B-127587, JUL. 16, 1957

B-127587, JUL. 16, 1957

TO HONORABLE H. V. HIGLEY, ADMINISTRATOR, VETERANS ADMINISTRATION:

THIS REFERS TO THE INDEBTEDNESS OF WALTER ALLAN SKINNER, CIVIL RELIEF NO. 37 894, C-14 168 391, THE SUBJECT OF YOUR LETTER OF MAY 17, 1957, WITH WHICH YOU TRANSMITTED A MEMORANDUM OF YOUR GENERAL COUNSEL CONCERNING THE CASE.

THE INDEBTEDNESS AROSE OUT OF THE GUARANTY BY THE VETERANS ADMINISTRATION OF COMMERCIAL LIFE INSURANCE PREMIUMS UNDER THE SOLDIERS' AND SAILORS' CIVIL RELIEF ACT AMENDMENTS OF OCTOBER 6, 1942. THE FACTS OF THE CASE ARE SET FORTH IN DETAIL IN THE MEMORANDUM OF THE GENERAL COUNSEL. MR. SKINNER, ON JULY 10, 1942, APPLIED UNDER THE SOLDIERS' AND SAILORS' CIVIL RELIEF ACT OF 1940 FOR THE PROTECTION OF A COMMERCIAL LIFE INSURANCE POLICY. BECAUSE OF AN OUTSTANDING INDEBTEDNESS ON THE POLICY HE WAS NOT ENTITLED TO THE BENEFITS OF THE ACT, AND A NOTICE OF DISAPPROVAL WAS ISSUED OCTOBER 9, 1942. HOWEVER, AS THE OCTOBER 6, 1942 AMENDMENTS REMOVED THE DISQUALIFICATION OF A POLICY INDEBTEDNESS, THE VETERANS ADMINISTRATION RECONSIDERED ITS ACTION OF OCTOBER 9, 1942. A NOTICE OF APPROVAL, UNDER THE 1942 AMENDMENTS, WAS ISSUED JANUARY 11, 1943, AND MR. SKINNER INFORMED OF THE STATUTORY OBLIGATION TO REIMBURSE THE GOVERNMENT FOR THE AMOUNT IT PAID THE INSURER ON HIS ACCOUNT. MR. SKINNER DID NOT PROTEST THE ADMINISTRATIVE ACTION OR THE INDEBTEDNESS UNTIL 1953, WHEN THE VETERANS ADMINISTRATION SOUGHT THE ASSISTANCE OF THE DEPARTMENT OF THE AIR FORCE--- IN WHICH THE DEBTOR WAS EMPLOYED--- IN THE SETTLEMENT OF THE INDEBTEDNESS.

WE CONCUR IN THE OPINION OF THE GENERAL COUNSEL THAT MR. SKINNER SHOULD BE CONSIDERED ESTOPPED TO DENY HIS ACCEPTANCE OF THE PROTECTION AFFORDED HIM UNDER THE 1942 AMENDMENTS AND THAT THE INDEBTEDNESS WITH WHICH HE IS CHARGED SHOULD BE MAINTAINED.

HONORABLE RICHARD B. RUSSELL, UNITED STATES SENATE, WHO INDICATED AN INTEREST IN THE CASE IS BEING INFORMED OF OUR VIEW.