVI policy are 

payable any time after the effective date, 

but benefits due under a VALife policy 

are payable any time two years after the 

effective date. 

VA also proposes to add a note 3 to 

current paragraph (b) that would state 

that when veterans apply for insurance 

coverage through an electronic medium, 

the date of delivery of the premium 

payment shall be the date of the valid 

authorization of the premium payment. 

The note would also state that in cases 

where the authorization does not result 

in the required premium payment 

because there were insufficient funds to 

cover the full initial premium amount, 

the delivery date of the premium 

payment shall be the date that the full 

initial premium amount is received by 

VA. 

Current paragraph (c) provides three 

different options for SDVI policyholders 

to choose as an effective date other than 

the date of delivery described in 

paragraph (b). VA proposes to clarify 

that the effective date options for SDVI 

would not be available for VALife, and, 

therefore, VA would amend paragraph 

(c) to state that it does not apply to 

VALife. 

3. Provisions During Waiting Period 

Section 1922B(c)(3)(A) states that if a 

veteran dies during the two-year period 

described in paragraph (2), the Secretary 

shall pay to the beneficiary of the 

veteran the amount of premiums paid 

by the veteran under this section, plus 

interest. VA proposes to add a new 

paragraph (e) to current 38 CFR 8.2 to 

explain that if a veteran enrolls in 

VALife for an amount less than the 

statutory maximum and elects to apply 

for additional coverage at a later date 

and dies before completing the two-year 

waiting period for the additional VALife 

coverage amount, the beneficiary shall 

be refunded premiums that were paid 

for the additional VALife coverage, plus 

interest, in accordance with 38 U.S.C. 

1922B(c)(3)(A). VA also proposes to 

explain in new paragraph (e) that if an 

insured surrenders or cancels a VALife 

policy during this same two-year period, 

the United States would not return to 

the insured the premiums that were 

paid to purchase the coverage. VA’s 

proposal is consistent with the practice 

of commercial insurers, as comparable 

permanent insurance policies do not 

return the full amount of premiums that 

an insured pays when the insured 

surrenders policy coverage during the 

policy’s waiting and enrollment period. 


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42120 Federal Register / Vol. 87, No. 134 / Thursday, July 14, 2022 / Proposed Rules 

4. Calculation of Time Period and 

Veteran’s Age 

Current § 8.6 establishes the rules for 

calculating the time period for applying 

and reinstating life insurance coverage 

and paying premiums. VA proposes to 

revise the title of § 8.6 to read 

‘‘Calculation of Time Period; Veteran’s 

Age,’’ designate the current text as 

paragraph (a), and make some technical 

edits to the text in re-designated 

paragraph (a). Section 1922B(a)(3)(A) 

requires that veterans apply for VALife 

coverage prior to age 81, except in 

limited circumstances described in 

subparagraph (B). VA proposes to add 

new paragraph (b) to § 8.6 to state as 

follows: ‘‘For VALife, the premium will 

be determined using the age of the 

veteran at his or her nearest birthday on 

the effective date of the policy.’’ If the 

veteran’s next birthday is within six 

months of the effective date of the 

policy, his or her premium will be 

calculated at one year older than the 

current age. If the veteran’s birthday is 

more than six months after the effective 

date of the policy, his or her current age 

will be used to calculate the premium. 

For example, if the veteran’s birthday is 

February 16, 1980, and the effective date 

of the policy is June 1, 2022, the 

premium age is 42. However, if the same 

veteran’s policy’s effective date is 

December 1, 2022, the premium age is 

43. When VA developed VALife, VA 

actuaries established the premium table 

for the insurance program using this 

standard because it is consistent with 

commercial life insurance practices and 

with VA’s currently administered 

programs. However, VA proposes, for 

the purposes of determining a veteran’s 

eligibility for insurance under section 

1922B(a)(3), to use the age of the veteran 

at his or her last birthday prior to 

application because it would provide a 

veteran approaching age 81 with 

additional time to elect insurance 

coverage and still be consistent with the 

VALife statute (38 U.S.C. 

1922B(a)(3)(B)). VA proposes to add a 

new paragraph (c) to make this 

clarification. Although these proposed 

amendments contain different 

standards, it is common in the private 

insurance market for the term ‘‘age’’ to 

have a variety of meanings for insurance 

calculations (see 12A Couch on Ins. 

§ 179:13, n.1.), and VA is explaining in 

this proposed rulemaking how it would 

calculate the insured’s age for different 

purposes. 

VA also proposes to add a new 

paragraph (d) that would clarify under 

what conditions a veteran who is 

beyond age 81 would be eligible to 

receive VALife coverage. The VALife 

statute states that ‘‘[t]he Secretary may 

not grant insurance to a veteran . . . 

unless . . . the veteran submits the 

application for such insurance before 

the veteran attains 81 years of age [or] 

. . . with respect to a veteran who has 

attained 81 years of age . . . the veteran 

filed a claim for compensation under 

chapter 11 of this title before attaining 

such age . . . [and] based on such 

claim, and after the veteran attained 

such age, the Secretary first determines 

that the veteran has a service-connected 

disability.’’ 38 U.S.C. 1922B(a)(3). 

VALife was created to replace SDVI, and 

under SDVI, a veteran can be granted 

insurance if he or she applies within 

two years following an initial serviceconnection determination for any 

disability. 38 U.S.C. 1922(a). However, 

eligibility for SDVI is not restricted to 

the two-year period following the 

veteran’s first service-connection 

determination. VAOPGCPREC 77–90 

(finding of service connection for a 

disability on a secondary basis 

establishes a new period for filing an 

application for SDVI). Although 

veterans are not eligible for SDVI by 

reason of an increase in a rating, see id., 

a grant of individual unemployability 

under 38 CFR 4.18, or a finding of 

incompetency under 38 CFR 3.353, the 

two-year period to apply for SDVI is not 

limited by age, and a veteran who 

receives a grant of service connection 

for a new and different disability 

becomes eligible again to apply for 

SDVI. Consistent with Congressional 

intent in allowing issuance of SDVI 

coverage at advanced ages following an 

initial determination of service 

connection for a disability, VA proposes 

to allow any veteran who applies for 

service connection for a disability, 

either on a primary or secondary basis, 

before attaining age 81 but receives an 

initial grant on that claim after attaining 

age 81 to apply for VALife if the veteran 

otherwise meets the criteria of 38 U.S.C. 

