Chapter 104. To amend an Act entitled “An Act to authorize the establishment of a Bureau of War Risk Insurance in the Treasury Department,” approved September second, nineteen hundred and fourteen, as amended
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CHAP. 104.— An Act To amend an Act entitled “An Act to authorize the establishment of a Bureau of War Risk Insurance in the Treasury Department,” approved September second, nineteen hundred and fourteen, as amended. June 25, 1918.[[S. 4482](/us/bill/65/s/4482).][[Public, No. 175](/us/pl/65/176).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*, That the second subdivision War Risk Insurance Act Amendments.*Ante*, p. 401, amended.
(4)of section twenty-two of the Act entitled “An Act to authorize the establishment of a Bureau of War Risk Insurance in the Treasury Department,” approved September second, nineteen hundred and fourteen, as amended, relating to the definition of the term “parent,” is hereby amended to read as follows: " “(4) The term ‘parent’ includes a father, mother, grandfather, Parents through adoption included.grandmother, father through adoption, mother through adoption, stepfather, and stepmother, either of the person in the service or of the spouse.”" Sec. 2. That four new sections are hereby added to Article I of New sections added.*Ante*, p. 402, amended.said Act, to be known as sections twenty-seven, twenty-eight, twenty-nine, and thirty, respectively, and to read as follows: " “ Sec. 27. That whoever shall obtain or receive any money, check, Punishment for fraudulently receiving money, etc.allotment, family allowance, compensation, or insurance under Articles II, III, or IV of this Act, without being entitled thereto, with intent to defraud the United States or any person in the military or naval forces of the United States, shall be punished by a fine of not more than $,000, or by imprisonment for not more than one year, or both. “Sec. 28. That the allotments and family allowances, compensation, Payments not assignable, subject to debts, nor taxable.and insurance payable under Articles II, III, and IV, respectively, shall not be assignable; shall not be subject to the claims of creditors of any person to whom an award is made under Articles II, HI, or IV; and shall be exempt from all taxation: *Provided*, That *Provisos*.Subject to claims of United States.such allotments and family allowances, compensation, and insurance shall be subject to any claims which the United States may have, under Articles II, III, and IV, against the person on whose account the allotments and family allowances, compensation, or insurance is payable. “Sec. 29. That the discharge or dismissal of any person from the Insurance and compensation barred for specified causes.military or naval forces on the ground that he is an enemy alien, 610conscientious objector, or a deserter, or as guilty of mutiny, treason, spying, or any offense involving moral turpitude, or willful and persistent misconduct shall terminate any insurance granted on the life of such person under the provisions of Article IV, and shall bar all rights to any compensation under Article III or any insurance under Article IV. “Sec. 30. Title of Act declared. That this Act may be cited as the war-risk insurance Act.”" Sec. 3. Allotments and family allowances. That section two hundred of said Act is hereby amended to read as follows: " “Sec. 200. All enlisted men included.Insular forces excepted.*Ante*, p. 402, amended. That the provisions of this article shall apply to all enlisted men in the military or naval forces of the United States, except the Philippine Scouts, the insular force of the Navy, and the Samoan native guard and band of the Navy.”" Sec. 4. Compulsory allotments. That the second and third paragraphs of section two hundred and one of said Act are hereby amended to read as follows: " Basis of computation.*Ante*, p. 402, amended. “The monthly compulsory allotment shall be $15. For a wife living separate and apart from her husband under court order or written agreement, or for a former wife divorced, the monthly compulsory allotment shall not exceed the amount specified in the court Illegitimate children.order, decree, or written agreement to be paid to her, and for an illegitimate child, to whose support the father has been judicially ordered or decreed to contribute, it shall not exceed the amount fixed in the order or decree. Former wife divorced.Restrictions. “If there is a compulsory allotment for a wife or child, then a former wife divorced who has not remarried and to whom alimony has been decreed, shall not be entitled to a compulsory allotment, but shall be entitled to a family allowance as hereinafter provided.” " Sec. 5. *Ante*, p. 403, amended. That section two hundred and three of said Act is hereby amended to read as follows: " “Sec. 203. Unalloted portion of pay may be deposited to credit of enlisted man. That in case one-half of an enlisted man’s monthly pay is not allotted, regulations to be made by the Secretary of War and the Secretary of the Navy, respectively, may require, under circumstances and conditions as may be prescribed in such regulations, that any proportion of such one-half pay as is not allotted shall be deposited to his credit, to be held during such period of his service as may Interest rate modified.be prescribed. Such deposit shall bear interest at the same rate as United States bonds bear for the same period, and, when payable, shall be paid principal and interest to the enlisted man, if living, otherwise to any beneficiary or beneficiaries he may have designated, or if there be no such beneficiary, then to the person or persons who, under the laws of the State of his residence, would be entitled to his personal property in case of intestacy.”" Sec. 6. Family allowances.*Ante*, p. 403, amended. That the third and fourth paragraphs of section two hundred and four of said Act are hereby amended to read as follows: " “Class A. Class A.To wife and children. In the case of a man to his wife (including a former wife divorced) and to his child or children— “
