Federal Register / Vol. 61, No. 112 / Monday, June 10, 1996 / Rules and Regulations 29289

Source.’’ This publication is

incorporated by reference and may be

inspected at any Coal Mine Health and

Safety District and Subdistrict Office, or

at MSHA’s Office of Standards, 4015

Wilson Boulevard, Arlington, VA, and

at the Office of the Federal Register, 800

North Capitol Street, NW., Suite 700,

Washington, DC. In addition, copies of

the document can be purchased from

the American Society for Testing

(ASTM), 1916 Race Street, Philadelphia,

Pennsylvania 19103. This incorporation

by reference was approved by the

Director of the Federal Register in

accordance with 5 U.S.C. 552(a) and 1

CFR part 51.

* * * * *

9. On page 9835, in the first column,

in § 75.333, paragraph (f) is corrected to

read as follows:

* * * * *

(f) When sealants are applied to

ventilation controls, the sealant shall

have a flame-spread index of 25 or less

under ASTM E162–87, ‘‘Standard Test

Method for Surface Flammability of

Materials Using A Radiant Heat Energy

Source.’’ This publication is

incorporated by reference and may be

inspected at any Coal Mine Health and

Safety District and Subdistrict Office, or

at MSHA’s Office of Standards, 4015

Wilson Boulevard, Arlington, VA, and

at the Office of the Federal Register, 800

North Capitol Street, NW., Suite 700,

Washington, DC. In addition, copies of

the document can be purchased from

the American Society for Testing

(ASTM), 1916 Race Street, Philadelphia,

Pennsylvania 19103. This incorporation

by reference was approved by the

Director of the Federal Register in

accordance with 5 U.S.C. 552(a) and 1

CFR part 51.

* * * * *

10. In the rule, on page 9835, in the

third column, § 75.335, paragraph

(a)(1)(iv) is corrected to read as follows:

§ 75.335 Construction of seals.

(a)(1) * * *

(iv) Coated on all accessible surfaces

with flame-retardant material that will

minimize leakage and that has a flamespread index of 25 or less, as tested

under ASTM E162–87, ‘‘Standard Test

Method for Surface Flammability of

Materials Using A Radiant Heat Energy

Source.’’ This publication is

incorporated by reference and may be

inspected at any Coal Mine Health and

Safety District and Subdistrict Office, or

at MSHA’s Office of Standards, 4015

Wilson Boulevard, Arlington, VA, and

at the Office of the 4Federal Register,

800 North Capitol Street, NW., Suite

700, Washington, DC. In addition,

copies of the document can be

purchased from the American Society

for Testing (ASTM), 1916 Race Street,

Philadelphia, Pennsylvania 19103. This

incorporation by reference was

approved by the Director of the Federal

Register in accordance with 5 U.S.C.

552(a) and 1 CFR part 51.

* * * * *

11. On page 9835, in the third

column, in § 75.335, paragraph (a)(2) is

corrected to read as follows:

(a)(1) * * *

(2) Alternative methods or materials

may be used to create a seal if they can

withstand a static horizontal pressure of

20 pounds per square inch provided the

method of installation and the material

used are approved in the ventilation

plan. If the alternative methods or

materials include the use of timbers, the

timbers also shall be coated on all

accessible surfaces with flame-retardant

material having a flame-spread index of

25 or less, as tested under ASTM E162–

87, ‘‘Standard Test Method for Surface

Flammability of Materials Using A

Radiant Heat Energy Source.’’ This

publication is incorporated by reference

and may be inspected at any Coal Mine

Health and Safety District and

Subdistrict Office, or at MSHA’s Office

of Standards, 4015 Wilson Boulevard,

Arlington, VA, and at the Office of the

Federal Register, 800 North Capitol

Street, NW., Suite 700, Washington, DC.

In addition, copies of the document can

be purchased from the American

Society for Testing (ASTM), 1916 Race

Street, Philadelphia, Pennsylvania

19103. This incorporation by reference

was approved by the Director of the

Federal Register in accordance with 5

U.S.C. 552(a) and 1 CFR part 51.

* * * * *

Dated: May 28, 1996.

J. Davitt McAteer,

Assistant Secretary for Mine Safety and

Health.

