
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 5USC8711]

 
             TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES
 
                           PART III--EMPLOYEES
 
                   Subpart G--Insurance and Annuities
 
                       CHAPTER 87--LIFE INSURANCE
 
Sec. 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 Office of Personnel Management 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 Office 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 
Office 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 Office 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 Office 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 Office, on request by the company issuing 
the policy, shall redetermine the tentative average premium rate during 
any policy year, if experience indicates that the assumptions made in 
determining that rate were incorrect for that year.
    (d) The policy shall stipulate the maximum expense and risk charges 
for the first policy year. The Office shall determine these charges on a 
basis consistent with the general level of charges made by life 
insurance companies under policies of group life and accidental death 
and dismemberment insurance issued to large employers. The maximum 
charges continue from year to year, except that the Office may 
redetermine them for any year either by agreement with the company 
issuing the policy or on written notice given to the company at least 1 
year before the beginning of the year for which the redetermined maximum 
charges will be effective.

(Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 597; Pub. L. 95-454, title IX, 
Sec. 906(a)(2), (3), Oct. 13, 1978, 92 Stat. 1224.)

                      Historical and Revision Notes
------------------------------------------------------------------------
                                                    Revised Statutes and
     Derivation                U.S. Code             Statutes at Large
------------------------------------------------------------------------
                     5 U.S.C. 2097 (less (d)).     Aug. 17, 1954, ch.
                                                    752, Sec.  8 (less
                                                    (d)), 68 Stat. 740.
------------------------------------------------------------------------

    In subsection (a), the word ``policy'' is substituted for ``policy 
or policies'' on authority of 1 U.S.C. 1. In subsections (b) and (c), 
the words ``The policy'' are substituted for ``Each policy so 
purchased''. In subsections (b), (c), and (d), the word ``insurance'', 
preceding the word ``company'', is omitted as unnecessary; and the word 
``company'' is substituted for ``company or companies'' on authority of 
1 U.S.C. 1.
    Standard changes are made to conform with the definitions applicable 
and the style of this title as outlined in the preface to the report.


                               Amendments

    1978--Subsecs. (a) to (d). Pub. L. 95-454 substituted ``Office of 
Personnel Management'' and ``Office'' for ``Civil Service Commission'' 
and ``Commission'', respectively, wherever appearing.


                    Effective Date of 1978 Amendment

    Amendment by Pub. L. 95-454 effective 90 days after Oct. 13, 1978, 
see section 907 of Pub. L. 95-454, set out as a note under section 1101 
of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 8714a, 8714b, 8714c of this 
title.
