B-4680, JULY 21, 1939, 19 COMP. GEN. 87

B-4680: Jul 21, 1939

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FOR THE MONTH DURING WHICH HE IS COMMISSIONED. THE CHARGE AGAINST GOVERNMENT FUNDS FOR THE FULL MONTH MAY BE ALLOWED TO STAND AND ONLY THE SUCCEEDING PREMIUMS FALLING DUE ARE REQUIRED TO BE DEDUCTED FROM THE OFFICER'S PAY. DURING THEIR PERIOD OF ACTIVE DUTY AVIATION CADETS WILL BE ISSUED GOVERNMENT LIFE INSURANCE IN THE AMOUNT OF $10. AVIATION CADETS WILL HAVE THE OPTION OF CONTINUING SUCH POLICIES AT THEIR OWN EXPENSE.'. SHALL CONTINUE WHEN AN AVIATION CADET IS COMMISSIONED PURSUANT TO THIS ACT. WHEN RELEASED FROM ACTIVE DUTY OR DISCHARGED THEY SHALL HAVE THE OPTION OF CONTINUING SUCH INSURANCE AT THEIR OWN EXPENSE.'. APPROXIMATELY 774 AVIATION CADETS WILL BE COMMISSIONED AND TAKE THE OATH OF OFFICE.

B-4680, JULY 21, 1939, 19 COMP. GEN. 87

INSURANCE - LIFE - AVIATION CADETS OF NAVAL RESERVE AND MARINE CORPS RESERVE - PREMIUM LIABILITY FOR MONTH WHEN COMMISSIONED WHERE, PURSUANT TO SECTION 5 OF THE ACT OF APRIL 15, 1935, 49 STAT. 157, THE GOVERNMENT HAS PAID THE MONTHLY PREMIUM ON GOVERNMENT LIFE INSURANCE OF AN AVIATION CADET OF THE NAVAL RESERVE OR MARINE CORPS RESERVE, FOR THE MONTH DURING WHICH HE IS COMMISSIONED, THE CHARGE AGAINST GOVERNMENT FUNDS FOR THE FULL MONTH MAY BE ALLOWED TO STAND AND ONLY THE SUCCEEDING PREMIUMS FALLING DUE ARE REQUIRED TO BE DEDUCTED FROM THE OFFICER'S PAY.

ASSISTANT COMPTROLLER GENERAL ELLIOTT TO THE SECRETARY OF THE NAVY, JULY 21, 1939:

THERE HAS BEEN RECEIVED YOUR LETTER OF JUNE 30, 1939, AS FOLLOWS:

SECTION 5 OF THE ACT APPROVED APRIL 15, 1935, (49 STAT. 157; 34 U.S. CODE, SUP IV, SEC. 846), WHICH ACT CREATED THE GRADE OF AVIATION CADET IN THE NAVAL RESERVE AND MARINE CORPS RESERVE, PROVIDES:

"SEC. 5. DURING THEIR PERIOD OF ACTIVE DUTY AVIATION CADETS WILL BE ISSUED GOVERNMENT LIFE INSURANCE IN THE AMOUNT OF $10,000, THE PREMIUMS ON WHICH SHALL BE PAID OUT OF CURRENT APPROPRIATIONS AS PROVIDED IN SECTION 7. UPON DISCHARGE OR UPON COMPLETION OF ACTIVE DUTY, AVIATION CADETS WILL HAVE THE OPTION OF CONTINUING SUCH POLICIES AT THEIR OWN EXPENSE.'

SECTION 7 OF THE NAVAL AVIATION RESERVE ACT OF 1939, APPROVED JUNE 13, 1939 ( PUBLIC NO. 129, 76TH CONGRESS, ST SESSION), PROVIDES:

"SEC. 7. GOVERNMENT LIFE INSURANCE ISSUED IN ACCORDANCE WITH SECTION 5 OF THE ACT OF APRIL 15, 1935 (34 U.S.C. 846), SHALL CONTINUE WHEN AN AVIATION CADET IS COMMISSIONED PURSUANT TO THIS ACT; THE PREMIUMS THEREON SHALL BE DEDUCTED FROM THE PAY OF THE OFFICERS CONCERNED AND PAID BY THE SECRETARY OF THE NAVY TO THE ADMINISTRATOR OF VETERANS' AFFAIRS. WHEN RELEASED FROM ACTIVE DUTY OR DISCHARGED THEY SHALL HAVE THE OPTION OF CONTINUING SUCH INSURANCE AT THEIR OWN EXPENSE.'

BETWEEN JULY 1 AND AUGUST 15, 1939, APPROXIMATELY 774 AVIATION CADETS WILL BE COMMISSIONED AND TAKE THE OATH OF OFFICE, ON WHICH DATE OF COMMISSION INSURANCE UNDER SECTION 7 OF THE NAVAL AVIATION RESERVE ACT OF 1939, SUPRA, WILL BECOME EFFECTIVE.

