[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: 38CFR8.7]

[Page 504]
 
            TITLE 38--PENSIONS, BONUSES, AND VETERANS' RELIEF
 
                CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS
 
PART 8_NATIONAL SERVICE LIFE INSURANCE--Table of Contents
 
Sec. 8.7  Reinstatement of National Service Life Insurance except 

insurance issued pursuant to section 1925 of title 38 U.S.C.

    (a) Any policy which lapses and which is not surrendered for a cash 
value or for paid-up insurance, may be reinstated upon written 
application signed by the applicant, payment of all premiums in arrears, 
and evidence of good health as required under Sec. 8.8 (a) or (b), 
whichever is applicable. If a policy is not reinstated within 6 months 
from the due date of the premium in default, interest must be paid in 
addition to premiums for all months in arrears from their respective due 
dates at the rate of 5 percent per annum, compounded annually. The 
payment or reinstatement of any indebtedness against a policy must be 
made upon application for reinstatement, and any excess of indebtedness 
and interest over the reserve of the policy must be paid at that time. A 
lapsed National Service Life Insurance policy which is in force under 
extended term insurance may be reinstated within 5 years from the date 
extended insurance would expire upon application and payment of all 
premiums in arrears with the required interest. In any case in which the 
extended insurance under an endowment policy provides protection to the 
end of the endowment period, the policy may be reinstated at any time 
before maturity upon application and payment of the premiums with the 
required interest. A policy on the level term premium plan may be 
reinstated within 5 years of the date of lapse upon written application 
signed by the insured, evidence of insurability and payment of two 
monthly premiums, one for the month of the lapse, the other for the 
month of reinstatement.
    (b) Reinstatement of insurance issued under section 1925, title 38 
U.S.C. Any policy of insurance issued under 38 U.S.C. 1925 which has 
been lapsed for not more than 5 years shall be reinstated under the same 
provisions of paragraph (a) of this section.
    (c) Effective date of reinstatements. Reinstatement is effected on 
the date an acceptable application and the required monetary payments 
are delivered to the Department of Veterans Affairs. If application for 
reinstatement is submitted by mail, properly addressed to the Department 
of Veterans Affairs, the postmark date shall be the date of delivery. 
The effective date of reinstatement of the insurance shall be the last 
monthly premium due date prior to the delivery or postmark date of the 
application for reinstatement, except where reinstatement is effected on 
the due date of a premium, then in such case that date shall be the 
reinstatement date.
    (d) Inquiry during the grace period. When the insured makes inquiry 
prior to the expiration of the grace period disclosing a clear intent to 
continue insurance protection, such as a request for information 
concerning premium rates or conversion privileges, etc., an additional 
reasonable period not exceeding 60 days may be granted for payment of 
premiums due; but the premiums in any such case must be paid during the 
lifetime of the insured.

[61 FR 29291, June 10, 1996. Redesignated at 65 FR 7437, Feb. 15, 2000; 
65 FR 19659, Apr. 12, 2000]