[Federal Register Volume 85, Number 113 (Thursday, June 11, 2020)]
[Rules and Regulations]
[Pages 35562-35564]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-12559]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 9

RIN 2900-AQ98


Extension of Veterans' Group Life Insurance (VGLI) Application 
Period in Response to the COVID-19 Public Health Emergency

AGENCY: Department of Veterans Affairs.

ACTION: Interim final rule.

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SUMMARY: The Department of Veterans Affairs (VA) is issuing this 
interim final rule to extend the deadline for former members insured 
under Servicemembers' Group Life Insurance (SGLI) to apply for 
Veterans' Group Life Insurance (VGLI) coverage following separation 
from service in order to address the inability of members directly or 
indirectly affected by the 2019 Novel Coronavirus (COVID-19) public 
health emergency to purchase VGLI. This rule will be in effect for one 
year.

DATES: 
    Effective Date: This interim final rule is effective June 11, 2020.
    Comment Date: Comments must be received on or before July 13, 2020.

ADDRESSES: Written comments may be submitted through http://www.Regulations.gov; by mail or hand-delivery to: Director, Office of 
Regulation Policy and Management (00REG), Department of Veterans 
Affairs, 810 Vermont Ave. NW, Room 1064, Washington, DC 20420; or by 
fax to (202) 273-9026. (This is not a toll-free telephone number.) 
Comments should indicate that they are submitted in response to 
``AQ98(IF)--Extension of Veterans' Group Life Insurance (VGLI) 
Application Period In Response To The COVID-19 Public Health 
Emergency.'' Copies of comments received will be available for public 
inspection in the Office of Regulation Policy and Management, Room 
1064, 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 telephone number.) In addition, 
during the comment period, comments may be viewed online through the 
Federal Docket Management System (FDMS) at http://www.Regulations.gov.

FOR FURTHER INFORMATION CONTACT: Paul Weaver, Department of Veterans 
Affairs Insurance Service (310/290B), 5000 Wissahickon Avenue, 
Philadelphia, PA 19144, (215) 842-2000, ext. 4263. (This is not a toll-
free number.)

SUPPLEMENTARY INFORMATION: The Secretary of Veterans Affairs has 
authority to prescribe regulations that are necessary or appropriate to 
carry out the laws administered by VA and that are consistent with 
those laws. 38 U.S.C. 501(a). Section 1977 of title 38, United States 
Code, authorizes the VGLI program, which provides former members 
separating from service with the option of converting existing SGLI 
coverage into renewable, 5-year term group life insurance coverage in 
amounts ranging from $10,000 to $400,000 based upon the amount of SGLI 
coverage. See 38 U.S.C. 1967(a), 1968(b)(1)(A), 1977(a), (b). 
Furthermore, section 1977(b)(5) states that VGLI shall ``contain such 
other terms and conditions as the Secretary determines to be reasonable 
and practicable which are not specifically provided for in'' section 
1977.
    Pursuant to these statutes, VA promulgated 38 CFR 9.2, which 
provides the effective dates of VGLI coverage and application 
requirements. VGLI coverage may be granted if an application, the 
initial premium, and evidence of insurability are received within 1 
year and 120 days following termination of duty. 38 CFR 9.2(c). 
Evidence of insurability is not required during the initial 240 days 
following termination of duty. Id.
    On March 13, 2020, President Donald J. Trump issued Proclamation 
9994 proclaiming that the 2019 novel Coronavirus (COVID-19) outbreak in 
the United States constitutes a national emergency beginning March 1, 
2020. 85 FR 15337 (Mar. 18, 2020). Because of mitigation strategies to 
flatten the curve of infections and reduce the spread of COVID-19, the 
United States economy has been severely impacted, with national 
unemployment claims reaching historic levels. Proclamation 10014 of 
April 22, 2020, 85 FR 23441 (Apr. 27, 2020); see also Executive Order 
on Regulatory Relief to Support Economic Recovery (May 19, 2020) 
(directing agencies to address this economic emergency by rescinding, 
modifying, waiving, or providing exemptions from regulations and other 
requirements that may inhibit economic recovery). We believe that, as a 
result of the economic situation, former members, who otherwise may be 
eligible for VGLI coverage, currently may not be able to afford VGLI 
coverage or to provide evidence of insurability.
    VA is therefore amending 38 CFR 9.2 by adding new subsection (f)(1) 
to extend by 90 days the time periods under 38 CFR 9.2(c) during which 
former members may apply for VGLI . Former members who submit a VGLI 
application and the initial premium within 330 days following 
separation from service will not be required to submit evidence of 
insurability. Former members who do not apply for VGLI within 330 days 
following separation from service may still receive VGLI coverage if 
they apply for the coverage within 1 year and 210 days following 
separation from service and submit the initial premium and evidence of 
insurability. These amendments will ease the financial consequences of 
the COVID-19 pandemic by extending the time limits for former members 
to enroll in VGLI, some of whom do not qualify for a private commercial 
plan of insurance due to their disabilities.

