[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: 38CFR8a.3]

[Page 518-519]
 
            TITLE 38--PENSIONS, BONUSES, AND VETERANS' RELIEF
 
                CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS
 
PART 8a_VETERANS MORTGAGE LIFE INSURANCE--Table of Contents
 
Sec. 8a.3  Effective date.

    (a) Where the grant was approved prior to August 11, 1971, VMLI 
shall be effective August 11, 1971, if on that date, the eligible 
veteran was obligated under a mortgage loan, and any such eligible 
veteran is automatically insured, unless he or she elects in writing not 
to be insured, or fails to respond within 60 days after the date a final 
request is made or mailed to the eligible veteran for information on 
which his or her premium can be based.
    (b) Where the grant is approved on or after August 11, 1971, VMLI 
shall be effective on the date of approval of the grant, if on that date 
the eligible veteran is obligated under a mortgage loan, and any such 
eligible veteran is automatically insured, unless he or she elects in 
writing not to be insured, or fails to respond within 60 days after the 
date a final request is made or mailed to the eligible veteran for 
information on which his or her premium can be based.
    (c) In any case in which a veteran would have been eligible for VMLI 
on August 11, 1971, or on the date of approval of his or her grant, 
whichever date is the later date, but such insurance did not become 
effective because he or she was not obligated under a mortgage loan on 
that date, or because he or she elected in writing not to be insured, or 
failed to timely respond to a request for information on which his or 
her premium could be based, the insurance will be effective on a date 
agreed upon by the veteran and the Secretary, but only if the veteran 
files an application in writing with the Department of Veterans Affairs 
for such insurance, submits evidence that he or she meets the health 
requirements of the Secretary, together with information on which his or 
her premiums can be based, and is or becomes obligated under a mortgage 
loan upon the date agreed upon as the effective date of his or her 
insurance.
    (d) In any case in which an eligible veteran disposes of the housing 
unit purchased, constructed or remodeled in part with a grant, or a 
subsequently acquired housing unit, and becomes obligated under a 
mortgage loan on another housing unit occupied or to be occupied by the 
eligible veteran, the

[[Page 519]]

insurance will be effective upon a date requested by the veteran and 
agreed to by the Secretary, but only if the eligible veteran files an 
application for such insurance, submits evidence that he or she meets 
the health requirements of the Secretary, furnishes information on which 
his or her premium can be based, and is or becomes obligated under a 
mortgage loan on the date the insurance is to become effective.
    (e) In any case where an eligible veteran insured under VMLI, 
refinances the mortgage loan which is the basis for such insurance on 
his or her life, any increase in the amount of insurance or any delay in 
the rate of reduction of insurance will be effective only if the 
eligible veteran files an application for insurance, submits evidence 
that he or she meets the health requirements of the Secretary, and 
furnishes information on which his or her premium can be based.

[42 FR 43835, Aug. 31, 1977, as amended at 61 FR 29027, June 7, 1996]