83 FR 10622 - Electronic Submission of Certain Servicemembers' Group Life Insurance, Family Servicemembers' Group Life Insurance, and Veterans' Group Life Insurance Forms
DEPARTMENT OF VETERANS AFFAIRS Federal Register Volume 83, Issue 48 (March 12, 2018)
Federal Register Volume 83, Issue 48 (March 12, 2018)
| Page Range | 10622-10624 | |
| FR Document | 2018-04877 |
[Federal Register Volume 83, Number 48 (Monday, March 12, 2018)] [Rules and Regulations] [Pages 10622-10624] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-04877] ======================================================================= ----------------------------------------------------------------------- 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. ----------------------------------------------------------------------- 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
![10622 Federal Register / Vol. 83, No. 48 / Monday, March 12, 2018 / Rules and Regulations
regulation that allows servicers 30 days requirements related to customer document, as well as all other
after receipt to respond to any inquiry service. These oversight efforts include, documents of this Department
from a borrower. (34 CFR 682.208(c).) but are not limited to, call monitoring, published in the Federal Register, in
Deadlines for notifying borrowers of process monitoring, and servicer text or Portable Document Format
loan transfers between servicers auditing, conducted both remotely and (PDF). To use PDF you must have
similarly conflict with Federal statutes on-site by the Department’s office of Adobe Acrobat Reader, which is
and regulations that allow for 45 days Federal Student Aid (FSA). FSA has available free at the site.
for notification. (20 U.S.C. 1078(b)(2)(F); dedicated staff with the responsibility to You may also access documents of the
34 CFR 682.208(e)(1).) These deadlines ensure that servicers are adhering to Department published in the Federal
are set after careful consideration of the regulatory and contractual requirements Register by using the article search
need for timely responses and for servicing loans. For example, FSA feature at: www.federalregister.gov.
notifications to borrowers balanced reviews interactions between servicers Specifically, through the advanced
against the time the servicer needs to and borrowers and compares the search feature at this site, you can limit
ensure an accurate response and the servicers’ performance against a detailed your search to documents published by
costs of doing so. A uniform response Department checklist. FSA provides its the Department.
time is also vital given the congressional performance evaluations to servicers
Dated: March 7, 2018.
purpose to ensure borrowers are treated through written reports and meetings
Betsy DeVos,
equally in the administration of the and requires servicers to alter their
program. practices when needed to correct Secretary of Education.
The imposition of required dispute deficiencies. FSA also maintains direct [FR Doc. 2018–04924 Filed 3–9–18; 8:45 am]
resolution procedures under State law access to servicer systems and therefore BILLING CODE 4000–01–P
would also conflict with the specific can review individual borrower
Federal regulations that govern the accounts to evaluate the servicers’
resolution of disputes raised by treatment of those accounts against DEPARTMENT OF VETERANS
borrowers. (See 34 CFR 682.208(c)(3)(i) regulatory and contractual AFFAIRS
and (ii).) State laws that require requirements.
servicers to communicate directly with Second, the Department’s 38 CFR Part 9
the authorized representatives of a procurement and contracting
borrower could conflict with Federal requirements incentivize improved RIN 2900–AP98
regulations that mandate direct customer service by allocating more Electronic Submission of Certain
communications with borrowers and loans to servicers that meet performance Servicemembers’ Group Life
provide for specific exceptions when a metrics such as high levels of customer
Insurance, Family Servicemembers’
FFEL Program participant such as a satisfaction and by paying servicers
Group Life Insurance, and Veterans’
servicer is authorized to communicate higher rates for loans that are in a non-
Group Life Insurance Forms
with a borrower’s representative. (See, delinquent status such as those enrolled
e.g., 20 U.S.C. 1083(a); 1092c; in an income-driven repayment plan. AGENCY: Department of Veterans Affairs.
1077(a)(2)(H); 34 CFR 682.205(a)(1) and Poor-performing servicers lose loans in ACTION: Final rule.
