Servicemembers' Group Life Insurance and Veterans' Group Life Insurance-Slayer's Rule Exclusion, 77455-77457 [2011-31870]
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Federal Register / Vol. 76, No. 239 / Tuesday, December 13, 2011 / Proposed Rules
Regulations Branch, Legal Processing
Division, Associate Chief Counsel
(Procedure and Administration), at
Richard.A.Hurst@irscounsel.treas.gov.
SUPPLEMENTARY INFORMATION: A notice
of proposed rulemaking and a notice of
public hearing that appeared in the
Federal Register on Wednesday,
September 7, 2011 (76 FR 55322),
announced that a public hearing was
scheduled for December 19, 2011,
beginning at 10 a.m. in the auditorium
of the Internal Revenue Building, 1111
Constitution Avenue NW., Washington,
DC. The subject of the public hearing is
under section 67 of the Code.
The public comment period for the
proposed rulemaking expired on
December 6, 2011. Outlines of topics to
be discussed at the hearing were due on
December 7, 2011. The notice of
propose rulemaking and notice of public
hearing instructed those interested in
testifying at the public hearing to submit
an outline of the topics to be addressed.
As of Thursday, December 8, 2011, no
one has requested to speak. Therefore,
the public hearing scheduled for
December 19, 2011 is cancelled.
LaNita Van Dyke,
Chief, Publications and Regulations Branch,
Legal Processing Division, Associate Chief
Counsel (Procedure and Administration).
[FR Doc. 2011–31855 Filed 12–12–11; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF VETERANS
AFFAIRS
38 CFR Part 9
RIN 2900–AN40
Servicemembers’ Group Life Insurance
and Veterans’ Group Life Insurance—
Slayer’s Rule Exclusion
Department of Veterans Affairs.
Proposed rule.
AGENCY:
ACTION:
The Department of Veterans
Affairs (‘‘VA’’) proposes to amend its
regulations governing Servicemembers’
Group Life Insurance (‘‘SGLI’’) and
Veterans’ Group Life Insurance
(‘‘VGLI’’) to prohibit payment of
insurance proceeds payable 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 killing the decedent or
determined in a civil proceeding to have
intentionally killed the decedent
(‘‘slayer’’); a member of the slayer’s
family who is not related to the
decedent by blood, legal adoption, or
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SUMMARY:
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marriage; and a member of the slayer’s
family who is related to the decedent by
blood, legal adoption, or marriage and
who is convicted of a crime involving
the intentional killing of the decedent or
found in a civil proceeding to have been
involved in the intentional killing of the
decedent.
DATES: Comments must be received by
VA on or before February 13, 2012.
ADDRESSES: Written comments may be
submitted through https://
www.Regulations.gov; by mail or hand
delivery to Director, Regulations
Management (02REG), Department of
Veterans Affairs, 810 Vermont Ave.
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 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 https://
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 tollfree number.)
SUPPLEMENTARY INFORMATION: VA
proposes to amend 38 CFR 9.5 to
prohibit payment of the proceeds of
SGLI or VGLI 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; (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.
A Servicemember insured under SGLI
or a Veteran insured under VGLI has the
right to designate the beneficiary or
beneficiaries of the policy. See 38 U.S.C.
1970(a). Although proceeds of SGLI in
force on an insurable dependent of a
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77455
Servicemember on the date of the
dependent’s death are paid to the
Servicemember, if the Servicemember
dies before payment can be made, the
proceeds are payable to the person or
persons entitled to receive the proceeds
of the insurance on the Servicemember’s
life. 38 U.S.C. 1970(i). If a
Servicemember or Veteran does not
designate a beneficiary, no designated
beneficiary survives the decedent, or
payments are to be made by law, SGLI
and VGLI proceeds are paid in the
following order: (1) To the decedent’s
surviving spouse; (2) to the decedent’s
children and their descendants in equal
shares; (3) to the decedent’s parents in
equal shares or to the survivor of them;
(4) to the duly appointed executor or
administrator of the decedent’s estate; or
(5) to other next of kin of the decedent.
