(a) Insurance filed with the Fund Administrator as evidence of financial responsibility shall be issued by an insurer that is acceptable to the Fund Administrator. Those insurers may include domestic and foreign insurance companies, corporations or associations of individual insurers, protection and indemnity associations, or other persons acceptable to the Fund Administrator.
(b) An insurer must:
(1) Agree to be sued directly, within the limits of the policy coverage, by any person for claims under the Act against the owner or operator; and
(2) Designate an agent in the United States for service of process.
(c) Insurance as evidence of financial responsibility must indicate the effective date in the endorsement on the application for Certificate of Financial Responsibility, and must remain in force until the date of termination indicated in the endorsement or until—
(1) 30 days after mailing, by certified mail, to the Fund Administrator, and the person insured, notification of intent to cancel; or
(2) Other evidence of financial responsibility acceptable to the Fund Administrator has been established; or
(3) The facility to which the insurance applies ceases to be a facility under § 135.201(b).
(d) Termination of insurance coverage shall not affect the liability of the insurer for an incident occurring before the effective date of termination.
(e) Confirmation of insurance may be accepted from an insurance broker that is acceptable to the Fund Administrator, subject to the Fund Administrator's approval of the individual underwriters, in lieu of their signature on an application, provided the confirmation:
(1) States the insurance covers liabilities under the Act;
(2) Sets forth the limit and deductible;
(3) Provides for direct action against the individual underwriters to the extent of their contracts;
(4) Names the underwriters and percentages of the limit accepted by each;
(5) States that the underwriters agree to give prior written notice of cancellation or change to the Fund Administrator as required in paragraph (c) of this section; and
(6) States that the notice indicated in paragraph (e)(5) of this section will not affect the underwriter's liability for incidents occurring before the effective date of cancellation.
Title 33 published on 2014-07-01
The following are only the Rules published in the Federal Register after the published date of Title 33.
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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.