(a)If there is a wife but no child, $15; “
(b)If there is a wife and one child, $25; “
(c)If there is a wife and two children, $32.50, with $5 per month additional for each additional child; “
(d)If there is no wife, but one child, $5; “
(e)If there is no wife, but two children, $12.50; “
(f)If there is no wife, but three children, $20; “
(g)If there is no wife, but four children, $30, with $5 per month additional for each additional child; “
(h)Former wife divorced. If there is a former wife divorced who has not remarried and to whom alimony has been decreed, $15. “ Class B. Class B.Other relatives. In the case of a man or woman to a grandchild, a parent, brother, or sister— “
(a)If there is one parent, $10; “
(b)If there are two parents, $20; 611 “
(c)If there is a grandchild, brother, sister, or additional parent, $5 for each. “ In the case of a woman, the family allowances for a husband and Children or husband of woman.children shall be in the same amounts, respectively, as are payable, in the case of a man, to a wife and children, provided she makes a voluntary allotment of $15 as a basis therefor, and provided, further, that dependency exists as required in section two Hundred and six.” " Sec. 7. That section two hundred and six of said Act is hereby *Ante*, p. 404, amended.amended to read as follows: " “ Sec. 206. That family allowances to members of class B shall be Payments in Class B.paid only if and while the members are dependent in whole or in part on the enlisted man, and then only if and while the enlisted man makes a monthly allotment of his pay for such members in the following amounts: “
(a)If an enlisted man is not making a compulsory allotment for Requirement modified.class A the allotment for class B required as a condition to the family allowance shall be $15; “(b) If an enlisted man is making a compulsory allotment for class A the additional allotment for class B required as a condition to the family allowance shall be $5, or if a woman is making an allotment Woman included.of $15 for a dependent husband or child the additional allotment for the other members of class B required as a condition to the family allowance shall be $5.”" Sec. 8. That section two hundred and ten of said Act is hereby *Ante*, p, 404, amended.amended to read as follows: " “Sec. 210. That upon receipt of any application for family allowance, Certification of allotments.Investigation, etc.the commissioner shall make all proper investigations and shall make an award, on the basis of which award the amount of the allotments to be made by the man shall be certified to the War Department or Navy Department, as may be proper. Whenever the commissioner shall have reason to believe that an allowance has been improperly made or that the conditions have changed, he shall investigate or reinvestigate and may modify the award. The amount of each monthly allotment and allowance shall be determined according to the family conditions existing on the first day *Post*, p. 1160.of the month.”" Sec. 9. That sections four, six, seven, and eight of this Act shall Allowances effective from July 1, 1918.take effect on the first day of July, nineteen hundred and eighteen. Sec. 10. That section three hundred of said Act is hereby amended Death or disability compensation.to read as follows: " “Sec. 300. That for death or disability resulting from personal Classes of officers, enlisted men, etc., entitled.*Ante*, p. 405, amended.injury suffered or disease contracted in the line of duty, by any commissioned officer or enlisted man or by any member of the Army Nurse Corps (female) or of the Navy Nurse Corps (female) when employed m the active service under the War Department or Navy Department, the United States shall pay compensation as hereinafter provided; but no compensation shall be paid if the injury or disease Excluded for personal misconduct.*Provisos*.Soundness on entrance inferred.has been caused by his own willful misconduct: *Provided*, That for the purposes of this section said officer, enlisted man, or other member shall be held and taken to have been in sound condition when examined, accepted, and enrolled for service: *Provided further*, That this Effective October 6, 1917.section, as amended, shall be deemed to become effective as of October sixth, nineteen hundred and seventeen.”" Sec. 11. That section three hundred and one of said Act is hereby Death allowances.*Ante*, p. 405, amended.amended to read as follows: " “Sec. 301. That if death results from injury— Amounts payable modified. “If the deceased leaves a widow or child, or if he leaves a mother or father either or both dependent upon him for support, the monthly compensation shall be the following amounts: “
(a)If there is a widow but no child, $25; “(b) If there is a widow and one child, $35; 612 “
(c)If there is a widow and two children, $42.50, with $5 for each additional child up to two; “
(d)If there is no widow, but one child, $20; “
(e)If there is no widow, but two children, $30; “
