FEGLIA provides, in pertinent part, that:

Except as provided in subsection (e), the amount of group life insurance and group
accidental death insurance in force on an employee at the date of his death shall be
paid, on the establishment of a valid claim, to the person or persons surviving at the
date of his death, in the following order of precedence:

First, to the beneficiary or beneficiaries designated by the employee in a signed and
witnessed writing received before death in the employing office or, ifinsured because
of receipt of annuity or of benefits under subchapter I of chapter 81 of this title as
provided by section 8706(b) of this title, in the Office of Personnel Management.
For this purpose, a designation, change, or cancellation of beneficiary in a will or
other document not so executed and filed has no force or effect.

5 U.S.C. § 8705(a) (emphasis added).
By adding the language that a designation of a beneficiary in a manner that does not comply
with § 8705(a) “has no force or effect”,

Congress sought to make clear that for reasons of administrative convenience and
avoidance of delay in payment of proceeds, ““the order of precedence . . . shall
prevail over any extraneous document designating a beneficiary.”” O’Neal v.
Gonzalez, 839 F.2d [1437,] 1440 [(1 1th Cir. 1989)] (quoting S. Rep. No. 1064, 89th
Cong. 2d Sess. reprinted in 1966 U.S.C.C.A.N. 2070, 2071).

The language, structure, and legislative history of FEGLIA’s order of
precedence and beneficiary designation requirements lead to the conclusion that
FEGLIA establishes “an inflexible rule that the beneficiary designated in accordance
with the statute would receive the policy proceeds, regardless of other documents or
the equities in a particular case.” O'Neal, 839 F.2d at 1440.

Metro. Life Ins. Co. v. Christ, 979 F.2d 575, 578-79 (7th Cir. 1992).

It is undisputed that a beneficiary form that complies with FEGLIA’s requirements was not
filed with the 1993 Life Insurance Election Form that the Insured completed on April 29, 1993. It
is also undisputed that the 1980 Designation designates Robert as the beneficiary of the FEGLI
policy. Thus, the 1980 Designation governs the distribution of the proceeds of the FEGLI policy.

§ 8705(a); Christ, 979 F.2d at 578-79.

-4-


Insured completed a Life Insurance Election Form (“the 1993 Life Insurance Election Form”)
concerning his coverage under the FEGLI policy, which is also attached as an exhibit to the
complaint. However, the Insured did not submit any beneficiary designation form after the 1980
Designation form designating Robert as beneficiary.

The Insured died on June 10, 1998. MetLife then became liable to pay the proceeds to the
Insured’s beneficiary. In a letter dated June 29, 1998, Robert, through his attorney, submitted a
claim for the Insured’s proceeds pursuant to the 1980 Designation. In August 1998, Sally submitted
a claim for the Insured’s proceeds pursuant to the 1993 Life Insurance Election Form.

The complaint prayed for a declaration that Robert is entitled to the proceeds payable under
the FEGLI policy pursuant to the 1980 Designation and that Sally has no right to the proceeds.

Robert filed an answer, which admitted the pertinent allegations of the complaint. Sally filed
an answer, admitting most of the allegations of the complaint, including an admission that the
Insured designated Robert as the beneficiary of the FEGLI policy pursuant to the 1980 Designation
but denying that the Insured did not submit any beneficiary designation form after the 1980
Designation. Sally further answered that the 1993 Life Insurance Election Form attached as Exhibit
D to the complaint was incomplete because it was missing the reverse side and that she had been
shown information on the reverse side that the Insured told her indicated that he had changed the
beneficiary and proceeds under the FEGLI policy.

DISCUSSION

MetLife moves for judgment on the pleadings, arguing that the facts are not in dispute since

Sally has admitted that the 1980 Designation states that Robert is the beneficiary of the Insured’s

FEGLI policy and that the Insured was covered under the FEGLI policy.

-3-



Therefore, MetLife’s Motion for Rule 12(c) Judgment on the Pleadings is granted. The
proceeds that are payable under the FEGLI policy are payable to Robert, the beneficiary designated
in the signed and witnessed designation, the 1980 Designation, pursuant to § 8705(a). Sally has no
right to any of the proceeds payable under the FEGLI policy.

CONCLUSION

For the reasons stated above, Metropolitan Life Insurance Company’s Motion for Rule 12(c)
Judgment on the Pleadings is granted. The proceeds of the FEGLI policy are payable to Defendant,
Robert Przybil, under 5 U.S.C. § 8705(a). Defendant, Sally Przybil, has no right to any of the

proceeds payable under the FEGLI policy.

IT IS SO ORDERED.

John W. Darrah, Judge
( United States District Court



inate Order Fn (0697)

NS ly United States District Court, Northern District of Ilinois

Name of Assigned Judge John W. Darrah Sitting Judge if Other
or Magistrate Judge than Assigned Judge
CASE NUMBER 02 € 1940 DATE 6/11/2003
CASE METROPOLITAN LIFE INSURANCE COMPANY vs. ROBERT J. PRZYBIL
TITLE

of the motion being presented.]