[FR Doc. 96–14109 Filed 6–7–96; 8:45 am]

BILLING CODE 4510–43–P

DEPARTMENT OF VETERANS

AFFAIRS

38 CFR Part 8

RIN 2900 AH55

National Service Life Insurance

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

SUMMARY: This document amends the

Department of Veterans Affairs (VA)

regulations captioned ‘‘National Service

Life Insurance’’ which were established

under the National Service Life

Insurance Act of 1940, as amended (38

U.S.C. 1901–1929, 1981–1988). It

deletes provisions that have become

obsolete. It also deletes provisions

contained in insurance policies that

consist of restatements of statutes and

other material not required to be

published in the Federal Register.

Additionally, it deletes other

restatements of statute and makes

changes for purposes of clarity.

EFFECTIVE DATE: June 10, 1996.

FOR FURTHER INFORMATION CONTACT:

George Poole, Chief, Insurance Program

Administration, Department of Veterans

Affairs Regional Office and Insurance

Center, PO Box 8079, Philadelphia, PA

19101, (215) 951–5718.

SUPPLEMENTARY INFORMATION: Under the

umbrella of 38 CFR part 8, four distinct

life insurance programs exist, namely,

National Service Life Insurance (NSLI),

Veterans’ Special Life Insurance (VSLI),

Veterans’ Reopened Life Insurance (VRI)

and Service Disabled Veterans

Insurance (SDVI). Most of the

policyholders insured under NSLI

served during World War II, and their

average age is now 72 years. The NSLI

program opened in October 1940, and

over 22 million policies were issued, of

which about 2 million remain. The NSLI

program remained open until April

1951, when two new programs were

established for Korean War veterans.

VSLI, opened in April 1951, was closed

to new issues in December 1956. SDVI,

also opened in April 1951, is the only

program still available for new issues to

veterans with service-connected

disabilities. The VRI program was a

limited one-year reopening, from May

1965 to May 1966, of the NSLI and VSLI

programs to certain disabled veterans.

As a result of the closure of the NSLI,

VSLI, and VRI programs, provisions

concerning issuance are deleted because

they are obsolete. Furthermore, while

these three programs provide for certain

disability provisions, there are no

insureds remaining who are age eligible

for issuance of such riders and, hence,

these provisions are further deleted as

obsolete. Other provisions, such as

those implementing the Servicemen’s

Indemnity Act of 1940, and other

‘‘sunset’’ provisions, are also obsolete

and deleted accordingly.

Also, provisions which list

guaranteed payments are deleted since

such guaranteed payments reflect only a

minimum payment and subsequent

legislation allows for higher payment

schedules. Thus, publication of

minimum payments has no practical

value. Provisions that are contained in

insurance polices are likewise deleted
29290 Federal Register / Vol. 61, No. 112 / Monday, June 10, 1996 / Rules and Regulations

as unnecessary. These policy provisions

contain restatements of statute and other

material not required to be published in

the Federal Register. Additionally,

other provisions that merely restate

statutory provisions are likewise

deleted.

Lastly, some provisions are changed

for purposes of clarity.

This final rule consists of

nonsubstantive changes and, therefore,

is not subject to the notice-andcomment and effective-date provisions

of 5 U.S.C. 553.

The Secretary of Veterans Affairs

thereby certifies that this final rule will

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

final rule will not affect any entity since

it does not contain any substantive

provision. Therefore, pursuant to 5

U.S.C. 605(b), this amendment is

exempt from the initial and final

regulatory flexibility analysis

requirements of sections 603 and 604.

The Catalog of Federal Domestic

Assistance Program number for these

regulations is 64.103.

List of Subjects in 38 CFR Part 8

Life insurance, Mortgage insurance,

Veterans.

Approved: May 31, 1996.

Jesse Brown,

Secretary of Veterans Affairs.

For the reasons set out in the

preamble 38 CFR part 8 is amended 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. The undesignated center heading

preceding §§ 8.16, 8.44, 8.49, 8.55, 8.59,

8.60, 8.61, 8.62, 8.70, 8.71, 8.80a, 8.100,

8.102, 8.103, 8.110, 8.113, 8.114, and

8.116 are removed.

