[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: 5CFR870.901]

[Page 426]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
          CHAPTER I--OFFICE OF PERSONNEL MANAGEMENT (CONTINUED)
 
PART 870_FEDERAL EMPLOYEES' GROUP LIFE INSURANCE PROGRAM--Table of Contents
 
                 Subpart I_Assignments of Life Insurance
 
Sec.  870.901  Assignments permitted.


    (a) (1) Section 208 of the Bankruptcy Amendments and Federal 
Judgeship Act of 1984, Pub. L. 98-353 (98 Stat. 355), effective July 10, 
1984, permits Federal judges to irrevocably assign their FEGLI coverage 
to one or more individuals, corporations, or trustees. Section 4 of Pub. 
L. 103-336 (108 Stat. 2661), effective October 3, 1994, extended this 
right to all Federal employees, annuitants, and compensationers.
    (2) An individual may assign ownership of all life insurance under 
this part, except Option C. If an individual wishing to make an 
assignment owns more than one type of coverage, he/she must assign all 
the insurance; an individual cannot assign only a portion of the 
coverage. Option C cannot be assigned.
    (b) An individual cannot name conditional assignees in case the 
primary assignee dies before the insured individual.
    (c) If the insurance is assigned to two or more individuals, 
corporations, or trustees, the insured individual must specify 
percentage shares, rather than dollar amounts or types of insurance, to 
go to each assignee.
    (d) If an individual who has made an assignment later elects 
increased insurance coverage under Sec.  870.506 or during an open 
enrollment period, the increased coverage is considered included in the 
already existing assignment. The right to increase coverage remains with 
the insured individual, rather than transferring to the assignee.
    (e) An individual who assigns ownership of insurance continues to be 
the insured individual, but the assignee receives those rights of an 
insured individual that are specified in this part.
    (f) Once assigned, the value of the insurance increases or decreases 
automatically as provided by this part. Exception: if the insured 
individual elected a Living Benefit before assigning the remainder of 
his/her insurance, the amount of Basic insurance does not increase or 
decrease.
    (g) An insured individual who has assigned his/her insurance cannot 
elect a Living Benefit; nor can an assignee elect a Living Benefit on 
behalf of the insured individual.
    (h) An insured individual who has elected a Living Benefit under 
subpart K of this part may assign the remainder of his/her insurance. 
The assignment would affect Option A, Option B, and, for an employee who 
elected a partial Living Benefit, Basic insurance.
    (i) A court order can direct that an insured individual make an 
irrevocable assignment to the person(s) named in the court order. For an 
assignment to be effective, the insured individual must follow the 
procedures in Sec.  870.902.

[62 FR 48731, Sept. 17, 1997, as amended at 64 FR 16602, Apr. 6, 1999]