[In the following box (a) indicate the parly filing the motion, ¢.g,, plaintiff, defendant, 3rd party plaintiff, and (b) state briefly the nature

MOTION:

DOCKET ENTRY:

a) oO Filed motion of [ use listing in “Motion” box above.]

Q) a Brief in support of motion due

(3) i) Answer brief to motion due__. Reply to answer brief duc__

(cD) QO Ruling/Hearingon____setfor_ at

(5) o Status hearing[held/continucd to) [set for/re-set for]on___—s set for at

(5) a Pretrial conference[held/continued to] [sct for/re-set for]on___—sset for at_
(7) im) Trial{sct for/re-sct for]on att

(8) a ([Bench/Jury trial] [Hearing} held/continued to at =

(9) im This case is dismissed [with/without] prejudice and without costs[by/agrecment/pursuant to}

CFRCP4(m) CLocal Rule 41.1 COFRCPAI(a)(1) 1 FRCPAI(a\(2).

(ao) «of [Other docket entry] Enter memorandum opinion and order. Metropolitan Li

no right to any of the proceeds payable under the FEGLI policy.

(il) of {For further detail see order attached to the original minute order.)

fe Insurance

Company’s motion for Rule 12(c) judgment on the pleadings is granted. The proceeds of the FEGLI
policy are payable to defendant, Robert Przybil, under 5 U.S.C. 8705(a). Defendant, Sally Pryzbil, has

No notices required, aulvised in open court.

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IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION

METROPOLITAN LIFE INSURANCE

COMPANY,

Case No. 02 C 1940
Plaintiff,

Hon. John W. Darrah

ROBERT J. PRZYBIL and
SALLY PRZYBIL,

Defendants.

)
)
)
)
)
v. )
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)
)
)

MEMORANDUM OPINION AND ORDER

Plaintiff, Metropolitan Life Insurance Company (“MetLife”), filed a single-count complaint,
seeking a declaration that the benefits under a Federal Employer’s Group Life Insurance policy (“the
FEGLI policy”) issued to James Przybil (“the Insured”) are payable to Defendant, Robert Przybil
(“Robert”), and not to Defendant, Sally Przybil (“Sally”). MetLife presently moves, pursuant to
Federal Rule of Civil Procedure 12(c), for judgment on the pleadings. For the reasons that follow,
MetLife’s Motion for Rule 12(c) Judgment on the Pleadings is granted.

LEGAL STANDARD

Motions for judgment on the pleadings under Rule 12(c) are reviewed under the same
standard as motions to dismiss under Rule 12(b)(6). Northern Ind. Gun & Outdoor Shows, Inc. v.
City of South Bend, 163 F.3d 449, 452 (7th Cir. 1998). Judgment on the pleadings is proper only
when “it appears beyond doubt that the plaintiff cannot prove any facts that would support his claim
for relief.” Northern Ind. Gun & Outdoor Shows, 163 F.3d at 452. There must be no material issues
of fact to be resolved. Northern Ind. Gun & Outdoor Shows, 163 F.3d at 452. Well-pleaded

allegations in the complaint are accepted as true. Turner/Ozanne v. Hyman/Power, 111 F.3d 1312,


1319 (7th Cir. 1997). The Court views the allegations in the complaint in the light most favorable
to the nonmoving party. Delgado v. Jones, 282 F.3d 511, 515 (7th Cir. 2002). But the Court may
consider any facts in the complaint that undermine the plaintiff's claim. Northern Ind. Gun &
Outdoor Shows, 163 F.3d at 452. “The pleadings include the complaint, the answer, and any written
instruments attached as exhibits.” Northern Ind. Gun & Outdoor Shows, 163 F.3d at 452 (citing
Fed.R.Civ.P. 10(c)).

BACKGROUND

For purposes of this Motion for Judgment on the Pleadings, the following allegations are
taken as true.

MetLife is an insurance company registered with the Illinois Department of Insurance and
licensed to do business in the State of Illinois. MetLife issued the FEGLI policy, Group Policy No.
17000-G, to the United States Office of Personnel Management (“OPM”), pursuant to the Federal
Employer’s Group Life Insurance Act (“FEGLIA”), 5 U.S.C. § 8701-8716. During the life of an
insured, agencies of the federal government maintain all records relating to the FEGLY policy.
However, once an insured dies, the records are forwarded to an administrative unit of MetLife that
is responsible for administering claims under the FEGLI policy.

At the time of his death, the Insured was an employee of the United States Postal Service and
was covered under the FEGLI policy. In a form dated July 11, 1980, the insured designated his
brother, Robert, as the beneficiary of any proceeds payable under the FEGLI policy on account of
the Insured (“the 1980 Designation”). The 1980 Designation was attached as an exhibit to the
complaint.

On or about April 30, 1989, the Insured and Sally were married. On April 29, 1993, the

2.