(c) Maximum practical utilization of interservice support will be achieved as prescribed in Department of Defense Directive 4000.19, "Basic Principles for Interservice and Interdepartmental Logistic Support," August 5, 1967.1

§ 275.4 Responsibilities.

(a) The U.S. Naval Observatory (hereafter referred to as the "Observatory') is assigned the responsibility for insuring:

(1) Uniformity in precise time and time interval operations including

measurements.

(2) The establishment of overall DOD requirements for time and time interval.

(3) The accomplishment of objectives requiring precise time and time interval with minimum cost.

(b) In carrying out the above responsibilities, the Observatory shall:

(1) Derive and maintain standards of time and time interval, both astronomical and atomic.

(2) Provide coordination of such standards with recognized national and international standards to insure worldwide continuity of precision.

(3) Monitor conferences concerning time and time interval standards.

(4) Advise and provide guidance to DOD Components, contractors and scientific laboratories on matters concerning time and time interval, and their measurement.

(c) All DOD Components which require, utilize, or distribute time and time interval information or have a need for a specific time scale shall:

(1) Refer time and time interval to the standards established by the

agement control functions. This responsibility encompasses overall activities requiring time to within ten milliseconds and frequency to within one part in 10' of an established time scale. In carrying out these PTTI functions on a commonservicing basis, the Observatory will:

(1) Issue detailed information concerning reference values for PTTI and distribute them by means of controlled radio transmissions and portable atomic clocks.

(2) Promote (i) operational uniformity of PTTI functions, including measurements; (ii) establishment of overall DOD PTTI requirements; and (iii) accomplishment of objectives requiring PTTI at minimum cost.

(3) Monitor DOD research programs concerning PTTI (frequency), in coordination with the Office of the Director of Defense Research and Engineering.

(4) Review (i) existing and future PTTI (frequency) requirements of the DOD user components in order to establish overall DOD requirements and to provide adequate supporting services; and (ii) existing PTTI operations conducted by DOD user components to provide guidance and recommendations to the Assistant to the Secretary of Defense (Telecommunications).

(5) Establish relationships between the DOD and other Federal Government agencies on PTTI matters.

(6) Provide advice and guidance concerning requests for unilateral PTTI (frequency) programs at the direction of Assistant to the Secretary of Defense (Telecommunications).

(7) Participate in PTTI policy negotiations between the DOD and other Federal Government agencies and international organizations.

(8) Maintain records of PTTI (frequency) arrangements between the DOD and its contractors and other Federal Government agencies, with the exception of radio frequency assignments.

(b) DOD user components:

(1) DOD Components presently conducting Precise Time and Time Interval operations and research may continue these activities unless otherwise instructed by the Assistant to the Secretary of Defense (Telecommunications).

(2) The Military Departments will assist the Observatory by (i) providing technical information on current and prospective programs involving PTTI applications; and (11) distributing, monitoring and controlling PTTI services on

by the Observatory in all cases where such documents satisfy the need.

(5) Notify the Observatory of:

(1) Existing and planned PTTI requirements, including information as to accuracy and stability of needs, measurement techniques planned or in operation, and continuity of service required of the applicable distribution transmission.

(ii) PTTI (frequency) arrangements between DOD user components and contractors and other Federal Government agencies (see (a) (8) of this section); and (iii) Scheduled scientific and technical meetings on PTTI (frequency).

(6) Consult the Observatory prior to entering into contracts for equipment, research, studies, or services involving PTTI (frequency) in order that maximum use of existing facilities may be assured.

276.6 Policies on life insurance and accreditation procedures.

276.7 Policies on general forms of insurance.

AUTHORITY: 5 U.S.C. 301.

SOURCE: 37 FR 5491, Mar. 16, 1972, unless otherwise noted.

§ 276.1 Reissuance and purpose.

This part establishes standards of conduct in soliciting and selling all types of insurance on DOD installations. It continues the established annual DOD accreditation requirement for life insurance companies operating in overseas areas. § 276.2 Objective and scope.