38 U.S.C. 1970(a). Proceeds of TSGLI are
also paid in accordance with this order
of precedence if an insured
Servicemember entitled to a TSGLI
payment dies before payment is made.
38 U.S.C. 1980A(g)(2).
The statutes governing SGLI, VGLI,
and TSGLI are silent with regard to
whether a beneficiary who killed the
decedent or a family member of such a
beneficiary may receive the proceeds of
SGLI or VGLI or the TSGLI payment.
The Federal common-law slayer’s rule is
a public policy that generally precludes
killers from benefitting from their
victims’ deaths. Courts have applied the
slayer’s rule in resolving disputes over
entitlement to SGLI proceeds. See
Prudential Ins. Co. of Am. v. Athmer,
178 F.3d 473, 476 (7th Cir. 1999)
(slayer’s rule ‘‘is undoubtedly an
implicit provision of the Servicemen’s
Group Life Insurance Act of 1965’’) (that
Act created what is now known as
SGLI); Prudential Ins. Co. of Am. v.
Tolbert, 320 F. Supp. 2d 1378, 1380–81
(S.D. Ga. 2004). VA proposes to fill the
gap in the statutes governing SGLI,
VGLI, and TSGLI by adding paragraph
(e) to 38 CFR 9.5 to codify the
applicability of the slayer’s rule to these
VA insurance programs. See 38 CFR
3.11 (barring person who ‘‘has
intentionally and wrongfully caused the
death of another person’’ from
entitlement to VA pension,
compensation, or dependency and
indemnity compensation by reason of
such death); Lofton v. West, 198 F.3d
846, 850 (Fed. Cir. 1999) (finding § 3.11
to be ‘‘an entirely reasonable gap-filling
measure’’). New paragraphs (e)(1) and
(e)(2)(i) would bar a person who is
convicted of intentionally killing a
decedent or determined in a civil
proceeding to have intentionally killed
the decedent entitlement to the SGLI or
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77456
Federal Register / Vol. 76, No. 239 / Tuesday, December 13, 2011 / Proposed Rules
VGLI proceeds or a TSGLI payment.
Rather than deal with different types of
unlawful homicide and the unavoidable
variance among different jurisdictions,
we have chosen to generally designate
the unlawful homicide that triggers the
slayer’s rule as ‘‘intentionally killing’’
the decedent. Jones v. Prudential Life
Ins. Co., 814 F. Supp. 500, 501 (W.D. Va.
1993) (‘‘ ‘The true test [of whether the
slayer’s rule applies] is whether the
beneficiary intentionally took the life of
the insured.’ ’’) (quoting Jackson v.
Prudential Ins. Co. of Am., 254 A.2d
141, 147 (N.J. 1969)).
Some jurisdictions also disqualify
members of a slayer’s family, other than
individuals also related to the victim,
from receiving the proceeds of an
insurance policy. This is known as the
extended slayer’s rule and has been
applied to SGLI by a Federal court.
Tolbert, 320 F. Supp. 2d at 1380, 1381–
82. VA proposes to incorporate the
extended slayer’s rule in new § 9.5(e)(1)
and (2)(ii) and (iii) ‘‘to prevent killers
from receiving even the ‘indirect
benefits’ of their wrongdoing’’ by
receiving or inheriting, through
relatives, the financial benefits of the
killing. Id. at 1381 (quoting Beck v.
Downey, 198 F.2d 626, 628 (9th Cir.
1952)); Athmer, 178 F.3d at 476–77.
Section 9.5(e)(2)(ii) would bar a slayer’s
family member who is not related to the
decedent by blood, legal adoption, or
marriage from receiving SGLI or VGLI
proceeds. Id. at 1381. Section
9.5(e)(2)(iii) would bar a slayer’s family
member who is related to the decedent
by blood, legal adoption, or marriage
from receiving SGLI or VGLI proceeds
or TSGLI payment if the family member
is convicted of a crime involving the
intentional killing of the decedent or is
determined in a civil proceeding to have
been involved in the intentional killing
of the decedent. A new § 9.1(l) would
define ‘‘member of the family’’ for
purposes of § 9.5(e)(2)(ii) and (iii) to
mean an individual with any of the
following relationships to a person who
is convicted of intentionally killing the
decedent or determined in a civil
proceeding to have intentionally killed
the decedent: (1) Spouse; (2) biological,
adopted, or step child; (3) biological,
adoptive, or step parent; (4) biological,
adopted, or step sibling; (5) biological,
adoptive, or step grandparent or
grandchild; or (6) domestic partner.
