49 U.S.C. § 44302 — General authority

submitted 32 years ago by Pub. L. 103-272 to r/title-49-TRANSPORTATION · 782 words · no verdicts yet

in plain englishAI-generated · not legal advice

The Secretary of Transportation may insure American or foreign aircraft against operating risks. The President must approve this insurance first. The Secretary also could reimburse airlines for certain 9/11-era cost increases, and extended some policies through 2014. The Secretary may separately insure aircraft manufacturers against war or terrorism losses above a set amount.

(a) Insurance and Reinsurance. (1) Subject to subsection (c) and section 44305(a), the Secretary of Transportation may insure and reinsure against loss or damage from any risk of operating an American aircraft or a foreign-flag aircraft. (2) An aircraft may be insured or reinsured for no more than its reasonable value, as the Secretary decides using reasonable commercial-aviation-insurance-industry practices. The Secretary may only provide this insurance when the Secretary decides it can't be bought on reasonable terms from a private insurance carrier. (b) Reimbursement of Insurance Cost Increases. (1) In general. The Secretary may reimburse an air carrier for the increase in insurance cost — for coverage ending before October 1, 2002 — that the carrier paid, compared to what a comparable policy cost during September 4-10, 2001, as the Secretary determines. This reimbursement is subject to subsections (a)(2), (c), and (d), and to section 44303. (2) Payment from revolving fund. This reimbursement is paid from the revolving fund created by section 44307. (3) Further conditions. The Secretary may add further conditions on reimbursed insurance, if the Secretary thinks it serves air commerce. (4) Termination of authority. This reimbursement authority expired 180 days after this paragraph was enacted. (c) Presidential Approval. The Secretary may provide insurance or reinsurance under subsection (a), or reimburse an air carrier under subsection (b), only with the President's approval. The President may approve it only after deciding that continuing to operate the aircraft is necessary for air commerce, national security, or U.S. foreign policy. (d) Consultation. The President may require the Secretary to consult with other interested federal departments, agencies, and instrumentalities before providing insurance, reinsurance, or reimbursement under this chapter. (e) Additional Insurance. With the Secretary's approval, someone with an insurable interest in an aircraft may buy additional insurance from other insurers, beyond the amount insured with the Secretary. But the Secretary may not benefit from that extra insurance. This does not stop the Secretary from making coinsurance contracts. (f) Extension of Policies. (1) In general. The Secretary had to extend, through December 11, 2014, the end date of any insurance policy the Department of Transportation issued to an air carrier under subsection (a) that was still active on this subsection's enactment date — on terms no less favorable than those on June 19, 2002. But the Secretary also had to amend the policy to add coverage for hull, passenger, and crew losses, at the limits carriers used for such losses on that enactment date, at an added premium comparable to the policy's third-party casualty premium. (2) Special rules. Despite paragraph (1): (A) the total premium the air carrier pays for the amended policy can never be more than twice what it was paying for its third-party policy on June 19, 2002; and (B) the amended coverage starts with the first dollar of any covered loss. (g) Aircraft Manufacturers. (1) In general. The Secretary may give an aircraft manufacturer insurance for loss or damage from an air carrier's operation of an aircraft, involving war or terrorism. (2) Amount. This insurance covers loss or damage above whichever is greater: the amount of available primary insurance, or $50,000,000. (3) Terms and conditions. This insurance follows this chapter's terms and conditions, plus any others the Secretary sets.

the actual law source: uscode.house.gov ↗public domain

(a)Insurance and Reinsurance.—

(1)

Subject to subsection (c) of this section and section 44305(a) of this title, the Secretary of Transportation may provide insurance and reinsurance against loss or damage arising out of any risk from the operation of an American aircraft or foreign-flag aircraft.

(2)

An aircraft may be insured or reinsured for not more than its reasonable value as determined by the Secretary in accordance with reasonable business practices in the commercial aviation insurance industry. Insurance or reinsurance may be provided only when the Secretary decides that the insurance cannot be obtained on reasonable terms from an insurance carrier.

(b)Reimbursement of Insurance Cost Increases.—

(1)In general.—

The Secretary may reimburse an air carrier for the increase in the cost of insurance, with respect to a premium for coverage ending before October 1, 2002, against loss or damage arising out of any risk from the operation of an American aircraft over the insurance premium that was in effect for a comparable operation during the period beginning September 4, 2001, and ending September 10, 2001, as the Secretary may determine. Such reimbursement is subject to subsections (a)(2), (c), and (d) of this section and to section 44303.

