RECORD OF PROCEEDINGS


	IN THE CASE OF:	  


	BOARD DATE:	  7 August 2007
	DOCKET NUMBER:  AR20070003349 


	I certify that hereinafter is recorded the true and complete record of the proceedings of the Army Board for Correction of Military Records in the case of the above-named individual.


Ms. Catherine C. Mitrano

Director

Ms. Joyce A. Wright

Analyst


The following members, a quorum, were present:


Ms. Linda D. Simmons

Chairperson

Ms. Ernestine Fields

Member

Mr. Randolph J. Fleming

Member

	The Board considered the following evidence:

	Exhibit A - Application for correction of military records.

	Exhibit B - Military Personnel Records (including advisory opinion, if any).


THE APPLICANT'S REQUEST, STATEMENT, AND EVIDENCE:

1.  The applicant requests, in effect, exemption from payment responsibility of his Servicemens' Group Life Insurance (SGLI) coverage during the period April 2006 through September 2006, in the amount of $522.00.

2.  The applicant states, in effect, that he never requested SGLI insurance; therefore, he feels that he owes the Government nothing.  

3.  The applicant provides an additional statement.  He states that he wishes to appeal the premium amount of $522.00 that was charged for SGLI.  He did not want nor did he sign up for any insurance coverage.  He never requested servicemembers' individual or family coverage.  He elaborated on the directions for completion of his SGLI form, which was located on the reverse side of the form.  He inquires as to how the amount of $522.00 was derived.  His unit did not have an administrator, therefore he took the information that he received concerning SGLI to an Army National Guard (ARNG) unit clerk with 30 years of military experience.  He could not figure out how this amount had been determined.  The memorandum from the Army Human Resources Command (AHRC) indicates that the amount due was based on the amount of coverage he elected.  Once again, he states that he did not elect any coverage and believes that he does not owe the Government anything.

4.  The applicant provides a copy of a memorandum from AHRC-St. Louis, dated 6 April 2006 and 26 October 2006, a copy of his SGLV 8286 (SGLI Election and Certificate), a copy of his NGB (National Guard Bureau) Form 22 (Report of Separation and Record of Service), and a copy of his separation orders, in support of his request.

CONSIDERATION OF EVIDENCE:

1.  The applicant's records show that he was appointed in the Tennessee ARNG (TNARNG) as a second lieutenant, effective 27 June 1987, with prior enlisted ARNG service.  He was promoted to captain (CPT/O-3) effective 9 April 1996.

2.  On 14 July 1996, the applicant completed an SGLI Election and Certificate and indicated that he did not want insurance at that time.  The reverse side of the form indicated that this insurance was in effect throughout the period of full-time active duty for training (ADT).  Coverage was also in effect on a full-time basis


for Reservists who were assigned to a unit or position in which they could be required to perform AD or ADT and each year that they were scheduled to perform at least 12 periods of inactive duty training (IADT) that is creditable for retirement purposes under Chapter 67 of Title 10.  Coverage continued for 120 days following separation or release. 

3.  The applicant served until he was honorably separated from the TNARNG on 1 January 1998.  He was transferred to the USAR (United States Army Reserve) Control Group (Reinforcement).  

4.  The applicant was honorably discharged from the USAR, in the rank of CPT, on 27 October 2006.  

5.  The applicant provided a copy of a memorandum from the Director, Personnel Actions and Services, AHRC-St. Louis, dated 6 April 2006, Subject:  SGLI Semiannual Premium Notice.  The memorandum indicated that $182.00 was due for the period April 2006 through September 2006, for $400,000.00 worth of insurance coverage.  The memorandum stated that SGLI semi-annual premium notices were mailed each April and October to all Individual Ready Reserve (IRR) and Individual Mobilization Augmentee (IMA) Soldiers attached to units or positions, drilling for points only in a non-pay status, who elected coverage.  Payments for SGLI coverage were made in advance for the next 6-month period. For example, the April billing covered April through September and the October billing covered October through the following March.  Payment (in full) was due no later than 30 days from the date of this bill.  The memorandum stated that the amount due was based on the amount of coverage the individual elected.  