§§ 8.0, 8.3 through 8.5, 8.7, 8.10, 8.11, 8.15,

8.16 through 8.19, 8.26a, 8.32, 8.34 through

8.36, 8.40, 8.41, 8.44, 8.47 through 8.51, 8.54,

8.55, 8.59, 8.60, 8.61, 8.62, 8.63, 8.70, 8.71,

8.75 through 8.78, 8.80, 8.80a through 8.83,

8.88 through 8.93, 8.95 through 8.95b, 8.96a

through 8.99c, 8.100, 8.102, 8.103 and 8.110

through 8.112b, 8.113, 8.114 and 8.116

[Removed]

3. Sections 8.0, 8.3 through 8.5, 8.7,

8.10, 8.11, 8.15 through 8.19, 8.26a,

8.32, 8.34 through 8.36, 8.40, 8.41, 8.44,

8.47 through 8.51, 8.54, 8.55, 8.59

through 8.63, 8.70, 8.71, 8.75 through

8.78, 8.80 through 8.83, 8.88 through

8.93, 8.95 through 8.95b, 8.96a through

8.103, and 8.110 through 8.116 are

removed.

§ 8.1 [Redesignated as § 8.0]

4. Section 8.1 is redesignated as § 8.0.

§ 8.2 [Redesignated as § 8.1]

5. Section 8.2 is redesignated as § 8.1

following the undesignated center

heading EFFECTIVE DATE.

§§ 8.7a, 8.7b, 8.7c, 8.8, 8.9 [Redesignated

as §§ 8.3 through 8.7, respectively]

6. Sections 8.7a through 8.7c, 8.8 and

8.9 are redesignated as §§ 8.3 through

8.7, respectively, following the

undesignated center heading

‘‘PREMIUMS’’.

§ 8.12 [Redesignated as § 8.8]

7. Section 8.12 is redesignated as § 8.8

following the undesignated center

heading ‘‘CALCULATION OF TIME

PERIOD’’.

§ 8.14 [Redesignated as § 8.9]

8. Secton 8.14 is redesignated as § 8.9

following the undesignated center

heading ‘‘GRACE PERIOD’’.

§§ 8.22, 8.23, 8.24 [Redesignated as §§ 8.10

through 8.12, respectively]

9. Sections 8.22 through 8.24 are

redesignated as §§ 8.10 through 8.12,

respectively, following the undesignated

center heading ‘‘REINSTATEMENT’’.

§ 8.26 [Redesignated as § 8.13]

10. Section 8.26 is redesignated as

§ 8.13 following the undesignated center

heading ‘‘DIVIDENDS’’.

§§ 8.27, 8.27a, 8.28 [Redesignated as

§§ 8.114 through 8.16, respectively]

11. Sections 8.27 and 8.28 are

redesignated as §§ 8.14 through 8.16,

respectively, following the undesignated

center heading ‘‘CASH VALUE AND

POLICY LOAN’’.

§§ 8.29, 8.30 [Redesignated as §§ 8.17 and

8.18, respectively]

12. Sections 8.29 and 8.30 are

redesignated as §§ 8.17 and 8.18,

respectively, following the undesignated

center heading ‘‘EXTENDED TERM

AND PAID-UP INSURANCE’’.

§ 8.33 [Redesignated as § 8.19]

13. Section 8.33 is redesignated § 8.19

following the undesignated center

heading ‘‘CHANGE IN PLAN’’.

§§ 8.42, 8.43 [Redesignated as §§ 8.20 and

8.21, respectively]

14. Sections 8.42 and 8.43 are

redesignated as §§ 8.20 and 8.21,

respectively, following the undesignated

center heading ‘‘PREMIUM WAIVERS

AND TOTAL DISABILITY’’.

§ 8.46 [Redesignated as § 8.22]

15. Section 8.46 is redesignated as

§ 8.22 following the undesignated center

heading ‘‘BENEFICIARIES’’.

§ 8.52 [Redesignated as § 8.23]

16. Section 8.52 is redesignated as

§ 8.23 following the undesignated center

heading ‘‘PROOF OF DEATH, AGE, OR

RELATIONSHIP’’.

§ 8.56 [Redesignated as § 8.24]

17. Section 8.56 is redesignated as

§ 8.24 following the undesignated center

heading ‘‘AGE’’.

