R 181400Z SEP 01 ZYW
FM CMC WASHINGTON DC//MRC//
TO MARADMIN
BT
UNCLAS //N01741//
MARADMIN 442/01
MSGID/GENADMIN/CMC WASHINGTON DC/MRC//
SUBJ/FAMILY MEMBER COVERAGE UNDER THE SERVICEMEMBERS' GROUP LIFE
/INSURANCE (SGLI) PROGRAM//
REF/A/DOC/PUBLIC LAW 107-14/-/05JUN01//
REF/B/DOC/CMC MIF/-/07JUN01//
REF/C/DOC/CMC MRC/-/18DEC98//
NARR/REF (A) IS THE VETERANS' SURVIVOR BENEFITS ACT OF 2001; REF (B)
IS MCO P1080.40, MCTFSPRIM; REF (C) IS MCO P1741.8, GOVERNMENT LIFE
INSURANCE MANUAL.//
POC/S. O. WALLACE/CAPT/MRC/-/TEL:703-784-9512//
RMKS/1. REF (A) AUTHORIZED AND AMENDED TITLE 38, U.S. CODE TO
INCLUDE FAMILY MEMBER COVERAGE UNDER THE SERVICEMEMBERS' GROUP LIFE
INSURANCE (SGLI) PROGRAM.
2. EFFECTIVE 01 NOVEMBER 2001 (DETERMINED ON A WORLDWIDE BASIS BY
TIME AT THE INTERNATIONAL DATELINE) FAMILY MEMBERS (SPOUSE AND
CHILD(REN)) OF ALL MARINES INSURED UNDER THE SGLI PROGRAM WILL
AUTOMATICALLY BE INSURED UNDER SGLI. THE MARINE MUST BE COVERED
UNDER THE SGLI PROGRAM IN ORDER THAT COVERAGE MAY BE EXTENDED TO THE
MARINE'S FAMILY MEMBERS. FAMILY MEMBERS OF UNINSURED MARINES WILL
NOT BE COVERED.
3. SPOUSAL COVERAGE:
A. AUTOMATICALLY COVERED FOR $100,000 (MAXIMUM AMOUNT) OR THE
AMOUNT OF THE MARINE'S COVERAGE, IF INSURED FOR LESS THAN $100,000.
B. IN NO CASE MAY THE AMOUNT OF INSURANCE COVERAGE FOR THE
SPOUSE EXCEED THE AMOUNT OF INSURANCE COVERAGE OF THE MARINE.
C. THE MARINE MAY ELECT LESS THAN THE MAXIMUM AMOUNT ($100,000)
IN INCREMENTS OF $10,000 AND MUST DO SO IN WRITING BY COMPLETING THE
SGLV 8286A.
D. MARINES MARRIED TO ANOTHER SERVICEMEMBER ARE ELIGIBLE FOR
SPOUSAL COVERAGE. IF EACH MEMBER DESIRES TO ELECT THE MAXIMUM
AMOUNT FOR BOTH SGLI AND SPOUSAL COVERAGE, THE MEMBER WOULD BE
INSURED FOR $350,000. THE PREMIUM COSTS FOR SPOUSES WHO ARE ALSO
SERVICEMEMBERS WILL BE BASED ON THE TABLE IN PAR 5 VICE THE FLAT
RATE.
E. IF MARRIAGE OCCURS AFTER 01 NOVEMBER 2001, INSURANCE
COVERAGE BECOMES EFFECTIVE ON THE DATE OF MARRIAGE.
F. THE MARINE MUST ELECT IN WRITING NOT TO INSURE HIS/HER SPOUSE
BY COMPLETING THE SGLV 8286A.
G. IF THE MARINE DECLINES OR ELECTS LESS THAN THE MAXIMUM
COVERAGE AND AT A LATER DATE DESIRES TO OBTAIN OR INCREASE COVERAGE,
THE MARINE MUST COMPLETE THE SGLV 8285A AND 8286A.
4. CHILD(REN) COVERAGE:
A. AUTOMATICALLY COVERED FOR $10,000 AT NO COST TO THE MARINE.
B. THE MARINE MAY NOT ELECT TO INSURE HIS/HER CHILD(REN) FOR
LESS THAN $10,000.
C. COVERAGE BECOMES EFFECTIVE ON THE DATE OF BIRTH (IF AFTER 1
NOVEMBER 2001) OR, IF THE CHILD IS NOT THE NATURAL CHILD OF THE
MARINE, THE DATE ON WHICH THE CHILD ACQUIRES STATUS AS AN INSURABLE
FAMILY MEMBER OF THE MARINE.
D. A CHILD MAY NOT BE INSURED AT ANY TIME BY THE INSURANCE
COVERAGE OF MORE THAN ONE SERVICEMEMBER.