(a) The policies and procedures contained in this part are designed to (1) promote uniformity of approach in the conduct of insurance solicitations and sales to military personnel on DOD installations on a worldwide basis, and (2) initiate protective measures for DOD installations where neither Federal nor State consumer protection policies govern.

(b) It sets forth (1) limitations in soliciting the sale of insurance to person

nel on DOD installations; (2) standards governing the conduct of (1) DOD personnel when permitted to act in the capacity of insurance agents, and (ii) insurance companies, insurers and agents; and (iii) policies on the use of military personnel allotments in payment of premiums for life insurance.

§ 276.3 Applicability and terms.

(a) The provisions of this part apply to the Military Departments and the Unified and Specified Commands (hereinafter referred to collectively as "DOD Components"). This part will be distributed to Defense Agencies, the Organization of the Joint Chiefs of Staff and the Offices of the Secretary of Defense for information and guidance.

(b) Terms related to life insurance are defined in § 276.5.

§ 276.4 General policies and responsibilities.

(a) DOD Components will develop sound internal insurance programs which are suitably underwritten to meet the varying requirements of personnel under their jurisdiction. These programs will be supported by implementing instructions which are consistent with the following general policies; the provisions of §§ 276.6 and 276.7; and Part 43 of this chapter.

(1) Solicitation: The conduct of all insurance business on DOD installations shall be by specific appointment and, where feasible, with disinterested third

party counseling provided, interviewing hours set aside and facilities supplied. The solicitation provisions of Part 43 of this chapter, as implemented by the Military Departments, will govern in all sales of insurance on DOD installations.

(2) Accreditation standards prescribed for insurance companies operating on DOD installations will be consistent with Federal, State, and other appropriate insurance statutes. In the absence of governing statutes, DOD Components will apply the standards outlined in § 276.6.

(3) Supervision: The offering and sale of insurance to DOD personnel assigned to or on assigned DOD installations will be appropriately supervised. Particular emphasis will be placed on establishing controls on regulating the activities of former military personnel conducting sales on military installations. In addition, DOD personnel will be expressly prohibited from representing any insurance company as an agent for the solicitation of insurance to personnel on a military installation with or without compensation. This is in addition to the policies outlined in Parts 40 and 43 of this chapter. The Veterans Administration supervises the Servicemen's Group Life Insurance (SGLI) program. The agency will assist in any situation involving SGLI and may request cooperation from installations in obtaining information about individual situations affecting the program.

(4) Education and Orientation Programs: DOD Components will prohibit (1) the use of an agent as a participant in any military-sponsored insurance education or orientation program; (ii) the designation of any agent from assuming or using titles such as "Battalion Insurance Counselor," "Unit Insurance Advisor," "SGLI Conversion Consultant," etc.; and (iii) conditions resulting from violation of the policy of "solicitation by prior appointment only" established in subparagraph (1) of this paragraph, and the following:

(a) The assignment of desk space for interviews to other than a specific prearranged appointment. During such appointment, the agent will not be permitted to display desk or other signs announcing name or company affiliation.

(b) The use of the "Daily Bulletin" or any other notice, official or unofficial, announcing the presence of an agent and his availability.

(c) The distribution, or availability for distribution, of literature other than to the person being interviewed.

(5) Equal opportunity. DOD Components will assure that (i) all agents are extended equal opportunity for interviews by appointment at the designated areas, and (ii) DOD personnel do not act in any capacity as liaison with agents to arrange appointments. (Where space and other considerations dictate the limiting of the number of agents using the designated interviewing area, the DOD installation commander may develop and publish local policy consistent with this concept.)

(b) The DOD Installation Commander shall deny or revoke permission to an insurance company or an agent to solicit military personnel assigned to or on an installation when the provisions of this part and Part 43 of this chapter have been violated. The procedures outlined in Part 43 of this chapter will govern in such revocations.

