[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: 38CFR7.6]

[Page 497-498]
 
            TITLE 38--PENSIONS, BONUSES, AND VETERANS' RELIEF
 
                CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS
 
PART 7_SOLDIERS' AND SAILORS' CIVIL RELIEF--Table of Contents
 
Sec.  7.6  Benefits.

    Any policy found to be entitled to protection under the provisions 
of the Act will not lapse or otherwise terminate or be forfeited for the 
nonpayment of a premium or the nonpayment of any indebtedness or 
interest during the period of military service of the insured and two 
years after the expiration of such service. If the insured reenters 
military service during the two-year period following separation from 
such service and the policy is under the protection of the Act on the 
date of reentry, such reentrance shall be deemed to be a continuation of 
the previous military service. In such case, in the absence of written 
instruction from the insured to the contrary, the protection under the 
Act will continue during the period of military service of the insured 
and two years after the expiration of such service, but the guarantee 
will not extend for more than two years after the date when the Act 
ceases to be in force.
    (a) For the period during which a policy is protected by the 
provisions of the Act, any dividends, return of premiums, or other such 
monetary benefits arising out of the contract or by reason thereof, will 
be held subject to disposal or to be applied as may be approved by the 
Department of Veterans Affairs.
    (b) A policy will not be removed from the protection of the Act by 
reason of a payment made to the insurer by or on behalf of the insured, 
but any tender of a premium (in whole or in part) shall be applied on 
the indebtedness established under authority of the Act against the 
policy: Provided, That nothing herein shall prevent an insured from 
continuing payment to the insurer of premiums to cover any additional 
benefits (such as double indemnity, waiver of premium, etc.) where such 
premiums may not be included in

[[Page 498]]

the amount guaranteed by the Government.

[13 FR 7103, Nov. 27, 1948, as amended at 27 FR 2287, Mar. 9, 1962. 
Redesignated and amended at 61 FR 29026, June 7, 1996]