(f)If there is no widow, but three children, $40, with $5 for each additional child up to two; “(g) Dependent parents. If there is a dependent mother (or dependent father), $20,or both, $30. The amount payable under this subdivision shall not exceed the difference between the total amount payable to the widow Limitations.and children and the sum of $75. This compensation shall be payable for the death of but one child, and no compensation for the death of a child shall be payable if the dependent mother is in receipt of compensation under the provisions of this article for the death of her husband. Such compensation shall be payable whether the dependency of the father or mother or both arises before or after the death of the person, but no compensation shall be payable if the dependency arises more than five years after the death of the person. Burial expenses. “If the death occurs before discharge or resignation from service, the United States shall pay for burial expenses and the return of the body to his home a sum not to exceed $100, as may be fixed by regulations. Term for widow. “The payment of compensation to a widow shall continue until her death or remarriage. Payments to children. “The payment of compensation to or for a child shall continue until such child reaches the age of eighteen years or marries, or if such child be incapable, because of insanity, idiocy, or being otherwise permanently helpless, then during such incapacity. Termination of right “Whenever the compensation payable to or for the benefit of any person under the provisions of tins section is terminated by the happening of the contingency upon which it is limited, the compensation thereafter for the remaining beneficiary or beneficiaries, if any, shall be the amount which would have been payable to them if they had been the sole original beneficiaries. Children not with mother. “As between the widow and the children not in her custody, and as between children, the amount of the compensation shall be apportioned as may be prescribed by regulation. Widow restriction. “The term ‘widow’ as used m this section shall not include one who shall have married the deceased later than ten years after the time of injury, and shall include a widower, whenever his condition is such that, if the deceased person were living, he would have been dependent upon her for support.” " Sec. 12. Disability compensation.*Ante*, p. 406, amended.Total. That subdivision
(1)of section three hundred and two of said Act is hereby amended to read as follows: " “
(1)If and while the disability is total, the monthly compensation shall be the following amounts: “
(a)If the disabled person has neither wife nor child living, $30; ‘‘
(b)If he has a wife but no child living, $45; ‘‘
(c)If he has a wife and one child living, $55; “
(d)If he has a wife and two children living, $65; “
(e)If he has a wife and three or more children living, $75; “(f) If he has no wife but one child living, $40, with $10 for each additional child up to two; “(g) With dependent parents. If he has a mother or father, either or both dependent on him for support, then in addition to the above amounts, $10 for each; “(h) Requiring constant attendants. If he is totally disabled and in addition so helpless as to be in constant need of a nurse or attendant, such additional sum shall be paid, but not exceeding $20 per month, as the director may deem *Provisos*.Allowances at 100 a month.reasonable: *Provided, however*, That for the loss of both feet or both hands or both eyes, or for becoming totally blind or becoming 613helpless and permanently bedridden from causes occurring in the line of duty in the service of the United States, the rate of compensation shall be $100 per month: *Provided further*, That where the rate None for attendant.of compensation is $100 per month, no allowance shall be made for a nurse or attendant.”" Sec. 13. That subdivision
(4)of section three hundred and two of said Act is hereby amended to read as follows: " “
(4)The amount of each monthly payment shall be determined Determination of monthly payments.*Ante*, p. 406. amended.according to the family conditions existing on the first day of the month.”" Sec. 14. That two new subdivisions are hereby added to section New subdivisions.three hundred and two of said Act, to be known as subdivisions
(5)and (6), respectively, and to read as follows: " “
(5)Where the disabled person and his wife are not living together, Apportionment if not living together.or where the children are not in the custody of the disabled person, the amount of the compensation shall be apportioned as may be prescribed by regulations. “
(6)The term ‘ wife’ as used in this section shall include ‘ husband ’ Dependent husband.if the husband is dependent upon the wife for support.”" Sec. 15. That where section three hundred and one of said Act is Restriction on widowed mother stricken out, effective as of October 6, 1917.amended by striking out the provisions that a mother is entitled to compensation only when she is widowed and substitute provisions are included to the effect that compensation is payable to a dependent mother or dependent father, such substitute provisions shall be deemed to be in effect as of October sixth, nineteen hundred and seventeen. Sec. 16. That section three hundred and eleven of said Act is Exemptions repealed.