Section 9.5(e)(3) would bar
entitlement to SGLI or VGLI proceeds or
a TSGLI payment to a person described
in paragraph (2) or a member of that
person’s family described in paragraph
(2) even though the criminal conviction
or civil determination is pending
appeal. See Webb v. Voirol, 773 F.2d
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208, 211 (8th Cir. 1985); United
Investors Life Ins. Co. v. Severson, 151
P.3d 824, 829–30 (Idaho 2007).
Section 9.5(e)(4)(i) would provide
that, if a person is disqualified from
receipt of SGLI or VGLI proceeds or a
TSGLI payment under § 9.5(e)(1) and
(2), the insurance proceeds or TSGLI
payment would be paid in the following
order of precedence: (1) To the next
eligible beneficiary as designated by the
servicemember or former
servicemember; (2) to the decedent’s
surviving spouse; (3) to the decedent’s
child or children, in equal shares, and
descendants of deceased children by
representation; (4) to the decedent’s
parents, in equal shares, or to the
survivor of them; (5) to the duly
appointed executor or administrator of
the decedent’s estate; or (6) to the
decedent’s next of kin as determined by
the Insurer under the laws of the
decedent’s domicile at the time of the
decedent’s death. Under § 9.5(e)(4)(ii),
payment to any person under
paragraphs (e)(4)(i) would bar recovery
by any other person.
VA proposes that this rule would be
applicable to any claim for SGLI or
VGLI proceeds, including a claim for a
payment under § 9.20, Traumatic injury
protection, filed before the effective date
of the rule that has not been paid as of
the effective date of this rule and to any
claim filed on or after the effective date
of the rule.
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.
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 proposed rule would have no
such effect on State, local, and Tribal
governments or on the private sector.
Regulatory Flexibility Act
The Secretary of Veterans Affairs
hereby certifies that this proposed 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 proposed rule would directly
affect only individuals and would not
directly affect any small entities.
Therefore, pursuant to 5 U.S.C. 605(b),
this proposed rule is exempt from the
initial and final regulatory flexibility
analysis requirements of sections 603
and 604.
Paperwork Reduction Act
This proposed 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).
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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
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Federal Register / Vol. 76, No. 239 / Tuesday, December 13, 2011 / Proposed Rules
R. Gingrich, Chief of Staff, Department
of Veterans Affairs, approved this
document on November 14, 2011, for
publication.
List of Subjects in 38 CFR Part 9
Life insurance, Military personnel,
Veterans.
Dated: December 8, 2011.
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 proposes to amend 38
CFR part 9 as set forth below:
PART 9—SERVICEMEMBERS’ GROUP
LIFE INSURANCE AND VETERANS’
GROUP LIFE INSURANCE
1. The authority citation for part 9
continues to read as follows:
Authority: 38 U.S.C. 501, 1965–1980A,
unless otherwise noted.
2. Amend § 9.1 by adding a new
paragraph (l) to read as follows:
§ 9.1
Definitions.
*
*
*
*
*
(l) The term member of the family as
used in § 9.5(e)(2) means an individual
with any of the following relationships
to a person who is convicted of
intentionally killing the decedent or
determined in a civil proceeding to have
intentionally killed the decedent:
(1) Spouse;
(2) Biological, adopted, or step child;
(3) Biological, adoptive, or step
parent;
(4) Biological, adopted, or step
sibling;
(5) Biological, adoptive, or step
grandparent or grandchild; or
(6) Domestic partner.
3. Amend § 9.5 by adding paragraph
(e) to read as follows:
§ 9.5
Payment of proceeds.