1922B(a)(3)(B). For example, a veteran 

who applies for service connection for 

a disability at age 79, but does not 

receive an actual grant of service 

connection on that claim until the age 

of 82, would have a two-year time 

period to apply for VALife and would 

receive full VALife coverage if they paid 

their premiums throughout the requisite 

two-year waiting period. VA’s 

interpretation of this section of the 

VALife statute would encourage 

participation in VALife and provide life 

insurance coverage to veterans who are 

unlikely to be able to purchase life 

insurance in the private, commercial 

market due to their age and disabilities. 

VA also proposes to limit the issuance 

of a VALife policy under 38 U.S.C. 

1922B(a)(3)(B) to a maximum age of 95. 

This proposal aligns the maximum issue 

age for a VALife policy with the 

maximum issue age of an SDVI ordinary 

life policy, as determined by VA in line 

with common industry practice to 

ensure financial soundness and based 

on the 1941 Commissioners Standard 

Ordinary Table of Mortality, which is 

referenced in 38 U.S.C. 1922. VALife’s 

guaranteed acceptance whole life 

coverage most closely mirrors ordinary 

life policies issued under the SDVI 

program, which is being closed and 

replaced with the new program. 

5. Reinstatement Period 

Current 38 CFR 8.7 allows a 

policyholder to reinstate coverage 

within five years of the date of lapse of 

coverage if the policyholder submits all 

outstanding premiums and evidence of 

good health and pays interest on the 

arrearage if not reinstated within six 

months from lapse. VA proposes to 

revise § 8.7(a) to indicate that the 

paragraph does not apply to VALife 

policies. In conjunction with that 

change, VA proposes to add a new 

paragraph (e) to § 8.7 to state that 

coverage issued under VALife that 

lapses for non-payment of premiums 

may only be reinstated if the former 

policyholder submits all premiums in 

arrears from their respective due dates, 

plus interest, to reinstate the coverage 

within two years of the date of the lapse 

and has not yet attained the age of 81. 

This two-year period is consistent with 

the two-year enrollment and waiting 

period from the effective date of a 

VALife policy until the coverage can 

pay a death benefit (38 U.S.C. 

1922B(c)(2)) and is intended to 

incentivize policyholders with lapsed 

policies to reinstate coverage as soon as 

possible after lapsing. VA believes that 

a shorter reinstatement period is also 

warranted because VA would not 

require policyholders to submit proof of 

insurability to reinstate coverage. 

Veterans who do not reinstate VALife 

coverage within this two-year period 

would remain eligible to reapply for 

VALife but would be required to wait 

two years between their re-enrollment 

date and the date the full VALife 

coverage amount takes effect. 

VA is proposing in new § 8.7(e) to 

make the maximum age for 

reinstatement age 80, which is our 

publicized maximum issue age for 

VALife. This is consistent with the 

practice of the commercial insurance 

industry, in which most companies do 

not allow reinstatement beyond the 

maximum issue age for their products. 


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While we are allowing issues up to age 

95 for VALife, that is only for the 

category of veterans who applied for 

service connection for a new condition 

prior to age 81 but did not receive 

notification of an initial award for that 

new condition until after attaining age 

81. Given that we are not requiring 

proof of satisfactory health as a 

condition for reinstatement, the 

maximum age limitation, in addition to 

the two-year time limit after lapse to 

apply, will mitigate the risk of antiselection. 

For clarity, VA also proposes to revise 

the heading of § 8.7 from 

‘‘Reinstatement of National Service Life 

Insurance except insurance issued 

pursuant to section 1925 of title 38 

U.S.C.’’ to ‘‘Reinstatement.’’ 

6. New Program of Insurance Is Not 

Participating 

Paragraph (a)(3) of 38 CFR 8.10 states 

that Government life insurance 

programs issued under 38 U.S.C. 

1904(c) and 1922(a) do not pay 

dividends. VALife is only authorized to 

issue coverage on a non-participating 

basis (38 U.S.C. 1922B(a)(5)(A)(i)), 

which means that the new insurance 

program would not issue policies that 

pay dividends to its policyholders. See 

5 Couch on Ins. § 69:46 n.1 

(participating plan provides for a refund 

of a portion of the premium as a 

dividend at the end of the policy 

period). For purposes of clarity, VA 

proposes to revise paragraph (a)(3) by 

adding a reference to section 1922B. 

7. Surrender of VALife Coverage; 

Development of VALife Cash Values 

VA proposes to clarify that § 8.11(a) 

and (b), which provides that cash value, 

paid-up insurance, and extended term 

insurance, except as provided in 

§ 8.14(b), shall become effective at the 

completion of the first policy year on 

certain NSLI plans and explains the 

process for requesting a cash surrender, 

respectively, would not apply to 

VALife. 

VA also proposes to amend § 8.11 to 

add a new paragraph (j) stating that cash 

values for VALife would be developed 

using the 1941 Commissioners Standard 

Ordinary Mortality Table (1941 CSO 

Table) and an interest rate of 3.5 percent 

per annum. The 1941 CSO Table is the 

same mortality basis as that prescribed 

for cash values in SDVI (38 U.S.C. 

1922(a)(1)). 

VA would also state in the new 

paragraph (j) that VA would not be 

obligated to pay cash value in the event 

of lapse or surrender during the twoyear waiting period prior to VALife 

coverage becoming payable for a death 

benefit because cash value does not 

begin to accrue until the two-year 

waiting period elapses. Additionally, if 

an insured enrolls in VALife for an 

amount less than the statutory 

maximum and elects to apply for 

additional coverage at a later date, the 

cash value on the additional amount of 

coverage would not begin accruing until 

the end of the two-year waiting period 

for the additional coverage. Full 

coverage would not be in force under 

VALife until the two-year waiting 

period has been completed. See 38 

U.S.C. 1922B(c)(2). And consistent with 

other life insurance programs currently 

administered by VA, VA would transfer 

any premiums paid for coverage that 

lapses or is surrendered, to the credit of 

the VALife revolving fund that is 

established under 38 U.S.C. 

1922B(a)(5)(A)(i) to support the 

financial health of VALife. 

