14 CFR 205.5 - Minimum coverage.

§ 205.5 Minimum coverage.
(a) Insurance contracts and self-insurance plans shall provide for payment on behalf of the carrier, within the specific limits of liability in this section, of all sums that the carrier shall become legally obligated to pay as damages, excluding any deductible in the policy, for bodily injury to or death of a person, or for damage to the property of others, resulting from the carrier's operation or maintenance of aircraft in air transportation provided under its authority from the Department.
(b) U.S. and foreign direct air carriers, including commuter air carriers but excluding U.S. air taxi operators and Canadian charter air taxi operators, shall maintain the following coverage:
(1) Third-party aircraft accident liability coverage for bodily injury to or death of persons, including nonemployee cargo attendants, other than passengers, and for damage to property, with minimum limits of $300,000 for any one person in any one occurrence, and a total of $20,000,000 per involved aircraft for each occurrence, except that for aircraft of not more than 60 seats or 18,000 pounds maximum payload capacity, carriers need only maintain coverage of $2,000,000 per involved aircraft for each occurrence.
(2) Any such carrier providing air transportation for passengers shall, in addition to the coverage required in paragraph (b)(1) of this section, maintain aircraft accident liability insurance coverage for bodily injury to or death of aircraft passengers, with minimum limits of $300,000 for any one passenger, and a total per involved aircraft for each occurrence of $300,000 times 75 percent of the number of passenger seats installed in the aircraft.
(c) U.S. air taxi operators registered under part 298 shall maintain the following coverage:
(1) Third-party aircraft accident liability coverage for bodily injury to or death of persons, including nonemployee cargo attendants, other than passengers, with minimum limits of:
(i) $75,000 for any one person in any one occurrence, and a total of $300,000 per involved aircraft for each occurrence, and
(ii) A limit of a least $100,000 for each occurrence for loss of or damage to property.
(2) U.S. air taxi operators carrying passengers in air transportation shall, in addition to the coverage required in paragraph (c)(1) of this section, maintain aircraft accident liability insurance coverage for bodily injury to or death of aircraft passengers, with minimum limits of $75,000 for any one passenger, and a total per involved aircraft for each occurrence of $75,000 times 75 percent of the number of passenger seats installed in the aircraft.
(d) Canadian charter air taxi operators registered under part 294 of this chapter shall maintain the following coverage:
(1) Third-party aircraft accident liability coverage for bodily injury to or death of persons, including nonemployee cargo attendants, other than passengers, and for damage to property, with a minimum coverage of $75,000 for any one person in any one occurrence, and a total of $2,000,000 per involved aircraft for each occurrence, except that Canadian charter air taxi operators operating aircraft of more than 30 seats or 7,500 pounds maximum cargo payload capacity, and a maximum authorized takeoff weight on wheels not greater than 35,000 pounds shall maintain coverage for those aircraft of $20,000,000 per involved aircraft for each occurrence.
(2) Canadian charter air taxi operators engaging in passenger charter air service under part 294 of this chapter shall, in addition to the coverage required in paragraph (d)(1) of this section, maintain aircraft accident liability coverage for bodily injury to or death of aircraft passengers, with a minimum coverage of $75,000 for any one passenger and a total per involved aircraft for each occurrence of $75,000 times 75 percent of the total number of passenger seats installed in the aircraft.
(e) Notwithstanding paragraphs (b), (c) and (d) of this section, the carrier may be insured for a combined single limit of liability for each occurrence. The combined single-limit coverage must be not less than the combined required minimums for bodily injury and property damage coverage plus, if the aircraft is used in passenger service, the required total passenger coverages stipulated in paragraph (b) of this section for U.S. and foreign direct air carriers and commuter carriers, paragraph (c) of this section for U.S. air taxi operators, or paragraph (d) of this section for Canadian charter air taxi operators. 1 The single-limit liability policy for the required aircraft accident liability coverage may be provided by a single policy or by a combination of primary and excess policies.

Footnote(s):
1 For example: the minimum single limit of liability acceptable for any aircraft in air taxi passenger service with 16 passenger seats would be computed on the basis of limits set forth in paragraph (c) as follows: 16 × .75 equals 12; 12 × $75,000 equals $900,000; $900,000 plus $300,000 (nonpassenger liability per occurrence) plus $100,000 (property damage per occurrence) equals $1,300,000. The latter amount is the minimum in which a single-limit liability policy may be written.