For the purpose of this part, terms used herein shall be interpreted as follows:

(a) Insurer. An insurance company accredited hereunder by the DOD.

(b) Association. Any organization which has been established, whether or not the word "Association" appears in its title, and which

(1) Is composed of and serving exclusively members of the armed forces of the United States (on active duty, in a Reserve status, in a Retired status, or individuals who entered into such associations while on active duty) and their dependents;

(2) Operates either as a profit or nonprofit organization under criteria set forth in the Internal Revenue Code, whether by mail or through an agency sales force, or both; and

(3) Offers its members life insurance coverage, either (i) as part of the membership dues, or (ii) as a separately purchased plan made available through an Insurance Carrier or the Association as a self-insurer, or a combination of subdivisions (i) and (ii) of this subparagraph.

(c) Insurance carrier. An insurance company accredited by the DOD and issuing insurance through an Association or reinsuring or coinsuring such insurance.

(d) Solicitation. The conduct of a private business, including the offering and sale of insurance on a military installation, is a privilege as distinguished from a right, and the control of which is a responsibility vested in the installation commander subject to compliance with this part and Part 43 of this chapter.

(e) Agent. An individual who receives remuneration as a member, representative, or salesman for an Insurer or an Insurance Carrier.

(f) Insurance policy. A policy or certificate of insurance issued by an Insurer or by an Insurance Carrier or evidence of insurance coverage issued by self-insured Association.

(g) State. The 50 political jurisdictions of the United States, the District of Columbia, the territories and possessions of the United States.

(h) DOD personnel. DOD personnel as used in this part, unless the context indicates otherwise, means all civilians, officers, and employees including special Government employees of all the offices, agencies, and departments carrying on functions on a Defense installation (including nonappropriated fund activities) and all active duty officers and enlisted members of the Army, Navy, Air Force, and Marine Corps (officers include commissioned and warrant).

§ 276.6 Policies on life insurance and accreditation procedures.

(a) Life insurance policy content prerequisites. (1) Insurance policies, other than certificates or other evidence of insurance issued by a self-insured Association, offered and sold to personnel on a military installation worldwide must

(i) Comply with the insurance laws of the State in which the installation is located and the procedural requirements of this part;

(ii) Contain no restrictions by reason of military service or military occupational specialty of the insured, unless such restrictions are clearly indicated on the face of the policy;

(iii) Plainly indicate on the face of the policy any extra premium charges imposed by reason of military service or military occupational specialty; and

(iv) Not provide for a variation in the amount of death benefit or premium

based upon the length of time the policy has been in force, unless any such variations are clearly described therein and appear on the face of the policy as well.

(2) Premiums shall reflect only the actual premiums payable for life insurance coverage.

(b) Use of the Allotment of pay system. (1) Allotments of military pay for life insurance premiums will be made in accordance with § 59.2(a) (2) of this chapter and the requirements of this paragraph.

(2) For personnel in pay grades E-1, E-2, and E-3, at least seven (7) days should elapse for counseling between the signing of a life insurance application and the certification of an allotment unless the first two monthly premiums have been paid in advance. The purchaser's commanding officer may grant a waiver to this requirement for good cause, such as the purchaser's imminent permanent change of station. Normally, all insurance contracts should be accompanied by advance payment of the first 2 monthly premiums unless the policy is to be made effective after the establishment of the allotment.

(c) Associations-general. The recent growth and general acceptability of quasi-military associations offering various insurance plans to military personnel is acknowledged. Some associations are not organized within the supervision of insurance laws of either the Federal or State Governments. While some are organized for profit others function as nonprofit associations under Internal Revenue Service regulations. Department of Defense policy will permit only Internal Revenue Service-designated nontaxable or nonprofit associations to receive the military allotment of pay for life insurance under this part.

(1) Regardless of the manner in which insurance plans are offered to members, the management of the Association is responsible to see that all aspects of its insurance programs comply fully with the instructions contained herein and the spirit of this part.

