�This Page Declassified lAW EO12958 90 ? '?*?_A..?* ?T. ISTORZCAL ?TUDZE? lating to the payment of lump-sum insur- auce settlements to beneficiaries."-* The most significant change in the gov- ernment's program of insurance for service- men came with the passage of Pubhc Law 23, 82 Cong., 1 Sess. (approved 25 April 1951). Part I of th?s measure was entitled the Serviceman's Indemmty Act of 1951, and Part II was entitled the Insurance Act of 1951. The Serviceman's ?[ndemnity Act provided $10,000 free hie insurance cover- age for all members of the armed forces serving on or after 27 June 1951. Under this new insurance plan eli serwcemen on ac- tive duty, mcluding cadets and midship- men, were automatically covered by a $10,- 000 government indemnity (less any NSLI or United States government hfe insurance in force) xn case of death. The coverage was in effect for 120 days after leaving act!re duty. Upon death payment was to be made to the benefictaries m 120 monthly matall- merits of $92.90 each. Payment was to be made only to certain classes of cIose role. tires. An Inchvidua! already insured under a permanent plan of national serwce or United States government life xnsurance might elect to surrender his contract for its cash value, m which case he would have coverage under the mdemmty act while in achve service and would also be eligible to purchase postserwce insurance on the same plan, not in excess of the amount of the insurance he had surrendered for cash. ? The insurance Act of 1951 provided that servicemen could no longer purchase new national service life insurance pohmes. However, an individual could purchase postservice insurance from the United States government within 129 days after leaving active service. This would be five- year term insurance, renewable, nonpar- ticipating, and noaconverhbIe. The pre- mium payments were to be based on at- tamed age and lower than the premium payment rates for NSLI on the five- year level term plan. An individual un- insurehie as a result of service connected disabihty could purchase a new type of non- participating postservice insurance. Pre- miums could be waived in case of total disabilityJ ? This insurance plan was obviously of ad- vantage to servicemen on actxve duty in that xt gave them lile insurance protectwn at no expense to themselves for the dura. hon of their period of active serwce. When they Ie?t the setwee they could still pur- chase government insurance at a teasone. ble cost and they had the assurance of in- surance protection in case of disability. The indemnity act also had the advantage of effectLug substantial savings for the gov- ernment, sawngs which would mcrease as the amount of national service life insur. anco in force and the amount of adminis- trative work ?n connection therewith di~ minishedJ? In 1951 Congress also enacted two other laws amending the insurance act of 1940. Pubhc Law 3õ, 82 Cong., I Sess (approved 18 May 1951) provided that d?wdends on national service hfe insurance should be applied in the payment of premiums unless the insured requested payment in cash. TM Public Law 104, 8?. Cong., i Sess. (approved ?. August i951) authorized renewals of level premium term insurance for successive five- year periods. ? Finally, in connection w?th ?nsurance coverage and related government benefits for servicemen ?t should be poreted out that the so-called vetoran's amendments to the Social Security Act passed in 1950, 1952, and 1953, have in effect made service in the armed forces s?nce 16 September 1940 "coy, ered employment" with all that means in terms of Social Security survivor benefits n? In addition to the legislative provisions for disabled military personneI, included in the insurance acts, Congress enacted other legislation dealing with disability resulting from service in the armed /orees. Public Law 680, 80 Cong., 2 Scss. (approved 19 June 1948) prowded for the retention in service of disabled Army and Air Force personnel untfi their recovery had reached a point where they would no longer be bene- fited by treatment in a mihtazy hospital or retention in the service. TM Another act, Pub- lic Law 877, 80-Cong., 2 Seas. (approved 2 July 1948), increased the rate of compen- sation for veterans who had service con- nected disabilities and dependents and THIS PAGE Declassified lAW EO12958