(f) The liability coverage shall not be contingent upon the financial condition, solvency, or freedom from bankruptcy of the carrier. The limits of the liability for the amounts required by this part shall apply separately to each occurrence. Any payment made under the policy or plan because of any one occurrence shall not reduce the coverage for payment of other damages resulting from any other occurrence.
[Docket No. 47939, 57 FR 40101, Sept. 2, 1992; 57 FR 52590, Nov. 4, 1992]

Title 14 published on 2014-01-01

no entries appear in the Federal Register after this date.

This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.

This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].

It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.


United States Code
U.S. Code: Title 49 - TRANSPORTATION

§ 40101 - Policy

§ 40102 - Definitions

§ 40103 - Sovereignty and use of airspace

§ 40104 - Promotion of civil aeronautics and safety of air commerce

§ 40105 - International negotiations, agreements, and obligations

§ 40106 - Emergency powers

§ 40107 - Presidential transfers

§ 40108 - Training schools

§ 40109 - Authority to exempt

§ 40110 - General procurement authority

§ 40111 - Multiyear procurement contracts for services and related items

§ 40112 - Multiyear procurement contracts for property

§ 40113 - Administrative

§ 40114 - Reports and records

§ 40115 - Withholding information

§ 40116 - State taxation

§ 40117 - Passenger facility charges

§ 40118 - Government-financed air transportation

§ 40119 - Security and research and development activities

§ 40120 - Relationship to other laws

§ 40121 - Air traffic control modernization reviews

§ 40122 - Federal Aviation Administration personnel management system

§ 40123 - Protection of voluntarily submitted information

§ 40124 - Interstate agreements for airport facilities

§ 40125 - Qualifications for public aircraft status

§ 40126 - Severable services contracts for periods crossing fiscal years

§ 40127 - Prohibitions on discrimination

§ 40128 - Overflights of national parks

§ 40129 - Collaborative decisionmaking pilot program

§ 41101 - Requirement for a certificate

§ 41102 - General, temporary, and charter air transportation certificates of air carriers

§ 41103 - All-cargo air transportation certificates of air carriers

§ 41104 - Additional limitations and requirements of charter air carriers

§ 41105 - Transfers of certificates

§ 41106 - Airlift service

§ 41107 - Transportation of mail

§ 41108 - Applications for certificates

§ 41109 - Terms of certificates

§ 41110 - Effective periods and amendments, modifications, suspensions, and revocations of certificates

§ 41111 - Simplified procedure to apply for, amend, modify, suspend, and transfer certificates

§ 41112 - Liability insurance and financial responsibility

§ 41113 - Plans to address needs of families of passengers involved in aircraft accidents

§ 41301 - Requirement for a permit

§ 41302 - Permits of foreign air carriers

§ 41303 - Transfers of permits

§ 41304 - Effective periods and amendments, modifications, suspensions, and revocations of permits

§ 41305 - Applications for permits

§ 41306 - Simplified procedure to apply for, amend, modify, and suspend permits

§ 41307 - Presidential review of actions about foreign air transportation

§ 41308 - Exemption from the antitrust laws

§ 41309 - Cooperative agreements and requests

§ 41310 - Discriminatory practices

§ 41311 - Gambling restrictions

§ 41312 - Ending or suspending foreign air transportation

§ 41313 - Plans to address needs of families of passengers involved in foreign air carrier accidents

§ 41701 - Classification of air carriers

§ 41702 - Interstate air transportation

§ 41703 - Navigation of foreign civil aircraft

§ 41704 - Transporting property not to be transported in aircraft cabins

§ 41705 - Discrimination against handicapped individuals

§ 41706 - Prohibitions against smoking on passenger flights

§ 41707 - Incorporating contract terms into written instrument

§ 41708 - Reports

§ 41709 - Records of air carriers

§ 41710 - Time requirements

§ 41711 - Air carrier management inquiry and cooperation with other authorities

§ 41712 - Unfair and deceptive practices and unfair methods of competition

§ 41713 - Preemption of authority over prices, routes, and service

§ 41714 - Availability of slots

§ 41715 - Phase-out of slot rules at certain airports

§ 41716 - Interim slot rules at New York airports

§ 41717 - Interim application of slot rules at Chicago O’Hare International Airport

§ 41718 - Special rules for Ronald Reagan Washington National Airport

§ 41719 - Air service termination notice

§ 41720 - Joint venture agreements

§ 41721 - Reports by carriers on incidents involving animals during air transport

§ 41722 - Delay reduction actions

§ 41723 - Notice concerning aircraft assembly