[[Page 35563]]

    New paragraph (f)(2) establishes a sunset provision for this 
regulation. Paragraph (f)(1) will not apply one year after the 
effective date of this rule.

Administrative Procedure Act

    The Secretary of Veterans Affairs finds that there is good cause to 
dispense with the opportunity for prior comment with respect to this 
rule and to make the rule effective upon publication. Pursuant to 5 
U.S.C. 553(b)(B), the opportunity for advance public comment is not 
required with respect to a rulemaking when an ``agency for good cause 
finds (and incorporates the finding and a brief statement of reasons 
therefor in the rules issued) that notice and public procedure thereon 
are impracticable, unnecessary, or contrary to the public interest.'' 
The Secretary finds that it is impracticable to delay this regulation 
for the purpose of soliciting public comment because former members 
cannot receive VGLI coverage if they do not satisfy the application 
requirements within the deadlines established by 38 CFR 9.2(c). This 
90-day extension is also consistent with extensions private insurers 
are currently providing for applicants who are currently unable to 
afford insurance or to submit documents evidencing proof of 
insurability as a result of the COVID-19 pandemic.
    Section 553(d) also requires a 30-day delayed effective date 
following publication of a rule, except for ``(1) a substantive rule 
which grants or recognizes an exemption or relieves a restriction; (2) 
interpretative rules and statements of policy; or (3) as otherwise 
provided by the agency for good cause found and published with the 
rule.'' Pursuant to section 553(d)(1), the Secretary finds that this 
interim final rule should be effective immediately upon publication 
because this is a substantive rule which relieves restrictions, i.e., 
extends deadlines for VGLI applications. Also, pursuant to section 
553(d)(3), the Secretary finds that there is good cause to make the 
rule effective upon publication because of the impracticability of 
delaying implementation the regulatory amendment, as discussed above.
    For the foregoing reasons, the Secretary of Veterans Affairs is 
issuing this rule as an interim final rule with an immediate effective 
date. The Secretary of Veterans Affairs will consider and address 
comments that are received within 30 days of the date this interim 
final rule is published in the Federal Register.

Paperwork Reduction Act

    This interim final rule contains no provisions constituting a 
collection of information under the Paperwork Reduction Act (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. 
The Office of Information and Regulatory Affairs has determined that 
this interim final rule is not 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 From FY 2004 Through Fiscal Year to Date.'' This interim 
final rule is not expected to be an E.O. 13771 regulatory action 
because this interim final rule is not significant under E.O. 12866.

Regulatory Flexibility Act

    The Secretary hereby certifies that this interim 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. The provisions contained in this interim final 
rulemaking are applicable to individual Veterans, and applications for 
VGLI, as submitted by such individuals, are specifically managed and 
processed within VA and through Prudential Insurance Company of 
America, which is not considered to be a small entity. Therefore, 
pursuant to 5 U.S.C. 605(b), the initial and final regulatory 
flexibility analysis requirements of 5 U.S.C. 603 and 604 do not apply.

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 interim final rule has no such effect 
on State, local, and tribal governments, or on the private sector.

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.

Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Office of Information and Regulatory Affairs designated this rule 
as not a major rule, as defined by 5 U.S.C. 804(2).

List of Subjects in 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. Brooks D. 
Tucker, Acting Chief of Staff, Department of Veterans Affairs, approved 
this document on June 5, 2020, for publication.

Luvenia Potts,
Regulation Development Coordinator, Office of Regulation Policy & 
Management, Office of the Secretary, Department of Veterans Affairs.

    For the reasons stated in the preamble, the Department of Veterans 
Affairs 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. Section 9.2 is amended by adding a new paragraph (f) to read as 
follows:


Sec.  9.2  Effective date; applications.

* * * * *
    (f)(1) If an application, initial premium, or evidence of 
insurability (as the case may be) has not been received by the 
administrative office within the time limits set forth in paragraph (c) 
of this section, Veterans' Group Life Insurance coverage may still be 
granted if an application, the initial premium,

[[Page 35564]]

and evidence of insurability are received by the administrative office 
within 1 year and 210 days following termination of duty, except that 
evidence of insurability is not required during the initial 330 days 
following termination of duty.
    (2) Paragraph (f)(1) of this section shall not apply to an 
application or initial premium received after June 11, 2021.

[FR Doc. 2020-12559 Filed 6-10-20; 8:45 am]
BILLING CODE 8320-01-P