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B-237654 1 (1991-02-21)

handle is hein.gao/gaobadcam0001 and id is 1 raw text is: of dae Ushed Same w&Asusses D.C. taUs Decision Matter of: Federal Highway Administtation Purchase of Commercial Insurance rile: 3-237654 Dater February 21, 1991 Insurance should not have been purchased by the Federal Highway Administration for a traveling highway technology exhibit because of the government's long-standing policy of self-insurance. However, the shipping company that obtained the insurance for the agency may be paid for the premiums because the insurance was obtained in 4ood faith, the agency is taking steps to prevent future violations of the self- insurance rule, and payment has been allowed previously it similar circumstances. 55 Comp. Gen. 1196 (1976). * DECEgkoW -The Associate Administrator for Administration at the Federal Highway Administration, U.S. Department of Transportation, has requested an advance decision as to whether a shipping company can be paid for premiums it paid for commercial insurance acquized with the Administration's permission to insure a traveling highway technology exhibit. For the reasons I indicated below, we hold that the shipping company may be paid for the insurance premiums even though the purchase of insurance was a violation of the government's self-insurance policy.- BACKGROUND In March 1909 the Administration contracted with a freight shipping company to transport a highway technology exhibit overseas. The shipping company asked whether the Administration wanted insurance to protect the exhibit. After consulting with Administration officials, an employee, who was not a contracting officer, advised the shipping company to purchase the insurance. The shipping company paid premiums to an insurance company for.coverage during transportation and display of the exhibit. The Administration, which was designated the insured party, was I

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