Section 550.1504 - Eligibility(a) An authorized agency official may, upon the request of a beneficiary, furnish one United States flag for an individual who-(1) Was an employee of the agency at the time of death; and(2) Died of injuries incurred in connection with such individual's employment with the Federal Government suffered as a result of- (ii) An act of terrorism;(iii) A natural disaster; or(iv) Other circumstances, as determined by the President.(b) An authorized agency official may not furnish a flag when the death is the result of- (1) Unlawful or negligent action of the employee;(2) Willful misconduct of the employee; or(3) Activities unrelated to the employee's status as a Federal employee.(c) The decision whether to furnish a flag to the beneficiary of an eligible employee is at the discretion of the agency. When an authorized agency official determines the agency will furnish a flag for a deceased eligible employee, the official must follow the order of precedence specified in § 550.1505 .