*Ante*, p. 408, repealed.hereby repealed. Sec. 17. That section three hundred and twelve of said Act is *Ante*, p. 408, amended.hereby amended to read as follows: " “Sec. 312. That compensation under this article shall not be paid No compensation if receiving service, etc., pay.Gratuities and pension laws not applicable hereafter.while the person is in receipt of service or retirement pay. The laws providing for gratuities or payments in the event of death in the service and existing pension laws shall not be applicable after the enactment of this amendment to any person in the active military or naval service on the sixth day of October, nineteen hundred and seventeen, or who thereafter entered the active military or naval service, or to their widows, children, or their dependents, except in so far as rights under any such law have heretofore accrued. “Compensation because of disability or death of members of Compensation to female nurses in lieu of that under injuries to employees.Vol. 39, p. 742.the Army Nurse Corps (female) or of the Navy Nurse Corps (female) shall be in lieu of any compensation for such disability or death under the Act entitled ‘An Act to provide compensation for employees of the United States suffering injuries while in the performance of their duties, and for other purposes,’ approved September seventh, nineteen hundred and sixteen.”" Sec. 18. That section three hundred and thirteen of said Act is Injuries caused by other persons.hereby amended to read as follows: " “Sec. 313.
(1)That if an injury or death for which compensation Action for, may be assigned to United States, or prosecuted personally.*Ante*, p. 408, amended.is payable under this article is caused under circumstances creating a legal liability upon some person other than the United States or the enemy to pay damages therefor, the director, as a condition to payment of compensation by the United States, may require the beneficiary to assign to the United States any right of action he may have to enforce such liability of such other person, or if it appears to be for the best interests of the beneficiary the director may require him to prosecute the said action in his own name, subject to regulations. The director may require such assignment or prosecution Compensation barred if not assigned or prosecuted.at any time after the injury or death, and the failure on the part of the beneficiary to so assign or to prosecute said cause of action in his own name within a reasonable time, to be fixed by the director, 614shall bar any right to compensation on account of the same injury Prosecution, etc., by United States.or death. The cause of action so assigned to the United States may be prosecuted or compromised by the director, and any money realized or collected thereon, less the reasonable expenses of such realization or collection, shall be placed to the credit of the military Use of amount received.and naval compensation appropriation. If the amount placed to the credit of such appropriation in such case is in excess of the amount of the award of compensation, if any, such excess shall be paid to the beneficiary after any compensation award for the same injury or death is made. Recovery by beneficiary to be credited on compensation. “If a beneficiary or conditional beneficiary shall have recovered, as a result of a suit brought by him or on his behalf, or as a result of a settlement made by him or on his behalf, any money or other property in satisfaction of the liability of such other person, such money or other property so recovered shall be credited upon any compensation payable, or which may become payable, to such beneficiary, or conditional beneficiary by the United States on account of the same injury or death. “
(2)Conditional beneficiaries.Assignment or personal prosecution by, required. If an injury or death for which compensation may be payable under this article is caused under circumstances creating a legal liability upon some person, other than the United States or the enemy, to pay damages therefor, then, in order to preserve the right of action, the director may require the conditional beneficiary at any time after the injury or death, to assign such right of action to the United States, or, if it appears to be for the best interests of such conditional beneficiary, to prosecute the said cause of action Compensation barred on failure.in his own name, subject to regulations. The failure on the part of the beneficiary to so assign or to prosecute the said cause of action in his own name within a reasonable time, to be fixed by the director, shall bar any right to compensation on account of the same injury or Prosecution, etc., by United States.death. The cause of action so assigned may be prosecuted or compromised by the director, and any money realized or collected thereon, less the reasonable expenses of such realization or collection, shall be paid to such beneficiary, and be credited upon any future compensation which may become payable to such beneficiary by the United States on account of the same injury or death. “
(3)Regulations to be made.Computation of amounts due beneficiary. The bureau shall make all necessary regulations for carrying out the purposes of this section. For the purposes of computation only under this section the total amount of compensation due any beneficiary shall be deemed to be equivalent to a lump sum equal to the present value of all future payments of compensation computed as of the date of the award of compensation at four per centum, true discount, compounded annually. The probability of the beneficiary’s death before the expiration of the period during which he is entitled to compensation shall be determined according to the American Experience Table of Mortality. Conditional beneficiary defined. “A conditional beneficiary is any person who may become entitled to compensation under this article on or after the death of the injured person. No duty for War or Navy Departments. “Nothing in this section shall be construed to impose any administrative duties upon the War or Navy Departments.”" Sec. 19. Insurance. That section four hundred and one of said Act is hereby amended to read as follows: " “Sec. 401. Time for making applications.