[Code of Federal Regulations]
[Title 5, Volume 2]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR870.701]

[Page 404-405]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
          CHAPTER I--OFFICE OF PERSONNEL MANAGEMENT (CONTINUED)
 
PART 870_FEDERAL EMPLOYEES' GROUP LIFE INSURANCE PROGRAM--Table of Contents
 
                Subpart G_Annuitants and Compensationers
 
Sec. 870.701  Eligibility for life insurance.


    (a) When an insured employee retires, Basic life insurance (but not 
accidental death and dismemberment) continues or is reinstated if he/
she:
    (1) Is entitled to retire on an immediate annuity under a retirement 
system for civilian employees, including the retirement system of a 
nonappropriated fund instrumentality of the Department of Defense or the 
Coast Guard;
    (2) Was insured for the 5 years of service immediately before the 
date the annuity starts, or for the full period(s) of service during 
which he/she was eligible to be insured if less than 5 years; and
    (3) Has not converted to an individual policy as described in Sec. 
870.603. If it is determined that an individual is eligible to continue 
the group coverage as an annuitant after he/she has already converted to 
an individual policy, the group enrollment may be reinstated. If the 
individual wants the group coverage reinstated, the conversion policy 
must be voided, the group policy must be reinstated retroactively, and 
the premiums already paid on the conversion policy must be refunded to 
the individual.
    (b) Following separation or the completion of 12 months' nonpay 
status, a compensationer's Basic life insurance (but not accidental 
death and dismemberment) continues or is reinstated if he/she:
    (1) Has been insured for the 5 years of service immediately before 
the date of entitlement to compensation, or for the full period(s) of 
service during which he/she was eligible to be insured if less than 5 
years; and

[[Page 405]]

    (2) Has not converted to an individual policy as described in Sec. 
870.603. If it is not determined that an individual is eligible to 
continue the group coverage as a compensationer until after he/she has 
converted, the group enrollment may be reinstated. If the individual 
wants the group coverage reinstated, the conversion policy must be 
voided, the group policy must be reinstated retroactively, and the 
premiums already paid on the conversion policy must be refunded to the 
individual.
    (c) An individual who meets the requirements under paragraphs (a) or 
(b) of this section or Sec. 870.706 for continuation or reinstatement 
of life insurance must complete an election, in a manner designated by 
OPM, at the time entitlement is established. For the election to be 
valid, OPM must receive the election before OPM has made a final 
decision on the individual's application for annuity or supplemental 
annuity or an individual's request to continue life insurance as a 
compensationer. If there is no valid election, OPM considers the 
individual to have chosen the option described in paragraph (a)(2) of 
Sec. 870.702.
    (d) If the annuity or compensation of an insured individual is 
terminated, or if the Department of Labor finds that an insured 
compensationer is able to return to duty, his/her Basic life insurance 
held as an annuitant or compensationer stops on the date of the 
termination or finding. There is no 31-day extension of coverage or 
conversion right.
    (e)(1) An annuitant or compensationer who is eligible to continue or 
have reinstated Basic insurance is also eligible to continue or have 
reinstated Optional insurance if he/she meets the same coverage 
requirements for Optional insurance as those stated in paragraph (a) or 
(b) of this section for Basic insurance.
    (2) For the purpose of continuing insurance as an annuitant or 
compensationer, an employee is not considered to have been eligible for 
Option C during any period when the employee had no eligible family 
members.