[Federal Register Volume 85, Number 113 (Thursday, June 11, 2020)]
[Rules and Regulations]
[Pages 35562-35564]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-12559]
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DEPARTMENT OF VETERANS AFFAIRS
38 CFR Part 9
RIN 2900-AQ98
Extension of Veterans' Group Life Insurance (VGLI) Application
Period in Response to the COVID-19 Public Health Emergency
AGENCY: Department of Veterans Affairs.
ACTION: Interim final rule.
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SUMMARY: The Department of Veterans Affairs (VA) is issuing this
interim final rule to extend the deadline for former members insured
under Servicemembers' Group Life Insurance (SGLI) to apply for
Veterans' Group Life Insurance (VGLI) coverage following separation
from service in order to address the inability of members directly or
indirectly affected by the 2019 Novel Coronavirus (COVID-19) public
health emergency to purchase VGLI. This rule will be in effect for one
year.
DATES:
Effective Date: This interim final rule is effective June 11, 2020.
Comment Date: Comments must be received on or before July 13, 2020.
ADDRESSES: Written comments may be submitted through http://www.Regulations.gov; by mail or hand-delivery to: Director, Office of
Regulation Policy and Management (00REG), Department of Veterans
Affairs, 810 Vermont Ave. NW, Room 1064, Washington, DC 20420; or by
fax to (202) 273-9026. (This is not a toll-free telephone number.)
Comments should indicate that they are submitted in response to
``AQ98(IF)--Extension of Veterans' Group Life Insurance (VGLI)
Application Period In Response To The COVID-19 Public Health
Emergency.'' Copies of comments received will be available for public
inspection in the Office of Regulation Policy and Management, Room
1064, between the hours of 8:00 a.m. and 4:30 p.m., Monday through
Friday (except holidays). Please call (202) 461-4902 for an
appointment. (This is not a toll-free telephone number.) In addition,
during the comment period, comments may be viewed online through the
Federal Docket Management System (FDMS) at http://www.Regulations.gov.
FOR FURTHER INFORMATION CONTACT: Paul Weaver, Department of Veterans
Affairs Insurance Service (310/290B), 5000 Wissahickon Avenue,
Philadelphia, PA 19144, (215) 842-2000, ext. 4263. (This is not a toll-
free number.)
SUPPLEMENTARY INFORMATION: The Secretary of Veterans Affairs has
authority to prescribe regulations that are necessary or appropriate to
carry out the laws administered by VA and that are consistent with
those laws. 38 U.S.C. 501(a). Section 1977 of title 38, United States
Code, authorizes the VGLI program, which provides former members
separating from service with the option of converting existing SGLI
coverage into renewable, 5-year term group life insurance coverage in
amounts ranging from $10,000 to $400,000 based upon the amount of SGLI
coverage. See 38 U.S.C. 1967(a), 1968(b)(1)(A), 1977(a), (b).
Furthermore, section 1977(b)(5) states that VGLI shall ``contain such
other terms and conditions as the Secretary determines to be reasonable
and practicable which are not specifically provided for in'' section
1977.
Pursuant to these statutes, VA promulgated 38 CFR 9.2, which
provides the effective dates of VGLI coverage and application
requirements. VGLI coverage may be granted if an application, the
initial premium, and evidence of insurability are received within 1
year and 120 days following termination of duty. 38 CFR 9.2(c).
Evidence of insurability is not required during the initial 240 days
following termination of duty. Id.
On March 13, 2020, President Donald J. Trump issued Proclamation
9994 proclaiming that the 2019 novel Coronavirus (COVID-19) outbreak in
the United States constitutes a national emergency beginning March 1,
2020. 85 FR 15337 (Mar. 18, 2020). Because of mitigation strategies to
flatten the curve of infections and reduce the spread of COVID-19, the
United States economy has been severely impacted, with national
unemployment claims reaching historic levels. Proclamation 10014 of
April 22, 2020, 85 FR 23441 (Apr. 27, 2020); see also Executive Order
on Regulatory Relief to Support Economic Recovery (May 19, 2020)
(directing agencies to address this economic emergency by rescinding,
modifying, waiving, or providing exemptions from regulations and other
requirements that may inhibit economic recovery). We believe that, as a
result of the economic situation, former members, who otherwise may be
eligible for VGLI coverage, currently may not be able to afford VGLI
coverage or to provide evidence of insurability.