(2) An agent for an Insurance Carrier, while soliciting on a military installation, must comply with Part 43 of this chapter.

(d) The Accreditation Program-(1) Life Insurance Company and Association Accreditation Program for the United States, its Territories and Possessions. (i) The Department of Defense considers any life insurance company as automatically accredited which is licensed

under the insurance laws of the State in which the installation is located and entitled to the allotment of pay.

(ii) The Department of Defense considers the Insurance Carrier of an Association as accredited and eligible to receive the allotment of pay if the Insurance Carrier currently appears on the fiscal year list of accredited companies authorized to solicit the sale of life insurance on military installations in overseas areas. Associations involved in selfinsured plans as of the effective date of this part are considered as automatically accredited.

(2) Insurance Company and Agent Accreditation Program for Foreign Areas—(i) Application instructions—(a) Applications filed annually. During the months of February and March of each year insurance companies may apply for solicitation privileges for personnel assigned to U.S. military installations in foreign areas for the fiscal year beginning the following July 1.

(b) Application prerequisites. A letter of application (in duplicate), signed by the President, Vice-President, or designated official will be forwarded to the Assistant Secretary of Defense (Manpower and Reserve Affairs), Attention: Directorate, Personal Commercial Affairs, ODASD (MPP), the Pentagon, Washington, D.C. 20301. The letter will contain information set forth below, submitted in the order listed. (Where not applicable so state.)

(1) Foreign countries and the commands (e.g., European Command, Pacific Command, etc.) where it is desired to solicit on U.S. military installations.

(2) Management plan for the supervision and control of sales personnel, limited in numbers to one General Agent (or company manager or director) and no more than 30 agents for each overseas area. If warranted, the number of agents may be further limited by the overseas command concerned. (If solicitation is by mail, so state.)

(3) List of States and other jurisdictions in which the Insurance Company is licensed, the effective and terminal dates of such licensing, and a list of the fiscal years in which accredited by the DOD under the provisions of this part and prior issuances thereof.

(4) A statement that the Insurance Company has complied with, or will comply with, the applicable laws of the country or countries wherein it proposes to solicit (by "laws of the country" is meant

all national, provincial, city, or country laws or ordinances of any country, as applicable).

(5) An authenticated copy of the current annual statement as filed with the insurance department of the State of domicile.

(6) A current report of examination from an insurance department of a State.

(7) A statement that the policies to be offered for sale

(i) Conform to the standards prescribed herein, and

(ii) Contain only the standard provisions such as those prescribed by the Life Insurance Act of the District of Columbia (chapters 3-8, title 35, District of Columbia Code).

(8) The amount of gross paid-in and contributed surplus, unassigned surplus, and paid-up capital, or only unassigned surplus if the company is a nonstock firm. In computing the amount of unassigned surplus, include as liabilities all debts due or to become due, contingent or otherwise, as provided in the Act and a statement that the amount of unassigned surplus and paid-up capital has been computed by the method also prescribed in the Act.

(9) A statement that none of its officers, directors, or principal stockholders, or any member of their immediate families, receives or has any contract to receive commissions, directly or indirectly, from business currently transacted by the Insurance Company. If the Insurance Company cannot so state, a disclosure and justification for such contracts are required. (For the purposes of this part, a stockholder who owns, directly or beneficially, in excess of 5 percent of the total stock issued and outstanding shall be considered a principal stockholder.)

(10) A statement that the Insurance Company has not made any loan, secured or otherwise (except policy loans), to any director, officer, or principal stockholder, or to any member of their immediate families within the last year, and that there is not currently outstanding any loans to such person made prior to that period. If the Insurance Company cannot so state, a disclosure and justification for such contracts are required.

(11) A statement that the Insurance Company will assume full responsibility for the acts of its agents with respect to solicitation in accordance with Part 43 of this chapter and this part.