(2)Payment from revolving fund.—

A reimbursement under this subsection shall be paid from the revolving fund established by section 44307.

(3)Further conditions.—

The Secretary may impose such further conditions on insurance for which the increase in premium is subject to reimbursement under this subsection as the Secretary may deem appropriate in the interest of air commerce.

(4)Termination of authority.—

The authority to reimburse air carriers under this subsection shall expire 180 days after the date of enactment of this paragraph.

(c)Presidential Approval.—

The Secretary may provide insurance or reinsurance under subsection (a) of this section, or reimburse an air carrier under subsection (b) of this section, only with the approval of the President. The President may approve the insurance or reinsurance or the reimbursement only after deciding that the continued operation of the American aircraft or foreign-flag aircraft to be insured or reinsured is necessary in the interest of air commerce or national security or to carry out the foreign policy of the United States Government.

(d)Consultation.—

The President may require the Secretary to consult with interested departments, agencies, and instrumentalities of the Government before providing insurance or reinsurance or reimbursing an air carrier under this chapter.

(e)Additional Insurance.—

With the approval of the Secretary, a person having an insurable interest in an aircraft may insure with other underwriters in an amount that is more than the amount insured with the Secretary. However, the Secretary may not benefit from the additional insurance. This subsection does not prevent the Secretary from making contracts of coinsurance.

(f)Extension of Policies.—

(1)In general.—

The Secretary shall extend through December 11, 2014, the termination date of any insurance policy that the Department of Transportation issued to an air carrier under subsection (a) and that is in effect on the date of enactment of this subsection on no less favorable terms to the air carrier than existed on June 19, 2002; except that the Secretary shall amend the insurance policy, subject to such terms and conditions as the Secretary may prescribe, to add coverage for losses or injuries to aircraft hulls, passengers, and crew at the limits carried by air carriers for such losses and injuries as of such date of enactment and at an additional premium comparable to the premium charged for third-party casualty coverage under such policy.

(2)Special rules.—

Notwithstanding paragraph (1)—

(A)

in no event shall the total premium paid by the air carrier for the policy, as amended, be more than twice the premium that the air carrier was paying to the Department of Transportation for its third party policy as of June 19, 2002; and

(B)

the coverage in such policy shall begin with the first dollar of any covered loss that is incurred.

(g)Aircraft Manufacturers.—

(1)In general.—

The Secretary may provide to an aircraft manufacturer insurance for loss or damage resulting from operation of an aircraft by an air carrier and involving war or terrorism.

(2)Amount.—

Insurance provided by the Secretary under this subsection shall be for loss or damage in excess of the greater of the amount of available primary insurance or $50,000,000.

(3)Terms and conditions.—

Insurance provided by the Secretary under this subsection shall be subject to the terms and conditions set forth in this chapter and such other terms and conditions as the Secretary may prescribe.

