Page:United States Statutes at Large Volume 92 Part 2.djvu/1267

 PUBLIC LAW 95-597—NOV. 4, 1978

92 STAT. 2547

Public Law 95-597 95th Congress An Act To amend the Regional Rail Reorganization Act of 1973 to require ConRail to mak'e premium payments under certain medical and life insurance policies, to provide that ConRail shall be entitled to a loan under section 211(h) of such Act in an amount required for such premium payments, and to provide that such premium payments shall be deemed to be expenses of administration of the respective railroads in reorganization.

Nov. 4, 1978 [H.R. 5646]

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That paragraph (6) Regional Rail of section 303(b) of the Eegional Rail Reorganization Act of 1973 (45 Reorganization Act of 1973, U.S.C. 743(b)(6)) is amended— amendment. (1) by redesignating such paragraph (6) as paragraph (6)(A), and by redesignating clauses (A) and (B) in the first sentence thereof as clauses (i) and (ii), respectively; and (2) by adding at the end thereof the following new subparagraph: "(B) The Corporation shall make such premium payments as may be necessary to maintain in effect any medical or life insurance policy which was maintained by a railroad in reorganization immediately prior to April 1, 1976, and which provides insurance benefits to individuals who retired, prior to April 1, 1976, from service with such a railroad. With respect to any such individual whose medical or life insurance coverage lapsed after April 1, 1976, due to nonpayment of premiums, the Corporation shall— "(i) through the purchase of insurance or otherwise, provide medical or life insurance benefits of the same type and at the same or approximately the same level as were provided by the employer railroad in reorganization and in effect with respect to such individual immediately prior to April 1, 1976; and "(ii) assume and pay any claim for such individual (or his personal representative) for any such insurance benefits, if— " (I) such claim arose during the period beginning April 1, 1976, and ending on the date insurance coverage is provided pursuant to clause (i) of this subparagraph; and " ( II) such benefits were not paid by an insurer solely because of the lapse of the insurance coverage during such period. The Corporation shall be entitled to a loan pursuant to section 211(h) of this Act in an amount required for the payment of insurance 45 USC 721 premiums and benefits described in this subparagraph. For purposes of section 211(h)(4)(A) (iii), amounts required for the payment of such premiums and benefits shall be deemed to be valid administrative claims against the respective estates of the railroads in reorganization, due and payable as of April 1, 1976, or, in the case of a railroad in reorganization which is not subject to a bankruptcy proceeding, such amounts shall be deemed to be obligations of such railroad, due and payable as of such date, and shall be reimbursable in accordance with the procedures set forth in paragraphs (4) and (5) of such section 211(h). As used in this subparagraph, the term 'railroad in "Railroad in reorganization' includes any railroad which is controlled by a rail- reorganization.

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