Page:United States Statutes at Large Volume 80 Part 1.djvu/633

 80 STAT. ]

PUBLIC LAW 89-554-SEPT. 6, 1966

(d) A fraternal benefit association which is— (1) licensed to transact life insurance under the laws of a State or the District of Columbia; and (2) engaged in issuing insurance certificates on the lives of employees of the United States exclusively; is eligible to act as a reinsuring company and may be allocated an amount of reinsurance equal to 25 percent of its total life insurance in force on employees of the United States on the determination date named by subsection (c) of this section. (e) An issuing company or reinsurer is entitled, as a minimum, to be allocated an amount of insurance under the policy equal to any reduction from December 31, 1953, to the determination date, in the amount of the company's group life insurance under policies issued to associations of employees of the United States. However, any increase under this subsection in the amount allocated is reduced by the amount in force on the determination date of any policy covering life insurance agreements assumed by the Commission. (f) The Commission may modify the computations under this section as necessary to carry out the intent of this section. § 8711. Basic tables of premium rates (a) A policy purchased under this chapter shall include, for the first policy year, basic tables of premium rates as follows: (1) For group life insurance, a schedule of basic premium rates by age which the Civil Service Commission determines to be consistent with the lowest schedule of basic premium rates generally charged for new group life insurance policies issued to large employers. (2) For group accidental death and dismemberment insurance, a basic premium rate which the Commission determines is consistent with the lowest rate generally charged for new group accidental death and dismemberment policies issued to large employers. The schedule for group life insurance, except as otherwise provided by this section, shall be applied to the distribution by age of the amounts of group life insurance under the policy at its date of issuance to determine an average basic premium rate per $1,000 of life insurance. (b) The policy shall provide that the basic premium rates determined for the first policy year continue for later policy years except as readjusted for a later year based on experience under the policy. The company issuing the policy may make the readjustment on a basis that the Commission determines in advance of the policy year is consistent with the general practice of life insurance companies under policies of group life and group accidental death and dismemberment insurance issued to large employers. (c) The policy shall provide that if the Commission determines that ascertaining the actual age distribution of the amounts of group life insurance in force at the date of issue of the policy or at the end of the first or any later year of insurance thereunder would not be possible except at a disproportionately high expense, the Commission may approve the determination of a tentative average group life premium rate, for the first or any later policy year, instead of using the actual age distribution. The Commission, on request by the company issuing the policy, shall redetermine the tentative average premiuni rate during any policy year, if experience indicates that the assumptions made in determining that rate were incorrect for that year.

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