Page:United States Statutes at Large Volume 68 Part 1.djvu/771

 68 S T A T. ]

739

PUBLIC LAW 598-.AUG. 17, 1964

(c) The sums withheld from employees under subsection (a) and the sums contributed from appropriations and funds under subsection (b) shall be deposited in the Treasury of the United States to the credit of a fund which is hereby created. Said fund is hereby made available without fiscal year limitation for premium payments under any insurance policy or policies purchased as authorized in sections 7 and 10 of this Act, and for any expenses incurred by the Commission in the administration of this Act within such limitations as may be specified annually in appropriation acts: Provided, That appropriations available to the Commission for salaries and expenses for the fiscal year 1955 shall be available on a reimbursable basis for necessary administrative expenses of carrying out the purposes of this Act until said fund shall be sufficient to provide therefor. The income derived from any dividends or premium rate adjustments received from insurers shall constitute a part of said fund. SEC. 6. Each policy purchased under this Act shall contain a provision, in terms approved by the •Commission, to the effect that any insurance thereunder on any employee shall cease upon his separation from the service or twelve months after discontinuance of his salary payments, whichever first occurs, subject to a provision which shall be contained in the policy for temporary extension of coverage and for conversion to an individual policy of life insurance under conditions approved by the Commission, except that if upon such date as the insurance would otherwise cease the employee (a) retires on an immediate annuity, and (b) unless retired for disability, has had fifteen years of creditable civilian service, as determined by the Commission, his life insurance only may, under conditions determined by the Commission, be continued without cost to him in the amounts for which he would have been insured from time to time had his salary payments continued at the same rate as on the date of cessation. SEC. 7. (a) The Commission is authorized, without regard to section 3709 of the Revised Statutes as amended, to purchase from one or more life insurance companies, as determined by it, a policy or policies of group life and accidental death and dismemberment insurance to provide the benefits specified in this Act: Provided, That any such company must meet the following requirements: (1) Be licensed under the laws of forty-eight of the States of the United States and the District of Columbia to transact life and accidental death and dismemberment insurance, and (2) the amount of its employee group life insurance on the most recent December 31 for which information is available to the Commission shall on that date equal at least 1 per centum of the total amount of employee group life insurance in the United States in all life insurance companies. (b) The life insurance company or companies issuing such policy or policies shall establish an administrative office under a name to be approved by the Commission. (c) The Commission shall arrange with the life insurance company or companies issuing any policy or policies purchased under this Act to reinsure, under conditions approved by it, portions of the total amount of insurance under the policy or policies, determined as provided in subsection (d) of this section, with such other life insurance companies as may elect to participate in such reinsurance. (d) The Commission shall determine a formula so that the amount of insurance-in force to be retained by each issuing company after ceding reinsurance and the total amount of reinsurance ceded to each reinsuring company shall be in proportion to the total amount of each such company's group life insurance in force in the United States on December 31, 1953: Prc/oided., That in determining such proportions.

Deposits; fund.

Administrative e x p e n s e s of Commission.

Dividends or rate adjustments.

Termination of insurance.

Purchase of policies.

41 USC 5. Requirements.

Administrative office.

Reinsurance.

Formula for apportioning r e insurance.

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