38 CFR 8.2 - Payment of premiums.

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§ 8.2 Payment of premiums.

(a)What is a premium? A premium is a payment that a policyholder is required to make for an insurance policy.

(b)How can policyholders pay premiums? Premiums can be paid by:

(1) Cash, check, or money order directly to VA.

(2) Allotment from service or retirement pay.

(3) Automatic deduction from VA benefits (pension, compensation or insurance dividends (see § 8.4)).

(4) Pre-authorized debit from a checking account.

(c)When should policyholders pay premiums? (1) Unless premiums are paid in advance, policyholders must pay premiums on the effective date shown on the policy and on the same date of each following month. This is called the “due date.”

(2) Policyholders may pay premiums quarterly, semi-annually, or annually in advance.

(d)What happens if a policyholder does not pay a premium on time? (1) When a policyholder pays a premium within 31 days from the “due date,” the policy remains in force. This 31-day period is called a “grace period.” If the insured dies within the 31-day grace period, VA deducts the unpaid premium from the amount of insurance payable.

(2) If a policyholder pays a premium after the 31-day grace period, VA will not accept the payment and the policy lapses effective the date the premium was due; Except that VA will accept a premium paid after the 31-day grace period as a timely payment if:

(i) The policyholder pays the premium within 61 days of the due date; and

(ii) The policyholder is alive at the time the payment is mailed.

(3) When a policyholder pays the premium by mail, the postmark date is the date of payment.

(4) When a policyholder pays a premium by check or money order which is not honored and it is shown by satisfactory evidence that:

The bank did not pay the check or money order because of: Then:
An error by the bank The policyholder has an additional 31 days (from the date stamped on VA's notification letter) to pay the premium and any other premiums due through the current month.
An error in the check or money order The policyholder has an additional 31 days (same as above).
Lack of funds The premium is considered not paid.
[ 65 FR 7437, Feb. 15, 2000]

This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.

This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].

It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.

United States Code
U.S. Code: Title 38 - VETERANS’ BENEFITS

§ 107 note - Certain service deemed not to be active service

§ 210

§ 701 - Placement of employees in military installations

§ 724

§ 725 - Annual performance plan for political appointees

§ 781

§ 788

§ 797

§ 808

§ 1901 - Definitions

§ 1902 - Premium rates and policy values

§ 1903 - Amount of insurance

§ 1904 - Plans of insurance

§ 1905 - Renewal

§ 1906 - Policy provisions

§ 1907 - Payment or use of dividends

§ 1908 - Premium payments

§ 1909 - Effective date of insurance

§ 1910 - Incontestability

§ 1911 - Forfeiture

§ 1912 - Total disability waiver

§ 1913 - Death before six months’ total disability

§ 1914 - Statutory total disabilities

§ 1915 - Total disability income provision

§ 1916 - Insurance which matured before August 1, 1946

§ 1917 - Insurance maturing on or after August 1, 1946

§ 1918 - Assignments

§ 1919 - National Service Life Insurance appropriation

§ 1920 - National Service Life Insurance Fund

§ 1921 - Extra hazard costs

§ 1922 - Service disabled veterans’ insurance

§ 1922A - Supplemental service disabled veterans’ insurance for totally disabled veterans

§ 1923 - Veterans’ Special Life Insurance

§ 1924 - In-service waiver of premiums

§ 1925 - Limited period for acquiring insurance

§ 1926 - Authority for higher interest rates for amounts payable to beneficiaries

§ 1927 - Authority for higher monthly installments payable to certain annuitants

§ 1928 - Authority for payment of interest on settlements

§ 1929 - Authority to adjust premium discount rates

§ 3101 - Definitions

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