76 STAT. ]
PUBLIC LAW 87-549-JULY 25, 1962
219
Public Law 87-549 AN ACT To amend section 742 of title 38, United States Code, to permit the exchange of flve-year term policies of United States Government life insurance to a special endowment at age ninety-six plan.
July 25, 1962 [H. R. 10068]
Be it enaMed by the Senate and House of Representatives of the United States of America in Congress assembled, That section 742 of veterans. title 38, United States Code, is amended (1) by inserting " (a) " u. s. Gov«mimmediately before "Regulations"; and (2) by adding at the end^^^"^/Sf^do'J^^^fent thereof the following: policies. "(b) An insured who on or after his sixty-fifth birthday has a five- ^^ ^*^*" ^'^*' year level premium term policy of insurance in force by payment of premiums may exchange such policy for insurance on a special endowment at age ninety-six plan upon written application; payment of the required premium; and surrender of the five-year level premium term policy and any total disability provision attached thereto with all rights, title, and interests thereunder. However, if it is found by the Administrator subsequent to the exchange that prior thereto the term policy matured because of total permanent disability of the insured or that he was entitled to total disability benefits under the total disability provision attached to such policy, the insured, upon surrender of the special endowment at age ninety-six policj' and any provision for waiver of premiums issued under subsection (c) of this section with all rights, title, and interest thereunder, will be entitled to benefits payable under the prior contract. In such case, the cash value less any indebtedness on the endowment policy shall be refunded together with any premiums paid on a provision for waiver of premiums. Insurance on the special endowment at age ninety-six plan shall be issued at the attained age of the insured upon the same terms and conditions as are contained in standard policies of United States Government Life Insurance except: "(1) the insurance shall not mature and no benefits shall be Exceptions, paid thereunder because of total permanent disability; "(2) the premiums for such insurance shall be as prescribed by the Administrator; "(3) such insurance cannot be exchanged, converted, or reconverted to any other plan of insurance; " (4) all cash, loan, paid-up, and extended term insurance values shall De as prescribed by the Administrator; and "(5) the insurance shall be subject to such other changes in terms and conditions as the Administrator determines to be reasonable and practicable. " (c) The Administrator shall, upon application made by the insured waiver of preat the same time as he exchanges his term policy for an endowment "li^ms. policy issued under the provisions of subsection (b) of this section, and upon payment of such extra premium as the Administrator shall prescribe, include in such endowment policy a provision for waiver of premiums on the policy and on the provision during the total permanent disability or the insured, if such disability began after the date of such application and while the policy and the provision are in force by payment of premiums. The Administrator shall not grant waiver of any premium becoming due more than one year before receipt in the Veterans' Administration of claim for the same, except as provided in this subsection. Any premiums paid for months during which waiver is effective shall oe refunded. The Administrator shall provide by regulations for examination or rexamination of an insured claiming waiver of premiums under this subsection, and may deny waiver for failure to cooperate. I f it is found that an insured
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