[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: 38CFR8.4]

[Page 502-503]
 
            TITLE 38--PENSIONS, BONUSES, AND VETERANS' RELIEF
 
                CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS
 
PART 8_NATIONAL SERVICE LIFE INSURANCE--Table of Contents
 
Sec. 8.4  Deduction of insurance premiums from compensation, 

retirement pay, or pension.

    The insured under a National Service life insurance policy which is 
not lapsed may authorize the monthly deduction of premiums from 
disability compensation, death compensation, dependency and indemnity 
compensation, retirement pay, disability pension, or death pension that 
may be due and payable to him under any laws administered by the 
Department of Veterans Affairs in accordance with the following 
provisions.
    (a) The authorization may be made by an insured or the insured's 
legal representative. If the authorization is made by the insured's 
legal representative, it must be in writing over the signature of the 
representative and forwarded to the Department of Veterans Affairs along 
with a copy of the document which evidences the individual's authority 
to act on behalf of the insured. If an insured is incompetent and

[[Page 503]]

has no legal representative and has a spouse to whom benefits are being 
paid pursuant to Part 13 of this chapter, the spouse may authorize 
payment of insurance premiums through the deduction system. If an 
insured is incompetent and has no legal representative and an 
institutional award has been made in his or her behalf, the 
authorization may be executed by the Director of the field facility in 
which the insured is hospitalized or receiving domiciliary care, and in 
appropriate cases by the chief officers of State hospitals or other 
institutions to whom similar awards may have been approved.
    (b) The monthly disability compensation, death compensation, 
dependency and indemnity compensation, retirement pay, disability 
pension, or death pension so due and payable must be equal to, or in 
excess of, the amount of the insurance premium figured on a monthly 
basis.
    (c) The authorization may be cancelled by the insured at any time. 
Such cancellation will be effective on the first day of the month 
following the month in which it is received by the Department of 
Veterans Affairs.
    (d) If the benefits payable to the insured are apportioned under the 
regulations of the Department of Veterans Affairs now in effect or 
hereafter issued, the deduction authorized by the insured shall be from 
that portion awarded to the insured under such regulations.
    (e) The deduction authorized by a policyholder issued insurance 
under 38 U.S.C. 1925 will be automatically adjusted by the Department of 
Veterans Affairs to take cognizance of any premium adjustment made by 
the Secretary on such insurance provided the benefit payments due and 
payable to the insured are of an amount sufficient to pay the monthly 
insurance premium.

(Authority: 38 U.S.C. 1908)

[13 FR 7110, Nov. 27, 1948, as amended at 14 FR 5241, Aug. 24, 1949; 24 
FR 7327, Sept. 9, 1959; 28 FR 1542, Feb. 19, 1963; 30 FR 3645, Mar. 19, 
1965; 54 FR 46231, Nov. 2, 1989. Redesignated and amended at 61 FR 
29290, 29291, June 10, 1996. Redesignated at 65 FR 7437, Feb. 15, 2000]