[Code of Federal Regulations]
[Title 32, Volume 5]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 32CFR756.6]

[Page 446]
 
                       TITLE 32--NATIONAL DEFENSE
 
                   CHAPTER VI--DEPARTMENT OF THE NAVY
 
PART 756_NONAPPROPRIATED-FUND CLAIMS REGULATIONS--Table of Contents
 
Sec. 756.6  Negotiation.

    (a) General. Claims from NAFI's should be processed primarily 
through NAFI claims procedures, using as guidelines the regulations and 
statutes applicable to similar appropriated fund activity claims.
    (b) When the NAFI is insured. When a NAFI is insured, the insurer or 
the contracted third-party claims administrator (TPA) will normally 
conduct negotiations with claimants. The appropriate naval adjudicating 
authority as shown in 32 CFR 750.34(c)(2)(ii) has the responsibility of 
monitoring the negotiations conducted by the insurer or TPA. Monitoring 
is normally limited to ascertaining someone has been assigned to 
negotiate, to obtain periodic status reports, and to close files on 
settled claims. Any dissatisfaction with the insurer's or TPA's handling 
of the negotiations should be referred directly to the Judge Advocate 
General for appropriate action. Under special circumstances, even when 
there is an insurer or TPA, the appropriate naval adjudicating authority 
may conduct negotiations, provided the command involved and the insurer 
agree to it. When an appropriate settlement is negotiated by the Navy, 
the recommended award will be forwarded to the insurer or TPA for 
payment.
    (c) When the NAFI is not insured. When there is no private, 
commercial insurer and the NAFI has made no independent arrangements for 
negotiations, the appropriate Navy adjudicating authority is responsible 
for conducting negotiations. When an appropriate settlement is 
negotiated by the Navy, the recommended award will be forwarded to the 
NAFI for payment from nonappropriated-funds.