[Federal Register Volume 61, Number 111 (Friday, June 7, 1996)]
[Rules and Regulations]
[Pages 29025-29027]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14367]



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DEPARTMENT OF VETERANS AFFAIRS
38 CFR Part 7

RIN 2900-AH53


Soldiers' and Sailors' Civil Relief

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: This document amends the Department of Veterans Affairs (VA) 
regulations captioned ``Soldiers' and Sailors' Civil Relief'' which 
were established under the Soldiers' and

[[Page 29026]]

Sailors' Civil Relief Act of 1940, as amended (50 U.S.C. app. 511 et 
seq.). It deletes provisions that became obsolete because they were 
superseded by subsequent amendments to that Act. It also eliminates 
regulations that merely restate provisions of the Act and amendments 
thereto. Other provisions are rewritten for purpose of clarification.

EFFECTIVE DATE: June 7, 1996.

FOR FURTHER INFORMATION CONTACT: George Poole, Chief, Insurance Program 
Administration, Department of Veterans Affairs Regional Office and 
Insurance Center, P.O. Box 8079, Philadelphia, Pennsylvania 19101, 
(215) 951-5718.

SUPPLEMENTARY INFORMATION: This final rule consists of nonsubstantive 
changes and, therefore, is not subject to the notice-and-comment and 
effective-date provisions of 5 U.S.C. 553.
    The Secretary of Veterans Affairs hereby 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 provisions. 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 7

    Life insurance, Military personnel.

    Approved: May 31, 1996.
Jesse Brown,
Secretary of Veterans Affairs.

    For the reasons set out in the preamble, 38 CFR part 7 is amended 
as set forth below:

PART 7--SOLDIERS' AND SAILORS' CIVIL RELIEF

    1. The authority citation for part 7 is revised to read as follows:

    Authority: 50 U.S.C. app. 511, 540-547, unless otherwise noted.


Secs. 7.2 through 7.16, 7.23 through 7.25, 7.28, 7.30 through 7.32 and 
7.34  [Removed]

    2. Sections 7.2 through 7.16, 7.23 through 7.25, 7.28, 7.30 through 
7.32, and 7.34 are removed.


Secs. 7.20 through 7.22, 7.26, 7.27, 7.29 and 7.33  [Redesignated as 
7.2--7.8]

    3. Sections 7.20 through 7.22, 7.26, 7.27, 7.29, and 7.33 are 
redesignated as Secs. 7.2 through 7.8, respectively.
    4. Newly redesignated Sec. 7.2 is revised to read as follows:


Sec. 7.2  Certification of military service.

    (a) A statement over the signature of the Commanding Officer or a 
commissioned officer of equal or higher rank than the insured, on the 
insured's application, may be accepted as a certification that the 
insured is a person in the military service.
    (b) If the insured is unavailable because of service, the 
application may be certified by the person who has custody of the 
insured's service record.
    (c) If an application is submitted by a person designated by the 
insured or by the insured's beneficiary, the Department of Veterans 
Affairs will obtain from the service department evidence that the 
insured is a person in the military service.

(Authority 50 U.S.C. app. 547)


Sec. 7.3  [Amended]

    5. In newly redesignated Sec. 7.3, the introductory text and 
paragraph (b) are removed; paragraphs (c) and (d) are redesignated as 
paragraphs (b) and (c), respectively; and newly redesignated paragraph 
(c) is amended by removing ``and if a policy provides for installment 
payments as a death benefit they will be calculated in accordance with 
the terms of the policy on the hypothesis of the death of the insured 
on the due date of the first premium to be guaranteed by the 
Government:'' and adding, in its place, ``;'' immediately after the 
word ``benefit.''
    6. In newly redesignated Sec. 7.4, paragraph (a) is amended by 
removing ``percentum'' and adding, in its place, ``percent''; paragraph 
(c) is removed; this section is further amended by revising the 
introductory text and paragraph (b) to read as follows:


Sec. 7.4  The premium.

    The term premium as defined under 50 U.S.C. app. 540(b) shall 
include membership dues and assessments in an association.
* * * * *
    (b) Premiums will not be guaranteed for benefits additional to the 
primary death benefit if, when combined with the amount of the primary 
death benefit, the total benefit would result in a payment in excess of 
$10,000 or if liability for such benefits is excluded or restricted by 
military service or any activity which the insured may be called upon 
to perform in connection with military service. In the event that 
premiums for the primary and additional benefits are not separable 
under the terms of the policy the entire policy will be guaranteed, if 
the policy is otherwise eligible for protection under the law.
    7. In newly redesigned Sec. 7.5 paragraphs (b) and (d) are removed; 
paragraph (c) is redesignated as paragraph (b); newly redesignated 
paragraph (b) is amended by removing ``at Washington DC, on the form 
prescribed for that purpose, VA-Form 9-381 (as revised)'' and adding, 
in its place, ``Regional Office and Insurance Center at Philadelphia, 
Pennsylvania''; and paragraph (a) is revised to read as follows:


Sec. 7.5  Application.

    (a) The benefits of the Act are not available except upon 
application. The insured may designate any person, firm, or corporation 
to submit an application on his or her behalf. The designation must be 
in writing, signed by the insured and attached to the application.
* * * * *


Sec. 7.6  [Amended]

    8. In newly redesignated Sec. 7.6, the first sentence of the 
introductory text is amended by removing ``, but this guarantee will 
not extend for more than two years after the date when the act ceases 
to be in force''.
    9. In newly redesignated Sec. 7.7, paragraphs (a), (c) and (e) are 
removed; paragraphs (b) and (d) are redesignated as paragraphs (a) and 
(b), respectively; newly redesignated paragraph (a) is amended by 
removing ``(section 405, Soldiers'' and Sailors' Civil Relief Act 
Amendments of 1942),'' and adding, in its place,'' (SSCRA, as 
amended)''; and newly redesignated paragraph (b) is revised to read as 
follows:


Sec. 7.7  Maturity.

* * * * *
    (b) Upon the expiration of the period of protection, the insurer 
will submit to the Department of Veterans Affairs a complete statement 
of the account on each policy, which will show the amount of 
indebtedness by reason of the premiums with interest and the credits, 
if any, then available and will be subject to audit and approval by the 
Department of Veterans Affairs. The statement of account will include 
the rate of interest charged on all indebtedness, the date of debit and 
credit entries, and such other information as may be deemed necessary 
in making an audit of the account.
    10. Newly redesignated Sec. 7.8 is revised to read as follows:


Sec. 7.8  Beneficiary or assignee.

    The consent of a beneficiary, assignee, or any other person who may 
have a right or interest in the proceeds of the

[[Page 29027]]

policy is not a prerequisite for placing a policy under the protection 
of the Act.

[FR Doc. 96-14367 Filed 6-6-96; 8:45 am]
BILLING CODE 8320-01-P