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FAR and DFARS › FAR Part 28: Bonds and Insurance › Subpart 28.3

FAR 28.307-1 Group insurance plans.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section requires contractors with cost-reimbursement contracts to get agency approval before buying group insurance or making changes that could significantly increase government costs. It also requires the plan to give the government a share of any premium refunds or credits, considering future reserves and refunds.

Applies to: Contractors with cost-reimbursement contracts that purchase group insurance plans.

What it requires

  • Submit the group insurance plan for approval before buying insurance, following agency regulations.
  • Obtain similar approval for any change in benefits that can reasonably be expected to significantly increase the cost to the Government.
  • Ensure the plan provides for the Government to share in any premium refunds or credits paid or allowed to the contractor.
  • Take into account any special reserves and other future refunds when determining the Government's share.

Key terms: cost-reimbursement contracts · group insurance plan · prior approval · premium refunds or credits · special reserves

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) Prior approval requirement. Under cost-reimbursement contracts, before buying insurance under a group insurance plan, the contractor must submit the plan for approval, in accordance with agency regulations. Any change in benefits provided under an approved plan that can reasonably be expected to increase significantly the cost to the Government requires similar approval.

(b) Premium refunds or credits. The plan shall provide for the Government to share in any premium refunds or credits paid or otherwise allowed to the contractor. In determining the extent of the Government's share in any premium refunds or credits, any special reserves and other refunds to which the contractor may be entitled in the future shall be taken into account.

← 28.307 Insurance under cost-reimbursement contracts. · 28.307-2 Liability. →

Rule changes for FAR Part 28

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 28.307-1 Group insurance plans · SpendQuery