[Federal Register Volume 79, Number 158 (Friday, August 15, 2014)]
[Rules and Regulations]
[Pages 48071-48072]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-19491]



[[Page 48071]]

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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 9

RIN 2900-AO42


Servicemembers' Group Life Insurance and Veterans' Group Life 
Insurance Information Access

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), 
Family SGLI, SGLI Traumatic Injury Protection, and Veterans' Group Life 
Insurance (all hereafter referred to as SGLI) to clarify and 
acknowledge what is implicit in the law: that VA, which has the 
responsibility under the law to administer the SGLI programs, also has 
the right to full access to records held by the insurer or on behalf of 
the insurer from whom VA has purchased a policy. These records include 
all of the insurer's records related to the operation and 
administration of the SGLI programs necessary to protect the legal and 
financial rights of the Government and of the persons affected by the 
activities of the agency and its agents. This document adopts as a 
final rule, without change, the proposed rule published in the Federal 
Register on September 23, 2013.

DATES: Effective Date: This rule is effective September 15, 2014.

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 September 23, 2013, VA published in the 
Federal Register (78 FR 58264), a proposed rule to add Sec.  9.21 to 38 
CFR part 9, to clarify that, as part of its responsibilities under 38 
U.S.C. 1966 and 44 U.S.C. 3301, VA has the right to complete and 
unrestricted access to the records of any insurer, reinsurer(s), and 
their successors (jointly referred to hereafter as ``insurer'') with 
respect to the SGLI policy and related benefit programs or services 
that are derived from the policy. In order for VA to meet its 
responsibilities under sections 1966 and 3301, VA requires access to 
any records relating to the operation and administration of the benefit 
programs derived from the policy and records related to the 
organization, functions, policies, decisions, procedures, and essential 
transactions of the insurer. VA's access to records includes records 
containing financial information of the insurer and records of 
individuals insured under the policy or utilizing other related program 
benefits and services or who may be entitled to benefits derived 
through the SGLI programs, including personally identifiable 
information concerning such individuals and their beneficiaries.
    The proposed rule was published in the Federal Register (78 FR 
58264) on September 23, 2013. A 60-day comment period was provided. No 
public comments were received regarding the proposed rule. As a result, 
based on the rationale set forth in the proposed rule, we adopt the 
provisions of the proposed rule as a final rule without change. This 
rule will apply to the insurer as of the effective date of the final 
rule, namely 30 days following the date of publication of the final 
rule.

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 one 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 of 1995 (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), unless OMB waives such review, 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 final rule have been examined, and it has been 
determined not to be a significant regulatory action under Executive 
Order 12866. VA's impact analysis can be found as a supporting document 
at http://www.regulations.gov, usually within 48 hours after the 
rulemaking document is published. Additionally, a copy of the 
rulemaking and its impact analysis are available on VA's Web site at 
http://www1.va.gov/orpm/, by following the link for ``VA Regulations 
Published.''

Regulatory Flexibility Act

    The Secretary 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 the insurer and entities 
acting on its behalf and individuals whose records may be held by the 
insurer and will not directly affect any small entities. Therefore, 
pursuant to 5 U.S.C. 605(b), this rulemaking is exempt from the initial 
and final regulatory flexibility analysis requirements of sections 603 
and 604.

Catalog of Federal Domestic Assistance

    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. Jose D. 
Riojas, Chief of Staff, Department of Veteran Affairs, approved this

[[Page 48072]]

document on August 11, 2014, for publication.

List of Subjects in 38 CFR Part 9

    Life insurance, Military personnel, Veterans.

    Dated: August 11, 2014.
Robert C. McFetridge,
Director, Regulation Policy and Management, Office of the General 
Counsel, Department of Veterans Affairs.
    For the reasons set forth in the preamble to this final rule and to 
the proposed rule, VA amends 38 CFR part 9 as follows:

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. Add Sec.  9.21 to read as follows:


Sec.  9.21  VA's access to records maintained by the insurer, 
reinsurer(s), and their successors.

    (a) In order to perform oversight responsibilities designed to 
protect the legal and financial rights of the Government and persons 
affected by the activities of the Department of Veterans Affairs and 
its agents and to ensure that the policy and the related program 
benefits and services are managed effectively and efficiently as 
required by law, the Secretary of Veterans Affairs shall have complete 
and unrestricted access to the records of any insurer, reinsurer(s), 
and their successors with respect to the policy and related benefit 
programs or services that are derived from the policy. This access 
includes access to:
    (1) Any records relating to the operation and administration of 
benefit programs derived from the policy, which are considered to be 
Federal records created under the policy;
    (2) Records related to the organization, functions, policies, 
decisions, procedures, and essential transactions, including financial 
information, of the insurer, reinsurer(s), and their successors; and
    (3) Records of individuals insured under the policy or utilizing 
other related program benefits and services or who may be entitled to 
benefits derived through the Servicemembers' and Veterans' Group Life 
Insurance programs, including personally identifiable information 
concerning such individuals and their beneficiaries.
    (b) Complete access to these records shall include the right to 
have the originals of such records sent to the Secretary of Veterans 
Affairs or a representative of the Secretary at the Secretary's 
direction. The records shall be available in either hard copy or 
readable electronic media. At the Secretary's option, copies may be 
provided in lieu of originals where allowed by the Federal Records Act, 
44 U.S.C. chapter 31.

    Authority:  5 U.S.C. 552, 552a; 38 U.S.C. 1966, 5701, 5725, 
5727, 7332; 44 U.S.C. 3101, 3301

[FR Doc. 2014-19491 Filed 8-14-14; 8:45 am]
BILLING CODE 8320-01-P