A-19371, AUGUST 20, 1927, 7 COMP. GEN. 131

A-19371, AUGUST 20, 1927, 7 COMP. GEN. 131

VETERANS' BUREAU - INSURANCE - REVIVAL COMPENSATION AS FOR A GREATER DEGREE OF DISABILITY THAN ACTUALLY EXISTED, BUT TO WHICH THE BENFICIARY WAS ENTITLED, BETWEEN THE DATE THE LESSER DEGREE OF DISABILITY WAS DETERMINED AND THE FIRST OF THE THIRD CALENDAR MONTH NEXT SUCCEEDING, UNDER THE TERMS OF SECTION 205 OF THE WORLD WAR VETERANS' ACT, AND ADDITIONAL DISABILITY COMPENSATION DUE A BENEFICIARY UNDER THE STATUTE BECAUSE OF HAVING A WIFE, ARE PROPERLY CONSIDERED AS "COMPENSATION REMAINING UNCOLLECTED" AND ARE AVAILABLE FOR PREMIUMS TO REVIVE INSURANCE UNDER THE TERMS OF SECTION 305 OF THE STATUTE. WAR-RISK INSURANCE MAY NOT BE REGARDED AS REVIVED UNDER SECTION 305 OF THE WORLD WAR VETERANS' ACT, AS AMENDED BY THE ACT OF JULY 2, 1926, 44 STAT. 799, BY THE APPLICATION OF DISABILITY COMPENSATION WHICH HAS ACTUALLY BEEN PAID TO THE INSURED, EVEN THOUGH THE PAYMENT TO HIM WAS NOT MADE UNTIL AFTER THE EFFECTIVE DATE OF A RATING OF PERMANENT TOTAL DISABILITY. (NO LONGER FOLLOWED. SEE 7 COMP. GEN. 630.)

ACTING COMPTROLLER GENERAL GINN TO THE DIRECTOR, UNITED STATES VETERANS' BUREAU, AUGUST 20, 927:

CONSIDERATION HAS BEEN GIVEN TO YOUR LETTER OF JULY 28, 1927, REQUESTING DECISION (1) WHETHER DISABILITY COMPENSATION WHICH WAS PAYABLE ONLY BY REASON OF THE PROVISIONS OF SECTION 205 OF THE WORLD WAR VETERANS' ACT IS AVAILABLE AS UNCOLLECTED COMPENSATION FOR THE PURPOSE OF REVIVING INSURANCE UNDER SECTION 305 OF THE STATUTE; AND (2) WHETHER THE ADDITIONAL DISABILITY COMPENSATION PAYABLE UNDER THE STATUTE BECAUSE THE BENEFICIARY HAS A WIFE MAY ALSO BE REGARDED AS UNCOLLECTED COMPENSATION WITHIN THE MEANING OF SECTION 305 OF THE STATUTE.

AS INVOLVING THE QUESTIONS, YOU SUBMIT THE FACTS IN THE CASE OF JAMES WATSON PEACOCK AS OLLOWS:

YOUR DECISION IS REQUESTED UPON THE CASE OF JAMES WATSON PEACOCK, C 437718, IN WHICH THE PRINCIPAL QUESTION PRESENTED IS WHETHER COMPENSATION PAYABLE ONLY BY REASON OF THE PROVISION OF SECTION 205 OF THE WORLD WAR VETERANS' ACT, JUST CONCLUDED, MAY BE CONSIDERED AS UNCOLLECTED COMPENSATION FOR THE PURPOSE OF SECTION 305 OF THE WORLD WAR VETERANS' ACT.

JAMES WATSON PEACOCK ENTERED THE SERVICE ON MAY 24, 1918, AND ON AUGUST 14, 1918, APPLIED FOR $10,000 TERM INSURANCE, DESIGNATING HIS FATHER AND MOTHER BENEFICIARIES FOR $5,000 EACH. THE VETERAN WAS DISCHARGED ON JANUARY 9, 1919, AND HIS INSURANCE WAS REPORTED TO HAVE LAPSED FOR FAILURE TO PAY THE PREMIUM DUE FEBRUARY 1, 1919. ON DECEMBER 31, 1920, AN APPLICATION WAS MADE TO REINSTATE THE INSURANCE, BUT THIS APPLICATION WAS INCOMPLETE AND NO FURTHER STEPS WERE TAKEN TO EFFECT A REINSTATEMENT.

