P otooc. isolated, and for six months thereafter: Provided, That such protec- tion. tion shall cease and terminate at the end of such period of six months unless within such period such person shall make application in writ- ing for the continuance of all or any part of such insurance and shall submit evidence satisfactory to the Administrator of entitlement to Infra. waiver of premiums under section 602 (n) of this Act, or tender the premiums thereafter becoming due." 55Stat. 846. SEC. 2 . Section 602 (d) is hereby further amended by adding a new §802(d). CI upp subsection (5) to read as follows: Psth in9urance "(5) If any person deemed to have been issued insurance under sub- benefits. section (3) (A) or (B) hereof die without filing application and within the time limited therefor, death insurance benefits shall be pay- able in the manner and to the persons as stated in subsection (2) Provisos. Provided, That no application for insurance payments under sub- applcation.it fori sections (2) or (3) as hereby amended, shall be valid unless filed in the Veterans' Administration within one year after the date of death of the insured or one year after the date of this enactment, whichever is the later date, and relationship and dependency of the applicant, where required as a basis for such claim, shall be proved as of date of death of insured by evidence satisfactory to the Administrator: Incompetents. And provided further, That persons shown by evidence satisfactory to the Administrator to have been mentally or legally incompetent at the time the right to apply for continuation of insurance or for death benefits expires, may make such application at any time within one year after removal of such disability." S upra . SEC. 3. Section 602 (d) is hereby further amended by adding a new subsection (6) to read as follows: tinerms and cndi- "(6) Policies issued hereunder upon application as provided in subsection (3) (A) or (B) shall be issued upon the same terms and conditions as are contained in the standard policies of National Service Life Insurance." Transfer o funds. SEC. 4. The Administrator is authorized and directed to transfer from the National Service Life Insurance appropriation to the National Service Life Insurance fund such sums as may be necessary to cover all losses incurred and premiums waived under subsections (2), (3), and (4) of section 602 (d) as amended. 54 Stait. 10n SEC. 5. Subsection 602 (n) of the National Service Life Insurance Act of 1940 is hereby amended, effective as of October 8, 1940, to read as follows: urWanuring con r teinu- "(n) Upon application by the insured and under such regulations ous total disability. as the Administrator may promulgate, payment of premiums on such insurance may be waived during the continuous total disability of the insured, which continues or has continued for six or more consecutive months, if such disability commenced (1) subsequent to the date of his application for insurance; (2) while the insurance was in force under premium-paying conditions, and (3) prior to the insured's Prio aiver in sixtieth birthday: Provided, That the Administrator shall not grant Denial of waiver In . certain cases waiver of any premium becoming due more than one year prior to the receipt in the Veterans' Administration of application for the same, except as hereinafter provided, and any premiums paid for examination or rea months during which such waiver is effective shall be refunded. The ant. Administrator shall provide by regulations for examination or reex- amination of an insured claiming benefits under this subsection, and Disontinuance of may deny benefits for failure to cooperate. In the event that it is found that an insured is no longer totally disabled, the waiver of premiums shall cease as of the date of such finding and the policy of insurance may be continued by payment of premiums as provided in yondcrostrof i- said policy: Providedfurther, That in any case in which the Admin- su re d. istrator finds that the insured's failure to make timely application for waiver of premiums or his failure to submit satisfactory evidence of 658 [56 STAT. PUBLIC LAWS-CH. 504 -JULY 11, 1942
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