
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 49USC41112]

 
                        TITLE 49--TRANSPORTATION
 
                     SUBTITLE VII--AVIATION PROGRAMS
 
                     PART A--AIR COMMERCE AND SAFETY
 
                     subpart ii--economic regulation
 
                  CHAPTER 411--AIR CARRIER CERTIFICATES
 
Sec. 41112. Liability insurance and financial responsibility

    (a) Liability Insurance.--The Secretary of Transportation may issue 
a certificate to a citizen of the United States to provide air 
transportation as an air carrier under section 41102 of this title only 
if the citizen complies with regulations and orders of the Secretary 
governing the filing of an insurance policy or self-insurance plan 
approved by the Secretary. The policy or plan must be sufficient to pay, 
not more than the amount of the insurance, for bodily injury to, or 
death of, an individual or for loss of, or damage to, property of 
others, resulting from the operation or maintenance of the aircraft 
under the certificate. A certificate does not remain in effect unless 
the carrier complies with this subsection.
    (b) Financial Responsibility.--To protect passengers and shippers 
using an aircraft operated by an air carrier issued a certificate under 
section 41102 of this title, the Secretary may require the carrier to 
file a performance bond or equivalent security in the amount and on 
terms the Secretary prescribes. The bond or security must be sufficient 
to ensure the carrier adequately will pay the passengers and shippers 
when the transportation the carrier agrees to provide is not provided. 
The Secretary shall prescribe the amounts to be paid under this 
subsection.

(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1126.)

                                          Historical and Revision Notes
-------------------------------------------------------------------------------
---------------------------------
           Revised  Section                    Source (U.S. Code)              
 Source (Statutes at Large)
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---------------------------------
41112.................................  49 App.:1371(q).                 Aug. 2
3, 1958, Pub. L. 85-726, 72 Stat.
                                                                          731, 
Sec.  401(q); added Oct. 24,
                                                                          1978,
 Pub. L. 95-504, Sec.  20(d)(1),
                                                                          92 St
at. 1722.
                                        49 App.:1551(b)(1)(E).           Aug. 2
3, 1958, Pub. L. 85-726, 72 Stat.
                                                                          731, 
Sec.  1601(b)(1)(E); added Oct.
                                                                          4, 19
84, Pub. L. 98-443, Sec.  3(e),
                                                                          98 St
at. 1704.
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---------------------------------

    In subsection (a), the words ``citizen of the United States'' and 
``citizen'' are substituted for ``applicant for such certificate or the 
air carrier'' for clarity and consistency because only a citizen of the 
United States may be an ``air carrier'' as defined in section 40102(a) 
of the revised title and receive a certificate. The words ``as the case 
may be'' are omitted as surplus. The words ``to provide air 
transportation as an air carrier under section 41102 of this title'' are 
added for clarity. The words ``approved by the Secretary'' are 
substituted for ``governing the filing and approval . . . in the amount 
prescribed by the Board'' to eliminate unnecessary words. The words 
``The policy or plan must be sufficient to pay'' are substituted for 
``which are conditioned to pay . . . amounts'' for clarity. The words 
``for which such applicant or such air carrier may become liable for'' 
are omitted as surplus.
    In subsection (b), the word ``passengers'' is substituted for 
``travelers'' for consistency in this chapter. The words ``issued . . . 
under section 41102 of this title'' are added for clarity. The word 
``arrangement'' is omitted as surplus. The word ``provide'' is 
substituted for ``perform'' for consistency in the revised title.

                  Section Referred to in Other Sections

    This section is referred to in section 41104 of this title.
