[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: 38CFR9.9]

[Page 524-525]
 
            TITLE 38--PENSIONS, BONUSES, AND VETERANS' RELIEF
 
                CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS
 
PART 9_SERVICEMEMBERS' GROUP LIFE INSURANCE AND VETERANS' GROUP
 
Sec.  9.9  Conversion privilege.

    (a) With respect to a member on active duty or active duty for 
training under a call or order to duty that specifies a period of less 
than 31 days, and a member insured during inactive duty training 
scheduled in advance by competent authority there shall be no right of 
conversion unless the insurance is continued in force under 38

[[Page 525]]

U.S.C. 1967(b) or 1968(a) for 120 days following a period of such duty, 
as the result of a disability incurred or aggravated during such a 
period of duty.
    (b) The individual policy of life insurance to which an insured may 
convert under 38 U.S.C. 1968(b) or 1977(e) shall not have disability or 
other supplementary benefits and shall not be term insurance or any 
policy which does not provide for cash values. Term riders providing 
level or decreasing insurance for which an additional premium is charged 
may be attached to an eligible basic conversion policy, but the rider 
will be excluded from the conversion pool agreement under the policy.
    (c) The insurer will establish a conversion pool in cooperation with 
the reinsurers and converters in accordance with the terms of the 
policy. Its purpose will be to provide for the determination and 
maintenance of appropriate charges arising from excess mortality under 
individual conversion policies issued in accordance with this section 
and provide for the appropriate distribution of the risk of loss due to 
such excess mortality among the reinsurers and converters.

[40 FR 4135, Jan. 28, 1975, as amended at 53 FR 17699, May 18, 1988. 
Redesignated and amended at 61 FR 20135, 20136, May 6, 1996]