(b); 682.209(a)(6)(iii); 682.402; 682.210.) their portfolio to better-performing
Finally, the State servicing laws may servicers. SUMMARY: The Department of Veterans
conflict with two express preemption Third, FSA maintains a Feedback Affairs (VA) in this final rule amends its
provisions applicable to FFEL Program System, which includes a formal regulations governing the
Loans. Federal regulations ‘‘preempt process for borrowers to report issues or Servicemembers’ and Veterans’ Group
any State law, including State statutes, file complaints about their loan Life Insurance programs to provide that
regulations, or rules, that would conflict experiences, including problems with certain Servicemembers’ Group Life
with or hinder satisfaction’’ of certain servicing. Borrowers may also elevate insurance (SGLI), Family SGLI (FSGLI),
requirements regarding guaranty agency complaints to the FSA Ombudsman and Veterans’ Group Life Insurance
imposition of collection charges, Group—a neutral and confidential (VGLI) applications, elections, and
reporting to consumer reporting resource available to borrowers to beneficiary designations, required by
agencies, and collection efforts on resolve disputes related to their loans. statute to be ‘‘written’’ or ‘‘in writing,’’
defaulted loans. (34 CFR 682.410(b)(8).) The Department seeks to promote would include those that are digitally or
Federal regulations also preempt State exemplary customer service for student electronically signed and submitted via
laws that would conflict with or hinder loan borrowers, consistent with the an agency-approved electronic means.
the efforts of lenders or their servicers framework Congress established for the This document adopts as a final rule,
to satisfy and comply with the due Federal student loan programs. with minor changes, the proposed rule
diligence steps for loan collection Accessible Format: Individuals with published in the Federal Register on
included in those regulations. (34 CFR disabilities can obtain this document September 6, 2017.
682.411(o)(1).) Recently enacted State and a copy of the application package in
DATES: This rule is effective March 12,
servicing laws appear to conflict with an accessible format (e.g., braille, large
2018.
these preemption provisions. print, audiotape, or compact disc) on
request to the person listed under FOR FOR FURTHER INFORMATION CONTACT:
E. Existing Borrower Protections FURTHER INFORMATION CONTACT. Ruth Berkheimer, Insurance Specialist,
The Secretary emphasizes that the Electronic Access to This Document: Department of Veterans Affairs
Department continues to oversee loan The official version of this document is Insurance Center, 5000 Wissahickon
daltland on DSKBBV9HB2PROD with RULES
servicers to ensure that borrowers the document published in the Federal Avenue, Philadelphia, PA 19144, (215)
receive exemplary customer service and Register. You may access the official 842–2000, ext. 4275 (this is not a toll-
are protected from substandard edition of the Federal Register and the free number).
practices. First, the Department Code of Federal Regulations via the SUPPLEMENTARY INFORMATION: On
monitors servicer compliance with the Federal Digital System at: www.gpo.gov/ September 6, 2017, VA published a
Department’s contracts, which include fdsys. At this site you can view this proposed rule in the Federal Register
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![10624 Federal Register / Vol. 83, No. 48 / Monday, March 12, 2018 / Rules and Regulations
(i) Decline Servicemembers’ Group The Postal Service received 3 formal by the Pricing and Classification Service
Life Insurance for the member or Family responses on the proposed rule, all of Center (PCSC) when the mailer is in
Servicemembers’ Group Life Insurance which included multiple comments. default.
for the member’s insurable spouse (38 Comments from the first responder
Mailer Comment
U.S.C. 1967(a)(2)(A) or (B)); are as follows:
(ii) Insure the member under Clarification needed on the collection
Servicemembers’ Group Life Insurance Mailer Comment process.
or the member’s spouse under Family Clarification needed on deducting USPS Response
Servicemembers’ Group Life Insurance deficiencies directly from a trust
in an amount less than the maximum account. The possible actions that the USPS
amount of such insurance (38 U.S.C. may choose to enforce would only be
USPS Response applied if an assessed mailer, after a
1967(a)(3)(B));
(iii) Restore or increase coverage Action by the Postal Service to deduct final agency decision has been rendered,
under Servicemembers’ Group Life funds from a mailer’s trust account or fails to make payment, enter into a
Insurance for the member or under any other funds in USPS possession payment agreement, or otherwise fails to
Family Servicemembers’ Group Life would be a last resort effort to collect negotiate a settlement of the debt.
Insurance for the member’s insurable revenue due after the appeal process has Comments from the third responder
spouse (38 U.S.C. 1967(c)); been exhausted and the mailer has not are as follows:
(iv) Designate one or more The third responder had numerous
made an appropriate payment
beneficiaries for the member’s comments that were determined to be
arrangement.
