On May 5, 1982, appellant underwent a periodic reexamination by the VA. Dr. Jerrold Terdiman diagnosed him as having chronic schizophrenia-affective type, and his 100-percent rating was continued. On June 7, 1984, Dr. Terdiman reexamined appellant and confirmed the 1982 evaluation. Appellant's 100-percent rating remained intact. On July 2, 1986, appellant reported for yet another VA reexamination, and in a report dated July 3, 1986, Dr. Terdiman found appellant to be suffering from chronic schizophrenia-paranoid type and recorded:

[The veteran] insists that he is asymptomatic at this time. He states that he receives no psychiatric treatment. There have been no recent psychiatric hospitalizations. [He] has not worked at all for the past seven years. He avoids social situations. He denies perceptual distortions. [He] states that he has no goal directed activities. He is 39 years old, divorced [with] three children. [He] is alert and well oriented. He is tense [and] anxious. [His] affect is constricted. [His] mood is depressed. Paranoid ideation is expressed. [His] memory is intact. [His] insight is absent. [His] judgement is adequate for rating purposes.

R. at 20. As a consequence of this examination, on September 2, 1986, the VA Regional Office (RO) issued a rating decision lowering appellant's rating for service-connected schizophrenia from 100 percent to 70 percent and stated:

Based on 7/3/86 examination, it is determined that the veteran's nervous condition has improved. Reduction to 70% is warranted . . . .

R. at 21.