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Govt’s life insurance carrier contract renewed for a year
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Posted on Jan 12 2012
The Fitial administration has renewed the contract of Individual Assurance Co., the life insurance carrier for government employees, for another year or until January 2013, according to press secretary Angel Demapan and Retirement Fund administrator Richard Villagomez yesterday.
Demapan, however, emphasized that this renewal is on a month-to-month extension basis, which could be changed anytime during the period covered. “Renewal is for one year but on a month-to-month basis. This just means that the agreement may be adjusted or altered if necessary during the one-year period,” he told Saipan Tribune.
Under the renewal terms, there will be no changes to the premiums or coverage.
The AIC contract expired in December. This renewal serves as the fourth extension.
The NMI Retirement Fund only serves as the administrator of the program. It is owned by the government and negotiations on renewal and other issues are always between the carrier and the administration.
Saipan Tribune learned that life insurance coverage for government employees was supposed to expire in August 2010 but this was later extended for several months until the government finally decided to go into a long-term agreement with AIC.
