PREC 8-99 Applicability of Incontestable Provision in NSLI Policies--38 U.S.C. § 1910 Citation: Vet. Aff. Op. Gen. Couns. Prec. 8-99, VAOPGCPREC 8-99, 1999 QUESTION PRESENTED: Whether 38 U.S.C. § 1910 prohibits the Department of Veterans Affairs (VA) from contesting a Government life insurance policy issued as a result of administrative error on the basis that the insured carries more than $10,000 of Government life insurance in contravention of 38 U.S.C. § 1903? HELD: a. Where, as a result of administrative error, Government life insurance policies issued to the same insured total in excess of $10,000 in violation of 38 U.S.C. § 1903, the policies are incontestable pursuant to 38 U.S.C. § 1910 except for fraud or nonpayment of premiums, or on the ground that the applicant was not a member of the military or naval forces of the United States. b. A contract for National Service Life Insurance (NSLI) cannot be created by the doctrine of promissory estoppel. To give rise to an NSLI contract, there must be a meeting of the minds of the contracting parties. Where veterans paid premiums on additional NSLI policies which did not belong to them because of erroneous billing by the Department of Veterans Affairs (VA), additional NSLI policies in favor of these individuals were not created. |
