
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: 5USC8712]

 
             TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES
 
                           PART III--EMPLOYEES
 
                   Subpart G--Insurance and Annuities
 
                       CHAPTER 87--LIFE INSURANCE
 
Sec. 8712. Annual accounting; special contingency reserve

    A policy purchased under this chapter shall provide for an 
accounting to the Office of Personnel Management not later than 90 days 
after the end of each policy year. The accounting shall set forth, in a 
form approved by the Office--
        (1) the amounts of premiums actually accrued under the policy 
    from its date of issue to the end of the policy year;
        (2) the total of all mortality and other claim charges incurred 
    for that period; and
        (3) the amounts of the insurers' expense and risk charges for 
    that period.

An excess of the total of paragraph (1) of this section over the sum of 
paragraphs (2) and (3) of this section shall be held by the company 
issuing the policy as a special contingency reserve to be used by the 
company only for charges under the policy. The reserve shall bear 
interest at a rate determined in advance of each policy year by the 
company and approved by the Office as being consistent with the rate 
generally used by the company for similar funds held under other group 
life insurance policies. When the Office determines that the special 
contingency reserve has attained an amount estimated by it to make 
satisfactory provision for adverse fluctuations in future charges under 
the policy, any further excess shall be deposited in the Treasury of the 
United States to the credit of the Employees' Life Insurance Fund. When 
a policy is discontinued, any balance remaining in the special 
contingency reserve after all charges have been made shall be deposited 
in the Treasury to the credit of the Fund. The company may make the 
deposit in equal monthly installments over a period of not more than 2 
years.

(Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 598; 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(d).             Aug. 17, 1954, ch.
                                                    752, Sec.  8(d), 68
                                                    Stat. 741.
------------------------------------------------------------------------

    The words ``A policy purchased under this chapter'' are substituted 
for ``Each such policy'' for clarity. 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.
    The words ``Employees' Life Insurance Fund'' are substituted for 
``fund''.
    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--Pub. L. 95-454 substituted ``Office of Personnel Management'' 
and ``Office'' for ``Civil Service Commission'' and ``Commission'', 
respectively.


                    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.