Source credit: (Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 1168; Pub. L. 105–137, § 2(a), Dec. 2, 1997, 111 Stat. 2640; Pub. L. 107–42, title II, § 201(a), Sept. 22, 2001, 115 Stat. 234; Pub. L. 107–296, title XII, § 1202, Nov. 25, 2002, 116 Stat. 2286; Pub. L. 108–11, title IV, § 4001(a), Apr. 16, 2003, 117 Stat. 606; Pub. L. 108–176, title I, § 106(a)(1), Dec. 12, 2003, 117 Stat. 2498; Pub. L. 108–447, div. H, title I, § 106(a), Dec. 8, 2004, 118 Stat. 3204; Pub. L. 109–115, div. A, title I, § 108(a), Nov. 30, 2005, 119 Stat. 2402; Pub. L. 110–161, div. K, title I, § 114(a), Dec. 26, 2007, 121 Stat. 2381; Pub. L. 110–253, § 3(c)(6), June 30, 2008, 122 Stat. 2418; Pub. L. 110–330, § 5(c), Sept. 30, 2008, 122 Stat. 3718; Pub. L. 111–12, § 5(b), Mar. 30, 2009, 123 Stat. 1458; Pub. L. 111–69, § 5(c), Oct. 1, 2009, 123 Stat. 2055; Pub. L. 111–116, § 5(b), Dec. 16, 2009, 123 Stat. 3032; Pub. L. 111–117, div. A, title I, § 114(a), Dec. 16, 2009, 123 Stat. 3042; Pub. L. 111–153, § 5(b), Mar. 31, 2010, 124 Stat. 1085; Pub. L. 111–161, § 5(b), Apr. 30, 2010, 124 Stat. 1127; Pub. L. 111–197, § 5(b), July 2, 2010, 124 Stat. 1354; Pub. L. 111–216, title I, § 104(b), Aug. 1, 2010, 124 Stat. 2349; Pub. L. 111–249, § 5(c), Sept. 30, 2010, 124 Stat. 2628; Pub. L. 111–329, § 5(b), Dec. 22, 2010, 124 Stat. 3567; Pub. L. 112–7, § 5(b), Mar. 31, 2011, 125 Stat. 32; Pub. L. 112–16, § 5(b), May 31, 2011, 125 Stat. 219; Pub. L. 112–21, § 5(b), June 29, 2011, 125 Stat. 234; Pub. L. 112–27, § 5(b), Aug. 5, 2011, 125 Stat. 271; Pub. L. 112–30, title II, § 205(c), Sept. 16, 2011, 125 Stat. 358; Pub. L. 112–91, § 5(c), Jan. 31, 2012, 126 Stat. 4; Pub. L. 112–95, title VII, § 701, Feb. 14, 2012, 126 Stat. 118; Pub. L. 113–46, div. A, § 152, Oct. 17, 2013, 127 Stat. 565; Pub. L. 113–76, div. L, title I, § 119E(a), Jan. 17, 2014, 128 Stat. 582; Pub. L. 113–164, § 148(a), Sept. 19, 2014, 128 Stat. 1874; Pub. L. 113–235, div. L, § 102(a), Dec. 16, 2014, 128 Stat. 2767.)

history & why it existsrecord from the source credit

1994Enacted · Pub. L. 103-272 · 108 Stat. 1168
1997Amended · Pub. L. 105-137 · 111 Stat. 2640
2001Amended · Pub. L. 107-42 · 115 Stat. 234
2002Amended · Pub. L. 107-296 · 116 Stat. 2286
2003Amended · Pub. L. 108-11 · 117 Stat. 606
2003Amended · Pub. L. 108-176 · 117 Stat. 2498
2004Amended · Pub. L. 108-447 · 118 Stat. 3204
2005Amended · Pub. L. 109-115 · 119 Stat. 2402
2007Amended · Pub. L. 110-161 · 121 Stat. 2381
2008Amended · Pub. L. 110-253 · 122 Stat. 2418
2008Amended · Pub. L. 110-330 · 122 Stat. 3718
2009Amended · Pub. L. 111-12 · 123 Stat. 1458
2009Amended · Pub. L. 111-69 · 123 Stat. 2055
2009Amended · Pub. L. 111-116 · 123 Stat. 3032
2009Amended · Pub. L. 111-117 · 123 Stat. 3042
2010Amended · Pub. L. 111-153 · 124 Stat. 1085
2010Amended · Pub. L. 111-161 · 124 Stat. 1127
2010Amended · Pub. L. 111-197 · 124 Stat. 1354
2010Amended · Pub. L. 111-216 · 124 Stat. 2349
2010Amended · Pub. L. 111-249 · 124 Stat. 2628
2010Amended · Pub. L. 111-329 · 124 Stat. 3567
2011Amended · Pub. L. 112-7 · 125 Stat. 32
2011Amended · Pub. L. 112-16 · 125 Stat. 219
2011Amended · Pub. L. 112-21 · 125 Stat. 234
2011Amended · Pub. L. 112-27 · 125 Stat. 271
2011Amended · Pub. L. 112-30 · 125 Stat. 358
2012Amended · Pub. L. 112-91 · 126 Stat. 4
2012Amended · Pub. L. 112-95 · 126 Stat. 118
2013Amended · Pub. L. 113-46 · 127 Stat. 565
2014Amended · Pub. L. 113-76 · 128 Stat. 582
2014Amended · Pub. L. 113-164 · 128 Stat. 1874
2014Amended · Pub. L. 113-235 · 128 Stat. 2767

A history note hasn’t been published yet. The record shows enactment by Pub. L. 103-272 on 1994-07-05.

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