§§ 8.64, 8.65, 8.66 [Redesignated as §§ 8.25

through 8.27, respectively]

18. Sections 8.64 through 8.66 are

redesignated as 8.25 through 8.27,

respectively, following the undesignated

center heading ‘‘EXAMINATIONS’’.

§ 8.69 [Redesignated as § 8.28]

19. Section 8.69 is redesignated as

§ 8.28 following the undesignated center

heading ‘‘EXTRA HAZARDS’’.

§ 8.79 [Redesignated as § 8.29]

20. Section 8.79 is redesignated as

§ 8.29 following the undesignated center

heading ‘‘OPTIONAL SETTLEMENTS’’.

§ 8.85 [Redesignated as § 8.30]

21. Section 8.85 is redesignated as

§ 8.30 following the undesignated center

heading ‘‘RENEWAL OF TERM

INSURANCE’’.

§§ 8.94, 8.96 [Redesignated as § 8.31 and

8.32, respectively]

22. Sections 8.94 and 8.96 are

redesignated as §§ 8.31 and 8.32,

respectively, following the undesignated

center heading ‘‘SETTLEMENT OF

INSURANCE MATURING ON OR

AFTER AUGUST 1, 1946’’.

§ 8.108 [Redesignated as § 8.33]

23. Section 8.108 is redesignated as

§ 8.33 following the undesignated center

heading ‘‘NATIONAL SERVICE LIFE

INSURANCE POLICY’’.

§§ 8.117, 8.118, 8.119 [Redesignated as

§§ 8.34 through 8.36]

24. Sections 8.117 through 8.119 are

redesignated as §§ 8.34 through 8.36,

respectively, following the undesignated

center heading ‘‘APPEALS’’.

25. In newly redesignated § 8.0,

paragraph (b) is amended by removing

‘‘by the Chief Benefits Director. The

Chief Benefits Director is responsible for

readjusting such standards to reflect

medical advances and current

experience affecting mortality and

disability’’.

26. The newly redesignated § 8.1 is

revised to read as follows:
Federal Register / Vol. 61, No. 112 / Monday, June 10, 1996 / Rules and Regulations 29291

§ 8.1 Effective date for insurance issued

under section 1922(a) of title 38 U.S.C.

The effective date may be established

upon written request of the applicant as

follows:

(a) As of the date on which valid

application and tender of premium are

made.

(b) As of the first day of the month in

which valid application and tender of

premium are made.

(c) As of the first day of the month

following the month in which valid

application and tender of premium are

made.

(d) As of the first day of any month,

but not more than 6 months prior to the

month in which valid application and

tender of premium are made: Provided,

That there be paid an amount equal to

the full reserve on the insurance at the

end of the month prior to the month in

which application is made, and the full

premium on the amount of insurance for

the month in which application is

made.

27. The newly redesignated § 8.2 is

revised to read as follows:

§ 8.2 Payment of premiums.

Premiums on National Service Life

Insurance may be paid by direct

remittance to the Department of

Veterans Affairs, or by allotment of

service pay or retirement pay.

(Authority: 38 U.S.C. 1908)

28. The newly redesignated § 8.3 is

revised to read as follows:

§ 8.3 Correction of errors.

Where timely tender of the required

premium is made by check or draft

which is not paid on presentation for

payment, but it is shown by satisfactory

evidence that such nonpayment was

due to an error on the part of the bank

on which such check or draft was

drawn, or was the result of an error in

the instrument or in the execution

thereof, and not for the lack of funds,

the insured will be given an additional

31 days from the date of the letter that

gives notice of such nonpayment in

which to tender an amount sufficient to

pay all premiums through the current

month.

§ 8.5 [Amended]

29. In newly redesignated § 8.5,

paragraph (a)(5) is amended by

removing, ‘‘(§§ 8.14 and 8.15)’’ and

adding, in its place, ‘‘(§ 8.9)’’; and

paragraphs (a)(7) and (b)(3), are

amended by removing ‘‘(§ 8.29)’’ and

adding, in its place ‘‘(§ 8.17)’’.

§ 8.6 [Amended]

30. In newly redesignated § 8.6,

paragraph (a) is amended by removing

‘‘section 5502(f) of title 38 U.S.C., and

§ 13.57’’ and adding, in its place, ‘‘Part

13’’.

