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Request for Reconsideration

B-198207 Jan 14, 1981
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Highlights

A federal employee requested reconsideration of a decision which denied his request for waiver of an overpayment that resulted from an agency failure to make deductions from his pay for optional life insurance coverage under the Federal Employees Group Life Insurance Program (FEGLI). The employee argued that the decision contained a material error of fact and was based on erroneous conclusions of law since, without a premium payment, there can be no liability on the part of the insurer; therefore, he was not covered under FEGLI. A statement from a former administrative officer indicated that the employee had been informed that he did not have the optional coverage since no deductions had been made. FEGLI coverage is not an ordinary insurance contract but is governed by applicable regulations promulgated pursuant to federal statutes. The effective date of an election of such optional coverage is the first day an employee enters on duty in a pay status after the day the election is received in his employing office. Since the employee elected the optional coverage and never rescinded the election, he received the full benefits of the optional life insurance despite the fact that no insurance premiums were withheld. Even though the employee made inquiries to the proper officials, it could not be said that collection of the debt would be against equity and good conscience since he still received the benefit of the coverage. Further, the employee should have made a determined effort to find out what had happened to his election of optional coverage when deductions were not made from his pay. Accordingly, the previous decision was affirmed.

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