51 U.S.C. § 20139 — Insurance for experimental aerospace vehicles
submitted 16 years ago by Pub. L. 111-314 to r/title-51-NATIONAL-AND-COMMERCIAL-SPACE-PROGRAMS · 1,215 words · no verdicts yet
The Administrator may provide liability insurance or indemnification to developers of experimental aerospace vehicles. Developers must carry insurance and follow safety and cross-waiver rules similar to those for regular space vehicles. This section ended on December 31, 2010, though existing agreements made under it stay in effect.
(a) Definitions. (1) 'Cooperating party' means anyone who agrees with the Administration* to carry out cooperative scientific, aeronautical, or space activities under this chapter. (2) 'Developer' means a U.S. organization (not a natural person) that either (A) has an agreement with the Administration to develop new technology for an experimental aerospace vehicle; (B) owns or supplies property flown or placed on that vehicle; or (C) has an employee flown on it. (3) 'Experimental aerospace vehicle' means an object meant to fly, or be launched, into orbital or suborbital flight to demonstrate technology for a reusable launch vehicle, developed under an Administration-developer agreement. (4) 'Related entity' includes a contractor or subcontractor at any level, a supplier, a grantee, and an investigator or detailee.
(b) In General. The Administrator* may provide liability insurance for, or indemnify, a developer of an experimental aerospace vehicle built or used under an agreement with the Administration.
(c) Terms and Conditions. (1) In general, insurance and indemnification for a developer follow the same terms as those given to a space-vehicle user under section 20138, unless this section says otherwise. (2) Insurance: (A) A developer must buy liability insurance, or show it can otherwise cover, the most probable loss from claims by a third party for death, injury, property damage, or loss from developing or using the vehicle, and from the government for damage to government property from the same activity. (B) The Administrator sets the required insurance amount, which — except as described next — cannot be more than the amount required under section 50914(a)(3) for a launch; the Administrator must publish that amount in the Federal Register within 10 days of deciding it. (C) The Administrator may raise the dollar amounts in section 50914(a)(3)(A) for a developer, after consulting the Comptroller General and other experts, and after publishing notice in the Federal Register at least 180 days before the increase takes effect; the Administrator must also make public, by the notice date, any related correspondence and a transcript of any meetings the Administration took part in about the increase. (D) The Administrator cannot provide insurance or indemnification until the developer proves it is following proper safety procedures in developing the vehicle. (3) The Administrator cannot indemnify a developer under this section unless there is a cross-waiver agreement as described in subsection (d). (4) If the Administrator asks for more appropriations to make payments under this section — like the payments allowed under section 20138(c) — that request must follow the procedures in section 50915(d) and (e).
(d) Cross-Waivers. (1) The Administrator, for the United States and its departments, agencies, and instrumentalities, may agree with a developer or cooperating party — and their related entities — to reciprocally waive claims. Under such a waiver, each side agrees to be responsible (and to make its related entities responsible) for damage to its own property, and for injury or death of its own employees or agents, from activities connected to the agreement or the vehicle's use. (2) Limits on that waiver: (A) It cannot block a claim by any individual person (including a government, developer, cooperating-party, or subcontractor employee), or that person's estate, survivors, or subrogee, for injury or death — except a subrogee who is a party to the waiver or has agreed to be bound by it. (B) It cannot excuse any party from liability to such a person, or their estate, survivors, or subrogee, for negligence — with the same subrogee exception. (C) It cannot be used as the basis for the Administration, developer, or cooperating party to seek indemnification from each other for damages paid to a person, or that person's estate, survivors, or subrogees, for injury or death from these activities. (D) It cannot relieve the United States, the developer, the cooperating party, or their related entities of liability for damage or loss from willful misconduct. (3) This subsection applies to any waiver the Administration ever entered into, no matter when.
(e) Relationship to Other Laws. (1) This section does not apply to anything already covered by section 20138. (2) The Administrator cannot indemnify a developer under this section for launches that need a license under section 50919(g)(1).
(f) Termination. (1) This section ended on December 31, 2010. (2) That ending did not end or change any cross-waiver, insurance, indemnification, or other agreement already made under this section, unless the agreement itself said otherwise.
In this section:
The term “cooperating party” means any person who enters into an agreement with the Administration* for the performance of cooperative scientific, aeronautical, or space activities to carry out the purposes of this chapter.
The term “developer” means a United States person (other than a natural person) who—
is a party to an agreement with the Administration for the purpose of developing new technology for an experimental aerospace vehicle;
owns or provides property to be flown or situated on that vehicle; or
employs a natural person to be flown on that vehicle.
The term “experimental aerospace vehicle” means an object intended to be flown in, or launched into, orbital or suborbital flight for the purpose of demonstrating technologies necessary for a reusable launch vehicle, developed under an agreement between the Administration and a developer.
