FULL PRODUCT VERSION :
java version "1.8.0_102"
Java(TM) SE Runtime Environment (build 1.8.0_102-b14)
Java HotSpot(TM) 64-Bit Server VM (build 25.102-b14, mixed mode)

ADDITIONAL OS VERSION INFORMATION :
Darwin 15.6.0 Darwin Kernel Version 15.6.0
OSX 10.11.6 (15G31)

A DESCRIPTION OF THE PROBLEM :
In the Update pane of the Java Control Panel, the checkbox for 'Check for Updates Automatically' is not respected. Unchecking this box, and clicking 'Apply' or 'Ok' (and confirming 'Do Not Check') prompts for a password as expected. After entering a valid (administrative) password, re-opening the Java Control Panel and Update pane shows this box still checked; and update checks continue to be made

STEPS TO FOLLOW TO REPRODUCE THE PROBLEM :
1) Install JDK version 1.8.0_102 (1.8.0_92 also had this issue and others prior)
2) open System Preferences > Java. The Java Control Panel should open.
3) Go to the Updates tab, uncheck "Check for Updates Automatically"
4) Click OK. Enter the administrator password.
5) Close the Java Control Panel and also close the System Preferences.
6) Again, go to System Preferences > Java, Updates tab. The checkbox is still enabled and updates are still checked automatically.

EXPECTED VERSUS ACTUAL BEHAVIOR :
EXPECTED -
Updates should not be checked automatically if the checkbox is unchecked by the user.
ACTUAL -
Updates are always checked automatically even if the checkbox is unchecked by the user.

REPRODUCIBILITY :
This bug can be reproduced always.

CUSTOMER SUBMITTED WORKAROUND :
To turn off Check for updates, execute this command:
sudo defaults write /Library/Preferences/com.oracle.java.Java-Updater JavaAutoUpdateEnabled -bool false

Then the checkbox is unchecked in the Control Panel.