VA would also explain in new 

paragraph (k) the process for an insured 

to cash surrender a policy and the 

process to issue the surrender value of 

the policy to the insured. VA would 

apply a process similar to cash 

surrenders under existing policies as 

explained in § 8.11(b), with the 

following differences: (1) applications 

would be primarily through an 

electronic medium in order to decrease 

administrative costs; and (2) 

indebtedness and paid up additions 

would not apply as the VALife program 

does not initially plan to provide policy 

loans and is a non-participating program 

without dividends. Dividends are 

required in order to issue paid up 

additions. 

For clarity, VA also proposes to revise 

the heading of this section from ‘‘Cash 

value and policy loan’’ to ‘‘Cash value.’’ 

8. Policy Loans 

Section 1906 of title 38, United States 

Code, permits VA to establish 

regulations pertaining to loans. VA has 

implemented that authority in 38 CFR 

8.13, and paragraph (a) of that section 

requires VA to lend to an insured 

monies borrowed against the security of 

the cash value of his or her insurance 

coverage, subject to the insured meeting 

various criteria. VALife is designed to 

be completely self-supporting, unlike 

other programs of NSLI which receive 

an annual subsidy to cover excess 

claims expenses. See 38 U.S.C. 1919(a) 

(authorizing appropriation for NSLI), 

1922(a)(5) (authorizing appropriations 

in part for SDVI). Because VA has 

determined that it would not be 

actuarially sound to offer loans under 

VALife at its inception on January 1, 

2023, VA proposes to amend § 8.13 by 

adding a new paragraph (e) that would 

state that the United States shall only 

issues loans to VALife policyholders if 

VA determines that doing so is 

administratively and actuarially sound 

for the VALife Program. 

9. Extended Term and Paid-Up 

Insurance 

Under 38 CFR 8.14 and 8.15, insureds 

who fail to pay premiums do not go into 

lapse status and instead remain covered 

under their policies according to the 

extended term value of their coverage, 

or their coverage amount is reduced to 

a level that is consistent with the 

policyholder’s accrued cash value. Both 

regulations were promulgated to prevent 

life insurance coverage from lapsing and 

are consistent with the intent of 

preventing policyholders from going 

into lapse status. However, VA proposes 

to add language to each section stating 

that, for purposes of VALife, such 

extended term or reduced paid-up 

insurance would not be available to 

veterans during the VALife two-year 

waiting period. VA also proposes to add 

language clarifying that as soon as the 

two-year waiting period ends, VALife 

policyholders would enjoy the 

protection of extended term and 

reduced paid-up insurance coverage 

that both sections provide to 

policyholders covered under other 

Government life insurance programs. 

10. Slayer’s Rule Exclusion 

The Federal common-law slayer’s rule 

is a public policy that precludes killers 

from benefitting from their victims’ 

deaths. 76 FR 77455 (Dec. 13, 2011). 

The statutes governing the NSLI 

programs of life insurance are silent 

regarding whether a beneficiary who 

killed the decedent, or a family member 

of such a beneficiary, may receive the 

proceeds of the victim’s insurance 

coverage. Some courts have applied the 

slayer’s rule to claims for NSLI 

proceeds. Shoemaker v. Shoemaker, 263 

F.2d 931 (6th Cir. 1959). However, there 

are a variety of different requirements 

for applying the slayer’s rule depending 

on the state where the killing occurred. 

See Annot., 26 A.L.R.2d 987 (1952 & 

1998 Supp.); 4 Couch on Ins. § 62:19. 

Therefore, VA believes it is necessary to 

establish a uniform Federal rule for 

applying the slayer’s rule to 

Government life insurance death 

proceeds for all NSLI policies, including 

VALife. VA has previously codified a 

slayer’s rule in 38 CFR 9.5 that pertains 

to the payment of death proceeds under 

Servicemembers’ Group Life Insurance. 

For purposes of consistency, VA 

proposes to amend 38 CFR 8.19 to 

designate the existing text as paragraph 

(a) and to create a new paragraph (b) 


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that would state that where a 

beneficiary has been determined to have 

intentionally and wrongfully killed the 

insured, the provisions found in 38 CFR 

9.5(e) shall be applied to payment of 

insurance. Under what is known as the 

extended slayer’s rule, some 

jurisdictions also disqualify members of 

a slayer’s family, other than individuals 

also related to the victim, from receiving 

the proceeds of an insurance policy. 76 

FR 77455. Consistent with § 9.5(e)(2), 

VA proposes to incorporate the 

extended slayer’s rule into 38 CFR 8.19 

in order to prevent killers from 

receiving even the indirect benefits of 

their wrongdoing by receiving or 

inheriting, through relatives, the 

financial benefits of the killing. 

11. Eligibility for Those Insured Under 

38 U.S.C. 1922(a) to Purchase VALife 

After December 31, 2025; Increases in 

VALife Coverage 

Veteran policyholders insured under 

38 U.S.C. 1922(a) are eligible to 

maintain their insurance coverage 

during the initial two-year VALife 

enrollment period if they apply for 

VALife between January 1, 2023, and 

December 31, 2025. 38 U.S.C. 

1922(d)(2)(A), (B). Although 38 U.S.C. 

1922(d)(3) states that a veteran may not 

be insured under both programs 

simultaneously other than as provided 

by paragraph (2)(B), we interpret 

subsection (d)(3) to mean that a veteran 

may not be insured under both 

programs simultaneously except if a 

veteran who is insured under SDVI 

elects to be insured under VALife 

during the initial two-year enrollment 

period. Also, neither this statute nor the 

VALife statute addresses whether a 

policyholder who is insured under 38 

U.S.C. 1922(a) is eligible to apply for 

VALife after December 31, 2025, if the 

policyholder surrenders his or her life 

insurance policy or informs VA that he 

or she desires to terminate coverage in 

order to become eligible for VALife. VA 

proposes to add new § 8.35 to 38 CFR 

part 8 that would explain the eligibility 

criteria for those insured under 38 

U.S.C. 1922(a) to purchase VALife after 

December 31, 2025. Veterans would be 

eligible to purchase VALife coverage 

upon surrender or cancellation of the 

policy along with a written statement to 

VA that the policyholder desires to 

terminate his or her existing life 

insurance coverage in order to apply for 

VALife and initiate the two-year waiting 

period before VALife will pay a death 

benefit to the policyholder’s beneficiary. 

This statement would be in a form that 

is prescribed by the Secretary. 

