49 U.S. Code § 44302 - General authority

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(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 September 30, 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

(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.)

Historical and Revision Notes
Revised Section Source (U.S. Code) Source (Statutes at Large)
44302(a)
49 App.:1532(a)(1) (less words between 1st and 3d commas), (3).
Aug. 23, 1958, Pub. L. 85–726, § 1302(a), 72 Stat. 801; restated Nov. 9, 1977, Pub. L. 95–163, § 2, 91 Stat. 1278; Oct. 31, 1992, Pub. L. 102–581, § 401(b), 106 Stat. 4897.
49 App.:1537(a) (last sentence words between 2d and 3d commas).
Aug. 23, 1958, Pub. L. 85–726, § 1307(a) (last sentence words between 2d and 3d commas), 72 Stat. 804; Oct. 4, 1984, Pub. L. 98–443, § 9(b), 98 Stat. 1706.
44302(b)
49 App.:1532(a)(1) (words between 1st and 2d commas), (2).
44302(c)
49 App.:1532(a)(1) (words between 2d and 3d commas).
44302(d)
49 App.:1541.
Aug. 23, 1958, Pub. L. 85–726, § 1311, 72 Stat. 806.

In subsection (a)(1), before clause (A), the words “Subject to subsection (b) of this section” are added, and the words “American aircraft or foreign-flag aircraft” are substituted for “aircraft” in 49 App.:1532(a), for clarity. The words “in the manner and to the extent provided by this subchapter” are omitted as unnecessary. The words “Insurance shall be issued under this subchapter only to cover any risk from the operation of an aircraft . . . such aircraft is” are omitted because of the restatement. In clause (B), the word “places” is substituted for “points” for consistency in the revised title.
In subsection (a)(2), the words “An aircraft may be insured or reinsured for not more than” are substituted for “and such stated amount shall not exceed” in 49 App.:1537(a) for clarity and because of the restatement. The words “its reasonable value” are substituted for “an amount . . . to represent the fair and reasonable value of the aircraft” to eliminate unnecessary words. The words “Insurance or reinsurance may be provided only” are added because of the restatement. The word “conditions” is omitted as being included in “terms”.
In subsection (b), the words “The Secretary may provide insurance or reinsurance under subsection (a) of this section only with the approval of the President” are substituted for “with the approval of the President” for clarity and because of the restatement. The words “The President may” are substituted for “The President shall” because the authority of the President is discretionary.
In subsection (c), the words “the Secretary to consult . . . before providing insurance or reinsurance under this chapter” are substituted for “and after such consultation . . . as” because of the restatement. The words “departments, agencies, and instrumentalities” are substituted for “agencies” for consistency in the revised title and with other titles of the United States Code.
In subsection (d), the words “However, the Secretary may not benefit from the additional insurance” are substituted for “in that event, the Secretary shall not be entitled to the benefit of such insurance” for clarity.
References in Text

The date of enactment of this paragraph, referred to in subsec. (b)(4), is the date of enactment of Pub. L. 107–42, which was approved Sept. 22, 2001.
The date of enactment of this subsection, referred to in subsec. (f)(1), is the date of enactment of Pub. L. 107–296, which was approved Nov. 25, 2002.
Amendments

