§1642.7001. Management agreement.
48 C.F.R. § 1642.7001
When it is in the best interest of FEHBP enrollees to continue a contract for an interim period after the carrier discontinues its operations and has entered into a Purchase and Sale Agreement (or other descriptive term), but before a successor in interest has been recognized by OPM, the carrier may submit for OPM approval a Management Agreement that enables it to continue a contract through an agreement with a third party to administer the day-to-day performance of the contract. Examples of situations in which a Management Agreement may be accepted by OPM are:
When a transfer of assets does not meet the criteria for a novation;
While a request for a novation is pending;
While awaiting a decision on a request for a novation;
As an interim measure, when the timing of a transfer of assets or the timing of a carrier's withdrawal make administration of the contract inconvenient;
When it is not in the interests of the Government to either recognize a successor in interest or to immediately terminate the existing FEHBP contract.
Notes, amendments, and revision history
Authority
Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); 48 CFR 1.301.
Source
Source: 59 FR 14765, Mar. 30, 1994, unless otherwise noted.