VA is therefore amending 38 CFR 9.2 by adding new subsection (f)(1)
to extend by 90 days the time periods under 38 CFR 9.2(c) during which
former members may apply for VGLI . Former members who submit a VGLI
application and the initial premium within 330 days following
separation from service will not be required to submit evidence of
insurability. Former members who do not apply for VGLI within 330 days
following separation from service may still receive VGLI coverage if
they apply for the coverage within 1 year and 210 days following
separation from service and submit the initial premium and evidence of
insurability. These amendments will ease the financial consequences of
the COVID-19 pandemic by extending the time limits for former members
to enroll in VGLI, some of whom do not qualify for a private commercial
plan of insurance due to their disabilities.
[[Page 35563]]
New paragraph (f)(2) establishes a sunset provision for this
regulation. Paragraph (f)(1) will not apply one year after the
effective date of this rule.
Administrative Procedure Act
The Secretary of Veterans Affairs finds that there is good cause to
dispense with the opportunity for prior comment with respect to this
rule and to make the rule effective upon publication. Pursuant to 5
U.S.C. 553(b)(B), the opportunity for advance public comment is not
required with respect to a rulemaking when an ``agency for good cause
finds (and incorporates the finding and a brief statement of reasons
therefor in the rules issued) that notice and public procedure thereon
are impracticable, unnecessary, or contrary to the public interest.''
The Secretary finds that it is impracticable to delay this regulation
for the purpose of soliciting public comment because former members
cannot receive VGLI coverage if they do not satisfy the application
requirements within the deadlines established by 38 CFR 9.2(c). This
90-day extension is also consistent with extensions private insurers
are currently providing for applicants who are currently unable to
afford insurance or to submit documents evidencing proof of
insurability as a result of the COVID-19 pandemic.
Section 553(d) also requires a 30-day delayed effective date
following publication of a rule, except for ``(1) a substantive rule
which grants or recognizes an exemption or relieves a restriction; (2)
interpretative rules and statements of policy; or (3) as otherwise
provided by the agency for good cause found and published with the
rule.'' Pursuant to section 553(d)(1), the Secretary finds that this
interim final rule should be effective immediately upon publication
because this is a substantive rule which relieves restrictions, i.e.,
extends deadlines for VGLI applications. Also, pursuant to section
553(d)(3), the Secretary finds that there is good cause to make the
rule effective upon publication because of the impracticability of
delaying implementation the regulatory amendment, as discussed above.
For the foregoing reasons, the Secretary of Veterans Affairs is
issuing this rule as an interim final rule with an immediate effective
date. The Secretary of Veterans Affairs will consider and address
comments that are received within 30 days of the date this interim
final rule is published in the Federal Register.
Paperwork Reduction Act
This interim 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.
The Office of Information and Regulatory Affairs has determined that
this interim final rule is not 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 Fiscal Year to Date.'' This interim
final rule is not expected to be an E.O. 13771 regulatory action
because this interim final rule is not significant under E.O. 12866.
Regulatory Flexibility Act
The Secretary hereby certifies that this interim 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. The provisions contained in this interim final
rulemaking are applicable to individual Veterans, and applications for
VGLI, as submitted by such individuals, are specifically managed and
processed within VA and through Prudential Insurance Company of
America, which is not considered to be a small entity. Therefore,
pursuant to 5 U.S.C. 605(b), the initial and final regulatory
flexibility analysis requirements of 5 U.S.C. 603 and 604 do not apply.
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 interim final rule has no such effect
on State, local, and tribal governments, or on the private sector.
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance number and title for the
program affected by this document is 64.103, Life Insurance for
Veterans.
Congressional Review Act
Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
the Office of Information and Regulatory Affairs designated this rule
as not a major rule, as defined by 5 U.S.C. 804(2).
List of Subjects in Part 9
Life insurance, Military personnel, 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. Brooks D.
Tucker, Acting Chief of Staff, Department of Veterans Affairs, approved
this document on June 5, 2020, for publication.
Luvenia Potts,
Regulation Development Coordinator, 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. Section 9.2 is amended by adding a new paragraph (f) to read as
follows:
Sec. 9.2 Effective date; applications.
* * * * *
(f)(1) If an application, initial premium, or evidence of
insurability (as the case may be) has not been received by the
administrative office within the time limits set forth in paragraph (c)
of this section, Veterans' Group Life Insurance coverage may still be
granted if an application, the initial premium,
[[Page 35564]]
and evidence of insurability are received by the administrative office
within 1 year and 210 days following termination of duty, except that
evidence of insurability is not required during the initial 330 days
following termination of duty.
(2) Paragraph (f)(1) of this section shall not apply to an
application or initial premium received after June 11, 2021.
[FR Doc. 2020-12559 Filed 6-10-20; 8:45 am]
BILLING CODE 8320-01-P