*Ante*, p. 409, amended.*Ante*, p. 438. That such insurance must be applied for within one hundred and twenty days after enlistment or after entrance into or employment in the active service and before discharge or resignation, except that those persons who are in the active war service at the time of the publication of the terms and conditions of such contract of insurance may apply at any time within one hundred and twenty Persons in service disabled or dying without applying.days thereafter and while in such service. Any person in the active service on or after the sixth day of April, nineteen hundred and sev615enteen, who, while in such service and before the expiration of one hundred and twenty days from and after such publication, becomes or has become totally and permanently disabled, or dies, or has died, without having applied for insurance, shall be deemed to have applied for and to have been granted insurance, payable to such person during his life in monthly installments of $25 each. If he shall die Death allowances modified.either before he shall have received any of such monthly installments or before he shall have received two hundred and forty of such monthly installments, then $25 per month shall be paid to his widow from the time of his death and during her widowhood, or if there is no widow surviving him, then to his child or children, or if there is no child surviving him, then to his mother, or if there is no mother surviving him, then to his father, if and while they survive him: *Proviso*.Payments limited, etc.*Provided, however*, That not more than two hundred and forty of such monthly installments, including those received by such person during his total and permanent disability, shall be so paid. The amount of the monthly installments shall be apportioned between children as may be provided by regulations.”" Sec. 20. That section nineteen of this Act amending section four Provisions effective as of October 6, 1917.hundred and one of the Act entitled “An Act to authorize the establishment of a Bureau of War Risk Insurance in the Treasury Department,” approved September second, nineteen hundred and fourteen, as amended, shall be deemed to be in effect as of October sixth, nineteen *Provisos*.Prior payments not affected.hundred and seventeen: *Provided*, That nothing herein shall be construed to interfere with the payment of monthly installments, authorized to be made under the provisions of said section four hundred and one as originally enacted, for the months up to and including June, nineteen hundred and eighteen: *Provided further*, That all Revision of awards.awards of automatic insurance under the provisions of said section four hundred and one as originally enacted shall be revised as of the first day of July, nineteen hundred and eighteen, in accordance with the provisions of said section four hundred and one as amended by section nineteen of this Act. Sec. 21. That section four hundred and two of said Act is hereby *Ante*, p. 409, amended.amended to read as follows: " “Sec. 402. That the director, subject to the general direction of Form of policies.the Secretary of the Treasury, shall promptly determine upon and publish the full and exact terms and conditions of such contract of insurance. The insurance shall be payable only to a spouse, child, Payments under.grandchild, parent, brother, or sister, and also during total and permanent disability to the injured person, or to any or all of them. The insurance shall be payable m two hundred and forty equal monthly installments. Provisions for maturity at certain ages, for Alternative policies.continuous installments during the life of the insured or beneficiaries, or both, for cash, loan, paid up and extended values, dividends from gains and savings, and such other provisions for the protection and advantage of and for alternative benefits to the insured and the beneficiaries as may be found to be reasonable and practicable, may be provided for in the contract of insurance, or from time to time by regulations. All calculations shall be based upon the American Experience Basis of calculations.Table of Mortality and interest at three and one-half per centum per annum, except that no deduction shall be made for continuous installments during the life of the insured in case his total and permanent disability continues more than two hundred and forty months. Subject to regulations, the insured shall at all times have Beneficiaries.the right to change the beneficiary or beneficiaries of such insurance without the consent of such beneficiary or beneficiaries, but only within the classes herein provided. If no beneficiary within the Payments if no beneficiary designated.permitted class be designated by the insured, either in his lifetime or by his last will and testament, or if the designated beneficiary does not survive the insured, the insurance shall be payable to such person 616or persons within the permitted class of beneficiaries as would under the laws of the State of the residence of the insured be entitled to his personal property in case of intestacy. If no such person survive the insured, then there shall be paid to the estate of the insured an amount equal to the reserve value, if any, of the insurance at the time of his death, calculated on the basis of the American Experience Table of Mortality and three and one-half per centum interest in full of all obligations under the contract of insurance.”" Approved, June 25, 1918.