
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: 49USC44308]

 
                        TITLE 49--TRANSPORTATION
 
                     SUBTITLE VII--AVIATION PROGRAMS
 
                     PART A--AIR COMMERCE AND SAFETY
 
                           subpart iii--safety
 
                         CHAPTER 443--INSURANCE
 
Sec. 44308. Administrative

    (a) Commercial Practices.--The Secretary of Transportation may carry 
out this chapter consistent with commercial practices of the aviation 
insurance business.
    (b) Issuance of Policies and Disposition of Claims.--(1) The 
Secretary may issue insurance policies to carry out this chapter. The 
Secretary may prescribe the forms, amounts insured under the policies, 
and premiums charged. Any such policy may authorize the binding 
arbitration of claims made thereunder in such manner as may be agreed to 
by the Secretary and any commercial insurer that may be responsible for 
any part of a loss to which such policy relates. The Secretary may 
change an amount of insurance or a premium for an existing policy only 
with the consent of the insured.
    (2) For a claim under insurance authorized by this chapter, the 
Secretary may--
        (A) settle and pay the claim made for or against the United 
    States Government;
        (B) pay the amount of a binding arbitration award made under 
    paragraph (1); and
        (C) pay the amount of a judgment entered against the Government.

    (c) Underwriting Agent.--(1) The Secretary may, and when practical 
shall, employ an insurance carrier or group of insurance carriers to act 
as an underwriting agent. The Secretary may use the agent to adjust 
claims under this chapter, but claims may be paid only when approved by 
the Secretary.
    (2) The Secretary may pay reasonable compensation to an underwriting 
agent for servicing insurance the agent writes for the Secretary. 
Compensation may include payment for reasonable expenses incurred by the 
agent but may not include a payment by the agent for stimulation or 
solicitation of insurance business.
    (3) Except as provided by this subsection, the Secretary may not pay 
an insurance broker or other person acting in a similar capacity any 
consideration for arranging insurance when the Secretary directly 
insures any part of the risk.
    (d) Budget.--The Secretary shall submit annually a budget program 
for carrying out this chapter as provided for wholly owned Government 
corporations under chapter 91 of title 31.
    (e) Accounts.--The Secretary shall maintain a set of accounts for 
audit under chapter 35 of title 31. Notwithstanding chapter 35, the 
Comptroller General shall allow credit for expenditures under this 
chapter made consistent with commercial practices in the aviation 
insurance business when shown to be necessary because of the business 
activities authorized by this chapter.

(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1171; Pub. L. 104-
316, title I, Sec. 127(e), Oct. 19, 1996, 110 Stat. 3840; Pub. L. 105-
137, Sec. 4, Dec. 2, 1997, 111 Stat. 2640.)

                                          Historical and Revision Notes
-------------------------------------------------------------------------------
---------------------------------
           Revised  Section                    Source (U.S. Code)              
 Source (Statutes at Large)
-------------------------------------------------------------------------------
---------------------------------
44308(a)..............................  49 App.:1537(c) (1st sentence).  Aug. 2
3, 1958, Pub. L. 85-726, Sec.
                                                                          1307(
a) (1st sentence), (c), (d), 72
                                                                          Stat.
 803, 804.
44308(b)(1)...........................  49 App.:1537(a) (1st sentence
                                         words before 6th comma).
                                        49 App.:1537(b).                 Aug. 2
3, 1958, Pub. L. 85-726, Sec.
                                                                          1307(
b), 72 Stat. 804; Nov. 9, 1977,
                                                                          Pub. 
L. 95-163, Sec.  5(a), 91 Stat.
                                                                          1280.
44308(b)(2)...........................  49 App.:1537(a) (1st sentence
                                         words after 6th comma).
44308(c)(1)...........................  49 App.:1537(d) (1st, 3d
                                         sentences).
44308(c)(2)...........................  49 App.:1537(d) (2d, last
                                         sentences).
44308(c)(3)...........................  49 App.:1537(c) (last
                                         sentence).
44308(d)..............................  49 App.:1537(f) (1st sentence).  Aug. 2
3, 1958, Pub. L. 85-726, Sec.
                                                                          1307(
f), 72 Stat. 804; Jan. 2, 1975,
                                                                          Pub. 
L. 93-604, Sec.  702, 88 Stat.
                                                                          1964.
44308(e)..............................  49 App.:1537(f) (last
                                         sentence).
-------------------------------------------------------------------------------
---------------------------------

