Veterans' Group Life Insurance Increased Coverage
| Published date | 21 December 2018 |
| Record Number | 2018-27749 |
| Court | Veterans Affairs Department |
Federal Register, Volume 83 Issue 245 (Friday, December 21, 2018)
[Federal Register Volume 83, Number 245 (Friday, December 21, 2018)]
[Rules and Regulations]
[Pages 65527-65529]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-27749]
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DEPARTMENT OF VETERANS AFFAIRS
38 CFR Part 9
RIN 2900-AQ12
Veterans' Group Life Insurance Increased Coverage
AGENCY: Department of Veterans Affairs.
ACTION: Final rule.
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SUMMARY: Current statutory provisions provide Veterans' Group Life
Insurance (VGLI) insureds under the age of 60 with the opportunity to
increase their VGLI coverage by $25,000 not more than once in each
five-year period beginning on the one-year anniversary of the date a
person becomes insured under VGLI. The Department of Veterans Affairs
(VA) is finalizing the amendment of its VGLI regulations to establish a
permanent regulatory framework for such elections of increased
coverage. The final rule clarifies that coverage increases in an amount
less than $25,000 are available only when existing VGLI coverage is
within $25,000 of the Servicemembers' Group Life Insurance maximum of
$400,000, and any increases of less than $25,000 must be only in an
amount that would bring the insurance coverage up to the statutory
maximum.
DATES: Effective date: This rule is effective on January 22, 2019.
FOR FURTHER INFORMATION CONTACT: Karen Naccarelli, Department of
Veterans Affairs Insurance Center (310/290B), P.O. Box 13399,
Philadelphia, Pennsylvania 19101, (215) 381-3029. (This is not a toll-
free number.)
SUPPLEMENTARY INFORMATION: On April 27, 2018, VA published in the
Federal Register (83 FR 18491) a proposed rule seeking comments
regarding amendment of 38 CFR 9.2 to reflect Section 404 of the
Veterans' Benefits Act of 2010, Public Law 111-275, 124 Stat. 2879-2880
(2010). The amendment
[[Page 65528]]
provides that insureds who are under 60 years of age and who have less
than the statutory maximum of SGLI coverage can elect in writing to
increase coverage by $25,000 not more than once in each five-year
period beginning on their one-year VGLI coverage anniversary date.
Section 404 added to 38 U.S.C. 1977(a) a new paragraph (3), which took
effect April 11, 2011. To promptly implement this statutory change, VA
adopted interim procedures for increasing VGLI coverage. See the
``Servicemembers' and Veterans' Group Life Insurance Handbook, Chapter
12.01, on the VA Insurance website at http://www.benefits.va.gov/INSURANCE/resources_handbook_ins_chapter12.asp which outlines the
interim process. This final regulation is intended to establish a
permanent regulatory framework for affording additional VGLI coverage
under section 404.
The proposed regulation was published in the Federal Register for
public comments on April 27, 2018. Two public comments were received
that support the proposed amendment. The comments stated that the rule
provides the insured with the right to the earliest opportunity to
increase coverage under the law. The comments also noted that the
opportunity to increase coverage is provided at predictable times,
which benefits both the insured and the insurer as it relates to
planning potential changes in coverage and premiums.
Based on the rationale set forth in the preamble of the proposed
rule and the two public comments received, VA adopts, without change,
the proposed rule published on April 27, 2018, at 83 FR 18491.
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 final rule would have no such effect
on State, local, and tribal governments or the private sector.
Paperwork Reduction Act
This final rule contains no provisions constituting a collection of
information under the Paperwork Reduction Act (44 U.S.C 3501-3521).
Executive Orders 12866, 13563, and 13771
Executive Orders 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). Executive Order 13563 (Improving Regulation and Regulatory
Review) emphasizes the importance of quantifying both costs and
benefits, reducing costs, harmonizing rules, and promoting flexibility.
