Title 49 — Transportation
Part A · Chapter 443 — Insurance
§ 44306. Premiums and limitations on coverage and claims
Statutory text
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.
Allowances in Setting Premium Rates for Reinsurance.—
In setting premium rates for reinsurance, the Secretary may make allowances to the insurance carrier for expenses incurred in providing services and facilities that the Secretary considers good business practices, except for payments by the insurance carrier for the stimulation or solicitation of insurance business.
Time Limits.—
The Secretary of Transportation may provide insurance and reinsurance under this chapter for a period of not more than 1 year. The period may be extended for additional periods of not more than 1 year each only if the President decides, before each additional period, that the continued operation of the aircraft to be insured or reinsured is necessary in the interest of air commerce or national security or to carry out the foreign policy of the United States Government.
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.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Pub. L. 103–272 § 1(e) · 108 Stat. 745
Enacted · 49 U.S.C. § 44306
Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 1170
Source evidence
Code source credit
Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 1170Enacted provision · exact public law section
Section 1. subtitles ii, ii, and v-x of title 49, united states code (a) Certain general and permanent laws of the 49 USC prec. 101 note. United States, related to transportation, are revised, codified, and enacted by subsections (c)–(e) of this section without substantive change as subtitles II, III, and V–X of title 49, United States Code, “Transportation”. Those laws may be cited as “49 U.S.C. ________”. (b) Title 49, United States Code, is amended by striking the table of subtitles at the beginning of the title and substituting the following new table of subtitles: “Subtitle “I. DEPARTMENT OF TRANSPORTATION “II. OTHER GOVERNMENT AGENCIES “III. GENERAL AND INTERMODAL PROGRAMS “IV. INTERSTATE COMMERCE “V. RAIL PROGRAMS “VI. MOTOR VEHICLE AND DRIVER PROGRAMS “VII. AVIATION PROGRAMS “VIII. PIPELINES “IX. COMMERCIAL SPACE TRANSPORTATION “X. MISCELLANEOUS (c) Title 49, United States Code, is amended by striking subtitle II, except that chapter 31 (comprising sections 3101–3104) of subtitle II is redesignated and restated as chapter 315 (comprising sections 31501–31504) of subtitle VI of title 49, as enacted by subsection (e) of this section. (d) Title 49, United States Code, is amended by adding the following immediately after subtitle I:Aviation Insurance Reauthorization Act of 1997
Pub. L. 105–137 § 2(b) · 111 Stat. 2640
Substituted · 49 U.S.C. § 44306(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.”
Source evidence
Code amendment note
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.”Enacted provision · exact public law section
(b) Limitation on Maximum Insured Amount.— Section 44306(c) of title 49, United States Code, is amended by striking “as determined by the Secretary.” and inserting “as determined by the Secretary in accordance with reasonable business practices in the commercial aviation insurance industry.”.Air Transportation Safety and System Stabilization Act
Pub. L. 107–42 § 201(d)(2) · 115 Stat. 230
Redesignated · 49 U.S.C. § 44306(b)
Pub. L. 107–42, § 201(d)(2), added subsec. (b). Former subsec. (b) redesignated (c)
Source evidence
Code amendment note
Subsec. (b). Pub. L. 107–42, § 201(d)(2), added subsec. (b). Former subsec. (b) redesignated (c).Enacted provision · exact public law section
(2) by inserting after subsection (a) the following: “(b) Allowances in Setting Premium Rates for Reinsurance.— In setting premium rates for reinsurance, the Secretary may make allowances to the insurance carrier for expenses incurred in providing services and facilities that the Secretary considers good business practices, except for payments by the air carrier for the stimulation or solicitation of insurance business.”.Air Transportation Safety and System Stabilization Act
Pub. L. 107–42 § 201(d)(1) · 115 Stat. 230
Redesignated · 49 U.S.C. § 44306(c)
Pub. L. 107–42, § 201(d)(1), redesignated subsec. (b) as (c). Former subsec. (c) redesignated (d)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 107–42, § 201(d)(1), redesignated subsec. (b) as (c). Former subsec. (c) redesignated (d).Enacted provision · exact public law section
