[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: 5CFR870.907]

[Page 427]
 
                    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.  870.907  Termination and conversion.

    (a) Assigned insurance terminates under the conditions stated in 
subpart F of this part.
    (b)(1) When an insured individual's insurance terminates, an 
assignee has the right to convert all or part of the group insurance to 
an individual policy on the insured individual. The conditions stated in 
subpart F of this part apply to assignees who elect to convert.
    (2) When there is more than one assignee, each assignee has the 
right to convert all or part of his/her share of the insurance. Any 
assignee who doesn't convert loses all ownership of the insurance.
    (3) When there is more than one assignee, the maximum amount of 
insurance each assignee will be able to convert is determined by the 
dollar amount corresponding to the assignee's share of the total 
insurance. This amount will be rounded up to the next higher thousand, 
if it's not already an even thousand dollar amount.
    (4) Premiums for converted life insurance are based on the insured 
individual's age and class of risk at the time the conversion policy is 
issued.
    (5) The employing office must notify each assignee of the conversion 
right at the time the assigned group insurance terminates.
    (c) An assignment terminates 31 days after the insurance terminates, 
unless the insured individual is reemployed in or returns to a position 
in which he/she is entitled to coverage under this part within 31 days 
after the insurance terminates. Exception: If an employee elects 
portability for Option B coverage, an assignment remains in effect. If 
the individual returns to Federal service, Basic insurance and any 
Option A insurance acquired through returning to service is subject to 
the existing assignment.

[62 FR 48731, Sept. 17, 1997, as amended at 64 FR 72465, Dec. 28, 1999]