    In subsection (a), the words ``may carry out this chapter'' are 
substituted for ``in administering this subchapter, may exercise his 
powers, perform his duties and functions, and make his expenditures'' to 
eliminate unnecessary words.
    In subsection (b)(1), the word ``insurance'' is added for clarity. 
The words ``rules, and regulations'' are omitted as unnecessary because 
of 49:322(a). The words ``as he deems proper'' and ``subject to the 
following provisions of this subsection'' are omitted as surplus. The 
words ``and change'' and ``fix, adjust, and change'' are omitted as 
being included in ``prescribe''. The words ``under the policies'' are 
added for clarity. The word ``charged'' is substituted for ``provided 
for in this subchapter'' for consistency in this subchapter.
    In subsection (b)(2), before clause (A), the words ``the Secretary'' 
are added because of the restatement. In clause (A), the words ``adjust 
and . . . losses, compromise and'' are omitted as included in ``settle 
and pay the claim''. The word ``made'' is substituted for ``whether'' 
for clarity. In clause (B), the word ``entered'' is substituted for 
``rendered'' because it is more appropriate. The words ``in any suit'' 
are omitted as surplus. The words ``or the amount of any settlement 
agreed upon'' are omitted as being included in ``settle and pay the 
claim''.
    In subsection (c)(1), the words ``and when practical shall'' are 
substituted for ``and whenever he finds it practical to do so shall'' to 
eliminate unnecessary words. The word ``his'' is omitted as surplus. The 
words ``The Secretary may use'' are substituted for ``may be utilized'' 
for consistency. The words ``The services of'' are omitted as 
unnecessary.
    In subsection (c)(2), the words ``pay reasonable compensation'' are 
substituted for ``allow . . . fair and reasonable compensation'' for 
consistency in the revised title. The words ``an underwriting agent'' 
are substituted for ``such companies or groups of companies'', and the 
words ``the agent writes'' are substituted for ``written by such 
companies or groups of companies as underwriting agent'', for clarity. 
The word ``payment'' is substituted for ``allowance'' for consistency.
    In subsection (c)(3), the words ``intermediary'' and ``fee or 
other'' are omitted as surplus. The word ``for'' is substituted for ``by 
virtue of his participation in'' to eliminate unnecessary words.
    In subsection (d), the word ``prepare'' is omitted as being included 
in ``submit''. The words ``for carrying out this chapter'' are 
substituted for ``in the performance of, and with respect to, the 
functions, powers, and duties vested in him by this subchapter'' for 
consistency and to eliminate unnecessary words. The words ``under 
chapter 91 of title 31'' are substituted for ``by the Government 
Corporation Control Act, as amended (59 Stat. 597; 31 U.S.C. 841)'' in 
section 1307(f) of the Act of August 23, 1958 (Public Law 85-726, 72 
Stat. 804) because of section 4(b) of the Act of September 13, 1982 
(Public Law 97-258, 96 Stat. 1067).
    In subsection (e), the words ``under chapter 35 of title 31'' are 
substituted for ``in accordance with the provisions of the Accounting 
and Auditing Act of 1950'' in section 1307(f) of the Act of August 23, 
1958 (Public Law 85-726, 72 Stat. 804) because of section 4(b) of the 
Act of September 13, 1982 (Public Law 97-258, 96 Stat. 1067). The words 
``Provided, That . . . the Secretary may exercise the powers conferred 
in said subchapter, perform the duties and functions'' are omitted as 
surplus. The words ``Notwithstanding chapter 35'' are added for clarity. 
The words ``Comptroller General'' are substituted for ``General 
Accounting Office'' because of 31:702.


                               Amendments

    1997--Subsec. (b)(1). Pub. L. 105-137, Sec. 4(a), inserted after 
second sentence ``Any such policy may authorize the binding arbitration 
of claims made thereunder in such manner as may be agreed to by the 
Secretary and any commercial insurer that may be responsible for any 
part of a loss to which such policy relates.''
    Subsec. (b)(2). Pub. L. 105-137, Sec. 4(b), struck out ``and'' at 
end of subpar. (A), added subpar. (B), and redesignated former subpar. 
(B) as (C).
    1996--Subsec. (e). Pub. L. 104-316 substituted ``for audit'' for ``. 
The Comptroller General shall audit those accounts''.