6.  The applicant provided a copy of a memorandum from the Director, Personnel Actions and Service, AHRC-St. Louis, dated 26 October 2006.  The memorandum indicated that the amount due was $522.00.  The memorandum stated that Section 1969, Title 38, United States Code, required termination of SGLI coverage for individuals who failed to remit required premiums within 60 days of the premium due date.  Additionally, the statute required that individuals be provided 60 days written notice of termination of SGLI coverage.  Lastly, it stated that such termination could be vacated if the individual remitted all amounts past due and demonstrated that failure to make timely remittance was justifiable. In accordance with the above law, his SGLI coverage would be terminated in 60 calendar days unless the total overdue premium balance identified was remitted in full.  Termination of his SGLI coverage would not absolve him of the SGLI premium debt.  


7.  Army Regulation 600-8-1 (Army Casualty Operations/Assistance/Insurance) states, in paragraph 11-12c, that all Soldier's are automatically insured under SGLI for $400,000 unless they elect in writing to be covered for a lesser amount, or not to be covered at all.  

8.  The SGLI and VGLI programs are Department of Veterans Affairs programs. Only certain portions of the SGLI program, such as preparing the VA Form       29-8286 and collecting premiums, are administered by the military services.  SGLI provides full-time life insurance coverage for individuals on active duty.  Full-time coverage is also available to Ready Reservists.  SGLI is in effect for 120 days after an individual separates from active duty or the Reserves.  Individuals entitled to SGLI coverage can convert to VGLI by submitting the premium within 120 days after separating.  After 121 days, the individual may be granted VGLI provided an initial premium and evidence of insurability are submitted within one year after termination of the individual's SGLI coverage.  VGLI provides renewable five-year term coverage.  VGLI is available to (a) individuals being released from AD or the Ready Reserves; (b) Ready Reservists who have part-time coverage, and who while performing AD or IDT for a period of less than 31 days, suffer a disability which renders them uninsurable at standard premium rates; and (c) members of the Individual Ready Reserve and Inactive National Guard.  

DISCUSSION AND CONCLUSIONS:

1.  In view of the circumstances in this case, the applicant should be exempted from responsibility for SGLI premium payments for the period April 2006 through September 2006.

2.  The evidence shows that the applicant was informed in writing, by AHRC, on 6 April 2006, that he owed $182.00 for $400,000.00 worth of SGLI coverage and on 26 October 2006 that he owed $522.00 for SGLI coverage.  However, the applicant never wanted, nor did he sign up for, SGLI.  He also did not understand how the amount of $522.00 was derived.

3.  The evidence shows that the applicant completed an SGLI Election Certificate on 14 July 1996, and elected not to participate in the SGLI program.  





4.  It appears that an error was made in reporting the applicant had applied for SGLI coverage.  It also appears that based on this error, the applicant was incorrectly being billed for insurance coverage he neither applied for nor desired. Therefore, in the interest of justice, it is recommended that the record be corrected to show that the applicant declined SGLI on 14 July 1996 and that the SGLI debt covering the period April 2006 through September 2006, in the amount of $522.00 is erroneous.  

BOARD VOTE:

__LDS __  _RJF ___  ___EF___  GRANT FULL RELIEF 

________  ________  ________  GRANT PARTIAL RELIEF 

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

BOARD DETERMINATION/RECOMMENDATION:

The Board determined that the evidence presented was sufficient to warrant a recommendation for relief.  As a result, the Board recommends that all Department of the Army records of the individual concerned be corrected to show that the applicant declined SGLI on 14 July 1996; therefore, the SGLI premium debt in the amount of $522.00 covering the period April 2006 through September 2006 is erroneous.




_____Linda D. Simmons  ____
          CHAIRPERSON




INDEX

CASE ID
AR20070003349
SUFFIX

RECON
YYYYMMDD
DATE BOARDED
20070807
TYPE OF DISCHARGE
HD
DATE OF DISCHARGE
20061027
DISCHARGE AUTHORITY
AR 135-175. . . . .  
DISCHARGE REASON

BOARD DECISION
GRANT 
REVIEW AUTHORITY

ISSUES         1.
128
2.

3.

4.

5.

6.