5. PREMIUM RATES - EFFECTIVE 01 NOVEMBER 2001:
SPOUSE'S AGE MONTHLY RATE PER $10,000 MONTHLY COST FOR $100,000
UNDER 35 $.90 $9.00
35-44 $1.30 $13.00
45-49 $2.00 $20.00
50-54 $3.20 $32.00
55 & OLDER $5.50 $55.00
CHILD(REN): COVERAGE IS FREE
6. TERMINATION OF COVERAGE: INSURANCE COVERAGE FOR AN INSURED
FAMILY MEMBER WILL CEASE 120 DAYS AFTER:
A. THE DATE OF AN ELECTION MADE IN WRITING BY THE MARINE TO
TERMINATE THE COVERAGE;
B. THE DATE OF THE MARINE'S DEATH;
C. THE DATE OF TERMINATION OF THE INSURANCE COVERAGE ON THE
MARINE'S LIFE;
D. TERMINATION OF THE FAMILY MEMBER'S STATUS AS AN INSURABLE
FAMILY MEMBER OF THE MARINE.
7. PAYMENT OF PROCEEDS:
A. ANY AMOUNT OF INSURANCE IN FORCE ON AN INSURABLE FAMILY
MEMBER ON THE DATE OF THE FAMILY MEMBER'S DEATH SHALL BE PAID TO THE
MARINE, OR IN THE EVENT OF THE MARINE'S DEATH BEFORE PAYMENT TO THE
MARINE CAN BE MADE, THEN TO THE PERSON(S) ENTITLED TO RECEIVE
PAYMENT OF THE PROCEEDS OF INSURANCE ON THE MARINE'S LIFE.
B. THE MARINE MUST SUBMIT A CERTIFIED DEATH CERTIFICATE TO THE
CMC (MRC) FOR VERIFICATION OF THE FAMILY MEMBER'S DEATH.
C. UPON RECEIPT OF THE DEATH CERTIFICATE, THE CMC (MRC) WILL
PROVIDE CERTIFICATION OF INSURANCE COVERAGE TO THE OSGLI FOR
IMMEDIATE PAYMENT.
D. UPON APPROVAL OF PAYMENT, OSGLI WILL AUTOMATICALLY DEPOSIT
THE PROCEEDS INTO A PRUDENTIAL ALLIANCE ACCOUNT (PAA) IN THE
MARINE'S NAME. THE PAA IS A PERSONALIZED INTEREST BEARING CHECKING
ACCOUNT. A LETTER WILL BE MAILED TO THE MARINE ADVISING THAT PAYMENT
HAS BEEN DEPOSITED.
E. UPON PAYMENT, THE MARINE IS ELIGIBLE FOR FREE PROFESSIONAL
FINANCIAL COUNSELING PROVIDED BY ERNST & YOUNG, LPP.
8. CONVERSION TO PRIVATE/COMMERCIAL LIFE INSURANCE.
A. UPON REQUEST OF THE SPOUSE, COVERAGE MAY BE CONVERTED TO AN
INDIVIDUAL POLICY OF INSURANCE, UPON WRITTEN APPLICATION TO A
PARTICIPATING COMPANY SELECTED BY THE SPOUSE AND PAYMENT OF THE
REQUIRED PREMIUMS.
B. CHILD COVERAGE CANNOT BE CONVERTED.
C. SPOUSAL COVERAGE IS PROHIBITED FROM CONVERSION TO VETERANS'
GROUP LIFE INSURANCE (VGLI).
D. INFORMATION CONCERNING CONVERSIONS SHOULD BE OBTAINED FROM
THE OSGLI.
9. COMMANDING OFFICER'S REQUIRED ACTIONS:
A. MAKE WIDEST DISSEMINATION OF THE INFORMATION CONTAINED IN
THIS MARADMIN, ENSURING MARINES UNDER YOUR COMMAND ARE INFORMED OF
THE FORTHCOMING CHANGES AFFECTING SGLI COVERAGE.
B. ENSURE ALL INSURED MARINES WITH INSURABLE FAMILY MEMBERS ARE
AWARE OF THE AUTOMATIC COVERAGE EFFECTIVE 01 NOVEMBER 2001.
C. ENSURE THOSE INSURED MARINES HAVING INSURABLE FAMILY MEMBERS
AND DESIRING NO COVERAGE OR LESS THAN MAXIMUM COVERAGE COMPLETE AN
SGLV 8286A PRIOR TO 01 NOVEMBER 2001.
10. THE NEWLY CREATED SGLV 8285A AND 8286A ARE POSTED AND SHOULD BE
OBTAINED FROM THE VA WEBSITE:
WWW.INSURANCE.VA.GOV(SLASH)FORMS(SLASH)FORMS.HTM.
THESE FORMS MAY BE DOWNLOADED OR COMPLETED ONLINE AND THEN PRINTED.
11. MCTFS REPORTING INSTRUCTIONS WILL BE PUBLISHED BY DFAS-PSMP/KC
VIA PAAN/RPAAN MESSAGE. FUTURE REPORTING REQUIREMENTS WILL ALSO BE
PUBLISHED BY PAA FROM CMC (MIF). THE NEW FAMILY MEMBER COVERAGE AND
PREMIUM OPTIONS WILL BE REFLECTED IN THE REVISED EDITION OF REF (B).
REF (C) IS CURRENTLY BEING REVISED TO INCLUDE INFORMATION, CLAIM
PROCEDURES, AND INSTRUCTIONS FOR THE MANAGEMENT OF THE SGLV 8285A
AND 8286A.
12. THIS MARADMIN HAS BEEN COORDINATED WITH CMC (MI) AND DFAS-KC.
//
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