31. The newly redesignated § 8.7 is

revised to read as follows:

§ 8.7 Authorization for deduction of

premiums from compensation, retirement

pay, or pension.

Deductions from benefits for the

payment of premiums shall be effective

on the month the authorization for such

deduction is received by the Department

of Veterans Affairs or on any successive

month specified by the insured. Such

deduction shall be applied to the

premium due in the succeeding

calendar month and shall continue

monthly so long as the benefit payments

are due and payable to the insured and

the amount is sufficient to pay the

premium or until such authorization is

revoked by the veteran or otherwise

terminated. When premium deductions

are authorized by the insured, the

premium will be treated as paid for

purposes of preventing lapse of the

insurance, so long as there is due and

payable to the insured a benefit amount

sufficient to provide the premium

payment. If authorization was executed

by the Director of a VA hospital or

domiciliary or chief officer of a State

hospital or other institution to make

deductions from an institutional award,

the authorization will cease and

terminate at the termination of the

institutional award and the insurance

shall lapse unless another authorization

for deduction from monthly benefit

payments is executed by the insured.

The insured will be notified by letter

directed to the last address of record of

the termination of the authorization to

deduct premiums, but failure to give

such notice shall not prevent lapse.

§ 8.8 [Amended]

32. Newly redesignated § 8.8 is

amended by removing ‘‘§§ 8.7a, 8.7b, or

8.7c’’ and adding, in its place, ‘‘§§ 8.3,

8.4 or 8.5’’.

33. The newly redesignated § 8.9 is

revised to read as follows:

§ 8.9 Establishment of grace period.

For the payment of any premium

under a National Service Life Insurance

policy, a grace period of 31 days from

and after the date on which the

premium was due will be allowed

without interest during which time the

policy will remain in force. When a

payment of premium is mailed, the

postmark date will be accepted as the

date on which the payment was

tendered. If a premium is not paid

before the expiration of the grace period,

the effective date of lapse shall be the

due date of the unpaid premium. If the

policy matures within the grace period,

the unpaid premium or premiums shall

be deducted from the amount of

insurance payable.

34. The newly redesignated § 8.10 is

revised to read as follows:

§ 8.10 Reinstatement of National Service

Life Insurance except insurance issued

pursuant to section 1925 of title 38 U.S.C.

(a) Any policy which lapses and

which is not surrendered for a cash

value or for paid-up insurance, may be

reinstated upon written application

signed by the applicant, payment of all

premiums in arrears, and evidence of

good health as required under § 8.11 (a)

or (b), whichever is applicable. If a

policy is not reinstated within 6 months

from the due date of the premium in

default, interest must be paid in

addition to premiums for all months in

arrears from their respective due dates

at the rate of 5 percent per annum,

compounded annually. The payment or

reinstatement of any indebtedness

against a policy must be made upon

application for reinstatement, and any

excess of indebtedness and interest over

the reserve of the policy must be paid

at that time. A lapsed National Service

Life Insurance policy which is in force

under extended term insurance may be

reinstated within 5 years from the date

extended insurance would expire upon

application and payment of all

premiums in arrears with the required

interest. In any case in which the

extended insurance under an

endowment policy provides protection

to the end of the endowment period, the

policy may be reinstated at any time

before maturity upon application and

payment of the premiums with the

required interest. A policy on the level

term premium plan may be reinstated

within 5 years of the date of lapse upon

written application signed by the

insured, evidence of insurability and

payment of two monthly premiums, one

for the month of the lapse, the other for

the month of reinstatement.

(b) Reinstatement of insurance issued

under section 1925, title 38 U.S.C. Any

policy of insurance issued under 38

U.S.C. 1925 which has been lapsed for

not more than 5 years shall be reinstated

under the same provisions of paragraph

(a) of this section.

(c) Effective date of reinstatements.

Reinstatement is effected on the date an

acceptable application and the required

monetary payments are delivered to the

Department of Veterans Affairs. If

application for reinstatement is

submitted by mail, properly addressed

to the Department of Veterans Affairs,

the postmark date shall be the date of
29292 Federal Register / Vol. 61, No. 112 / Monday, June 10, 1996 / Rules and Regulations

delivery. The effective date of

reinstatement of the insurance shall be

the last monthly premium due date

prior to the delivery or postmark date of

the application for reinstatement, except

where reinstatement is effected on the

due date of a premium, then in such

case that date shall be the reinstatement

date.

