[Federal Register Volume 77, Number 192 (Wednesday, October 3, 2012)]
[Rules and Regulations]
[Pages 60304-60307]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-24391]
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DEPARTMENT OF VETERANS AFFAIRS
38 CFR Part 9
RIN 2900-AN40
Servicemembers' Group Life Insurance and Veterans' Group Life
Insurance--Slayer's Rule Exclusion
AGENCY: Department of Veterans Affairs.
ACTION: Final rule.
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SUMMARY: The Department of Veterans Affairs (VA) is amending its
regulations governing Servicemembers' Group Life Insurance (SGLI) and
Veterans' Group Life Insurance (VGLI) to prohibit payment of insurance
proceeds payable
[[Page 60305]]
because of the death of a person whose life was insured under SGLI or
VGLI (decedent) or payment of a SGLI Traumatic Injury Protection
(TSGLI) benefit to a person who is convicted of intentionally and
wrongfully killing the decedent or determined in a civil proceeding to
have intentionally and wrongfully killed the decedent (slayer) and to
any family member of the slayer. These provisions apply also to any
person who assisted the slayer in causing the death of the decedent.
Additionally, this document contains an interim final amendment that
defines the term ``member of the family'' not to include a ``domestic
partner.''
DATES: Effective Date: This final rule is effective November 2, 2012.
Applicability Date: This rule is applicable to any claim for SGLI
or VGLI proceeds, including a claim for a payment under 38 CFR 9.20,
Traumatic injury protection, filed on or after November 2, 2012, and to
any such claim filed before that date that has not been paid or denied
as of that date.
Comment Date: Comments on the omission of the term ``domestic
partner'' from the definition of a ``member of the family'' must be
submitted by December 3, 2012.
ADDRESSES: Written comments may be submitted through
www.Regulations.gov; by mail or hand-delivery to Director, Regulations
Management (02REG), Department of Veterans Affairs, 810 Vermont Avenue
NW., Room 1068, Washington, DC 20420; or by fax to (202) 273-9026.
Comments should indicate that they are submitted in response to ``RIN
2900-AN40--Servicemembers' Group Life Insurance and Veterans' Group
Life Insurance--Slayer's Rule Exclusion.'' Copies of comments received
will be available for public inspection in the Office of Regulation
Policy and Management, Room 1063B, between the hours of 8:00 a.m. and
4:30 p.m., Monday through Friday (except holidays). Please call (202)
461-4902 for an appointment. (This is not a toll-free number.) In
addition, during the comment period, comments may be viewed online
through the Federal Docket Management System (FDMS) at
www.Regulations.gov.
FOR FURTHER INFORMATION CONTACT: Monica Keitt, Attorney/Advisor,
Department of Veterans Affairs Regional Office and Insurance Center
(310/290B), 5000 Wissahickon Avenue, P.O. Box 8079, Philadelphia, PA
19101, (215) 842-2000, ext. 2905. (This is not a toll-free number.)
SUPPLEMENTARY INFORMATION: On December 13, 2011, VA published in the
Federal Register (76 FR 77455) a proposed rule to amend VA regulations
governing the payment of SGLI or VGLI proceeds and benefit payments
under the TSGLI program. Specifically, VA proposed to amend 38 CFR 9.1
and 9.5 to prohibit payment of SGLI or VGLI proceeds or a TSGLI benefit
to: (1) A person who is convicted of intentionally killing the decedent
or determined in a civil proceeding to have intentionally killed the
decedent (known hereafter as the ``slayer''); (2) a member of the
slayer's family who is not related to the decedent by blood, legal
adoption, or marriage; and (3) a member of the slayer's family who is
related to the decedent by blood, legal adoption, or marriage and is
convicted of a crime involving the intentional killing of the decedent
or determined in a civil proceeding to have been involved in the
intentional killing of the decedent.
Interested persons were invited to submit written comments on or
before February 13, 2012. We received one comment, from Vietnam
Veterans of America (VVA) concerning the terms used in, and the
complexity of some of the language of, the proposed regulation. Based
on internal agency reconsideration of the proposed regulation and the
comment received from VVA, VA is making the following changes to the
proposed rule.
First, VVA recommended adding the words ``and wrongfully'' and
``and wrongful'' as part of the descriptions provided in proposed Sec.
9.5(e)(2)(i) and (iii), respectively. VA agrees with VVA's
recommendation to include the words ``and wrongfully'' in Sec.
9.5(e)(2)(i) because those words speak to the heinous aspect of the
slayer's act that violates public policy. In order to be consistent, we
will also add ``and wrongfully'' to Sec. 9.1(l). In addition, this
language is consistent with the language used in 38 CFR 3.11, which
prohibits the payment of certain VA benefits to ``[a]ny person who has
intentionally and wrongfully caused the death of another person'' if
the benefits would be payable by reason of that death. The language of
38 CFR 3.11 serves as an appropriate model for the SGLI and VGLI
Slayer's Rule Exclusion. However, VA did not incorporate the words
``and wrongful'' into proposed Sec. 9.5(e)(2)(iii) because that
provision has been completely revised in accordance with VVA's second
recommendation to prohibit payment of insurance benefits to the family
members of either the slayer or anyone who aided or assisted the slayer
in causing the death of the decedent.