(1) by redesignating subsections (b) and (c) as subsections (c) and (d), respectively; andAir Transportation Safety and System Stabilization Act
Pub. L. 107–42 § 201(d)(1) · 115 Stat. 230
Redesignated · 49 U.S.C. § 44306(d)
Pub. L. 107–42, § 201(d)(1), redesignated subsec. (c) as (d)
Source evidence
Code amendment note
Subsec. (d). Pub. L. 107–42, § 201(d)(1), redesignated subsec. (c) as (d).Enacted provision · exact public law section
(1) by redesignating subsections (b) and (c) as subsections (c) and (d), respectively; andAviation and Transportation Security Act
Pub. L. 107–71 § 147 · 115 Stat. 597
Amended · 49 U.S.C. § 44306(c)
Pub.L. 107–71, § 147, as amended by Pub. L. 107–296
Substituted · 49 U.S.C. § 44306(c)
Pub.L. 107–71, § 147, as substituted “1 year” for “60 days” in two places
Source evidence
Code amendment note
Subsec. (c). Pub.L. 107–71, § 147, as amended by Pub. L. 107–296, substituted “1 year” for “60 days” in two places.Enacted provision · exact public law section
SEC. 147. AVIATION WAR RISK INSURANCE. Section 44306(b) of title 49, United States Code, is amended by striking “60 days” each place it appears and inserting “1 year”.Aviation and Transportation Security Act
Pub. L. 107–71 § 124(b) · 115 Stat. 597
Amended · 49 U.S.C. § 44306(c)
Pub. L. 107–71, § 124(b), as amended by Pub. L. 108–176, § 106(e)
Inserted · 49 U.S.C. § 44306(c)
Pub. L. 107–71, § 124(b), as inserted “in the interest of air commerce or national security or” before “to carry out the foreign policy”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 107–71, § 124(b), as amended by Pub. L. 108–176, § 106(e), inserted “in the interest of air commerce or national security or” before “to carry out the foreign policy”.Enacted provision · exact public law section
(b) Insurance and Reinsurance of Aircraft.— Section 44306(c) (as redesignated by section 201(d) of such Act) is amended by inserting “in the interest of air commerce or national security or” before “to carry out foreign policy”. 49 USC 44306.Homeland Security Act of 2002
Pub. L. 107–296 title XII § 1203 · 116 Stat. 2135
Changed · 49 U.S.C. § 44306(c)
Pub. L. 107–296 made technical correction to directory language of Pub. L. 107–71, § 147. See 2001 Amendment note below
Source evidence
Code amendment note
Subsec. (c). Pub. L. 107–296 made technical correction to directory language of Pub. L. 107–71, § 147. See 2001 Amendment note below.Enacted provision · exact public law section
SEC. 1203. CORRECTION OF REFERENCE. Effective November 19, 2001, section 147 of the Aviation and Transportation Security Act (Public Law 107-71) is amended by striking “(b)” and inserting “(c)”.Pub. L. 108–176 § 106(c) · 117 Stat. 2490
Substituted · 49 U.S.C. § 44306(b)
Pub. L. 108–176, § 106(c), substituted “by the insurance carrier” for “by the air carrier”
Source evidence
Code amendment note
Subsec. (b). Pub. L. 108–176, § 106(c), substituted “by the insurance carrier” for “by the air carrier”.Enacted provision · exact public law section
(c) Premiums and Limitations on Coverage and Claims.— Section 44306(b) is amended by striking “air” and inserting “insurance”.Effective date note
Amendment by section 106(c) of Pub. L. 108–176 applicable only to fiscal years beginning after Sept. 30, 2003, except as otherwise specifically provided, see section 3 of Pub. L. 108–176, set out as a note under section 106 of this title. Pub. L. 108–176, title I, § 106(e), Dec. 12, 2003, 117 Stat. 2499, provided that the amendment made by section 106(e) is effective Nov. 19, 2001.Pub. L. 108–176 § 106(e) · 117 Stat. 2490
Changed · 49 U.S.C. § 44306(c)
Pub. L. 108–176, § 106(e), made technical correction to directory language of Pub. L. 107–71, § 124(b). See 2001 Amendment note below
Source evidence
Code amendment note
Subsec. (c). Pub. L. 108–176, § 106(e), made technical correction to directory language of Pub. L. 107–71, § 124(b). See 2001 Amendment note below.Enacted provision · exact public law section
(e) Technical Correction.— Effective Effective date. November 19, 2001, section 124(b) of the Aviation and Transportation Security Act (115 Stat. 631) 49 USC 44306. is amended by striking “to carry out foreign policy” and inserting “to carry out the foreign policy”.Effective date note
Amendment by section 106(c) of Pub. L. 108–176 applicable only to fiscal years beginning after Sept. 30, 2003, except as otherwise specifically provided, see section 3 of Pub. L. 108–176, set out as a note under section 106 of this title. Pub. L. 108–176, title I, § 106(e), Dec. 12, 2003, 117 Stat. 2499, provided that the amendment made by section 106(e) is effective Nov. 19, 2001.