(d) Inquiry during the grace period.

When the insured makes inquiry prior

to the expiration of the grace period

disclosing a clear intent to continue

insurance protection, such as a request

for information concerning premium

rates or conversion privileges, etc., an

additional reasonable period not

exceeding 60 days may be granted for

payment of premiums due; but the

premiums in any such case must be

paid during the lifetime of the insured.

§ 8.11 [Amended]

35. In newly redesignated § 8.11,

paragraph (b) is amended by removing

‘‘§ 8.1’’ and adding, in its place, ‘‘§ 8.0’’;

it is further amended by removing ‘‘§ 8.0

(b), (d)(2)(i), or (d)(2)(ii)’’ and adding, in

its place, ‘‘38 U.S.C. 1922(a), 1925(b), or

1925(c)’’; and by removing

‘‘§ 8.0(d)(2)(iii)’’ and adding, in its

place, ‘‘38 U.S.C. 1925(a)’’.

§ 8.12 [Amended]

36. Newly redesignated § 8.12 is

amended by removing ‘‘§ 8.23’’ and

adding, in its place, ‘‘§ 8.11’’; and by

removing ‘‘§ 8.23(a)’’ and adding, in its

place, ‘‘§ 8.11(a)’’.

§ 8.13 [Amended]

37. In newly redesignated § 8.13,

paragraph (f) is amended by removing

‘‘in § 8.60’’ and adding, in its place,

‘‘§ 5301 of title 38 U.S.C.’’; and

paragraph (g) is amended by removing

‘‘§§ 8.29 and 8.30,’’ and adding, in its

place, ‘‘§§ 8.17 and 8.18’’.

38. The newly redesignated § 8.14 is

revised to read as follows:

§ 8.14 Cash value and policy loan.

(a) Provisions for cash value, paid-up

insurance, and extended term

insurance, except as provided in

§ 8.17(b), shall become effective at the

completion of the first policy year on

any plan of National Service Life

Insurance other than the 5-year level

premium term plan. The cash value at

the end of the first policy year and at the

end of any policy year thereafter, for

which premiums have been paid in full,

shall be the reserve with any dividend

accumulations, where applicable.

(b) Upon written request and upon

complete surrender of the insurance and

all claims thereunder, the United States

will pay to the insured the cash value

of the policy less any indebtedness,

provided the policy has been in force by

payment or waiver of the premiums for

at least 1 year. Paid-up additions do not

have to be in force for 1 year before they

have cash values. Unless otherwise

requested by the insured, a surrender

will be deemed completed 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 the check for

the cash value, whichever is later. If the

application is forwarded by mail,

properly addressed, the postmark date

will be taken as the date of delivery. If

it is forwarded through military

channels, the date the application is

placed in military channels will be

taken as the date of delivery.

(c) All values, reserves and net single

premiums on participating National

Service Life Insurance, other than as

provided in paragraph (e) of this

section, shall be based on the American

Experience Table of Mortality, with

interest at the rate of 3 percent per

annum. For each month after the first

policy year for which month a premium

has been paid or waived, the reserve at

the end of the preceding policy year

shall be increased by one-twelfth of the

increase in reserve for the current policy

year.

(Authority: 38 U.S.C. 1902, 1906)

(d) All values on insurance, reserves,

and net single premiums issued under

the provisions of section 1922(a) of title

38 U.S.C., and on modified life and

ordinary life plans of insurance issued

under section 1904(c), (d), and (e),

respectively, shall be based on the

Commissioners 1941 Standard Ordinary

Table of Mortality with interest at the

rate of 21⁄4 percent per annum. Values

between policy years shall be

proportionally adjusted.

(Authority: 38 U.S.C. 1904, 1906)

(e) All values on insurance, reserves,

and net single premiums issued under

the provisions of section 1923(b) of title

38 U.S.C., and on modified life and

ordinary life plans of such insurance

issued under section 1904 (c), (d), and

(e), respectively, shall be based on table

X–18 (1950–54 Intercompany Table of

Mortality) with interest at the rate of 21⁄2

percent per annum. Values between

policy years shall be proportionally

adjusted.