AS THE RESULT OF A CLAIM FOR COMPENSATION, VARIOUS DISABILITY RATINGS WERE GIVEN, AND ON OCTOBER 26, 1925, THE VETERAN WAS RATED TEMPORARILY TOTALLY DISABLED BY REASON OF TUBERCULOSIS, EFFECTIVE OCTOBER 22, 1925. PREDICATED UPON THIS RATING, COMPENSATION WAS AWARDED TO HIM AT THE RATE OF $80.00 A MONTH AS A SINGLE MAN. ON JUNE 3, 1926, THE CASE WAS RERATED AND THE TEMPORARY TOTAL DISABILITY REDUCED TO TEMPORARY PARTIAL 75 PERCENT, EFFECTIVE JUNE 1, 1926. THE AWARD WAS AMENDED ON JUNE 16, 1926, AND THE COMPENSATION REDUCED TO $60.00 A MONTH (ON THE BASIS OF TEMPORARY PARTIAL 75 PERCENT) AS OF SEPTEMBER 1, 1926. THIS DATE WAS THE FIRST DAY OF THE THIRD CALENDAR MONTH SUBSEQUENT TO THE MONTH IN WHICH THE REDUCTION WAS DETERMINED. (SECTION 205 OF THE WORLD WAR VETERANS' ACT.)

ON JUNE 19, 1926, THE VETERAN SUBMITTED PROOF THAT HE HAD MARRIED ON MAY 16, 1926, AND HE CLAIMED ADDITIONAL COMPENSATION BY REASON OF SUCH MARRIAGE. THE REGIONAL OFFICE AMENDED THE AWARD WHEREIN THE CLAIMANT WAS GIVEN COMPENSATION AT THE RATE OF $90.00 A MONTH FROM MAY 16, 1926, TO AUGUST 31, 1926, AND $67.50 A MONTH THEREAFTER IN ACCORDANCE WITH THE TEMPORARY PARTIAL 75 PERCENT RATING. THE AMENDED AWARD, BY REASON OF THE MARRIAGE OF THE CLAIMANT, WAS MADE SEPTEMBER 25, 1926, AND APPROVED SEPTEMBER 28, 1926, AND PAYMENTS UNDER THIS AWARD WERE MADE.

ON SEPTEMBER 21, 1926, CLAIMANT'S CASE WAS AGAIN CONSIDERED AND THE VETERAN FOUND PERMANENTLY AND TOTALLY DISABLED FROM SEPTEMBER 21, 1926.

IT WOULD APPEAR FROM THE FOREGOING FACTS THAT THE ACTION OF THE BUREAU IN AWARDING THE CLAIMANT ADDITIONAL COMPENSATION ON ACCOUNT OF HIS WIFE FROM MAY 16 TO AUGUST 31, 1926, ON THE BASIS OF A TEMPORARY TOTAL DISABILITY, AND FROM SEPTEMBER 1, 1926, ON THE BASIS OF A TEMPORARY PARTIAL DISABILITY OF 75 PERCENT, WAS NOT TAKEN UNTIL AFTER THE PERMANENT AND TOTAL RATING HAD BEEN DETERMINED.

WHILE THE PARTICULAR CASE SUBMITTED IS FOR DISPOSITION ON OTHER GROUNDS, THE TWO GENERAL QUESTIONS AS STATED IN THE FIRST PARAGRAPH HEREOF WILL BE CONSIDERED AND ANSWERED.

