SEMI-ANNUAL REPORT BENEFITS AND CASUALTY DIVISION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-01826R000100060005-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 9
• Document Creation Date: December 9, 2016
• Document Release Date: September 11, 2000
• Sequence Number: 5
• Publication Date: February 1, 1957
• Content Type: MF

Approved For Release 2001/04/05 CIA-RDP80-01826R000100060005-4
SECRET
3, FEB 1957
SUBJECT: Semi-Annual Report
.. ..:
1. Transmitted herewith are semi-annual reports, pre-
pared by the Insurance Branch and, the Casualty-Affairs
Branch of this. Division pursuant to the Director of Personnel's
directive of 11 July 19 55.
2. In addition to the attached reports, it is significant to
note only that in addition to performing their functions as
Chief and Deputy Chief of this Division, these individuals and
other members of our staff have also served as officers of
the Government Employees Health Association, Inc. and the
Northwest Federal Credit Union. A substantial number. of
work hours' have been devoted in. carrying out these responsi-
bilitie.s in addition to those officially assigned as, officers and.
members of this Division.
sand Casualty Division
r BY _t1b -~f
B T REV DATE
CC ~1
opt "TYPE
CAi6 COMP REV CLASS
OR to GLASS 'S PAGES -~-+,G,-,-/~
JUST _----
SECRET
Approved For Release 2001/04/05: CIA-RDP80-01826R0.00100066005-4
 STANDARD FORM NApproved Foi.Release 200sicl6TCIA-RDP8Q1826R000100060005-4
Office Memorandum ? UNITED STATES GOVERNMENT
TO : Chief,, Benefits and Casualty Division/Pers.
FROM : Chief,, Insurance Branch/BCD/Pers.
SUBJECT: Semi.Arnual Report aid Program Plans
DATE: 25 January 1957
Attached is semi-annual report as requested by the Director
of Personnel in his memorandum dated 11 July 19550
25X1A9a
Approved For Release U1105 : CIA-RDP80-01826R000100060005-4
 Approved For Release 2001/04/05: CIA-RDP80-01826R000100060005-4
SEGREI
Report of Progress and Accomplie intents
during the period 1 July 1956 - 31 December 1956
1. The payment of approximately 500 refunds of WAEPA life
insurance prepaid premiums was completed. In addition, the
conversion of records of WAEPA premium payments from the old hand-
posting card system to the new National Cash Register account cards
was completed. Records of payments of all plans administered by
GEHA are now kept by the National Cash Register system.
2. In October an exhibit was completed and opened during the
Intelligence "county fair" held monthly in the R&S Building in con-
junction with the B.O.C. series. A representative from this Branch
is in attendance during these sessions to assist with insurance and
other benefits matters.
3. A prepared lecture on GEHA insurance coverage, was worked
out with representatives of the Employees Services Branch, for use in
connection with the E.O.D. lectures to new employees.
4. The book]e t "Your Health aid Life Insurance Program" was
prepared by this Branch for distribution to all employees in con,*
nection with the Annual Insurance Drive. In addition, a "Book
Dispatch" and "Instruction Sheets for Preparation of Applications
and Filing of Claims" was prepared for the overseas stations.
5. Representatives of the Branch conducted more than twenty
lectures on insurance prior to and during the "Drive." During and
after many of these lectures, applications were received from
employees, thereby obviating the need for their coming to Curie Hall
to apply,
6. The Annual Application Drive for Mutual Hospitalization
and United Benefit Life insurance, during which period all physical
requirements and waiting periods were waived,, was conducted from
1 October 1956 through 31 October 1956 for Headquarters employees,,
and from 1 October 1956 through 30 November 1956 for overseas employees.
During the drive period approximately 5,,000 applications for the above
mentioned coverage were received and processed.
SECRET
Approved For Release 2001/04/05: CIA-RDP80-01826R000100060005-4
 Approved Fo Release 200 IA-RDP8Q @1826R000100060005-4
7. Due to certain security requirements, it became necessary
for the Board of Directors to cancel the contract with Group
Hospitalization, Incorporated as of 31 December 1956. Negotiations
were held and arrangements made so that G.H.I. policyholders could
change over to Mutual coverage without loss of coverage or incurring
a waiting period. A letter, dated 1 October 1956, was dispatched to
all G.H.I. policyholders appraising them of these facts.
8. Applications for transferring G.H.T. to Mutual were accepted
through 31 December 1956. With the exception of a few justifiable
administratively approved cases, this phase of the operation has been
completed.
9. Effective 1 September 1956, the rate of the Mutual
Hos italization family contract was reduced from $7.98 per month
to $7.40.
10. Certain added benefits were obtained under the GEHL plans,.,
as follows:
a. The allowance for maternity claims was raised from
$9.00 to $10.00 per day, and overseas hospitalization allowance
raised from $9.00 to $13.50 per day.
b. The maximum coverage under the Specified Diseases plan
was raised from $5,000 to $10,000 for each incidence of such
disease.
c. Unmarried dependents up to age 24 may be covered while
attending college so long as the parents continue to provide the
chief means of support.
11. An audit of the Insurance Branch bookkeeping methods was
conducted on 13 July by a representative of the Audit Staff, Office
of the Comptroller.
12. The regular quarterly microfilming of records of the Branch
was completed during August 1956.
13. On 29 October 1957 the Board of Directors determined that
GEHA coverage will be limited to Staff Employees and Staff Agents
only. In justifiable instances, where the component involved desired,
memos of justification, together with the application, may be submitted
to the Board for decision. A list of all contract type employees,
presently having GEHA. coverage, was submitted to the Board for study
and any action they deem necessary.