2014—Subsec. (f)(1). Pub. L. 113–76substituted “September 30, 2014” for “the date specified in section 106(3) of the Continuing Appropriations Act, 2014”.
2013—Subsec. (f)(1). Pub. L. 113–46substituted “the date specified in section 106(3) of the Continuing Appropriations Act, 2014” for “September 30, 2013, and may extend through December 31, 2013”.
2012—Subsec. (f)(1). Pub. L. 112–95substituted “shall extend through September 30, 2013, and may extend through December 31, 2013, the termination date” for “shall extend through February 17, 2012, and may extend through May 17, 2012, the termination date”.
Pub. L. 112–91substituted “February 17, 2012,” for “January 31, 2012,” and “May 17, 2012,” for “April 30, 2012,”.
2011—Subsec. (f)(1). Pub. L. 112–30substituted “January 31, 2012,” for “September 16, 2011,” and “April 30, 2012,” for “December 31, 2011,”.
Pub. L. 112–27substituted “September 16, 2011,” for “July 22, 2011,” and “December 31, 2011,” for “October 31, 2011,”.
Pub. L. 112–21substituted “July 22, 2011,” for “June 30, 2011,” and “October 31, 2011,” for “September 30, 2011,”.
Pub. L. 112–16substituted “June 30, 2011,” for “May 31, 2011,” and “September 30, 2011,” for “August 31, 2011,”.
Pub. L. 112–7substituted “May 31, 2011,” for “March 31, 2011,” and “August 31, 2011,” for “June 30, 2011,”.
2010—Subsec. (f)(1). Pub. L. 111–329, § 5(b), substituted “March 31, 2011,” for “December 31, 2010,” and “June 30, 2011,” for “March 31, 2011,”.
Pub. L. 111–249substituted “December 31, 2010,” for “September 30, 2010,” and “March 31, 2011,” for “December 31, 2010,”.
Pub. L. 111–216substituted “September 30, 2010,” for “August 1, 2010,” and “December 31, 2010,” for “October 31, 2010,”.
Pub. L. 111–197substituted “August 1, 2010,” for “July 3, 2010,” and “October 31, 2010,” for “September 30, 2010,”.
Pub. L. 111–161substituted “July 3, 2010,” for “April 30, 2010,” and “September 30, 2010,” for “July 31, 2010,”.
Pub. L. 111–153substituted “April 30, 2010,” for “March 31, 2010,” and “July 31, 2010,” for “June 30, 2010,”.
2009—Subsec. (f)(1). Pub. L. 111–117, which directed the substitution of “September 30, 2010,” for “September 30, 2009,” and “December 31, 2010,” for “December 31, 2009,”, could not be executed because of the intervening amendment by Pub. L. 111–69. See below.
Pub. L. 111–116substituted “March 31, 2010,” for “December 31, 2009,” and “June 30, 2010,” for “March 31, 2010,”.
Pub. L. 111–69substituted “December 31, 2009,” for “September 30, 2009,” and “March 31, 2010,” for “December 31, 2009,”.
Pub. L. 111–12substituted “September 30, 2009,” for “March 31, 2009,” and “December 31, 2009,” for “May 31, 2009,”.
2008—Subsec. (f)(1). Pub. L. 110–330substituted “March 31, 2009,” for “November 30, 2008,” and “May 31, 2009,” for “December 31, 2008,”.
Pub. L. 110–253substituted “November 30, 2008” for “August 31, 2008”.
2007—Subsec. (f)(1). Pub. L. 110–161substituted “2008” for “2006” in two places.
2005—Subsec. (f)(1). Pub. L. 109–115substituted “2006” for “2005” in two places.
2004—Subsec. (f)(1). Pub. L. 108–447substituted “2005” for “2004” in two places.
2003—Subsec. (f)(1). Pub. L. 108–11, substituted “2004” for “2003” in two places.
Subsec. (g). Pub. L. 108–176added subsec. (g).
2002—Subsec. (f). Pub. L. 107–296added subsec. (f).
2001—Subsec. (a)(1). Pub. L. 107–42, § 201(a)(1), substituted “subsection (c)” for “subsection (b)” and “foreign-flag aircraft.” for “foreign-flag aircraft—” and struck out subpars. (A) and (B) which read as follows:
“(A) in foreign air commerce; or
“(B) between at least 2 places, all of which are outside the United States.”
Subsec. (b). Pub. L. 107–42, § 201(a)(3), added subsec. (b). Former subsec. (b) redesignated (c).
Subsec. (c). Pub. L. 107–42, § 201(a)(2), (4), redesignatedsubsec. (b) as (c), in first sentence inserted “, or reimburse an air carrier under subsection (b) of this section,” before “only with the approval”, and in second sentence inserted “or the reimbursement” before “only after deciding” and “in the interest of air commerce or national security or” before “to carry out the foreign policy”. Former subsec. (c) redesignated (d).
Subsec. (d). Pub. L. 107–42, § 201(a)(2), (5), redesignatedsubsec. (c) as (d) and inserted “or reimbursing an air carrier” before “under this chapter”. Former subsec. (d) redesignated (e).
Subsec. (e). Pub. L. 107–42, § 201(a)(2), redesignatedsubsec. (d) as (e).
1997—Subsec. (a)(2). Pub. L. 105–137substituted “as determined by the Secretary in accordance with reasonable business practices in the commercial aviation insurance industry.” for “as determined by the Secretary.”
Effective Date of 2011 Amendment