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*
*
*
*
*
(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 § 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 killing the decedent or
determined in a civil proceeding to have
intentionally killed the decedent;
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(ii) A member of the family of a
person described in paragraph (e)(2)(i)
of this section who is not related to the
decedent by blood, legal adoption, or
marriage; and
(iii) A member of the family of a
person described in paragraph (e)(2)(i)
of this section who is related to the
decedent by blood, legal adoption, or
marriage and who 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 the decedent.
(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
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 § 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 surviving
spouse;
(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 § 9.1(c) of this part) under
the laws of 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
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77457
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.
*
*
*
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*
[FR Doc. 2011–31870 Filed 12–12–11; 8:45 am]
BILLING CODE 8320–01–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 300
[EPA–HQ–SFUND–1999–0013; FRL–9503–8]
National Oil and Hazardous
Substances Pollution Contingency
Plan; National Priorities List: Deletion
of the Hiteman Leather Superfund Site
Environmental Protection
Agency (EPA).
ACTION: Proposed rule; notice of intent.
AGENCY:
EPA, Region 2, is issuing a
Notice of Intent to Delete the Hiteman
Leather Superfund Site (Site), located in
West Winfield, New York, from the
National Priorities List (NPL) and
requests public comments on this
proposed action. The NPL, promulgated
pursuant to Section 105 of the
Comprehensive Environmental
Response, Compensation, and Liability
Act (CERCLA) of 1980, as amended, is
an appendix of the National Oil and
Hazardous Substances Pollution
Contingency Plan (NCP). EPA and the
State of New York, through the New
York State Department of
Environmental Conservation, have
determined that all appropriate
response actions under CERCLA, other
than monitoring and maintenance and
five-year reviews, have been completed.
However, the deletion does not preclude
future action under Superfund.
DATES: Comments must be received by
January 12, 2012.
ADDRESSES: Submit your comments,
identified by Docket ID no. EPA–HQ–
SFUND–1999–0013, by one of the
following methods:
Web site: https://www.regulations.gov.
Follow the on-line instructions for
submitting comments.
Email: mongelli.thomas@epa.gov.
Fax: To the attention of Thomas
Mongelli at (212) 637–3966.
Mail: To the attention of Thomas
Mongelli, Remedial Project Manager,
Emergency and Remedial Response
Division, U.S. Environmental Protection
Agency, Region 2, 290 Broadway, 20th
Floor, New York, NY 10007–1866.
Hand Delivery: Superfund Records
Center, 290 Broadway, 18th Floor, New
SUMMARY:
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]]>Agencies
[Federal Register Volume 76, Number 239 (Tuesday, December 13, 2011)]
[Proposed Rules]
[Pages 77455-77457]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-31870]
=======================================================================
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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: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Department of Veterans Affairs (``VA'') proposes to amend
its regulations governing Servicemembers' Group Life Insurance
(``SGLI'') and Veterans' Group Life Insurance (``VGLI'') to prohibit
payment of insurance proceeds payable 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 killing the decedent or determined in a
civil proceeding to have intentionally killed the decedent
(``slayer''); a member of the slayer's family who is not related to the
decedent by blood, legal adoption, or marriage; and a member of the
slayer's family who is related to the decedent by blood, legal
adoption, or marriage and who is convicted of a crime involving the
intentional killing of the decedent or found in a civil proceeding to
have been involved in the intentional killing of the decedent.
DATES: Comments must be received by VA on or before February 13, 2012.
ADDRESSES: Written comments may be submitted through https://www.Regulations.gov; by mail or hand delivery to Director, Regulations
Management (02REG), Department of Veterans Affairs, 810 Vermont Ave.
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 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 https://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: VA proposes to amend 38 CFR 9.5 to prohibit
payment of the proceeds of SGLI or VGLI 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; (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.
