Page:United States Statutes at Large Volume 80 Part 1.djvu/632

 596

PUBLIC LAW 89-554-SEPT. 6, 1966



[80 STAT.

(b) When an employee is paid by the Clerk of the House of RepresentativeSj the Clerk may contribute the sum required by subsection (a) of this section from the contingent fund of the House. (c) When the employee is an elected official, the sum required by subsection (a) of this section is contributed from an appropriation or fund available for payment of other salaries of the same office or establishment. § 8709. Insurance policies (a) The Civil Service Commission, without regard to section 5 of title 41, may purchase from one or more life insurance companies a policy or policies of group life and accidental death and dismemberment insurance to provide the benefits specified by this chapter. A company must meet the following requirements: (1) I t must be licensed to transact life and accidental death and dismemberment insurance under the laws of 48 of the States and the District of Columbia. (2) I t must have in effect, on the most recent December 31 for which information is available to the Commission, an amount of employee group life insurance equal to at least 1 percent of the total amount of employee group life insurance in the United States in all life insurance companies. (b) A company issuing a policy under subsection (a) of this section shall establish an administrative office under a name approved by the Commission. (c) The Commission at any time may discontinue a policy purchased from a company under subsection (a) of this section. §8710. Reinsurance (a) The Civil Service Commission shall arrange with a company issuing a policy under this chapter for the reinsurance, under conditions approved by the Commission, of portions of the total amount of insurance under the policy, determined under this section, with other life insurance companies which elect to participate in the reinsurance. (b) The Commission shall determine for and in advance of a policy year which companies are eligible to participate as reinsurers and the amount of insurance under a policy which is to be allocated to the issuing company and to reinsurers. The Commission shall make this determination at least every 3 years and when a participating company withdraws. (c) The Commission shall establish a formula under which the amount of insurance retained by an issuing company after ceding reinsurance, and the amount of reinsurance ceded to each reinsurer, is in proportion to the total amount of each company's group life insurance, excluding insurance purchased under this chapter, in force in the United States on the determination date, which is the most recent December 31 for which information is available to the Commission. In determining the proportions, the portion of a company's group life insurance in force on the determination date in excess of $100,000,000 shall be reduced by— (1) 25 percent of the first $100,000,000 of the excess; (2) 50 percent of the second $100,000,000 of the excess; (3) 75 percent of the third $100,000,000 of the excess; and (4) 95 percent of the remaining excess. However, the amount retained by or ceded to a company may not exceed 25 percent of the amount of the company's total life insurance in force in the United States on the determination date.

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