Amendment by Pub. L. 112–27effective July 23, 2011, see section 5(j) ofPub. L. 112–27, set out as a note under section 40117 of this title.
Amendment by Pub. L. 112–21effective July 1, 2011, see section 5(j) ofPub. L. 112–21, set out as a note under section 40117 of this title.
Amendment by Pub. L. 112–16effective June 1, 2011, see section 5(j) ofPub. L. 112–16, set out as a note under section 40117 of this title.
Amendment by Pub. L. 112–7effective Apr. 1, 2011, see section 5(j) ofPub. L. 112–7, set out as a note under section 40117 of this title.
Effective Date of 2010 Amendment

Amendment by Pub. L. 111–329effective Jan. 1, 2011, see section 5(j) ofPub. L. 111–329, set out as a note under section 40117 of this title.
Amendment by Pub. L. 111–249effective Oct. 1, 2010, see section 5(l) ofPub. L. 111–249, set out as a note under section 40117 of this title.
Amendment by Pub. L. 111–216effective Aug. 2, 2010, see section 104(j) ofPub. L. 111–216, set out as a note under section 40117 of this title.
Amendment by Pub. L. 111–197effective July 4, 2010, see section 5(j) ofPub. L. 111–197, set out as a note under section 40117 of this title.
Amendment by Pub. L. 111–161effective May 1, 2010, see section 5(j) ofPub. L. 111–161, set out as a note under section 40117 of this title.
Amendment by Pub. L. 111–153effective Apr. 1, 2010, see section 5(j) ofPub. L. 111–153, set out as a note under section 40117 of this title.
Effective Date of 2009 Amendment

Amendment by Pub. L. 111–116effective Jan. 1, 2010, see section 5(j) ofPub. L. 111–116, set out as a note under section 40117 of this title.
Amendment by Pub. L. 111–12effective Apr. 1, 2009, see section 5(j) ofPub. L. 111–12, set out as a note under section 40117 of this title.
Effective Date of 2008 Amendment

Amendment by Pub. L. 110–330effective Oct. 1, 2008, see section 5(l) ofPub. L. 110–330, set out as a note under section 40117 of this title.
Amendment by Pub. L. 110–253effective July 1, 2008, see section 3(d) ofPub. L. 110–253, set out as a note under section 9502 of Title 26, Internal Revenue Code.
Effective Date of 2003 Amendment

Amendment by Pub. L. 108–176applicable only to fiscal years beginning after Sept. 30, 2003, except as otherwise specifically provided, see section 3 ofPub. L. 108–176, set out as a note under section 106 of this title.
Effective Date of 2002 Amendment

Amendment by Pub. L. 107–296effective 60 days after Nov. 25, 2002, see section 4 ofPub. L. 107–296, set out as an Effective Date note under section 101 of Title 6, Domestic Security.
Extension of Termination Date of Policies

Pub. L. 109–289, div. B, title II, § 21002(a), as added by Pub. L. 110–5, § 2,Feb. 15, 2007, 121 Stat. 47, provided that subsec. (f)(1) of this section would be applied by substituting “September 30, 2007” for “August 31, 2006, and may extend through December 31, 2006”.
Provision of Aviation Insurance Coverage for Commercial Air Carrier Service

