
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC2458b]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                   CHAPTER 26--NATIONAL SPACE PROGRAM
 
                    SUBCHAPTER I--GENERAL PROVISIONS
 
Sec. 2458b. Insurance and indemnification


(a) Authorization

    The Administration is authorized on such terms and to the extent it 
may deem appropriate to provide liability insurance for any user of a 
space vehicle to compensate all or a portion of claims by third parties 
for death, bodily injury, or loss of or damage to property resulting 
from activities carried on in connection with the launch, operations or 
recovery of the space vehicle. Appropriations available to the 
Administration may be used to acquire such insurance, but such 
appropriations shall be reimbursed to the maximum extent practicable by 
the users under reimbursement policies established pursuant to section 
2473(c) of this title.

(b) Indemnification

    Under such regulations in conformity with this section as the 
Administrator shall prescribe taking into account the availability, cost 
and terms of liability insurance, any agreement between the 
Administration and a user of a space vehicle may provide that the United 
States will indemnify the user against claims (including reasonable 
expenses of litigation or settlement) by third parties for death, bodily 
injury, or loss of or damage to property resulting from activities 
carried on in connection with the launch, operations or recovery of the 
space vehicle, but only to the extent that such claims are not 
compensated by liability insurance of the user: Provided, That such 
indemnification may be limited to claims resulting from other than the 
actual negligence or willful misconduct of the user.

(c) Terms of indemnification agreement; notice; United States control of 
        or assistance in defense

    An agreement made under subsection (b) of this section that provides 
indemnification must also provide for--
        (1) notice to the United States of any claim or suit against the 
    user for the death, bodily injury, or loss of or damage to the 
    property; and
        (2) control of or assistance in the defense by the United 
    States, at its election, of that suit or claim.

(d) Certification of just and reasonable amount

    No payment may be made under subsection (b) of this section unless 
the Administrator or his designee certifies that the amount is just and 
reasonable.

(e) Payments

    Upon the approval by the Administrator, payments under subsection 
(b) of this section may be made, at the Administrator's election, either 
from funds available for research and development not otherwise 
obligated or from funds appropriated for such payments.

(f) Definitions

    As used in this section--
        (1) the term ``space vehicle'' means an object intended for 
    launch, launched or assembled in outer space, including the Space 
    Shuttle and other components of a space transportation system, 
    together with related equipment, devices, components and parts;
        (2) the term ``user'' includes anyone who enters into an 
    agreement with the Administration for use of all or a portion of a 
    space vehicle, who owns or provides property to be flown on a space 
    vehicle, or who employs a person to be flown on a space vehicle; and
        (3) the term ``third party'' means any person who may institute 
    a claim against a user for death, bodily injury or loss of or damage 
    to property.

(Pub. L. 85-568, title III, Sec. 308, as added Pub. L. 96-48, 
Sec. 6(b)(2), Aug. 8, 1979, 93 Stat. 348.)


                            Prior Provisions

    A prior section 308 of Pub. L. 85-568 was renumbered section 309 and 
is classified to section 2459 of this title.


                             Effective Date

    Section 6(c) of Pub. L. 96-48 provided that: ``This section 
[enacting this section and amending section 2473 of this title] shall be 
effective October 1, 1979.''


  Experimental Aerospace Vehicle Insurance; Indemnification; Liability

    Pub. L. 105-276, title IV, Sec. 431, Oct. 21, 1998, 112 Stat. 2513, 
authorized the Administrator to insure or indemnify the developer of an 
experimental aerospace vehicle developed or used in execution of an 
agreement between the Administrator and developer, prior to repeal by 
Pub. L. 106-74, title IV, Sec. 435(b), Oct. 20, 1999, 113 Stat. 1100. 
See section 2458c of this title.

                  Section Referred to in Other Sections

    This section is referred to in section 2458c of this title.
