[Code of Federal Regulations]
[Title 38, Volume 1]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 38CFR7.3]

[Page 496]
 
            TITLE 38--PENSIONS, BONUSES, AND VETERANS' RELIEF
 
                CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS
 
PART 7_SOLDIERS' AND SAILORS' CIVIL RELIEF--Table of Contents
 
Sec. 7.3  The policy.

    (a) Any provision in a policy that may limit or eliminate a benefit 
other than the primary death benefit will not, because of such 
provision, place the policy outside the protection of the Act if it is 
otherwise eligible for protection.
    (b) An annuity contract, if it provides payment of a substantial 
death benefit in the nature of life insurance, may be included within 
the provisions of the Act if otherwise eligible. Group insurance will 
not be included unless an individual and separate contract of insurance 
is completely released to the insured and thereafter comes within the 
provisions of the Act as a policy.
    (c) The phrase Face amount of insurance as used in the regulations 
in this part will mean the amount of insurance payable as a death 
benefit; Provided, That any indebtedness, or any accruals (such as paid-
up additions, dividend accumulations, etc.) that may be added to or 
taken from the amount payable as the death benefits will not be used in 
calculating the face amount of a policy.

[13 FR 7103, Nov. 27, 1948, as amended at 21 FR 7297, Sept. 25, 1956. 
Redesignated and amended at 61 FR 29026, June 7, 1996]

[[Page 497]]