A Servicemember insured under SGLI or a Veteran insured under VGLI
has the right to designate the beneficiary or beneficiaries of the
policy. See 38 U.S.C. 1970(a). Although proceeds of SGLI in force on an
insurable dependent of a Servicemember on the date of the dependent's
death are paid to the Servicemember, if the Servicemember dies before
payment can be made, the proceeds are payable to the person or persons
entitled to receive the proceeds of the insurance on the
Servicemember's life. 38 U.S.C. 1970(i). If a Servicemember or Veteran
does not designate a beneficiary, no designated beneficiary survives
the decedent, or payments are to be made by law, SGLI and VGLI proceeds
are paid in the following order: (1) To the decedent's surviving
spouse; (2) to the decedent's children and their descendants in equal
shares; (3) to the decedent's parents in equal shares or to the
survivor of them; (4) to the duly appointed executor or administrator
of the decedent's estate; or (5) to other next of kin of the decedent.
38 U.S.C. 1970(a). Proceeds of TSGLI are also paid in accordance with
this order of precedence if an insured Servicemember entitled to a
TSGLI payment dies before payment is made. 38 U.S.C. 1980A(g)(2).
The statutes governing SGLI, VGLI, and TSGLI are silent with regard
to whether a beneficiary who killed the decedent or a family member of
such a beneficiary may receive the proceeds of SGLI or VGLI or the
TSGLI payment. The Federal common-law slayer's rule is a public policy
that generally precludes killers from benefitting from their victims'
deaths. Courts have applied the slayer's rule in resolving disputes
over entitlement to SGLI proceeds. See Prudential Ins. Co. of Am. v.
Athmer, 178 F.3d 473, 476 (7th Cir. 1999) (slayer's rule ``is
undoubtedly an implicit provision of the Servicemen's Group Life
Insurance Act of 1965'') (that Act created what is now known as SGLI);
Prudential Ins. Co. of Am. v. Tolbert, 320 F. Supp. 2d 1378, 1380-81
(S.D. Ga. 2004). VA proposes to fill the gap in the statutes governing
SGLI, VGLI, and TSGLI by adding paragraph (e) to 38 CFR 9.5 to codify
the applicability of the slayer's rule to these VA insurance programs.
See 38 CFR 3.11 (barring person who ``has intentionally and wrongfully
caused the death of another person'' from entitlement to VA pension,
compensation, or dependency and indemnity compensation by reason of
such death); Lofton v. West, 198 F.3d 846, 850 (Fed. Cir. 1999)
(finding Sec. 3.11 to be ``an entirely reasonable gap-filling
measure''). New paragraphs (e)(1) and (e)(2)(i) would bar a person who
is convicted of intentionally killing a decedent or determined in a
civil proceeding to have intentionally killed the decedent entitlement
to the SGLI or
[[Page 77456]]
VGLI proceeds or a TSGLI payment. Rather than deal with different types
of unlawful homicide and the unavoidable variance among different
jurisdictions, we have chosen to generally designate the unlawful
homicide that triggers the slayer's rule as ``intentionally killing''
the decedent. Jones v. Prudential Life Ins. Co., 814 F. Supp. 500, 501
(W.D. Va. 1993) (`` `The true test [of whether the slayer's rule
applies] is whether the beneficiary intentionally took the life of the
insured.' '') (quoting Jackson v. Prudential Ins. Co. of Am., 254 A.2d
141, 147 (N.J. 1969)).
Some jurisdictions also disqualify members of a slayer's family,
other than individuals also related to the victim, from receiving the
proceeds of an insurance policy. This is known as the extended slayer's
rule and has been applied to SGLI by a Federal court. Tolbert, 320 F.
Supp. 2d at 1380, 1381-82. VA proposes to incorporate the extended
slayer's rule in new Sec. 9.5(e)(1) and (2)(ii) and (iii) ``to prevent
killers from receiving even the `indirect benefits' of their
wrongdoing'' by receiving or inheriting, through relatives, the
financial benefits of the killing. Id. at 1381 (quoting Beck v. Downey,
198 F.2d 626, 628 (9th Cir. 1952)); Athmer, 178 F.3d at 476-77. Section
9.5(e)(2)(ii) would bar a slayer's family member who is not related to
the decedent by blood, legal adoption, or marriage from receiving SGLI
or VGLI proceeds. Id. at 1381. Section 9.5(e)(2)(iii) would bar a
slayer's family member who is related to the decedent by blood, legal
adoption, or marriage from receiving SGLI or VGLI proceeds or TSGLI
payment if the family member is convicted of a crime involving the
intentional killing of the decedent or is determined in a civil
proceeding to have been involved in the intentional killing of the
decedent. A new Sec. 9.1(l) would define ``member of the family'' for
purposes of Sec. 9.5(e)(2)(ii) and (iii) to mean an individual with
any of the following relationships to a person who is convicted of
intentionally killing the decedent or determined in a civil proceeding
to have intentionally killed the decedent: (1) Spouse; (2) biological,
adopted, or step child; (3) biological, adoptive, or step parent; (4)
biological, adopted, or step sibling; (5) biological, adoptive, or step
grandparent or grandchild; or (6) domestic partner.
