Appendix B to Part 50 - Overseas Life Insurance Registration Program
32:1.1.1.4.13.0.44.8.15 : Appendix B
Appendix B to Part 50 - Overseas Life Insurance Registration
Program A. Registration Criteria 1. Initial Registration
a. Insurers must demonstrate continuous successful operation in
the life insurance business for a period of not less than 5 years
on December 31 of the year preceding the date of filing the
application.
b. Insurers must be listed in Best's Life-Health Insurance
Reports and be assigned a rating of B + (Very Good) or better for
the business year preceding the Government's fiscal year for which
registration is sought.
2. Re-Registration
a. Insurers must demonstrate continuous successful operation in
the life insurance business, as described in paragraph A.1.a. of
this appendix.
b. Insurers must retain a Best's rating of B + or better, as
described in paragraph A.1.b. of this appendix.
c. Insurers must demonstrate a record of compliance with the
policies found in this part.
3. Waiver Provisions
Waivers of the initial registration or re-registration
provisions shall be considered for those insurers demonstrating
substantial compliance with the aforementioned criteria.
B. Application Instructions
1. Applications Filed Annually. Insurers must apply by
June 30 of each year for solicitation privileges on overseas U.S.
military installations for the next fiscal year beginning October
1. Applications e-mailed, faxed, or postmarked after June 30 shall
not be considered.
2. Application prerequisites. A letter of application,
signed by the President, Vice President, or designated official of
the insurance company shall be forwarded to the Principal Deputy
Under Secretary of Defense (Personnel and Readiness), Attention:
Morale, Welfare and Recreation (MWR) Policy Directorate, 4000
Defense, Pentagon, Washington, DC 20301-4000. The registration
criteria in paragraph A1.a. or A1.b. of this appendix must be met
to satisfy application prerequisites. The letter shall contain the
information set forth below, submitted in the order listed. Where
criteria are not applicable, the letter shall so state.
a. The overseas Combatant Commands (e.g., U.S. European Command,
U.S. Pacific Command, U.S. Central Command, U.S. Southern Command)
where the company presently solicits, or plans to solicit, on U.S.
military installations.
b. A statement that the company has complied with, or shall
comply with, the applicable laws of the country or countries
wherein it proposes to solicit. “Laws of the country” means all
national, provincial, city, or county laws or ordinances of any
country, as applicable.
c. A statement that the products to be offered for sale conform
to the standards prescribed in appendix A to this part and contain
only the standard provisions such as those prescribed by the laws
of the State where the company's headquarters are located.
d. A statement that the company shall assume full responsibility
for the acts of its agents with respect to solicitation. If
warranted, the number of agents may be limited by the overseas
command concerned.
e. A statement that the company shall only use agents who have
been licensed by the appropriate State and registered by the
overseas command concerned to sell to DoD personnel on DoD
installations.
f. Any explanatory or supplemental comments that shall assist in
evaluating the application.
g. If the Department of Defense requires facts or statistics
beyond those normally involved in registration, the company shall
make separate arrangements to provide them.
h. A statement that the company's general agent and other
registered agents are appointed in accordance with the
prerequisites established in section C of this appendix.
3. If a company is a life insurance company subsidiary, it must
be registered separately on its own merits.
C. Agent Requirements
The overseas Combatant Commanders shall apply the following
principles in registering agents:
1. An agent must possess a current State license. This
requirement may be waived for a registered agent continuously
residing and successfully selling life insurance in foreign areas,
who, through no fault of his or her own, due to State law (or
regulation) governing domicile requirements, or requiring that the
agent's company be licensed to do business in that State, forfeits
eligibility for a State license. The request for a waiver shall
contain the name of the State or jurisdiction that would not renew
the agent's license.
2. General agents and agents may represent only one registered
commercial insurance company. This principle may be waived by the
overseas Combatant Commander if multiple representations are in the
best interest of DoD personnel.
3. An agent must have at least 1 year of successful life
insurance underwriting experience in the United States or its
territories, generally within the 5 years preceding the date of
application, in order to be approved for overseas solicitation.
4. The overseas Combatant Commanders may exercise further agent
control procedures as necessary.
5. An agent, once registered in an overseas area, may not change
affiliation from the staff of one general agent to another and
retain registration, unless the previous employer certifies in
writing that the release is without justifiable prejudice. Overseas
Combatant Commanders will have final authority to determine
justifiable prejudice. Indebtedness of an agent to a previous
employer is an example of justifiable prejudice.
D. Announcement of Registration
1. Registration by the Department of Defense upon annual
applications of insurers shall be announced as soon as practicable
by notice to each applicant and by a list released annually in
September to the appropriate overseas Combatant Commanders.
Approval does not constitute DoD endorsement of the insurer or its
products. Any advertising by insurers or verbal representation by
its agents, which suggests such endorsement, is prohibited.
2. In the event registration is denied, specific reasons for the
denial shall be provided to the applicant.
a. The insurer shall have 30 days from the receipt of
notification of denial of registration (sent certified mail, return
receipt requested) in which to request reconsideration of the
original decision. This request must be in writing and accompanied
by substantiating data or information in rebuttal of the specific
reasons upon which the denial was based.
b. Action by the Office of the PDUSD(P&R) on a request for
reconsideration is final.
c. An applicant that is presently registered as an insurer shall
have 90 calendar days from final action denying registration in
which to close operations.
3. Upon receiving an annual letter approving registration, each
company shall send to the applicable overseas Combatant Commander a
verified list of agents currently registered for overseas
solicitation. Where applicable, the company shall also include the
names and prior military affiliation of new agents for whom
original registration and permission to solicit on base is
requested. Insurers initially registered shall be furnished
instructions by the Department of Defense for agent registration
procedures in overseas areas.
4. Material changes affecting the corporate status and financial
condition of the company that occur during the fiscal year of
registration must be reported to the MWR Policy Directorate at the
address in paragraph B.2. of this appendix as they occur.
a. The Office of the PDUSD(P&R) reserves the right to
terminate registration if such material changes appear to
substantially affect the financial and operational standards
described in section A of this appendix on which registration was
based.
b. Failure to report such material changes may result in
termination of registration regardless of how it affects the
standards.
5. If an analysis of information furnished by the company
indicates that unfavorable trends are developing that could
adversely affect its future operations, the Office of the
PDUSD(P&R) may, at its option, bring such matters to the
attention of the company and request a statement as to what action,
if any, is considered to deal with such unfavorable trends.