
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(d)]
[Document affected by Public Law 107-71 Section 124(b)]
[Document affected by Public Law 107-71 Section 147]
[CITE: 49USC44306]

 
                        TITLE 49--TRANSPORTATION
 
                     SUBTITLE VII--AVIATION PROGRAMS
 
                     PART A--AIR COMMERCE AND SAFETY
 
                           subpart iii--safety
 
                         CHAPTER 443--INSURANCE
 
Sec. 44306. Premiums and limitations on coverage and claims

    (a) Premiums Based on Risk.--To the extent practical, the premium 
charged for insurance or reinsurance under this chapter shall be based 
on consideration of the risk involved.
    (b) Time Limits.--The Secretary of Transportation may provide 
insurance and reinsurance under this chapter for a period of not more 
than 60 days. The period may be extended for additional periods of not 
more than 60 days each only if the President decides, before each 
additional period, that the continued operation of the aircraft to be 
insured or reinsured is necessary to carry out the foreign policy of the 
United States Government.
    (c) Maximum Insured Amount.--The insurance policy on an aircraft 
insured or reinsured under this chapter shall specify a stated amount 
that is not more than the value of the aircraft, as determined by the 
Secretary in accordance with reasonable business practices in the 
commercial aviation insurance industry. A claim under the policy may not 
be paid for more than that stated amount.

(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1170; Pub. L. 105-
137, Sec. 2(b), Dec. 2, 1997, 111 Stat. 2640.)

                                          Historical and Revision Notes
-------------------------------------------------------------------------------
---------------------------------
           Revised  Section                    Source (U.S. Code)              
 Source (Statutes at Large)
-------------------------------------------------------------------------------
---------------------------------
44306(a)..............................  49 App.:1532(b).                 Aug. 2
3, 1958, Pub. L. 85-726, Sec.
                                                                          1302(
b), (c), 72 Stat. 801; restated
                                                                          Nov. 
9, 1977, Pub. L. 95-163, Sec.  2,
                                                                          91 St
at. 1279.
44306(b)..............................  49 App.:1532(c).
44306(c)..............................  49 App.:1537(a) (last sentence   Aug. 2
3, 1958, Pub. L. 85-726, Sec.
                                         less words between 2d and 3d     1307(
a) (last sentence less words
                                         commas).                         betwe
en 2d and 3d commas), 72 Stat.
                                                                          804; 
Oct. 4, 1984, Pub. L. 98-443,
                                                                          Sec. 
 9(b), 98 Stat. 1706.
-------------------------------------------------------------------------------
---------------------------------

    In subsection (a), the words ``To the extent'' are substituted for 
``insofar as'' for consistency.
    In subsection (b), the word ``initial'' is omitted as surplus. The 
words ``The period'' are substituted for ``Such insurance or 
reinsurance'', and the words ``the President decides . . . that the 
continued operation of the aircraft to be insured or reinsured is 
necessary to carry out the foreign policy of the United States 
Government'' are substituted for ``the President makes the same 
determination with respect to such extension as he is required to make 
under paragraph (2) of subsection (a) of this section for the initial 
provision of such insurance or reinsurance'', for clarity.
    In subsection (c), the words ``or reinsured'' are added for 
consistency. The words ``to be paid in the event of total loss'' are 
omitted as unnecessary because of the last sentence. The words ``A claim 
under the policy may not be paid for more than that stated amount'' are 
substituted for ``the amount of any claim which is compromised, settled, 
adjusted, or paid shall in no event exceed such stated amount'' to 
eliminate unnecessary words.


                               Amendments

    1997--Subsec. (c). 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.''