12. Issuance of Coverage Under 38 

U.S.C. 1922B Following Additional 

Elections 

Under 38 U.S.C. 1922B(a)(4)(A), a 

veteran may elect to be insured for 

between $10,000 and $40,000, in 

$10,000 increments. VA proposes to add 

a new § 8.36 to 38 CFR part 8 that would 

explain that veterans who do not elect 

the statutory maximum amount of 

VALife coverage may still apply for 

additional VALife coverage at a later 

date, but the two-year waiting period 

imposed by 38 U.S.C. 1922B(c)(2) must 

be satisfied before the additional 

coverage amount of VALife is in force. 

Allowing veterans to apply for 

additional VALife coverage would be an 

important feature of VALife for 

policyholders, as life circumstances may 

change, such as marriage or the birth of 

a child. These life events may create the 

need for additional coverage. However, 

the two-year waiting period allows for 

addressing any adverse selection risks 

while providing this flexibility to 

insureds. This is consistent with 

private, commercial insurance provider 

practices. 

Executive Orders 12866 and 13563 

Executive Orders (E.O.) 12866 and 

13563 direct agencies to assess the costs 

and benefits of available regulatory 

alternatives and, when regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, and other advantages; 

distributive impacts; and equity). E.O. 

13563 (Improving Regulation and 

Regulatory Review) emphasizes the 

importance of quantifying both costs 

and benefits, reducing costs, 

harmonizing rules, and promoting 

flexibility. The Office of Information 

and Regulatory Affairs has determined 

that this proposed rule is not a 

significant regulatory action under E.O. 

12866. The Regulatory Impact Analysis 

associated with this rulemaking can be 

found as a supporting document at 

www.regulations.gov. 

Regulatory Flexibility Act 

The Secretary hereby certifies that 

this proposed rule would not have a 

significant economic impact on a 

substantial number of small entities as 

they are defined in the Regulatory 

Flexibility Act (5 U.S.C. 601–612). This 

proposed rule would generally be small 

business neutral as it implements 

statutory provisions that only allow the 

United States to issue life insurance 

coverage to veterans with serviceconnected disabilities. 38 U.S.C. 

1922B(a)(1) (‘‘[T]he Secretary shall carry 

out a service-disabled veterans 

insurance program under which a 

veteran is granted insurance by the 

United States against the death of such 

individual occurring while such 

insurance is in force.’’). Although there 

are statutes in 38 U.S.C. 1901–1988 that 

allow VA to purchase a large group life 

insurance policy from a private 

commercial insurer, those statutory 

authorities only apply to the 

Servicemembers’ Group Life Insurance 

Program, which provides life insurance 

coverage to Service members and their 

dependents and former Service 

members, and they do not provide VA 

with the authority to purchase a group 

life insurance policy from a private 

insurer for purposes of providing 

VALife coverage. As such, the overall 

impact of this proposed rule would be 

of no benefit or detriment to small 

businesses, because these insurance 

policies would only be issued by the 

United States to veterans with serviceconnected disabilities. Therefore, 

pursuant to 5 U.S.C. 605(b), the initial 

and final regulatory flexibility analysis 

requirements of 5 U.S.C. 603 and 604 do 

not apply. 

Unfunded Mandates 

The Unfunded Mandates Reform Act 

of 1995 requires, at 2 U.S.C. 1532, that 

agencies prepare an assessment of 

anticipated costs and benefits before 

issuing any rule that may result in the 

expenditure by State, local, and tribal 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

(adjusted annually for inflation) in any 

one year. This proposed rule would 

have no such effect on State, local, and 

tribal governments, or on the private 

sector. 

Paperwork Reduction Act 

This proposed rule includes 

provisions constituting new collections 

of information under the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501– 

3521) that require approval by the Office 

of Management and Budget (OMB). 

Accordingly, under 44 U.S.C. 3507(d), 

VA has submitted a copy of this 

rulemaking action to OMB for review 

and approval. 

OMB assigns control numbers to 

collections of information it approves. 

VA may not conduct or sponsor, and a 

person is not required to respond to, a 

collection of information unless it 

displays a currently valid OMB control 

number. If OMB does not approve the 

collection of information as requested, 

VA will immediately remove the 

provisions containing the collection of 


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information or take such other action as 

is directed by OMB. 

Comments on the new collections of 

information contained in this 

rulemaking should be submitted 

through www.regulations.gov. 

Comments should indicate that they are 

submitted in response to ‘‘RIN 2900– 

AR53; National Service Life Insurance— 

Veterans Affairs Life Insurance (VALife) 

Program Amendments’’ and should be 

sent within 60 days of publication of 

this rulemaking. The collections of 

information associated with this 

rulemaking can be viewed at: 

www.reginfo.gov/public/do/PRAMain. 

OMB is required to make a decision 

concerning the collections of 

information contained in this 

rulemaking between 30 and 60 days 

after publication of this rulemaking in 

the Federal Register. Therefore, a 

comment to OMB is best assured of 

having its full effect if OMB receives it 

within 30 days of publication. This does 

not affect the deadline for the public to 

comment on the provisions of this 

rulemaking. 

The Department considers comments 

by the public on new collection of 

information in— 

• Evaluating whether the new 

collections of information are necessary 

for the proper performance of the 

functions of the Department, including 

whether the information will have 

practical utility; 

• Evaluating the accuracy of the 

Department’s estimate of the burden of 

the new collection of information, 

including the validity of the 

methodology and assumptions used; 

• Enhancing the quality, usefulness, 

and clarity of the information to be 

collected; and 

• Minimizing the burden of the 

collection of information on those who 

are to respond, including through the 

use of appropriate automated, 

electronic, mechanical, or other 

technological collection techniques or 

other forms of information technology, 

e.g., permitting electronic submission of 

responses. 

The collections of information 

associated with this rulemaking 

contained in 38 CFR 8.0(g), 8.7, 8.11, 

8.19, 8.35 and 8.36 are described 

immediately following this paragraph, 

under their respective title. 

Title: Application for Veterans’ Affairs 

Life Insurance (VALife). 

OMB Control No: 2900–XXXX (New/ 

TBD). 

CFR Provision: 38 CFR 8.0(g) and 

8.36. 

• Summary of collection of 

information: The new collection of 

information in proposed 38 CFR 8.0(g) 

and 8.36 would require individuals 

applying for or increasing VALife 

coverage to provide certain information 

to VA. 

