[Federal Register Volume 83, Number 48 (Monday, March 12, 2018)]
[Rules and Regulations]
[Pages 10622-10624]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-04877]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 9

RIN 2900-AP98


Electronic Submission of Certain Servicemembers' Group Life 
Insurance, Family Servicemembers' Group Life Insurance, and Veterans' 
Group Life Insurance Forms

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: The Department of Veterans Affairs (VA) in this final rule 
amends its regulations governing the Servicemembers' and Veterans' 
Group Life Insurance programs to provide that certain Servicemembers' 
Group Life insurance (SGLI), Family SGLI (FSGLI), and Veterans' Group 
Life Insurance (VGLI) applications, elections, and beneficiary 
designations, required by statute to be ``written'' or ``in writing,'' 
would include those that are digitally or electronically signed and 
submitted via an agency-approved electronic means. This document adopts 
as a final rule, with minor changes, the proposed rule published in the 
Federal Register on September 6, 2017.

DATES: This rule is effective March 12, 2018.

FOR FURTHER INFORMATION CONTACT: Ruth Berkheimer, Insurance Specialist, 
Department of Veterans Affairs Insurance Center, 5000 Wissahickon 
Avenue, Philadelphia, PA 19144, (215) 842-2000, ext. 4275 (this is not 
a toll-free number).

SUPPLEMENTARY INFORMATION: On September 6, 2017, VA published a 
proposed rule in the Federal Register

[[Page 10623]]

(82 FR 42052), to expressly allow for electronic submission of certain 
SGLI and VGLI applications, forms, and beneficiary designations, by 
adding Sec.  9.22 to part 9 of title 38, Code of Federal Regulations. 
New Sec.  9.22(a)(1) defines the terms ``in writing'' and ``written'' 
for purposes of certain statutes in chapter 19, subchapter III, of 
title 38, United States Code, to mean an intentional recording of words 
in visual form and to include hard-copy documents containing a person's 
name or mark, written or made by that person, and documents submitted 
through a VA-approved electronic means that includes an electronic or 
digital signature that identifies and authenticates a particular person 
as the source of the electronic message, and indicates such person's 
approval of the information contained in the electronic document.
    VA provided a 60-day comment period for the public to respond to 
the proposed rule. The comment period for the proposed rule ended on 
November 6, 2017, and VA received two comments, which were favorable. 
Both comments expressed support for accepting electronically or 
digitally-signed insurance forms, as it will make it easier for 
Servicemembers and Veterans to update their life insurance coverage 
information. As all comments received were favorable, the proposed rule 
is being adopted as final, with minor stylistic edits to conform with 
Code of Federal Regulations formatting.

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 the 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, 13563, and 13771

    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,'' requiring review by 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 regulatory action 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 website 
at http://www.va.gov/orpm by following the link for ``VA Regulations 
Published.'' This rule is not an E.O. 13771 regulatory action because 
this rule is not significant under E.O. 12866.

Regulatory Flexibility Act

    The Secretary hereby certifies that the adoption of 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

    The Catalog of Federal Domestic Assistance number and title for the 
program affected by this document is 64.103, Life Insurance for 
Veterans.

List of Subjects in 38 CFR Part 9

    Life insurance, Military personnel, 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. Gina S. 
Farrisee, Deputy Chief of Staff, Department of Veterans Affairs, 
approved this document on February 27, 2018, for publication.

    Dated: February 27, 2018.
Jeffrey Martin,
Impact Analyst, Office of Regulation Policy & Management, Office of the 
Secretary, 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. Add Sec.  9.22 to read as follows:


Sec.  9.22  Submission of certain applications and forms affecting 
entitlement to Servicemembers' Group Life Insurance and Veterans' Group 
Life Insurance.

    (a)(1) For purposes of this section, the terms in writing and 
written mean an intentional recording of words in visual form and 
include:
    (i) Hard-copy applications and forms containing a person's name or 
mark written or made by that person; and
    (ii) Applications and forms submitted through a VA approved 
electronic means that include an electronic or digital signature that 
identifies and authenticates a particular person as the source of the 
electronic message and indicates such person's approval of the 
information submitted through such means.
    (2) With regard to the following actions, applications or forms 
that satisfy the definition in paragraph (a)(1) of this section will be 
deemed to satisfy the requirement in the referenced statutes that an 
application, election, or beneficiary designation be ``in writing'' or 
``written'':

[[Page 10624]]

    (i) Decline Servicemembers' Group Life Insurance for the member or 
Family Servicemembers' Group Life Insurance for the member's insurable 
spouse (38 U.S.C. 1967(a)(2)(A) or (B));
    (ii) Insure the member under Servicemembers' Group Life Insurance 
or the member's spouse under Family Servicemembers' Group Life 
Insurance in an amount less than the maximum amount of such insurance 
(38 U.S.C. 1967(a)(3)(B));
    (iii) Restore or increase coverage under Servicemembers' Group Life 
Insurance for the member or under Family Servicemembers' Group Life 
Insurance for the member's insurable spouse (38 U.S.C. 1967(c));
    (iv) Designate one or more beneficiaries for the member's 
Servicemembers' Group Life Insurance or former member's Veterans' Group 
Life Insurance (38 U.S.C. 1970(a)); and
    (v) Increase the amount of coverage under Veterans' Group Life 
Insurance (38 U.S.C. 1977(a)(3)).
    (b) Applications or forms that satisfy the definition in paragraph 
(a)(1) of this section may be utilized to--
    (1) Apply for Veterans' Group Life Insurance; and
    (2) Reinstate Veterans' Group Life Insurance.

[FR Doc. 2018-04877 Filed 3-9-18; 8:45 am]
 BILLING CODE 8320-01-P