12 of 12 references resolved to an enrolled provision
Notes
historicalAndRevision
| Historical and Revision Notes | ||
|---|---|---|
| RevisedSection | Source (U.S. Code) | Source (Statutes at Large) |
| 44306(a) | 49 App.:1532(b). | Aug. 23, 1958, Pub. L. 85–726, § 1302(b), (c), 72 Stat. 801; restated Nov. 9, 1977, Pub. L. 95–163, § 2, 91 Stat. 1279. |
| 44306(b) | 49 App.:1532(c). | |
| 44306(c) | 49 App.:1537(a) (last sentence less words between 2d and 3d commas). | Aug. 23, 1958, Pub. L. 85–726, § 1307(a) (last sentence less words between 2d and 3d commas), 72 Stat. 804; Oct. 4, 1984, Pub. L. 98–443, § 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.
Editorial Notes
Amendments1997–2003 · 4 rounds
2003
Subsec. (b). Pub. L. 108–176, § 106(c), substituted “by the insurance carrier” for “by the air carrier”.
Subsec. (c). Pub. L. 108–176, § 106(e), made technical correction to directory language of Pub. L. 107–71, § 124(b). See 2001 Amendment note below.
2002
Subsec. (c). Pub. L. 107–296 made technical correction to directory language of Pub. L. 107–71, § 147. See 2001 Amendment note below.
2001
Subsec. (b). Pub. L. 107–42, § 201(d)(2), added subsec. (b). Former subsec. (b) redesignated (c).
Subsec. (c). Pub.L. 107–71, § 147, as amended by Pub. L. 107–296, substituted “1 year” for “60 days” in two places.
Pub. L. 107–71, § 124(b), as amended by Pub. L. 108–176, § 106(e), inserted “in the interest of air commerce or national security or” before “to carry out the foreign policy”.
Pub. L. 107–42, § 201(d)(1), redesignated subsec. (b) as (c). Former subsec. (c) redesignated (d).
Subsec. (d). Pub. L. 107–42, § 201(d)(1), redesignated subsec. (c) as (d).
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.”
Statutory Notes and Related Subsidiaries
Effective Date of 2003 Amendment
Amendment by section 106(c) of Pub. L. 108–176 applicable only to fiscal years beginning after , except as otherwise specifically provided, see section 3 of Pub. L. 108–176, set out as a note under section 106 of this title.
Pub. L. 108–176, title I, § 106(e), , 117 Stat. 2499, provided that the amendment made by section 106(e) is effective .
Effective Date of 2002 Amendment
Pub. L. 107–296, title XII, § 1203, , 116 Stat. 2287, provided that the amendment made by section 1203 is effective .
Delegation of Authority
Authority of President under subsec. (c) of this section delegated to Secretary of Transportation, with certain conditions, by Memorandum of President of the United States, , 79 F.R. 527, set out as a note under section 44302 of this title.
Credits
1994–2003 · 6 acts
- 1994Pub. L. 103–272, § 1(e), , 108 Stat. 1170
- 1997Pub. L. 105–137, § 2(b), , 111 Stat. 2640
- 2001Pub. L. 107–42, title II, § 201(d), , 115 Stat. 235
- 2001Pub. L. 107–71, title I, §§ 124(b), 147, , 115 Stat. 631, 645
- 2002Pub. L. 107–296, title XII, § 1203, , 116 Stat. 2287
- 2003Pub. L. 108–176, title I, § 106(c), (e), , 117 Stat. 2499.
Show as published
(Pub. L. 103–272, § 1(e), , 108 Stat. 1170; Pub. L. 105–137, § 2(b), , 111 Stat. 2640; Pub. L. 107–42, title II, § 201(d), , 115 Stat. 235; Pub. L. 107–71, title I, §§ 124(b), 147, , 115 Stat. 631, 645; Pub. L. 107–296, title XII, § 1203, , 116 Stat. 2287; Pub. L. 108–176, title I, § 106(c), (e), , 117 Stat. 2499.)