[Code of Federal Regulations]
[Title 5, Volume 2]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR870.801]

[Page 424]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
          CHAPTER I--OFFICE OF PERSONNEL MANAGEMENT (CONTINUED)
 
PART 870_FEDERAL EMPLOYEES' GROUP LIFE INSURANCE PROGRAM--Table of Contents
 
      Subpart H_Order of Precedence and Designation of Beneficiary
 
Sec.  870.801  Order of precedence and payment of benefits.


    (a) Except as provided in paragraph (d) of this section, benefits 
are paid according to the order of precedence stated in 5 U.S.C. 
8705(a), as follows:
    (1) To the designated beneficiary (or beneficiaries);
    (2) If none, to the widow(er);
    (3) If none, to the child, or children in equal shares, with the 
share of any deceased child going to his/her children;
    (4) If none, to the parents in equal shares or the entire amount to 
the surviving parent;
    (5) If none, to the executor or administrator of the estate;
    (6) If none, to the next of kin according to the laws of the State 
in which the insured individual legally resided.
    (b) If an insured individual provides in a valid designation of 
beneficiary for insurance benefits to be payable to the insured's 
estate, or to the Executor, Administrator, or other representative of 
the insured's estate, or if the benefits would otherwise be payable to 
the duly appointed representative of the insured's estate under the 
order of precedence specified in 5 U.S.C. 8705(a), payment of the 
benefits to the duly appointed representative of the insured's estate 
bars recovery by any other person.
    (c) Option A and B insurance in force on a person on the date of 
his/her death is paid, on receipt of a valid claim, in the same order of 
precedence and under the same conditions as Basic insurance. A 
designation of beneficiary for Basic insurance is also a designation of 
beneficiary for Options A and B, unless the insured individual states 
otherwise in his/her designation.
    (d)(1) If there is a court order in effect naming a specific person 
or persons to receive life insurance benefits upon the death of an 
insured individual, Basic insurance and Option A and Option B insurance 
will be paid to the person or persons named in the court order, instead 
of according to the order of precedence.
    (2) To qualify a person for such payment, a certified copy of the 
court order must be received by the appropriate office on or after July 
22, 1998, and before the death of the insured.
    (3)(i) For employees, the appropriate office is their employing 
agency.
    (ii) For annuitants, the appropriate office is OPM.
    (iii) For compensationers during the first 12 months of nonpay 
status, the appropriate office is their employing agency.
    (iv) For compensationers after separation or the completion of 12 
months in nonpay status, the appropriate office is OPM.
    (v) For employees and former employees who have ported Option B 
coverage, the appropriate office is the Portability Office.
    (4) If, within the applicable time frames, the appropriate office 
receives conflicting court orders entitling different persons to the 
same insurance, benefits will be paid based on whichever court order was 
issued first.
    (e) Upon the death of an insured family member, Option C benefits 
are paid to the employee, annuitant, or compensationer responsible for 
withholdings under Sec.  870.402(a), except as provided in paragraph (f) 
of this section.
    (f) If an employee, annuitant, or compensationer entitled to receive 
Option C benefits dies before the benefits are paid, the Option C 
benefits are paid to the individual(s) entitled to receive Basic life 
insurance benefits under the statutory order of precedence. However, if 
the insurance has been assigned in accordance with subpart I of this 
part, any prior designations of beneficiary were cancelled; benefits in 
this instance are paid under the statutory order of precedence, starting 
with the second on the list.

[62 FR 48731, Sept. 17, 1997, as amended at 64 FR 16602, Apr. 6, 1999; 
64 FR 72464, Dec. 28, 1999; 68 FR 59082, Oct. 14, 2003]