• Description of need for information 

and proposed use of information: The 

information would be used by VA to 

determine the eligibility of veterans 

with service-connected disabilities who 

elect to apply for, or increase, VALife 

coverage. 

• Description of likely respondents: 

Veterans, veterans’ VA-appointed 

fiduciaries, and veterans’ stateappointed guardians and custodians and 

attorneys-in-fact. 

• Estimated number of respondents: 

185,000 annually. 

• Estimated frequency of responses: 

One time per application. 

• Estimated average burden per 

response: 10 minutes. 

• Estimated total annual reporting 

and recordkeeping burden: Based on a 

projected 185,000 annual respondents 

and an average burden per response of 

10 minutes, VA estimates a total annual 

reporting and recordkeeping burden of 

30,833 hours. 

• Estimated cost to respondents per 

year: VA estimates the total information 

collection burden cost to be $863,632 

per year (30,833 burden hours for 

respondents × $28.01 per hour).* 

* To estimate the total information 

collection burden cost, VA used the 

Bureau of Labor Statistics (BLS) median 

hourly wage for hourly wage for ‘‘all 

occupations’’ of $28.01 per hour. This 

information is available at https://

www.bls.gov/oes/current/oes_

nat.htm#13-0000. 

Title: Veterans’ Affairs Life Insurance 

(VALife) Policy Maintenance Form. 

OMB Control No: 2900–XXXX (New/ 

TBD). 

CFR Provisions: 38 CFR 8.7, 8.11, and 

8.19. 

• Summary of collection of 

information: The new collection of 

information in proposed 38 CFR 8.7 

would require an individual to use the 

new form to request reinstatement for 

VALife. The new collection of 

information in proposed § 8.11(k) would 

require an individual to use the new 

form to surrender the VALife policy and 

request payment of the cash value. An 

individual could also use the new form 

to request beneficiary changes on a 

VALife policy under proposed § 8.19(a). 

• Description of need for information 

and proposed use of information: The 

information would be used by VA to 

reinstate a VALife policy or to complete 

a insured’s request to surrender 

coverage under VALife. 

• Description of likely respondents: 

Veterans, veterans’ VA-appointed 

fiduciaries, and veterans’ stateappointed guardians and custodians and 

attorneys-in-fact. 

• Estimated number of respondents: 

26,672 annually. 

• Estimated frequency of responses: 

One action per form. 

• Estimated average burden per 

response: 5 minutes. 

• Estimated total annual reporting 

and recordkeeping burden: Based on a 

projected 26,672 annual respondents 

and an average burden per response of 

5 minutes, VA estimates a total annual 

reporting and recordkeeping burden of 

2,223 hours. 

• Estimated cost to respondents per 

year: VA estimates the total information 

collection burden cost to be $62,266 per 

year (2,223 burden hours for 

respondents × $28.01 per hour).* 

* To estimate the total information 

collection burden cost, VA used the 

Bureau of Labor Statistics (BLS) median 

hourly wage for hourly wage for ‘‘all 

occupations’’ of $28.01 per hour. This 

information is available at https://

www.bls.gov/oes/current/oes_

nat.htm#13-0000. 

Title: Veterans’ Affairs Life Insurance 

(VALife) Surrender/Conversion Form. 

OMB Control No: 2900–XXXX (New/ 

TBD). 

CFR Provisions: 38 CFR 8.35. 

• Summary of collection of 

information: The new collection of 

information in proposed 38 CFR 8.35 

would require an individual to confirm 

their surrender of any current SDVI 

coverage at the time they apply for 

VALife. 

• Description of need for information 

and proposed use of information: The 

information would be used by VA to 

surrender an existing SDVI policy so 

that a Veteran can apply for VALife. 

• Description of likely respondents: 

Veterans, veterans’ VA-appointed 

fiduciaries, and veterans’ stateappointed guardians and custodians and 

attorneys-in-fact. 

• Estimated number of respondents: 

26,672 annually. 

• Estimated frequency of responses: 

One action per form. 

• Estimated average burden per 

response: 5 minutes. 

• Estimated total annual reporting 

and recordkeeping burden: Based on a 

projected 26,672 annual respondents 

and an average burden per response of 

5 minutes, VA estimates a total annual 

reporting and recordkeeping burden of 

2,223 hours. 

• Estimated cost to respondents per 

year: VA estimates the total information 


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collection burden cost to be $62,266 per 

year (2,223 burden hours for 

respondents × $28.01 per hour).* 

* To estimate the total information 

collection burden cost, VA used the 

Bureau of Labor Statistics (BLS) median 

hourly wage for hourly wage for ‘‘all 

occupations’’ of $28.01 per hour. This 

information is available at https://

www.bls.gov/oes/current/oes_

nat.htm#13-0000. 

Assistance Listing 

The Assistance Listing number and 

title for the program affected by this 

document is 64.103, Life Insurance for 

Veterans. 

List of Subjects in 38 CFR Part 8 

Life insurance, Veterans. 

Signing Authority 

Denis McDonough, Secretary of 

Veterans Affairs, approved this 

document on June 30, 2022, and 

authorized the undersigned to sign and 

submit the document to the Office of the 

Federal Register for publication 

electronically as an official document of 

the Department of Veterans Affairs. 

Jeffrey M. Martin, 

Assistant Director, Office of Regulation Policy 

& Management, Office of General Counsel, 

Department of Veterans Affairs. 

For the reasons stated in the 

preamble, VA is proposing to amend 38 

CFR part 8 as set forth below: 

PART 8—NATIONAL SERVICE LIFE 

INSURANCE 

■ 1. The authority citation for part 8 

continues to read as follows: 

Authority: 38 U.S.C. 501, 1901–1929, 

1981–1988, unless otherwise noted. 

■ 2. Amend § 8.0 by: 

■ a. Revising paragraph (e); and 

■ b. Adding paragraphs (f), (g), and (h). 

The revision and additions read as 

follows: 

§ 8.0 Definitions of terms used in 

connection with title 38 CFR, part 8, 

National Service Life Insurance. 