Executive Order 12866 (Regulatory Planning and Review) defines a
``significant regulatory action'' requiring review by the Office of
Management and Budget (OMB), unless OMB waives such review, as ``any
regulatory action that is likely to result in a rule that may: (1) Have
an annual effect on the economy of $100 million or more or adversely
affect in a material way the economy, a sector of the economy,
productivity, competition, jobs, the environment, public health or
safety, or State, local, or tribal governments or communities; (2)
Create a serious inconsistency or otherwise interfere with an action
taken or planned by another agency; (3) Materially alter the budgetary
impact of entitlements, grants, user fees, or loan programs or the
rights and obligations of recipients thereof; or (4) Raise novel legal
or policy issues arising out of legal mandates, the President's
priorities, or the principles set forth in this Executive Order.''
The economic, interagency, budgetary, legal, and policy
implications of this regulatory action have been examined, and it has
been determined not to be a significant regulatory action under
Executive Order 12866. VA's impact analysis can be found as a
supporting document at http://www.regulations.gov, usually within 48
hours after the rulemaking document is published. Additionally, a copy
of the rulemaking and its impact analysis are available on VA's website
at http://www.va.gov/orpm by following the link for ``VA Regulations
Published from FY 2004 through FYTD.'' This rule is not an E.O. 13771
regulatory action because this rule is not significant under E.O.
12866.
Regulatory Flexibility Act
The Secretary hereby certifies that this final 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 final rule would directly affect only individuals and would
not directly affect small entities. Therefore, pursuant to 5 U.S.C.
605(b), this rulemaking is exempt from the initial and final regulatory
flexibility analysis requirements of sections 603 and 604.
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance number and title for the
programs affected by this document is 64.103, Life Insurance for
Veterans.
List of Subjects in 38 CFR Part 9
Life insurance, Military personnel, Veterans.
Signing Authority
The Secretary of Veterans Affairs approved this document 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. Robert L.
Wilkie, Secretary, Department of Veterans Affairs, approved this
document on December 17, 2018, for publication.
Dated: December 17, 2018.
Jeffrey M. Martin,
Assistant Director, Office of Regulation Policy & Management, Office of
the Secretary, Department of Veterans Affairs.
For the reasons stated in the preamble, the Department of Veterans
Affairs amends 38 CFR part 9 as follows:
PART 9--SERVICEMEMBERS' GROUP LIFE INSURANCE AND VETERANS' GROUP
LIFE INSURANCE
0
1. The authority citation for part 9 continues to read as follows:
Authority: 38 U.S.C. 501, 1965-1980A, unless otherwise noted.
0
2. In Sec. 9.2, add new paragraph (b)(5) to read as follows:
Sec. 9.2 Effective date; applications.
* * * * *
(b) * * *
(5) Pursuant to 38 U.S.C. 1977(a)(3), former members under the age
of 60 can elect to increase their Veterans' Group Life Insurance
coverage by $25,000, up to the existing Servicemembers' Group Life
Insurance maximum. The insured's first opportunity to elect to increase
coverage is on the one-year Veterans' Group Life Insurance coverage
anniversary date. Thereafter, the insured could elect to increase
coverage on the five-year anniversary date of the first VGLI coverage
increase election opportunity and subsequently every five years from
the anniversary date of the insured's last VGLI coverage increase
election opportunity. Increases of less than $25,000 are only available
when existing Veterans' Group Life Insurance
[[Page 65529]]
coverage is within less than $25,000 of the Servicemembers' Group Life
Insurance maximum and any increases of less than $25,000 must be only
in the amount needed to bring the insurance coverage up to the
statutory maximum allowable amount of Servicemembers' Group Life
Insurance. The eligible former members must apply for the increased
coverage through the administrative office, within 120 days of
invitation prior to the initial one-year anniversary date or within 120
days prior to each subsequent five-year coverage anniversary date from
the first VGLI coverage increase election opportunity. The increased
coverage will be effective from the anniversary date immediately
following the election.
* * * * *
[FR Doc. 2018-27749 Filed 12-20-18; 8:45 am]
BILLING CODE 8320-01-P