Second, VVA recommended simplifying the language of proposed Sec.
9.5(e)(2) to make the regulation easier to understand as it relates to
the persons who are prohibited from receiving insurance proceeds and
benefits. VA agrees with VVA's suggestion and has modified the language
of Sec. 9.5(e)(2) to clarify the intent of the proposed rule that the
slayer, anyone who assists the slayer in causing the death of the
decedent, and the family members of the slayer or anyone who assists
the slayer be prohibited from receiving insurance proceeds or benefits
payable because of the decedent's death. Although proposed Sec.
9.5(e)(2) included anyone who is convicted or found civilly liable for
the death of the decedent, which would imply inclusion of an
accomplice, the modified rule language removes any ambiguity regarding
the inclusion of an accomplice under Sec. 9.5(e)(2).
Third, VVA suggested changing the term ``surviving spouse'' in
proposed Sec. 9.5(e)(4)(i)(B) with the term ``widow or widower'' to
make the reference consistent with the terms used in Chapter 19 of
title 38, United States Code (U.S.C.). VA agrees with this suggestion
and has altered the regulatory text accordingly. Use of the term
``widow or widower'' is consistent with the language of 38 U.S.C.
1970(a), which provides the order of preference for payments of SGLI
and VGLI proceeds.
Finally, based on internal agency review, VA is removing proposed
Sec. 9.1(l)(6), which included ``[d]omestic partner'' as a ``member of
the family'' for purposes of the provisions in Sec. 9.5(e)(2), due to
the unsettled legal landscape surrounding the recognition of such
partnerships. Because recognition of the legality of such relationships
varies from state to state, VA has determined that including such
partnerships in this part would cause an undue administrative burden.
The public is invited to comment on the omission of the term ``domestic
partner'' from the definition of a ``member of the family.''
For the reasons discussed above, VA is adopting the proposed rule
as a final rule with the above-noted changes.
Administrative Procedure Act
Regarding the interim final amendment that defines the term
``member of the family'' within this final rule at 38 CFR 9.1(l) not to
include a ``domestic partner,'' we find, pursuant to 5 U.S.C.
553(b)(B), that there is good cause to dispense with advance public
notice. As noted above, the legal landscape surrounding the recognition
of such partnerships is unsettled. Therefore, at this time, the term's
inclusion in the definition of a ``member of the family'' would be
impracticable
[[Page 60306]]
and contrary to the public interest. Accordingly, VA is issuing this
final rule with an interim final amendment to omit the term ``domestic
partner'' from Sec. 9.1(l).
Unfunded Mandates
The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C.
1532, that agencies prepare an assessment of anticipated costs and
benefits before issuing any rule that may result in an expenditure by
State, local, and tribal governments, in the aggregate, or by the
private sector, of $100 million or more (adjusted annually for
inflation) in any year. This final rule will have no such effect on
State, local, and tribal governments or on the private sector.
Paperwork Reduction Act
This final rule contains no provisions constituting a collection of
information under the Paperwork Reduction Act (44 U.S.C. 3501-3521).
Executive Orders 12866 and 13563
Executive Orders 12866 and 13563 direct agencies to assess the
costs and benefits of available regulatory alternatives and, when
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, and other advantages; distributive impacts;
and equity). Executive Order 13563 (Improving Regulation and Regulatory
Review) emphasizes the importance of quantifying both costs and
benefits, reducing costs, harmonizing rules, and promoting flexibility.
Executive Order 12866 (Regulatory Planning and Review) defines a
``significant regulatory action,'' which requires review by the Office
of Management and Budget (OMB), as ``any regulatory action that is
likely to result in a rule that may: (1) Have an annual effect on the
economy of $100 million or more or adversely affect in a material way
the economy, a sector of the economy, productivity, competition, jobs,
the environment, public health or safety, or State, local, or tribal
governments or communities; (2) Create a serious inconsistency or
otherwise interfere with an action taken or planned by another agency;
(3) Materially alter the budgetary impact of entitlements, grants, user
fees, or loan programs or the rights and obligations of recipients
thereof; or (4) Raise novel legal or policy issues arising out of legal
mandates, the President's priorities, or the principles set forth in
this Executive Order.''
The economic, interagency, budgetary, legal, and policy
implications of this regulatory action have been examined, and it has
been determined not to be a significant regulatory action under
Executive Order 12866.
Regulatory Flexibility Act
The Secretary of Veterans Affairs hereby certifies that this final
rule will not have a significant economic impact on a substantial
number of small entities as they are defined in the Regulatory
Flexibility Act, 5 U.S.C. 601-612. This final rule will directly affect
only individuals and will not directly affect any small entities.
Therefore, pursuant to 5 U.S.C. 605(b), this final rule is exempt from
the initial and final regulatory flexibility analysis requirements of
sections 603 and 604.