* * * * * 

(e) What does the term ‘‘guardian’’ 

mean? The term guardian means any 

state-appointed guardian or conservator, 

attorney-in-fact, or VA-appointed 

fiduciary, as defined in § 13.20, who is 

responsible for receiving VA benefits in 

a fiduciary capacity on behalf of the 

insured or the beneficiary, or to take the 

actions listed in § 8.32. 

Note to paragraph (e): If a VA-appointed 

fiduciary and either a state-appointed 

guardian/conservator or attorney-in-fact are 

not the same individual and both attempt to 

take conflicting actions on an incompetent 

insured’s policy, the VA-appointed fiduciary 

shall have the exclusive authority to take 

actions on the policy. 

(f) What does the term ‘‘Veterans’ 

Affairs Life Insurance (VALife)’’ mean? 

The term Veterans’ Affairs Life 

Insurance, or VALife in its abbreviated 

form, means a policy of insurance that 

is issued under section 1922B of title 38 

U.S.C. 

(g) What does the term ‘‘application 

for VALife’’ mean? The term application 

for VALife means a properly completed 

application form submitted online or 

through another medium prescribed by 

the Secretary. 

(h) What does the term ‘‘beneficiary’’ 

mean? The term ‘‘beneficiary’’ means a 

principal or contingent beneficiary 

designated by the insured. 

■ 3. Amend § 8.1 by: 

■ a. Revising the heading; 

■ b. Revising paragraph (a); 

■ c. Adding Note 3 in paragraph (b); 

■ d. Removing ‘‘Yes,’’ and adding in its 

place ‘‘For insurance other than 

VALife,’’ in paragraph (c). 

The revisions and addition read as 

follows: 

§ 8.1 Effective date for an insurance policy 

issued under section 1922(a) or 1922B of 

title 38 U.S.C. 

(a) What is the effective date of the 

policy? The effective date is the date 

policy coverage begins. Benefits due 

under a policy issued under section 

1922(a) are payable any time after the 

effective date. Benefits due under a 

policy issued under section 1922B are 

payable any time two years after the 

effective date. 

(b) * * * 

Note 3 to paragraph (b): If you apply for 

insurance coverage through an electronic 

medium, the date of delivery of the premium 

payment will be the date you authorize 

payment of the initial premium. In cases 

where the authorization does not result in the 

required premium payment because there 

were insufficient funds to cover the full 

initial premium, the delivery date of the 

premium payment will be the date your full 

initial premium is received by VA. 

* * * * * 

■ 4. Amend § 8.2 by adding paragraph 

(e) to read as follows: 

§ 8.2 Payment of premiums. 

* * * * * 

(e) If a policyholder enrolls in VALife 

for an amount less than the statutory 

maximum and elects to apply for 

additional coverage at a later date and 

dies before completing the two-year 

waiting period for the additional VALife 

coverage amount, the beneficiary shall 

be refunded premiums that were paid 

for the additional VALife coverage, plus 

interest, in accordance with 38 U.S.C. 

1922B(c)(3)(A). If a policyholder 

surrenders or cancels a VALife policy 

during the two-year waiting period 

imposed by 38 U.S.C. 1922B(c)(2) before 

coverage is in force, the United States 

shall not return to the policyholder the 

premiums that were paid to purchase 

the coverage. 

■ 5. Revise § 8.6 to read as follows: 

§ 8.6 Calculation of Time Period; Veteran’s 

Age. 

(a) If the last day of a time period 

specified in § 8.2 or § 8.3, or the last day 

allowed for filing an application for 

National Service Life Insurance or for 

applying for reinstatement thereof, or 

paying premiums due thereon, falls on 

a Saturday, Sunday, or legal holiday, the 

time period will be extended to include 

the following workday. 

(b) For VALife, the premium will be 

determined using the age of the veteran 

at his or her nearest birthday on the 

effective date of the policy. 

(c) For purposes of determining a 

veteran’s eligibility for VALife under 38 

U.S.C. 1922B(a)(3)(A), the age of the 

veteran at his or her last birthday prior 

to the date of application will be used. 

(d) For purposes of determining a 

veteran’s eligibility for VALife under 38 

U.S.C. 1922B(a)(3)(B), with respect to a 

veteran who has attained 81 years of 

age, an initial grant of service 

connection for a new or secondary 

condition for which the veteran applied 

for disability compensation before 

attaining 81 years of age will satisfy the 

eligibility criteria; however, VA will not 

grant insurance to such a veteran based 

on an increase in an existing disability 

rating, a grant of individual 

unemployability under 38 CFR 4.18, or 

a finding of incompetency under 38 CFR 

3.353. VA will not issue a VALife policy 

to a veteran over age 95. 

■ 6. Amend § 8.7 by: 

■ a. Revising the heading; 

■ b. Removing ‘‘Any policy’’ and adding 

in its place ‘‘Subject to paragraph (e), 

any policy’’ in paragraph (a); and 

■ c. Adding paragraph (e). 

The revisions and addition read as 

follows: 

§ 8. 7 Reinstatement. 

* * * * * 

(e) Coverage issued under VALife that 

lapses for non-payment of premiums 

may only be reinstated if the former 

policyholder submits all premiums in 

arrears from their respective due dates, 

plus interest, to reinstate the coverage 

within two years of the date of the lapse 

and has not yet reached age 81. 


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(The Office of Management and Budget has 

approved the information collection 

provisions in this section under control 

number 2900–XXXX.) 

■ 7. Amend § 8.10 by revising paragraph 

(a)(3) to read as follows: 

§ 8.10 How paid. 

(a) * * * 

(3) Issued under sections 1904(c), 

1922(a), and 1922B of title 38 U.S.C. 

* * * * * 

■ 8. Amend § 8.11 by: 

■ a. Revising the heading; 

■ b. Adding at the end in paragraph (a) 

‘‘This paragraph shall not apply to 

VALife.’’; 

■ c. Removing ‘‘Upon’’ and adding in its 

place ‘‘For insurance other than VALife, 

upon’’ in paragraph (b); and 

■ d. Adding paragraphs (j) and (k). 

The revisions and additions read as 

follows: 

§ 8.11 Cash value. 

* * * * * 

(j) Cash values that accrue for VALife 

will be developed using a multiple of 

the 1941 Commissioners Standard 

Ordinary Mortality Table and an interest 

rate of 3.5 percent per annum. Cash 

values will not accrue and will not be 

payable until the completion of the twoyear waiting period imposed by 38 

U.S.C. 1922B(c)(2). If a VALife policy 

lapses or is surrendered before 

completion of the two-year waiting 

period, then any amounts that VA has 

collected, such as premium payments, 

shall be returned to the credit of the 

VALife revolving fund that is 

established under 38 U.S.C. 