Approved For Release 28H.90: CIA-RDP80-01826R000100060005-4
 Approved For Release 2001/03foRETA-RDP80-q, 826R000100060005-4
14. Coverage under the Air Flight Trip policy was changed, as
follows:
a. Zones changed to Domestic and Foreign. Domestic zone
premiums remain the same with the exception of Principal Sum of
31,250 being changed to $37,500; medical expense of $1,562 now
being changed to $1,875, and premium $1.25 changed to $1.50.
b. The Foreign Zone (formerly Zone A) premiums and coverage
remain the same except the Principal Sum of $31,250 is now
$37,500; medical expense was $1,562 is now $1,875, and the
premium $2.50 is now $3.00. The former Foreign Zones B and C
have been eliminated.
15. During this reporting period all application forms for GEHA
coverage were revised and reprinted,
16. Following is a summary reflecting the operational activities
of this Branch for the reporting period,
w 3 r
Approved For Release 20MW 05-: CIA-RDP80-01826R000100060005-4
 Approved For Release 2001 M
AUI t f IA-RDP80 26R000100060005-4
SEU
Summary of Insurance Activity
1 July 1956 ? 31 Dec. 1956
ape of Coverage
New Applications 55
Reinstatements 0
Cancellations 73
Policies in Force
Insurance in Force $15,547,500.00
Claims $ 75,000.00 (1)
UBLIC
New Applications 350
Reinstatements 0
Cancellations 50
Policies in Force M
Insurance in Force $22,159,,500.00
Claims 0
Total Life Insurance $37,707,000.00
(1) Five deaths ($15,000.00 each)
- 4 w
25X9A2
25X9A2
Approved For Release 2001 -MGfIA-RDP80-01826R000100060005-4
 Approved For Rase 2001/0
Type of Coverage
P11-RDP80-0dM26R000100060005-4
25X9
New Applications
Transferred Out to GHI
Policies in Force
(on Dec. 31)
Cancellations
All GHI contracts cancelled midnight
Dec. 31, 1956.
Claims Paid (Class B only)
$1,20015,30
No, of Claims
156
Average per Claim
$ 77.02.
New Applications
25X9
Cancellations
237
Policies in Force
Single)
25X9A2
Claims Paid
$174, 311x..07
Family)
No. of Claims
2,006
Average per Claim
86.89
AIR FLIGHT
New Applications
DREAD DISEASES
New Applications
INCOI RI I:CEtENT
New Applications
264
647 (238, Single)
(4090 Family)
43 (Plan 1 - 7)
n 2 -13
n 3 5
4 18)
Approved For Release 200 1 Ip, ;fIA-RDP80-01826R000100060005-4
 Approved For Release 200
S~ftttCIA-RDP861.181826R000100060005-4
Report of Program Plans
for the'Period 1 January < 30 June 1957
1. The Cashierts Office was closed on Jm ua Th., 15, and 16
for the purpose of tabulating the advance (prepaid) payments on all
of the accounts for the various plans administered by GEHA. This
reconciliation has been recommended by the Audit Staff but until
this time, due to work loads and limited personnel., its accomplish.,
meet has been an impossibility. It is planned to continue such
reconciliations at regular intervals from now on.
2. The use of a prenumbered voucher type check, prepared in
triplicate, is anticipated. The voucher portion of the check will
show the type of insuraice., type of disbursement (claim, refund.,
other)., together with a breakdown by payment of the number of days
in hospital., hospital extras, doctor's fees, etc. Instead of
a transmittal letter to the insured., the original of the voucher
section of the check will be dispatched. The duplicate will re-
place the present voucher, thereby saving the time involved in its
present preparation while the triplicate will be used as a file copy
being kept in an alphabetical "claims paid" file thus eliminating
the need for the separate posting now made to the individual employee's
claims records. The check stub, and the work involved therewith, will
no longer be necessary.
3. The inclusion of the Rmergency Travel Plan coverage, under- 25X1A5a1
written by the with the coverage
offered under GEHA. will be accomplished. This plan is intended to
minimize the financial burden on employees in the event of death or
very serious illness of a relative or other named person, thereby
resulting in the need for returnin from overseas with its accompanying
expensiveness. The of Washington., D. C. are the 25X1A5a1
brokers handling the account.
4. Negotiations will be completed and issuance begun of the new
Travel.Matic policy. Presently there are only six plans available.,
offering a minimum coverage of $25,000 to a maximum of $50,000,, with
rates ranging from $18.00 to $34.25 per year. Under the new plan
there will be sixteen plans ranging in coverage from $25,000 to
$100,000,
Approved For Release 2%q?ObW : CIA-RDP80-01826R000100060005-4
 Approved For''R'blease 2001/O ~~R~ -RDP8044826R000100060005-4
5, Due to the fact that Group Hospitalization, Incorporated,
coverage ceased on 31 December 1956, many former holders of GHI have
refunds coming for all payments made beyond that date, These refunds
will be liquidated as soon as possible.
6. It is anticipated (after discussion with Machine Records and
Finance Division) that the four IBM payroll listings which are received
from Finance Division each month for deduction of premiums from
salaries of employees paid from Unvouchered Funds, be prepared in account
number order rather than alphabetical so that the National Cash Register
Posting cards can all be filed by account number.
.. 7
Approved For Release 20 11D 5 : CIA-RDP80-01826R000100060005-4