Servicemembers’ Group Life Insurance beyond the scope of this final rule. The
Mailer Comment Postal Service will review and address
or former member’s Veterans’ Group
Clarification needed on the timing these comments in a separate forum
Life Insurance (38 U.S.C. 1970(a)); and
(v) Increase the amount of coverage and handling of due process notification with the responder.
These revisions will ensure the proper
under Veterans’ Group Life Insurance on appeals.
payment of postage while providing a
(38 U.S.C. 1977(a)(3)).
(b) Applications or forms that satisfy USPS Response superb customer experience from sender
the definition in paragraph (a)(1) of this The 30 day time frame listed in 3.2.1 to receiver.
section may be utilized to— is the time for a mailer to respond to the List of Subjects in 39 CFR Part 111
(1) Apply for Veterans’ Group Life notification of a revenue deficiency Administrative practice and
Insurance; and assessment. Reasonable extensions for procedure, Postal Service.
(2) Reinstate Veterans’ Group Life appeal will continue to be entertained
Insurance. The Postal Service adopts the
for mailers that request such time to
following changes to the Mailing
[FR Doc. 2018–04877 Filed 3–9–18; 8:45 am] review documentation and data to
Standards of the United States Postal
BILLING CODE 8320–01–P formulate their response.
Service, Domestic Mail Manual (DMM),
Comments from the second responder incorporated by reference in the Code of
are as follows: Federal Regulations. See 39 CFR 111.1.
POSTAL SERVICE Mailer Comment Accordingly, 39 CFR part 111 is
amended as follows:
39 CFR Part 111 Clarification needed on the expansion
of liability, written notification, and due PART 111—[AMENDED]
Revenue Deficiency process.
AGENCY: Postal ServiceTM. ■ 1. The authority citation for 39 CFR
USPS Response part 111 continues to read as follows:
ACTION: Final rule.
The clarification of ‘‘mailer’’ Authority: 5 U.S.C. 552(a); 13 U.S.C. 301–
SUMMARY: The Postal Service is contained in new section 3.1.1 is 307; 18 U.S.C. 1692–1737; 39 U.S.C. 101,
amending the Mailing Standards of the intended to ensure that the 401, 403, 404, 414, 416, 3001–3011, 3201–
United States Postal Service, Domestic identification and responsibility of any 3219, 3403–3406, 3621, 3622, 3626, 3632,
Mail Manual (DMM®) to clarify the error in preparation is assessed to the 3633, and 5001.
Postal Service revenue deficiency appropriate party(ies), mail owner, mail ■ 2. Revise the following sections of the
policy. preparer, and/or list provider. It is not Mailing Standards of the United States
intended as an effort to collect more Postal Service, Domestic Mail Manual
DATES: Effective: May 7, 2018.
than what is owed. The definition of (DMM) as follows:
FOR FURTHER INFORMATION CONTACT: ‘‘Revenue Deficiency’’ in new 3.1.1(a)
Janet Meddick at (202) 268–2652 or specifically states that a written Mailing Standards of the United States
Pierre DeFelice at (724) 993–3596 or notification to the mailer citing the Postal Service, Domestic Mail Manual
Garry Rodriguez at (202) 268–7281. amount of the deficiency and the (DMM)
SUPPLEMENTARY INFORMATION: The Postal circumstances is required. Accordingly, * * * * *
Service published a notice of proposed a policy requiring written notification of
rulemaking on December 13, 2017, (82 600 Basic Standards for All Mailing
the deficiency to the assessed mailer is Services
FR 58580–58582) to amend DMM still in existence.
section 604.10.0, Revenue Deficiency, to * * * * *
update the definition of a revenue Mailer Comment
daltland on DSKBBV9HB2PROD with RULES
604 Postage Payment Methods and
deficiency; designate Postal Service Clarification needed on the interest Refunds
contacts for submitting appeals; and add charge.
sections to provide the definition of a [Delete 10.0, Revenue Deficiency, in
mailer, description of assessments and USPS Response its entirety and renumber 11.0 and 12.0
mailers responsibilities, and policy on The 6% interest charge is per annum as 10.0 and 11.0.]
assessed revenue deficiencies. after a final agency decision is rendered * * * * *
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Document Created: 2018-11-01 08:51:17
Document Modified: 2018-11-01 08:51:17
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule. | |
| Dates | This rule is effective March 12, 2018. | |
| 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). | |
| FR Citation | 83 FR 10622 | |
| RIN Number | 2900-AP98 | |
| CFR Associated | Life Insurance; Military Personnel and Veterans |
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