1922B(a)(5)(A)(i). If a veteran enrolls in 

VALife for an amount less than the 

statutory maximum and elects to apply 

for additional coverage at a later date, 

the cash value on the additional amount 

of coverage would not begin accruing 

until the end of the two-year waiting 

period for the additional coverage. 

(k) The United States will pay the 

cash value, in full or in part, of any 

VALife policy, subject to the limitations 

in § 8.11(j), to insureds upon request 

through electronic medium or other 

method prescribed by the Secretary. 

Unless otherwise requested by the 

insured, a surrender will be deemed 

effective as of the end of the premium 

month in which the application for cash 

surrender is delivered to the Department 

of Veterans Affairs, or as of the date of 

payment for the cash value, whichever 

is later. 

(The Office of Management and Budget has 

approved the information collection 

provisions in this section under control 

number 2900–XXXX.) 

* * * * * 

■ 9. Amend § 8.13 by adding paragraph 

(e) to read as follows: 

§ 8.13 Policy loans. 

* * * * * 

(e) For VALife, the United States shall 

only issue policy loans if the Secretary 

determines that offering loans is 

administratively and actuarially sound. 

■ 10. Amend § 8.14 by adding paragraph 

(d) to read as follows: 

§ 8.14 Provision for extended term 

insurance—other than 5-year level premium 

term or limited convertible 5-year level 

premium term policies. 

* * * * * 

(d) VALife shall not be extended 

automatically as term insurance until 

the insured has paid the required 

premiums during the two-year waiting 

period that is imposed by 38 U.S.C. 

1922B(c)(2) before VALife coverage is in 

force. 

■ 11. Revise § 8.15 to read as follows: 

§ 8.15 Provision for paid-up insurance; 

other than 5-year level premium term or 

limited convertible 5-year level premium 

term policies. 

(a) If a National Service Life Insurance 

policy on any plan other than 5-year 

level premium term or limited 

convertible 5-year level premium term 

plan has not been surrendered for cash, 

upon written request of the insured and 

complete surrender of the insurance 

with all claims thereunder, after the 

expiration of the first policy year and 

while the policy is in force under 

premium-paying conditions, the United 

States will issue paid-up insurance for 

such amount as the cash value less any 

indebtedness, and a charge for 

administrative cost for insurance issued 

under 38 U.S.C. 1925, will purchase 

when applied as a net single premium 

at the attained age of the insured. For 

this purpose 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. Such paid-up 

insurance will be effective as of the 

expiration of the period for which 

premiums have been paid and earned; 

and, any premiums paid in advance for 

months subsequent to that in which the 

application for paid-up insurance is 

made shall be refunded to the insured. 

The paid-up insurance, if eligible to 

participate in and to receive dividends, 

shall be with the right to dividends. The 

insured may at any time surrender the 

paid-up policy for its cash value or 

obtain a loan on such paid-up 

insurance. 

(b) The United States shall not issue 

paid-up insurance under VALife until 

the insured has paid premiums during 

the two-year waiting period imposed by 

38 U.S.C. 1922B(c)(2) before VALife 

coverage is in force. 

■ 12. Revise § 8.19 to read as follows: 

§ 8.19 Beneficiary and optional settlement 

changes. 

(a) The insured shall have the right at 

any time, and from time to time, and 

without the knowledge or consent of the 

beneficiary to cancel or change a 

beneficiary and/or optional settlement 

designation. A change of beneficiary or 

optional settlement to be effective must 

be made by notice in writing signed by 

the insured and forwarded to the 

Department of Veterans Affairs by the 

insured or designated agent, and must 

contain sufficient information to 

identify the insured. A beneficiary 

designation and an optional settlement 

selection, but not a change of 

beneficiary, may be made by last will 

and testament duly probated. Upon 

receipt by the Department of Veterans 

Affairs, a valid designation or change of 

beneficiary or option shall be deemed to 

be effective as of the date of execution. 

Any payment made before proper notice 

of designation or change of beneficiary 

has been received in the Department of 

Veterans Affairs shall be deemed to 

have been properly made and to satisfy 

fully the obligations of the United States 

under such insurance policy to the 

extent of such payments. 

(b) If a beneficiary has been 

determined to have intentionally and 

wrongfully killed the insured, the 

provisions found in 38 CFR 9.5(e) shall 

be followed. 

■ 13. Add § 8.35 to read as follows: 

§ 8.35 Eligibility for those insured under 38 

U.S.C. 1922(a) to purchase insurance under 

38 U.S.C. 1922B after December 31, 2025. 

An insured under a Legacy Service 

Disabled Veterans’ Insurance policy 

shall be eligible to purchase VALife 

coverage after December 31, 2025, upon 

cancellation of his or her Legacy Service 

Disabled Veterans’ Insurance policy and 

surrender of any cash value that his or 

her coverage has accrued in accordance 

with 38 CFR 8.11. The policyholder 

must also submit a statement in a form 

that is prescribed by the Secretary, 

which clearly indicates that the 

policyholder desires to terminate his or 

her existing life insurance coverage in 

order to apply for VALife and initiate 

the two-year waiting period imposed by 

38 U.S.C. 1922B(c)(2) before such 

VALife coverage is in force. 

(Authority: 38 U.S.C. 501, 1901–1929, 1981– 

1988) 

(The Office of Management and Budget has 

approved the information collection 


jspears on DSK121TN23PROD with PROPOSALS1
42126 Federal Register / Vol. 87, No. 134 / Thursday, July 14, 2022 / Proposed Rules 

1CAA section 108(a). 

provisions in this section under control 

number 2900–XXXX.) 

■ 14. Add § 8.36 to read as follows: 

§ 8.36 Issuance of coverage under section 

1922B of title 38 U.S.C. following additional 

elections. 

An insured who elects less than the 

maximum amount of VALife coverage 

under 38 U.S.C. 1922B(a)(4)(A) shall 

remain eligible to purchase additional 

VALife coverage up to the VALife 

statutory maximum. Any insured who 

elects to apply for additional VALife 

coverage shall be subject to the two-year 

waiting period imposed by 38 U.S.C. 