Section 9.5(e)(3) would bar entitlement to SGLI or VGLI proceeds or
a TSGLI payment to a person described in paragraph (2) or a member of
that person's family described in paragraph (2) even though the
criminal conviction or civil determination is pending appeal. See Webb
v. Voirol, 773 F.2d 208, 211 (8th Cir. 1985); United Investors Life
Ins. Co. v. Severson, 151 P.3d 824, 829-30 (Idaho 2007).
Section 9.5(e)(4)(i) would provide that, if a person is
disqualified from receipt of SGLI or VGLI proceeds or a TSGLI payment
under Sec. 9.5(e)(1) and (2), the insurance proceeds or TSGLI payment
would be paid in the following order of precedence: (1) To the next
eligible beneficiary as designated by the servicemember or former
servicemember; (2) to the decedent's surviving spouse; (3) to the
decedent's child or children, in equal shares, and descendants of
deceased children by representation; (4) to the decedent's parents, in
equal shares, or to the survivor of them; (5) to the duly appointed
executor or administrator of the decedent's estate; or (6) to the
decedent's next of kin as determined by the Insurer under the laws of
the decedent's domicile at the time of the decedent's death. Under
Sec. 9.5(e)(4)(ii), payment to any person under paragraphs (e)(4)(i)
would bar recovery by any other person.
VA proposes that this rule would be applicable to any claim for
SGLI or VGLI proceeds, including a claim for a payment under Sec.
9.20, Traumatic injury protection, filed before the effective date of
the rule that has not been paid as of the effective date of this rule
and to any claim filed on or after the effective date of the 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 year. This proposed rule would have no such effect on
State, local, and Tribal governments or on the private sector.
Paperwork Reduction Act
This proposed 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
proposed 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 proposed rule would
directly affect only individuals and would not directly affect any
small entities. Therefore, pursuant to 5 U.S.C. 605(b), this proposed
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
[[Page 77457]]
R. Gingrich, Chief of Staff, Department of Veterans Affairs, approved
this document on November 14, 2011, for publication.
List of Subjects in 38 CFR Part 9
Life insurance, Military personnel, Veterans.
Dated: December 8, 2011.
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 proposes to amend 38 CFR
part 9 as set forth below:
PART 9--SERVICEMEMBERS' GROUP LIFE INSURANCE AND VETERANS' GROUP
LIFE INSURANCE
1. The authority citation for part 9 continues to read as follows:
Authority: 38 U.S.C. 501, 1965-1980A, unless otherwise noted.
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 killing the decedent or determined in a
civil proceeding to have intentionally killed the decedent:
(1) Spouse;
(2) Biological, adopted, or step child;
(3) Biological, adoptive, or step parent;
(4) Biological, adopted, or step sibling;
(5) Biological, adoptive, or step grandparent or grandchild; or
(6) Domestic partner.
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 killing the decedent
or determined in a civil proceeding to have intentionally killed the
decedent;
(ii) A member of the family of a person described in paragraph
(e)(2)(i) of this section who is not related to the decedent by blood,
legal adoption, or marriage; and
(iii) A member of the family of a person described in paragraph
(e)(2)(i) of this section who is related to the decedent by blood,
legal adoption, or marriage and who 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 the
decedent.
(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 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 surviving spouse;
(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
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. 2011-31870 Filed 12-12-11; 8:45 am]
BILLING CODE 8320-01-P
