DFARS Home Page Prior Version

Go to DFARS Change Notices, to view the details of the changes to this subpart.

(Revised December 15, 1998)

228.304 Risk-pooling arrangements.
The DoD has established the National Defense Projects Rating Plan, also known as the Special Casualty Insurance Rating Plan, as a risk-pooling arrangement to minimize the cost to the Government of purchasing the liability insurance listed in FAR 28.307-2. Use the plan in accordance with the following guidelines when it provides the necessary coverage more advantageously than commercially available coverage.

Special Casualty Insurance Rating Plan
Assignment-Assumption of Premium Obligations
    It is agreed that 100 percent* of the return premiums and premium refunds (and dividends) due or to become due the prime contractor under the policies to which the National Defense Projects Rating Plan Endorsement made a part of policy __________________ applies are hereby assigned to and shall be paid to the United States of America, and the prime contractor directs the Company to make such payments to the office designated for contract administration acting for and on account of the United States of America.
    The United States of America hereby assumes and agrees to fulfill all present and future obligations of the prime contractor with respect to the payment of 100 percent* of the premiums under said policies.
    This agreement, upon acceptance by the prime contractor, the United States of America, and the Company shall be effective from _____________________________
  Accepted_______________________ (Date)
  __________________________ (Name of Insurance Company)
  By ____________________________ (Title of Official Signing)
  Accepted_______________________ (Date)
  United States of America
  By _________________________ (Authorized Representative)
  Accepted_______________________ (Date)
  _____________________________________ (Prime Contractor)
  By _________________________ (Authorized Representative)
*In the event the Government has less than a 100 percent interest in premium funds or dividends, modify the assignment to reflect the percentage of interest and extent of the Government's assumption of additional premium obligation.
    It is agreed that insurance provided by the policy with respect to the ownership, maintenance, or use of automobiles, including loading and unloading thereof, does not apply to the following as insureds: The United States of America, any of its agencies, or any of its officers or employees.
228.305 Overseas workers' compensation and war-hazard insurance. 228.307 Insurance under cost-reimbursement contracts.

228.307-1 Group insurance plans.
The Defense Department Group Term Insurance Plan is available for contractor use under cost-reimbursement type contracts when approved as provided in department or agency regulations. A contractor is eligible if-

228.311 Solicitation provision and contract clause on liability insurance under cost-reimbursement contracts.

228.311-1 Contract clause.
Use the clause at FAR 52.228-7, Insurance--Liability to Third Persons, in solicitations and contracts, other than those for construction and those for architect-engineer services, when a cost-reimbursement contract is contemplated, unless the head of the contracting activity waives the requirement for use of the clause.

228.370 Additional clauses.

DFARS Home Page Prior Version