
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 10USC12531]

 
                         TITLE 10--ARMED FORCES
 
                     Subtitle E--Reserve Components
 
                      PART II--PERSONNEL GENERALLY
 
        CHAPTER 1214--READY RESERVE MOBILIZATION INCOME INSURANCE
 
Sec. 12531. Purchase of insurance

    (a) Purchase Authorized.--The Secretary may, instead of or in 
addition to underwriting the insurance program through the Fund, 
purchase from one or more insurance companies a policy or policies of 
group insurance in order to provide the benefits required under this 
chapter. The Secretary may waive any requirement for full and open 
competition in order to purchase an insurance policy under this 
subsection.
    (b) Eligible Insurers.--In order to be eligible to sell insurance to 
the Secretary for purposes of subsection (a), an insurance company 
shall--
        (1) be licensed to issue insurance in each of the 50 States and 
    in the District of Columbia; and
        (2) as of the most recent December 31 for which information is 
    available to the Secretary, have in effect at least one percent of 
    the total amount of insurance that all such insurance companies have 
    in effect in the United States.

    (c) Administrative Provisions.--(1) An insurance company that issues 
a policy for purposes of subsection (a) shall establish an 
administrative office at a place and under a name designated by the 
Secretary.
    (2) For the purposes of carrying out this chapter, the Secretary may 
use the facilities and services of any insurance company issuing any 
policy for purposes of subsection (a), may designate one such company as 
the representative of the other companies for such purposes, and may 
contract to pay a reasonable fee to the designated company for its 
services.
    (d) Reinsurance.--The Secretary shall arrange with each insurance 
company issuing any policy for purposes of subsection (a) to reinsure, 
under conditions approved by the Secretary, portions of the total amount 
of the insurance under such policy or policies with such other insurance 
companies (which meet qualifying criteria prescribed by the Secretary) 
as may elect to participate in such reinsurance.
    (e) Termination.--The Secretary may at any time terminate any policy 
purchased under this section.

(Added Pub. L. 104-106, div. A, title V, Sec. 512(a)(1), Feb. 10, 1996, 
110 Stat. 304.)