SECTION 305 OF THE STATUTE AUTHORIZES REVIVAL OF INSURANCE BY APPLICATION OF UNCOLLECTED DISABILITY COMPENSATION. THE TWO GENERAL QUESTIONS SUBMITTED RELATE TO THE SECOND CONDITION OF THE STATUTE THAT THE INSURED "WAS OR IS ENTITLED TO COMPENSATION REMAINING UNCOLLECTED.' SEE 6 COMP. GEN. 707; ID. 800. IT IS IN GENERAL IMMATERIAL UNDER WHAT PROVISION OF THE STATUTE THE SAME WAS OR IS PAYABLE SO LONG AS IT REMAINS UNCOLLECTED. COMPENSATION FOR A GREATER DEGREE OF DISABILITY THAN ACTUALLY EXISTED, BUT TO WHICH THE BENEFICIARY WAS ENTITLED, BETWEEN THE DATE THE LESSER DEGREE OF DISABILITY WAS DETERMINED AND THE FIRST OF THE THIRD CALENDAR MONTH NEXT SUCCEEDING, UNDER THE TERMS OF SECTION 206 OF THE STATUTE, WAS COMPENSATION DUE THE INSURED, AND IF ANY SUCH REMAINS UNCOLLECTED, SAME IS AVAILABLE TO REVIVE THE INSURANCE. THE SAME IS TRUE OF THE ADDITIONAL COMPENSATION DUE AND UNCOLLECTED WHICH IS AUTHORIZED UNDER THE STATUTE AS AN EXTRA ALLOWANCE TO A VETERAN WHO HAS A WIFE. IN FACT, SECTION 305 OF THE STATUTE CONTROLLING THE REVIVAL OF INSURANCE EXPRESSLY STATES THAT THE UNCOLLECTED COMPENSATION SHALL BE "COMPUTED IN ALL CASES AT THE RATE PROVIDED BY SECTION 302 OF THE WAR RISK INSURANCE ACT AS AMENDED DECEMBER 24, 1919.' SAID SECTION, 41 STAT. 373, AUTHORIZES PAYMENT OF AN ADDITIONAL AMOUNT TO A BENEFICIARY WHO HAS A WIFE. THIS ADDITIONAL AMOUNT IS NOT PAID TO THE WIFE BUT TO THE BENEFICIARY AND IS AS MUCH COMPENSATION WITHIN THE MEANING OF SECTION 305 OF THE STATUTE AS IS COMPENSATION PAYABLE TO AN UNMARRIED BENEFICIARY. BOTH OF THE GENERAL QUESTIONS ARE ANSWERED IN THE AFFIRMATIVE.

HOWEVER, IT IS UNDERSTOOD THAT JAMES WATSON PEACOCK HAS COLLECTED ALL OF HIS DISABILITY COMPENSATION, AND THERE IS NOTHING IN THE TERMS OF SECTION 305 OF THE STATUTE, AS AMENDED BY THE ACT OF JULY 2, 1926, 44 STAT. 799, WHICH WOULD JUSTIFY THE CONCLUSION THAT DISABILITY COMPENSATION WHICH HAS IN FACT BEEN PAID TO A VETERAN MAY BE APPLIED TO REVIVE INSURANCE MERELY BECAUSE THE VETERANS' BUREAU DETERMINES THAT A VETERAN BECAME PERMANENTLY AND TOTALLY DISABLED PRIOR TO THE DATE SAID PAYMENT OF DISABILITY COMPENSATION WAS MADE. IN THIS CASE THE VETERAN APPARENTLY DID NOT COMPLY WITH THE REQUIREMENTS OF LAW OR REGULATIONS TO REINSTATE HIS INSURANCE PRIOR TO THE DATE HE BECAME PERMANENTLY AND TOTALLY DISABLED. DURING MOST OF THE PERIOD FROM DATE OF LAPSE OF INSURANCE HE WAS RECEIVING DISABILITY COMPENSATION, WHICH HE DID NOT APPLY TO REINSTATE THE INSURANCE. HIS RATING OF PERMANENT TOTAL DISABILITY APPARENTLY WAS MADE SEPTEMBER 21, 1926, OF WHICH IT IS PRESUMED HE WAS PROMPTLY NOTIFIED. NOTWITHSTANDING THIS, EITHER ON OR SUBSEQUENT TO SEPTEMBER 28, 1926, HE RECEIVED AND ACCEPTED PAYMENT OF THE ADDITIONAL COMPENSATION DUE HIM BECAUSE OF HIS MARRIAGE. THUS IT WOULD APPEAR THERE ARE NO UNPAID FUNDS DUE FROM THE GOVERNMENT TO THE INSURED WHICH MAY BE APPLIED AS PREMIUMS TOWARD REINSTATEMENT OF HIS INSURANCE. IN NO CASE IS INSURANCE TO BE REGARDED AS REVIVED UNDER SECTION 305 BY THE APPLICATION OF DISABILITY COMPENSATION WHICH HAS ACTUALLY BEEN PAID TO THE INSURED EVEN THOUGH THE PAYMENT TO HIM WAS NOT MADE UNTIL AFTER THE EFFECTIVE DATE OF THE PERMANENT TOTAL DISABILITY RATING.