Determination of President of the United States, No. 94–39, July 26, 1994, 59 F.R. 38551, provided:
By virtue of the authority vested in me by the Constitution and laws of the United States, including 3 U.S.C. 301 and 49 U.S.C. 44302, I hereby:
(1) determine that continuation of authorized humanitarian relief air services to Haiti is necessary to carry out the foreign policy of the United States;
(2) approve provision by the Secretary of Transportation of insurance against loss or damage arising out of any risk from the operation of an aircraft in the manner and to the extent provided in 49 U.S.C. 44301–44310, whenever he determines that such insurance cannot be obtained on reasonable terms and conditions from any company authorized to conduct an insurance business in a State of the United States;
(3) delegate to the Secretary of Transportation, in consultation with the Secretary of State, the authority vested in me by 49 U.S.C. 44302 (b) [now 44302(c)], for purposes of responding to the current crisis in Haiti; and
(4) delegate to the Secretary of Transportation, in consultation with the Secretary of State, the authority vested in me by 49 U.S.C. 44306 (b) [now 44306(c)] for purposes of responding to the current crisis in Haiti.
The Secretary of Transportation is directed to bring this determination immediately to the attention of all air carriers within the meaning of 49 U.S.C. 40102 (a)(2), and to arrange for its publication in the Federal Register.
William J. Clinton.
Provision of Aviation Insurance Coverage for Commercial Air Carrier Service in Domestic and International Operations

Memorandum for the Secretary of Transportation
Memorandum of President of the United States, Sept. 27, 2012, 77 F.R. 60035, provided:
By the authority vested in me as President by the Constitution and the laws of the United States, including 49 U.S.C. 44301–44310, I hereby:
1. Determine that the continuation of U.S. air transportation is necessary in the interest of air commerce, national security, and the foreign policy of the United States.
2. Approve provision by the Secretary of Transportation of insurance or reinsurance to U.S.-certificated air carriers against loss or damage arising out of any risk from the operation of an aircraft, in the manner and to the extent provided in chapter 443 of title 49, U.S. Code, until September 30, 2013, if he determines that such insurance or reinsurance cannot be obtained on reasonable terms from any company authorized to conduct an insurance business in a State of the United States.
3. Delegate to the Secretary of Transportation the authority, vested in me by 49 U.S.C. 44306 (c), to extend this approval and determination beyond September 30, 2013, to December 31, 2013, if he finds that the continued operation of 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, if he also determines that such insurance or reinsurance cannot be obtained on reasonable terms from any company authorized to conduct an insurance business in a State of the United States.
You are directed to bring this determination immediately to the attention of all air carriers, as defined in 49 U.S.C. 40102 (a)(2), and to arrange for its publication in the Federal Register.
Barack Obama.
Prior Presidential documents related to provision of insurance to U.S.-flag commercial air service were contained in the following:
Memorandum of President of the United States, Sept. 28, 2011, 76 F.R. 61247.
Memorandum of President of the United States, Sept. 29, 2010, 75 F.R. 61033.
Memorandum of President of the United States, Aug. 21, 2009, 74 F.R. 43617.
Memorandum of President of the United States, Dec. 23, 2008, 73 F.R. 79589.
Memorandum of President of the United States, Dec. 27, 2007, 73 F.R. 1813.
Memorandum of President of the United States, Dec. 21, 2006, 71 F.R. 77243.
Memorandum of President of the United States, Dec. 22, 2005, 70 F.R. 76669.
Determination of President of the United States, No. 2005–15, Dec. 21, 2004, 69 F.R. 77607.
Determination of President of the United States, No. 2004–13, Dec. 11, 2003, 69 F.R. 5237.
Determination of President of the United States, No. 01–29, Sept. 23, 2001, 66 F.R. 49075.

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49 USCDescription of ChangeSession YearPublic LawStatutes at Large
§ 443022014113-76 [Sec.] 119E(a)128 Stat. 582
§ 443022013113-46 [Sec.] 152127 Stat. 565
§ 443022012112-95 [Sec.] 701126 Stat. 118
§ 443022012112-91 [Sec.] 5(c)126 Stat. 4

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14 CFR - Aeronautics and Space

14 CFR Part 198 - AVIATION INSURANCE

 

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