
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document affected by Public Law 107-42 Section 201(a)]
[CITE: 49USC44302]

 
                        TITLE 49--TRANSPORTATION
 
                     SUBTITLE VII--AVIATION PROGRAMS
 
                     PART A--AIR COMMERCE AND SAFETY
 
                           subpart iii--safety
 
                         CHAPTER 443--INSURANCE
 
Sec. 44302. General authority

    (a) Insurance and Reinsurance.--(1) Subject to subsection (b) 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--
        (A) in foreign air commerce; or
        (B) between at least 2 places, all of which are outside the 
    United States.

    (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) Presidential Approval.--The Secretary may provide insurance or 
reinsurance under subsection (a) of this section only with the approval 
of the President. The President may approve the insurance or reinsurance 
only after deciding that the continued operation of the American 
aircraft or foreign-flag aircraft to be insured or reinsured is 
necessary to carry out the foreign policy of the United States 
Government.
    (c) Consultation.--The President may require the Secretary to 
consult with interested departments, agencies, and instrumentalities of 
the Government before providing insurance or reinsurance under this 
chapter.
    (d) 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.

(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1168; Pub. L. 105-
137, Sec. 2(a), Dec. 2, 1997, 111 Stat. 2640.)

                                          Historical and Revision Notes
-------------------------------------------------------------------------------
---------------------------------
           Revised  Section                    Source (U.S. Code)              
 Source (Statutes at Large)
-------------------------------------------------------------------------------
---------------------------------
44302(a)..............................  49 App.:1532(a)(1) (less words   Aug. 2
3, 1958, Pub. L. 85-726, Sec.
                                         between 1st and 3d commas),      1302(
a), 72 Stat. 801; restated Nov.
                                         (3).                             9, 19
77, Pub. L. 95-163, Sec.  2, 91
                                                                          Stat.
 1278; Oct. 31, 1992, Pub. L. 102-
                                                                          581, 
Sec.  401(b), 106 Stat. 4897.
                                        49 App.:1537(a) (last sentence   Aug. 2
3, 1958, Pub. L. 85-726, Sec.
                                         words between 2d and 3d          1307(
a) (last sentence words between
                                         commas).                         2d an
d 3d commas), 72 Stat. 804; Oct.
                                                                          4, 19
84, Pub. L. 98-443, Sec.  9(b),
                                                                          98 St
at. 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. 2
3, 1958, Pub. L. 85-726, Sec.
                                                                          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.


                               Amendments

    1997--Subsec. (a)(2). Pub. L. 105-137 substituted ``as determined by 
the Secretary in accordance with reasonable business practices in the 
commercial aviation insurance industry.'' for ``as determined by the 
Secretary.''

  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), 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) 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.

                  Section Referred to in Other Sections

    This section is referred to in sections 44303, 44305 of this title.