1922B(c)(2) before such additional 

VALife coverage is in force. 

(Authority: 38 U.S.C. 501, 1901–1929, 1981– 

1988) 

(The Office of Management and Budget has 

approved the information collection 

provisions in this section under control 

number 2900–XXXX.) 

[FR Doc. 2022–14942 Filed 7–13–22; 8:45 am] 

BILLING CODE 8320–01–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 52 

[EPA–R09–OAR–2022–0412; FRL–9818–01– 

R9] 

Determinations of Attainment by the 

Attainment Date, California Areas 

Classified as Serious for the 2008 

Ozone National Ambient Air Quality 

Standards and Marginal for the 2015 

Ozone National Ambient Air Quality 

Standards 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Proposed rule. 

SUMMARY: The Environmental Protection 

Agency (EPA) is proposing to determine 

that the Nevada County (Western part) 

and Ventura County areas in California, 

both classified as Serious for the 2008 

ozone National Ambient Air Quality 

Standards (NAAQS), attained the 2008 

ozone NAAQS by the July 20, 2021 

attainment date. The EPA is also 

proposing to determine that six areas in 

California classified as Marginal for the 

2015 ozone NAAQS, attained the 2015 

ozone NAAQS by the August 3, 2021 

attainment date. These six areas are: 

Butte County, Calaveras County, San 

Luis Obispo (Eastern part), Sutter 

Buttes, Tuolumne County, and Tuscan 

Buttes. Our proposed determination of 

attainment is based on the exclusion of 

exceedances of the 2008 and 2015 ozone 

NAAQS that occurred on multiple days 

in 2018 and 2020, because the 

exceedances are due to exceptional 

events. We are further proposing to find 

that, if we finalize these proposed 

determinations of attainment by the 

attainment date for the Nevada County 

(Western part) and Ventura 

nonattainment areas, then the 

requirement for the state to have 

contingency measures for Reasonable 

Further Progress (RFP) and attainment 

for the 2008 ozone NAAQS for these 

areas will no longer apply, because the 

contingency measures would never be 

needed given the attainment of the 

NAAQS. This action, if finalized as 

proposed, will fulfill the EPA’s statutory 

obligation to determine whether these 

ozone nonattainment areas attained the 

NAAQS by the relevant attainment date. 

DATES: Comments must be received on 

or before August 15, 2022. 

ADDRESSES: Submit your comments, 

identified by Docket ID No. EPA–R09– 

OAR–2022–0412, at https://

www.regulations.gov. Follow the online 

instructions for submitting comments. 

Once submitted, comments cannot be 

edited or removed from regulations.gov. 

The EPA may publish any comment 

received to our public docket. Do not 

submit electronically any information 

you consider to be Confidential 

Business Information (CBI) or other 

information whose disclosure is 

restricted by statute. Multimedia 

submissions (audio, video, etc.) must be 

accompanied by a written comment. 

The written comment is considered the 

official comment and should include 

discussion of all points you wish to 

make. The EPA will generally not 

consider comments or comment 

contents located outside of the primary 

submission (i.e., on the Web, Cloud, or 

other file sharing system). For 

additional submission methods, please 

contact the person identified in the FOR

FURTHER INFORMATION CONTACT section. 

For the full EPA public comment policy, 

information about CBI or multimedia 

submissions, and general guidance on 

making effective comments, please visit 

https://www.epa.gov/dockets/ 

commenting-epa-dockets. If you need 

assistance in a language other than 

English or if you are a person with 

disabilities who needs a reasonable 

accommodation at no cost to you, please 

contact the person identified in the FOR

FURTHER INFORMATION CONTACT section. 

FOR FURTHER INFORMATION CONTACT: 

Laura Lawrence, Air Planning Office 

(AIR–2), EPA Region IX, 75 Hawthorne 

Street, San Francisco, CA 94105; By 

phone: (415) 972–3407 or by email: 

lawrence.laura@epa.gov. 

SUPPLEMENTARY INFORMATION: 

Throughout this document ‘‘we,’’ ‘‘us,’’ 

or ‘‘our’’ means the EPA. 

Table of Contents 

I. Background 

A. Statutory and Regulatory Background 

for the Proposed Actions 

B. Determination of Attainment or Failure 

to Attain 

1. 2008 Ozone NAAQS 

2. 2015 Ozone NAAQS 

C. Data Considered for This Proposed 

Determination 

D. Areas Addressed in Proposed Action 

1. Areas Classified Serious for the 2008 

Ozone NAAQS 

2. Areas Classified Marginal for the 2015 

Ozone NAAQS 

II. Proposed Determinations of Attainment by 

the Attainment Date 

A. Determinations of Attainment and the 

EPA’s Analysis of Relevant Air Quality 

Monitoring Data 

B. Exceptional Events Relevant to the 

EPA’s Analysis of Relevant Air Quality 

Monitoring Data 

C. Effect of This Proposal: Designation and 

Classification 

D. Effect of This Proposal: Contingency 

Measures 

III. Environmental Justice Considerations 

IV. Summary of Proposal 

V. Statutory and Executive Order Reviews 

I. Background 

A. Statutory and Regulatory Background 

for the Proposed Actions 

The Clean Air Act (CAA or ‘‘Act’’) 

requires the EPA to establish primary 

and secondary National Ambient Air 

Quality Standards (NAAQS or 

‘‘standards’’) for certain pervasive 

pollutants that ‘‘may reasonably be 

anticipated to endanger public health 

and welfare.’’ 1 The primary NAAQS is 

designed to protect public health with 

an adequate margin of safety, and the 

secondary NAAQS is designed to 

protect public welfare and the 

environment. The EPA has set standards 

for six common air pollutants, referred 

to as criteria pollutants, including ozone 

(O3). These standards represent the air 

quality levels an area must meet to 

comply with the CAA. 

Ozone is a gas created in the 

troposphere by chemical reactions 

between volatile organic compounds 

(VOC) and oxides of nitrogen (NOX) in 

the presence of sunlight. Ground-level 

ozone can harm human health and the 

environment. Ozone exposure has been 

associated with increased susceptibility 

to respiratory infections, increased 

medication use by asthmatics, and 

increased health care visits, emergency 

department visits, and hospital 

admissions for individuals with 


jspears on DSK121TN23PROD with PROPOSALS1