[Federal Register Volume 77, Number 212 (Thursday, November 1, 2012)]
[Rules and Regulations]
[Pages 66069-66071]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-26580]
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DEPARTMENT OF VETERANS AFFAIRS
38 CFR Part 9
RIN 2900-AO24
Veterans' Group Life Insurance (VGLI) No-Health Period Extension
AGENCY: Department of Veterans Affairs.
ACTION: Final rule.
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SUMMARY: The Department of Veterans Affairs (VA) is issuing this final
rule that amends the regulations governing eligibility for Veterans'
Group Life Insurance (VGLI) to extend to 240 days the current 120-day
``no-health'' period during which veterans can apply for VGLI without
proving that they are in good health for insurance purposes. The
purpose of this rule is to increase the opportunities for disabled
veterans to enroll in VGLI, some of whom would
[[Page 66070]]
not qualify for VGLI coverage under existing provisions. This document
adopts as a final rule, without change, the proposed rule published in
the Federal Register on June 25, 2012.
DATES: Effective Date: This rule is effective November 1, 2012.
Applicability Date: VA will apply this rule to veterans released
from service on or after November 1, 2012.
FOR FURTHER INFORMATION CONTACT: Monica Keitt, Attorney/Advisor,
Department of Veterans Affairs Regional Office and Insurance Center
(310/290B), 5000 Wissahickon Avenue, P.O. Box 8079, Philadelphia, PA
19101, (215) 842-2000, ext. 2905. (This is not a toll-free number.)
SUPPLEMENTARY INFORMATION: On June 25, 2012, VA published in the
Federal Register (77 FR 37839) a proposed rule that would amend 38 CFR
9.2(c) to extend the period during which no evidence of insurability is
needed, known as the Veterans' Group Life Insurance (VGLI) ``no-
health'' period, from 120 days to 240 days. This amendment is designed
to increase the number of veterans who will qualify for VGLI,
particularly disabled veterans who may not qualify for private life
insurance due to their disabilities.
In addition, VA proposed to remove from Sec. 9.2(c) the words
``Servicemembers' Group Life Insurance (SGLI) or,'' which refer to
Retired Reservist SGLI, which was discontinued by Public Law 104-275 as
an independent program on October 9, 1996, when the program was merged
into the VGLI program. As a result, reference to SGLI in Sec. 9.2(c)
is no longer applicable. VA also proposed to amend Sec. 9.2 by
revising the authority citation following Sec. 9.2(b)(4) to read
``(Authority: 38 U.S.C. 1977)'' instead of ``(Authority: 38 U.S.C.
1977(e))'' to reflect the proper legal authority for Sec. 9.2.
VA provided a 30-day comment period for the proposed rule that
ended on July 25, 2012. We received two comments. One commenter stated
that he supports the proposed rule because it would ``greatly benefit''
veterans, especially those with service-connected disabilities. Another
commenter stated she agreed that the proposed VGLI ``no-health'' period
extension was a good idea, noting her own experience with the ``no-
health'' period. VA appreciates the fact that both commenters support
the proposed rule.
Based on the rationale set forth in the proposed rule, we adopt the
proposed rule without change as the final rule.
Administrative Procedure Act
The Secretary has determined that there is good cause to dispense
with the 30-day delayed effective date and publish this rule with an
effective date as the date of publication. This rule will increase the
opportunity for veterans to obtain valuable insurance coverage that is
needed to help ensure financial security for their families, while
placing no additional burdens on veterans or their families. VA
believes that implementation of this regulation is particularly urgent
because, by extending the VGLI no-health eligibility period, VA will
enable some of the most disabled veterans, who would not be eligible
for private insurance due to their disabilities, to obtain insurance
coverage. The immediate effective date will not result in any
additional cost or negative impacts on the program, but will make the
extended no-health period available to disabled veterans sooner.
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 an 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 year. This final rule will have no such effect on
State, local, and tribal governments or on 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 and 13563
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,'' which requires review by the Office
of Management and Budget (OMB), 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.
Regulatory Flexibility Act
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 et seq. This final rule will directly
affect only individuals and will not directly affect any small
entities. Therefore, pursuant to 5 U.S.C. 605(b), this final rule is
exempt from the initial and final regulatory flexibility analysis
requirements of sections 603 and 604.
Catalog of Federal Domestic Assistance Number and Title
The Catalog of Federal Domestic Assistance number and title for the
program affected by this document is 64.103, Life Insurance for
Veterans.
Signing Authority
The Secretary of Veterans Affairs, or designee, 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. John R.
Gingrich, Chief of Staff, Department of Veterans Affairs, approved this
document on September 28, 2012, for publication.
List of Subjects in 38 CFR Part 9
Life insurance, Military personnel, Veterans.
[[Page 66071]]
Dated: October 24, 2012.
William F. Russo,
Deputy Director, Office of Regulation Policy and Management, Office of
the General Counsel, 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. Amend Sec. 9.2 by:
0
a. Revising the authority citation at the end of paragraph (b).
0
b. Revising paragraph (c).
0
c. Adding an authority citation at the end of the section.
The revisions and addition read as follows:
Sec. 9.2 Effective date; applications.
* * * * *
(b) * * *
(Authority: 38 U.S.C. 1977)
(c) If either an application or the initial premium has not been
received by the administrative office within the time limits set forth
above, Veterans' Group Life Insurance coverage may still be granted if
an application, the initial premium, and evidence of insurability are
received by the administrative office within 1 year and 120 days
following termination of duty, except that evidence of insurability is
not required during the initial 240 days following termination of duty.
* * * * *
(Authority: 38 U.S.C. 501, 1967, 1968, 1977)
[FR Doc. 2012-26580 Filed 10-31-12; 8:45 am]
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