(Authority: 38 U.S.C. 1904, 1923)

(f) All values, reserves, and net single

premiums on nonparticipating

insurance on which the requirements of

good health were waived under the

provisions of section 602(c)(2) of the

National Service Life Insurance Act, as

amended (‘‘H’’ Insurance), and on the

modified life and ordinary life plans of

such ‘‘H’’ insurance issued under

section 1904 (c), (d), and (e),

respectively, of title 38 U.S.C. shall be

based on the American Experience

Table of Mortality, with interest at the

rate of 3 percent per annum. Values

between policy years shall be

proportionally adjusted. The provisions

of the ‘‘Net Cash Value’’ clause in

National Service Life Insurance policies

are hereby amended accordingly.

(g) All values, reserves, and net single

premiums on participating modified life

and ordinary life plan insurance issued

under section 1904 (b), (d), and (e),

respectively, of title 38 U.S.C. shall be

based on the 1958 Commissioners

Standard Ordinary Basic Table of

Mortality and interest at the rate of 3

percent per annum. Values between

policy years shall be proportionally

adjusted.

(h) All values, reserves, and net single

premiums on insurance issued under

the provisions of section 1925(b) of title

38 U.S.C, and on modified life and

ordinary life plans of such insurance

issued under section 1904 (c), (d), and

(e), respectively, shall be based on the

1958 Commissioners Standard Ordinary

Basic Mortality Table and interest at the

rate of 31⁄2 percent per annum. Values

between policy years shall be

proportionally adjusted.

(i) All values, reserves, and net single

premiums on insurance issued under

the provisions of section 1925(c) of title

38 U.S.C., and on modified life,

ordinary life, 20-payment life and 30-

payment life plans, where appropriate,

of such insurance issued under section

1904 (c), (d), and (e), respectively, shall

be based on the American Experience

Table of Mortality and interest at the

rate of 31⁄2 percent per annum. Values

between policy years shall be

proportionally adjusted.

(Authority: 38 U.S.C. 1906)

(ii) [Reserved]

§ 8.15 [Amended]

39. In newly redesignated § 8.15,

paragraph (a) is amended by removing

‘‘under the provisions of § 8.27 (a)

through (g) the insured may elect to

receive payment in monthly

installments under option 2 (§§ 8.79,

8.80, 8.80c, and 8.81, as applicable) or

as a refund life income option in

accordance with the applicable

provisions of §§ 8.80, 8.80c, 8.81, and

8.92a.’’ and adding, in its place, ‘‘the

insured may elect to receive payment in

monthly installments under option 2 or

as a refund life income.’’; by removing

‘‘§ 8.89’’ and adding, in its place, ‘‘title
Federal Register / Vol. 61, No. 112 / Monday, June 10, 1996 / Rules and Regulations 29293

38 U.S.C. 1917’’; by removing

paragraphs (b) and (c).

§ 8.18 [Amended]

40. Newly redesignated § 8.18 is

amended by removing ‘‘as set forth in

§ 8.26(a)’’.

41. The newly redesignated § 8.19 is

revised to read as follows:

§ 8.19 Conversion of a 5-year level

premium term policy as provided for under

§ 1904 of title 38 U.S.C.

National Service Life Insurance on the

level premium term plan which is in

force may be exchanged for a permanent

plan policy upon written application by

the insured and the payment of the

current monthly premium at the

attained age for the plan of insurance

selected (except where premium waiver

under 38 U.S.C. 1912 is effective). The

reserve (if any) on the policy will be

allowed as a credit on the current

monthly premium except where

premium waiver is effective. Conversion

to an endowment plan may not be made

while the insured is totally disabled.

The conversion will be made without

medical examination, except when

deemed necessary to determine whether

an applicant for conversion to an

endowment plan is totally disabled, and

upon complete surrender of the term

insurance while in force by payment or

waiver of premium.

(Authority: 38 U.S.C. 1904)

42. The newly redesignated § 8.21 is

revised to read as follows:

§ 8.21 Total disability-speech.

