Claim for Refund of Insurance Premiums

B-199938: Oct 21, 1980

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An authorized certifying officer requested an advance decision concerning the claim of an employee of the Department of Agriculture for the refund of life insurance premiums which were deducted from her salary due to administrative error. The record showed that the employee waived life insurance coverage when she accepted a career conditional appointment. She was transferred to a new position in May 1978 at which time deductions for life insurance premiums began to be made from her salary. At the request of the employee, the personnel office attempted to stop the deductions, but they continued until July 1979. GAO held that the insurance premiums may be refunded since, under the Federal Group life Insurance Act, the employee was never covered by the insurance.