ON THE DATES OF ACCEPTANCE AND EXECUTION OF OATH OF OFFICE THE INSURANCE PREMIUMS WILL HAVE BEEN PAID FOR THE CURRENT MONTH, AS REQUIRED BY THE TERMS OF SECTION 5 OF THE ACT OF APRIL 15, 1935, SUPRA. UNDERVETERANS' ADMINISTRATION PRACTICE INSURANCE IS EFFECTIVE ON THE FIRST DAY OF THE MONTH IN WHICH APPLICATION FOR INSURANCE IS MADE. THIS PRACTICE CANNOT BE FOLLOWED IN THE CASE OF AVIATION CADETS FOR THE REASON THAT THE INSURANCE BECOMES EFFECTIVE ON THE DATE THE AVIATION CADET ENTERS UPON ACTIVE DUTY.

IN OTHER WORDS, SHOULD THE DATE OF ENTRY UPON ACTIVE DUTY IN THE CASE OF AN AVIATION CADET BE JUNE 24, THE INSURANCE PREMIUM IS PAID FROM THAT DATE TO JULY 23. IN PRACTICALLY ALL SUCH CASES THIS WILL RESULT IN AN OVERLAPPING OF INSURANCE PREMIUMS PAID BY THE GOVERNMENT INTO THE PERIOD THE AVIATION CADET IS COMMISSIONED AND IS REQUIRED BY LAW (SEC. 7, NAVAL AVIATION RESERVE ACT OF 1939) TO BEAR THE COST OF THE PREMIUM.

IN THIS CONNECTION ATTENTION IS INVITED TO THE FACT THAT THE AVIATION CADETS COMMISSIONED UNDER SECTION 7 OF THE NAVAL AVIATION RESERVE ACT OF 1939 ARE NOW ATTACHED TO 72 SHIPS AND STATIONS ON THE EAST AND WEST COASTS OF THE UNITED STATES, THE PANAMA CANAL, HAWAII, AND ALASKA.

YOUR EARLY DECISION IS REQUESTED AS TO WHETHER THE OVERLAPPING OF GOVERNMENT PAID INSURANCE DUE TO STAGGERED INSURANCE MONTHS, AS HEREINBEFORE STATED, MAY BE ALLOWED TO STAND AS A CHARGE AGAINST GOVERNMENT FUNDS, OR SHOULD THE ACCOUNT OF EACH RESERVE OFFICER CONCERNED BE CHECKED FOR THE FRACTIONAL PART OF THE INSURANCE MONTH IN WHICH HE ACCEPTS HIS COMMISSION.

SECTION 5 OF THE ACT OF APRIL 15, 1935, 49 STAT. 157, PROVIDES THAT AVIATION CADETS WILL BE ISSUED GOVERNMENT LIFE INSURANCE IN THE AMOUNT OF $10,000, THE PREMIUMS TO BE PAID OUT OF CURRENT APPROPRIATIONS. SECTION 7 OF THE NAVAL AVIATION RESERVE ACT OF 1939, APPROVED JUNE 13, 1939, 53 STAT. 820, PROVIDES THAT THE GOVERNMENT LIFE INSURANCE AUTHORIZED IN SECTION 5 OF THE ACT OF APRIL 15, 1935, SHALL BE CONTINUED WHEN THE CADET IS COMMISSIONED AND THAT THE PREMIUMS SHALL BE DEDUCTED FROM THE PAY OF THE OFFICER CONCERNED.

SECTION 5 OF THE ACT OF APRIL 15, 1935, PROVIDES THAT THE GOVERNMENT SHALL PAY THE INSURANCE PREMIUMS DURING THE PERIOD OF THE CADET'S ACTIVE DUTY AND THAT UPON COMPLETION OF ACTIVE DUTY THE CADET MAY CONTINUE THE POLICY AT HIS OWN EXPENSE. NO PROVISION IS MADE FOR A RETURN OF ANY PART OF A MONTHLY PREMIUM PAID WHEN THE CADET IS DISCHARGED FROM ACTIVE DUTY, AND NO SUCH ADJUSTMENT IS CONTEMPLATED. IF THE CADET DESIRES TO CONTINUE THE POLICY AFTER RELEASE FROM ACTIVE DUTY HE MUST PAY ONLY THE PREMIUMS AS THEY FALL DUE AFTER HIS RELEASE FROM ACTIVE DUTY. IN VIEW OF THE PROVISIONS OF SECTION 5 OF THE ACT OF APRIL 15, 1935, IN ITS PRACTICAL APPLICATION TO THE OPTION GIVEN THE CADET TO CONTINUE THE INSURANCE POLICY AFTER RELEASE FROM ACTIVE DUTY, IT IS OBVIOUS THAT THE PROVISION OF SECTION 7 OF THE ACT OF JUNE 13, 1939, CONTEMPLATES THAT ONLY PREMIUMS FALLING DUE AFTER THE COMMISSION BECOMES EFFECTIVE SHALL BE DEDUCTED FROM THE OFFICER'S PAY. ACCORDINGLY, YOU ARE ADVISED THAT THE LAST PREMIUM PAID ON THE CADET'S INSURANCE POLICY RUNNING AT THE TIME HE IS COMMISSIONED MAY BE ALLOWED TO STAND AS A CHARGE AGAINST THE GOVERNMENT AND ONLY THE SUCCEEDING PREMIUMS FALLING DUE ARE REQUIRED TO BE DEDUCTED FROM THE OFFICER'S PAY.