Loading
The Oregon Administrative Rules contain OARs filed through March 15, 2014
 
QUESTIONS ABOUT THE CONTENT OR MEANING OF THIS AGENCY'S RULES?
CLICK HERE TO ACCESS RULES COORDINATOR CONTACT INFORMATION

 

DEPARTMENT OF VETERANS' AFFAIRS

 

DIVISION 22

PROCUREMENT OF BENEFITS

 

274-022-0005

Loan Cancellation Life Insurance

(1) The Director of Veterans' Affairs (DVA), prior to obtaining loan cancellation life insurance for any person who receives or assumes a loan or makes a contract with DVA for the acquisition of a home or farm, and the spouse or former spouse of that person, may enter into a contract with an insurance carrier which allows the carrier to:

(a) Require an application for insurance;

(b) Underwrite classes of prospective insureds on the basis of information, such as age and health status, contained in the application;

(c) Set premium schedules commensurate with risk factors for other than service-connected disability;

(d) Deny payment of benefits for suicide or certain preexisting, nonservice-connected disability.

(2) The Director will negotiate a contract with the insurance carrier as necessary to insure procurement and maintenance of adequate, solvent, and uninterrupted, long-term insurance coverage.

(3) The insurance contract may provide that loan cancellation life insurance on a loan or contract for the acquisition of a home or farm will be canceled after payments on the loan or contract become four months delinquent. Accounts due monthly are considered four months delinquent when the cumulative delinquency equals four times the standard monthly payment.

(4) Accounts due quarterly, semi-annually, or annually are considered four months delinquent when an amount that would equal four monthly payments (if payments were made monthly) remains unpaid four months after the due date.

(5) The insurance contract may provide that insurance canceled for the above reason cannot be reinstated unless payments are brought current and a new application for insurance is submitted. The provisions of section (1) of this rule will apply to the newly submitted application.

Stat. Auth.: ORS 406 & ORS 407
Stats. Implemented: ORS 407.465 - ORS 407.490
Hist.: DVA 22-1982, f. & ef. 9-22-82; DVA 2-1983, f. 1-14-83, ef. 1-15-83; DVA 11-1983, f. & ef. 9-22-83; DVA 8-1987, f. 11-17-87, ef. 12-1-8

The official copy of an Oregon Administrative Rule is contained in the Administrative Order filed at the Archives Division, 800 Summer St. NE, Salem, Oregon 97310. Any discrepancies with the published version are satisfied in favor of the Administrative Order. The Oregon Administrative Rules and the Oregon Bulletin are copyrighted by the Oregon Secretary of State. Terms and Conditions of Use

Oregon Secretary of State • 136 State Capitol • Salem, OR 97310-0722
Phone: (503) 986-1523 • Fax: (503) 986-1616 • oregon.sos@state.or.us

© 2013 State of Oregon All Rights Reserved​