Under the current legislation, as long as an individualremains in the Ready Reserve, that member will be given only one opportunity toenroll and to select the level of coverage required to replace lost income. Ready Reserve members who do not receive pay will directly paytheir respective Service the premium amount applicable. The procedures forthis will be covered in the enrollment instructions. There is a provision tocancel a member's coverage for non-payment of premiums. It is just like any other insurance program.
Premiums are continuouslycollected to build the fund from which benefits are paid.
The Department of Defense Board of Actuaries will recommend premium rates tothe Secretary. Utilizing standard accounting practices, the Board will reviewthe Fund on a periodic basis. It is possible that premium rates could increaseor be reduced dependent upon the financial soundness of the program. The law does not provide for an increase in the schedule of benefits. The Department of Defense Board of Actuaries has been directed underthe law to carry out periodic actuarial valuations of benefits offered by theinsurance program and recommend appropriate changes to the Secretary to reflectchanges in the value of benefits paid under the program.