The term “related entity” includes a contractor or subcontractor at any tier, a supplier, a grantee, and an investigator or detailee.
The Administrator* may provide liability insurance for, or indemnification to, the developer of an experimental aerospace vehicle developed or used in execution of an agreement between the Administration and the developer.
Except as otherwise provided in this section, the insurance and indemnification provided by the Administration under subsection (b) to a developer shall be provided on the same terms and conditions as insurance and indemnification is provided by the Administration under section 20138 of this title to the user of a space vehicle.
A developer shall obtain liability insurance or demonstrate financial responsibility in amounts to compensate for the maximum probable loss from claims by—
a third party for death, bodily injury, or property damage, or loss resulting from an activity carried out in connection with the development or use of an experimental aerospace vehicle; and
the United States Government for damage or loss to Government property resulting from such an activity.
The Administrator shall determine the amount of insurance required, but, except as provided in subparagraph (C), that amount shall not be greater than the amount required under section 50914(a)(3) of this title for a launch. The Administrator shall publish notice of the Administrator’s determination and the applicable amount or amounts in the Federal Register within 10 days after making the determination.
The Administrator may increase the dollar amounts set forth in section 50914(a)(3)(A) of this title for the purpose of applying that section under this section to a developer after consultation with the Comptroller General and such experts and consultants as may be appropriate, and after publishing notice of the increase in the Federal Register not less than 180 days before the increase goes into effect. The Administrator shall make available for public inspection, not later than the date of publication of such notice, a complete record of any correspondence received by the Administration, and a transcript of any meetings in which the Administration participated, regarding the proposed increase.
The Administrator may not provide liability insurance or indemnification under subsection (b) unless the developer establishes to the satisfaction of the Administrator that appropriate safety procedures and practices are being followed in the development of the experimental aerospace vehicle.
Notwithstanding subsection (b), the Administrator may not indemnify a developer of an experimental aerospace vehicle under this section unless there is an agreement between the Administration and the developer described in subsection (d).
If the Administrator requests additional appropriations to make payments under this section, like the payments that may be made under section 20138(c) of this title, then the request for those appropriations shall be made in accordance with the procedures established by subsections (d) and (e) of section 50915 of this title.
The Administrator, on behalf of the United States, and its departments, agencies, and instrumentalities, may reciprocally waive claims with a developer or cooperating party and with the related entities of that developer or cooperating party under which each party to the waiver agrees to be responsible, and agrees to ensure that its own related entities are responsible, for damage or loss to its property for which it is responsible, or for losses resulting from any injury or death sustained by its own employees or agents, as a result of activities connected to the agreement or use of the experimental aerospace vehicle.
A reciprocal waiver under paragraph (1) may not preclude a claim by any natural person (including, but not limited to, a natural person who is an employee of the United States, the developer, the cooperating party, or their respective subcontractors) or that natural person’s estate, survivors, or subrogees for injury or death, except with respect to a subrogee that is a party to the waiver or has otherwise agreed to be bound by the terms of the waiver.
A reciprocal waiver under paragraph (1) may not absolve any party of liability to any natural person (including, but not limited to, a natural person who is an employee of the United States, the developer, the cooperating party, or their respective subcontractors) or such a natural person’s estate, survivors, or subrogees for negligence, except with respect to a subrogee that is a party to the waiver or has otherwise agreed to be bound by the terms of the waiver.
A reciprocal waiver under paragraph (1) may not be used as the basis of a claim by the Administration, or the developer or cooperating party, for indemnification against the other for damages paid to a natural person, or that natural person’s estate, survivors, or subrogees, for injury or death sustained by that natural person as a result of activities connected to the agreement or use of the experimental aerospace vehicle.
A reciprocal waiver under paragraph (1) may not relieve the United States, the developer, the cooperating party, or the related entities of the developer or cooperating party, of liability for damage or loss resulting from willful misconduct.
This subsection applies to any waiver of claims entered into by the Administration without regard to the date on which the Administration entered into the waiver.
This section does not apply to any object, transaction, or operation to which section 20138 of this title applies.
The Administrator may not provide indemnification to a developer under this section for launches subject to license under section 50919(g)(1) of this title.
The provisions of this section shall terminate on December 31, 2010.
The termination of this section shall not terminate or otherwise affect any cross-waiver agreement, insurance agreement, indemnification agreement, or other agreement entered into under this section, except as may be provided in that agreement.
Source credit: (Pub. L. 111–314, § 3, Dec. 18, 2010, 124 Stat. 3345.)
- 2010Enacted · Pub. L. 111-314 · 124 Stat. 3345
A history note hasn’t been published yet. The record shows enactment by Pub. L. 111-314 on 2010-12-18.
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