Catalog of Federal Domestic Assistance Number and Title
The Catalog of Federal Domestic Assistance number and title for the
program affected by this document is 64.103, Life Insurance for
Veterans.
Signing Authority
The Secretary of Veterans Affairs, or designee, approved this
document and authorized the undersigned to sign and submit the document
to the Office of the Federal Register for publication electronically as
an official document of the Department of Veterans Affairs. John R.
Gingrich, Chief of Staff, Department of Veterans Affairs, approved this
document on September 28, 2012, for publication.
List of Subjects in 38 CFR Part 9
Life insurance, Military personnel, Veterans.
Dated: September 28, 2012.
Robert C. McFetridge,
Director of Regulation Policy and Management, Office of the General
Counsel, Department of Veterans Affairs.
For the reasons stated in the preamble, VA amends 38 CFR part 9 as
set forth below:
PART 9--SERVICEMEMBERS' GROUP LIFE INSURANCE AND VETERANS' GROUP
LIFE INSURANCE
0
1. The authority citation for part 9 continues to read as follows:
Authority: 38 U.S.C. 501, 1965-1980A, unless otherwise noted.
0
2. Amend Sec. 9.1 by adding a new paragraph (l) to read as follows:
Sec. 9.1 Definitions.
* * * * *
(l) The term member of the family as used in Sec. 9.5(e)(2) means
an individual with any of the following relationships to a person who
is convicted of intentionally and wrongfully killing the decedent or
determined in a civil proceeding to have intentionally and wrongfully
killed the decedent:
(1) Spouse;
(2) Biological, adopted, or step child;
(3) Biological, adoptive, or step parent;
(4) Biological, adopted, or step sibling; or
(5) Biological, adoptive, or step grandparent or grandchild.
* * * * *
0
3. Amend Sec. 9.5 by adding paragraph (e) to read as follows:
Sec. 9.5 Payment of proceeds.
* * * * *
(e)(1) The proceeds payable because of the death of an individual
insured under Servicemembers' Group Life Insurance or Veterans' Group
Life Insurance (``decedent'') shall not be payable to any person
described in paragraph (e)(2) of this section. A Servicemembers' Group
Life Insurance Traumatic Injury Protection benefit payable under Sec.
9.20(j)(3) shall not be payable to any person described in paragraph
(e)(2) of this section.
(2) The persons described in this paragraph are:
(i) A person who is convicted of intentionally and wrongfully
killing the decedent or determined in a civil proceeding to have
intentionally and wrongfully killed the decedent;
(ii) A person who is convicted of assisting or aiding, or
determined in a civil proceeding to have assisted or aided, a person
described in paragraph (e)(2)(i) of this section; and
(iii) A member of the family of a person described in paragraph
(e)(2)(i) or (e)(2)(ii) of this section who is not related to the
decedent by blood, legal adoption, or marriage.
(3) The Servicemembers' Group Life Insurance or Veterans' Group
Life Insurance proceeds or Servicemembers' Group Life Insurance
Traumatic Injury Protection benefit not payable under paragraph (e)(1)
of this section to any person described in paragraph (e)(2) of this
section is not payable to such persons even though the criminal
conviction or civil determination is pending appeal.
(4)(i) Servicemembers' Group Life Insurance or Veterans' Group Life
Insurance proceeds or a Servicemembers' Group Life Insurance Traumatic
Injury Protection benefit not payable under paragraphs (e)(1) and
(e)(2) of this section shall be payable to the first person or persons
listed in paragraphs (e)(4)(i)(A) through (F) of
[[Page 60307]]
this section who are surviving on the date of the decedent's death in
the following order of precedence:
(A) To the next eligible beneficiary designated by the decedent in
a writing received by the appropriate office of the applicable
uniformed service before the decedent's death in the uniformed services
in the case of Servicemembers' Group Life Insurance proceeds or a
Servicemembers' Group Life Insurance Traumatic Injury Protection
benefit, or in a writing received by the administrative office defined
in Sec. 9.1(b) of this part before the decedent's death in the case of
Veterans' Group Life Insurance proceeds;
(B) To the decedent's widow or widower;
(C) To the decedent's child or children, in equal shares, and
descendants of deceased children by representation;
(D) To the decedent's parents, in equal shares, or to the survivor
of them;
(E) To the duly appointed executor or administrator of the
decedent's estate;
(F) To other next of kin of the decedent as determined by the
insurer (defined in Sec. 9.1(c) of this part) under the laws of the
domicile of the decedent at the time of the decedent's death.
(ii) Payment of Servicemembers' Group Life Insurance or Veterans'
Group Life Insurance proceeds or a Servicemembers' Group Life Insurance
Traumatic Injury Protection benefit to any person under paragraph
(e)(4)(i) of this section shall bar recovery of those proceeds or that
benefit by any other person.
* * * * *
[FR Doc. 2012-24391 Filed 10-2-12; 8:45 am]
BILLING CODE 8320-01-P