The organic loss of speech shall be

deemed to be total disability under

National Service Life Insurance. Organic

loss of speech will mean the loss of the

ability to express oneself, both by voice

and whisper, through the normal organs

of speech if such loss is caused by

organic changes in such organs. Where

such loss exists, the fact that some

speech can be produced through the use

of an artificial appliance or other organs

of the body will be disregarded.

43. The newly redesignated § 8.22 is

revised to read as follows:

§ 8.22 Beneficiary and optional settlement

changes.

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.

§ 8.23 [Amended]

44. Newly redesignated § 8.23 is

amended by removing ‘‘of §§ 3.1(j),

3.204, 3.205 (a) and (b), 3.209, 3.211,

and 3.212’’ and adding, in its place,

‘‘found in Part 3’’.

§ 8.25 [Amended]

45. In newly redesignated § 8.25,

paragraph (b) is removed; and paragraph

(a) is amended by removing ‘‘(a) Except

as provided in paragraph (b) of this

section where’’ and adding, in its place,

‘‘Where’’.

§ 8.27 [Amended]

46. Newly redesignated § 8.27 is

amended by removing ‘‘§ 8.64(b)’’ and

adding, in its place, ‘‘§ 8.25’’.

47. The newly redesignated § 8.29 is

revised to read as follows:

§ 8.29 Options.

Insurance will be paid in a lump sum

only when selected by the insured

during his or her lifetime or by his or

her last will and testament.

§ 8.30 [Amended]

48. In newly redesignated § 8.30, in

the heading, ‘‘and limited convertible 5-

year level premium plan’’ is removed; in

paragraph (a), in the first sentence,

‘‘except as provided in paragraph (c) of

this section,’’ is removed; and ‘‘or

limited convertible 5-year level

premium term plan’’ is removed; in

paragraph (b)(3)(ii), ‘‘(§ 8.1)’’ is removed

and ‘‘(8.0)’’ is added in its place;

paragraph (c) is removed

49. Newly redesignated § 8.32 is

revised to read as follows:

§ 8.32 Application for reinstatement of

total disability income provision.

A total disability income provision

which is lapsed may be reinstated if the

insured meets the same requirements as

those for reinstatement of the policy to

which the total disability income

provision is attached; except that in no

event shall the requirement of a health

statement or other medical evidence be

waived in connection with the

reinstatement of the total disability

income provision.

50. Newly redesignated § 8.33 is

revised to read as follows:

§ 8.33 Policy provisions.

Contracts of insurance authorized to

be made in accordance with the terms

and conditions set forth in the forms

and policy plans are subject in all

respects to the applicable provisions of

title 38 U.S.C., amendments and

supplements thereto, and applicable

Department of Veterans Affairs

regulations promulgated pursuant

thereto, all of which together with the

insured’s application, required evidence

of health, including physical

examination, if required, and tender of

premium shall constitute the contract.

[FR Doc. 96–14365 Filed 6–7–96; 8:45 am]

BILLING CODE 8320–01–P

38 CFR Part 17

RIN 2900–AI07

Autopsies

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

SUMMARY: This document amends the

autopsies regulations. The regulations in

effect prior to the effective date of this

document set forth a mechanism for

informing the appropriate United States

Attorney through a VA Regional

Counsel’s Office of a death at a VA

facility when it is ‘‘suspected that the

death resulted from crime or the cause

of death is unknown.’’ This merely was

intended to apply when there was a

suspicion that a death resulted from a

crime. The words ‘‘or the cause of death

is unknown’’ are removed based on the

determination that they are not

necessary to accomplish the intended

purpose and could be misunderstood to

mean that the autopsy procedures were

intended to apply when there is no

suspicion of a crime. This document

also changes the term ‘‘coroner’’ to

‘‘medical examiner/coroner’’ to reflect

that in the context of the regulations it

is appropriate for both names to be used

interchangeably.

EFFECTIVE DATE: June 10, 1996.

FOR FURTHER INFORMATION CONTACT:

Mary M. Stitak, Staff Assistant to

Director, Pathology and Laboratory

Medicine Service (111F), Patient Care

Services, Veterans Health

Administration, Department of Veterans

Affairs, 810 Vermont Avenue, NW,

Washington, DC 20420, (202) 565–7075.