PGI 228.304 Risk-pooling arrangements.

(1) The plan—

(i) Is implemented by attaching an endorsement to standard insurance policy forms for workers'

compensation, employer's liability, comprehensive general, and automobile liability. The

endorsement states that the instant policy is subject to the National Defense Projects Rating Plan.

(ii) Applies to eligible defense projects of one or more departments/agencies. For purposes of this

section, a defense project is any eligible contract or group of contracts with the same contractor.

(A) A defense project is eligible when—

(1) Eligible contracts represent, at the inception of the plan, at least 90 percent of the payroll for the

total operations at project locations; and

(2) The annual insurance premium is estimated to be at least $10,000.

(B) A contract is eligible when it is—

(1) Either domestic or foreign;

(2) Cost-reimbursement type; or

(3) Fixed price with redetermination provisions.

(2) Under construction contracts, include construction subcontractors in the prime contractor's plan

only when subcontractor operations are at the project site, and the subcontract provides that the

prime contractor will furnish insurance.

(3) Use the agreement in Table 28-1, Insurance Rating Plan Agreement, when the Government

assumes contractor premium payments upon contract termination or completion.

(4) The Federal Tort Claims Act provides protection for Government employees while driving

Government-owned vehicles in the performance of their assigned duties. Include the endorsement in

Table 28-2, Automobile Insurance Policy Endorsement, in automobile liability insurance policies

provided under the National Defense Projects Rating Plan.

TABLE 28-1, INSURANCE RATING PLAN RATING AGREEMENT

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.

TABLE 28-2, AUTOMOBILE INSURANCE POLICY ENDORSEMENT

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.

Parent topic: PGI 228.3 -INSURANCE