A-3727, AUGUST 5, 1924, 4 COMP. GEN. 155

A-3727: Aug 5, 1924

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THAT THIS ALLOTMENT WAS PAID IN FULL. PREMIUMS WERE DEDUCTED FROM THE PAY OF THE ENLISTED MAN FOR THE MONTHS OF NOVEMBER AND DECEMBER. HE WAS HONORABLY DISCHARGED JANUARY 18. THE UNITED STATES VETERANS' BUREAU IS CONTENDING THAT AS THE INSURED RECEIVED INSURANCE PROTECTION SUBSEQUENT TO THE TERMINATION OF THE ALLOTMENT AND DURING THE PERIOD THE PREMIUMS WERE ACTUALLY DEDUCTED FROM HIS PAY. THE BUREAU IS ENTITLED TO REIMBURSEMENT OF THE AMOUNT DEDUCTED. OR OTHERWISE MAKES PAYMENT OF SAID PREMIUMS IN ORDER THAT EACH PREMIUM SHALL BE PAID UPON THE DATE IT IS DUE OR WITHIN THE GRACE PERIOD OF 31 DAYS. WAS UNAUTHORIZED. THE PAYMENT OF INSURANCE PREMIUMS IS A MATTER OF CONTRACT BETWEEN THE VETERANS' BUREAU AND THE INSURED AND NECESSITATES AN AUTHORIZATION BY THE ENLISTED MAN BEFORE ANY AMOUNT DEDUCTED FROM THE PAY OF THE ENLISTED MAN MAY BE APPLIED AS PREMIUMS.

A-3727, AUGUST 5, 1924, 4 COMP. GEN. 155

VETERANS' BUREAU - INSURANCE PREMIUMS THE AMOUNT OF INSURANCE PREMIUMS DEDUCTED FROM THE PAY OF AN ENLISTED MAN OF THE NAVY, SUBSEQUENT TO THE PERIOD COVERED BY HIS ALLOTMENT AUTHORIZING THE DEDUCTION, MAY NOT BE PAID TO THE VETERANS' BUREAU IN THE ABSENCE OF AFFIRMATIVE ACTION BY THE ENLISTED MAN AUTHORIZING THE APPLICATION OF THE AMOUNT DEDUCTED AS INSURANCE PREMIUMS.

DECISION BY COMPTROLLER GENERAL MCCARL, AUGUST 5, 1924:

THE UNITED STATES VETERANS' BUREAU HAS REQUESTED REVIEW OF SETTLEMENT 026762, DATED MAY 31, 1924, DISALLOWING ITS CLAIM FOR AMOUNT OF $6.60, DEDUCTED AS INSURANCE PREMIUMS FOR THE PAY OF WILLIAM H. FRONDORF, A.S.E.R., U.S. NAVY, FOR NOVEMBER AND DECEMBER, 1923, AND JANUARY, 1924, AT THE RATE OF $2.20 PER MONTH.

THE ALLOTMENT DIVISION, BUREAU OF SUPPLIES AND ACCOUNTS, NAVY DEPARTMENT, HAS REPORTED THAT WILLIAM H. FRONDORF, EXECUTED AN ALLOTMENT FOR $2.20 PER MONTH FOR 34 MONTHS, FIRST PAYMENT JANUARY, 1921, IN FAVOR OF THE BUREAU OF WAR RISK INSURANCE, TO COVER PREMIUMS FOR CONVERTED INSURANCE, AND THAT THIS ALLOTMENT WAS PAID IN FULL, TERMINATING WITH THE EXPIRATION OF THE ALLOTMENT OCTOBER 31, 1923. NOTWITHSTANDING THE TERMINATION OF THE ALLOTMENT, PREMIUMS WERE DEDUCTED FROM THE PAY OF THE ENLISTED MAN FOR THE MONTHS OF NOVEMBER AND DECEMBER, 1923, AND JANUARY, 1924. HE WAS HONORABLY DISCHARGED JANUARY 18, 1924. THE UNITED STATES VETERANS' BUREAU IS CONTENDING THAT AS THE INSURED RECEIVED INSURANCE PROTECTION SUBSEQUENT TO THE TERMINATION OF THE ALLOTMENT AND DURING THE PERIOD THE PREMIUMS WERE ACTUALLY DEDUCTED FROM HIS PAY, THE BUREAU IS ENTITLED TO REIMBURSEMENT OF THE AMOUNT DEDUCTED, NAMELY, $6.60.

SECTION 4065, REGULATIONS UNITED STATES VETERANS' BUREAU, 1923, ISSUED IN PURSUANCE OF SECTIONS 400 AND 402 OF THE WAR RISK INSURANCE ACT, PROVIDES AS FOLLOWS:

WHEN AN INSURED PROVIDES FOR THE PAYMENT OF PREMIUMS BY AN ALLOTMENT OF HIS PAY, ANY PREVIOUS AUTHORIZATION FOR DEDUCTION FROM HIS PAY OR DEPOSIT FOR THE PAYMENT OF PREMIUMS SHALL BE DEEMED TO BE REVOKED AND HIS INSURANCE SHALL LAPSE AND TERMINATE AT THE END OF THE GRACE PERIOD AFTER THE ALLOTMENT OF HIS PAY EXPIRES, UNLESS THE INSURED REGISTERS A NEW ALLOTMENT OF HIS PAY OR EXECUTES AN AUTHORIZATION FOR DEDUCTIONS FROM HIS PAY OR DEPOSIT, OR OTHERWISE MAKES PAYMENT OF SAID PREMIUMS IN ORDER THAT EACH PREMIUM SHALL BE PAID UPON THE DATE IT IS DUE OR WITHIN THE GRACE PERIOD OF 31 DAYS, AS PROVIDED BY REGULATIONS AND THE TERMS OF THE UNITED STATES GOVERNMENT LIFE INSURANCE POLICY. (T.D. 48 W.T., SEPTEMBER 29, 1919, AS MODIFIED BY T.D. 66 W.R., JUNE 2, 1921, WHICH ALSO MODIFIES T.D. 49-A. THIS SUPERSEDES T.D. 44, WHICH SUPERSEDED PARTS OF T.D. 32 AND T.D. 33.)

ACCORDINGLY THE CHECK AGE OF THE INSURANCE PREMIUMS SUBSEQUENT TO OCTOBER 31, 1923, WAS UNAUTHORIZED. DECISION OF JULY 10, 1924, 4 COMP. GEN. 36. IN THE ABSENCE OF AFFIRMATIVE ACTION BY THE ENLISTED MAN AUTHORIZING THE APPLICATION OF THE AMOUNT DEDUCTED FROM HIS PAY AS INSURANCE PREMIUMS THERE EXISTS NO PROPER BASIS FOR A SETTLEMENT BY THIS OFFICE IN FAVOR OF THE VETERANS' BUREAU OF THE AMOUNT DEDUCTED. THE PAYMENT OF INSURANCE PREMIUMS IS A MATTER OF CONTRACT BETWEEN THE VETERANS' BUREAU AND THE INSURED AND NECESSITATES AN AUTHORIZATION BY THE ENLISTED MAN BEFORE ANY AMOUNT DEDUCTED FROM THE PAY OF THE ENLISTED MAN MAY BE APPLIED AS PREMIUMS.