2015 US Code
Title 49 - Transportation (Sections 101 - 80504)
Subtitle VII - Aviation Programs (Sections 40101 - 50105)
Part A - Air Commerce and Safety (Sections 40101 - 46507)
Subpart iii - Safety (Sections 44101 - 45305)
Chapter 443 - Insurance (Sections 44301 - 44310)
Sec. 44306 - Premiums and limitations on coverage and claims
| Publication Title | United States Code, 2012 Edition, Supplement 3, Title 49 - TRANSPORTATION |
| Category | Bills and Statutes |
| Collection | United States Code |
| SuDoc Class Number | Y 1.2/5: |
| Contained Within | 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 |
| Contains | section 44306 |
| Date | 2015 |
| Laws In Effect As Of Date | January 3, 2016 |
| Positive Law | Yes |
| Disposition | standard |
| Source Credit | Pub. L. 103-272, §1(e), July 5, 1994, 108 Stat. 1170; Pub. L. 105-137, §2(b), Dec. 2, 1997, 111 Stat. 2640; Pub. L. 107-42, title II, §201(d), Sept. 22, 2001, 115 Stat. 235; Pub. L. 107-71, title I, §§124(b), 147, Nov. 19, 2001, 115 Stat. 631, 645; Pub. L. 107-296, title XII, §1203, Nov. 25, 2002, 116 Stat. 2287; Pub. L. 108-176, title I, §106(c), (e), Dec. 12, 2003, 117 Stat. 2499. |
| Statutes at Large References | 72 Stat. 801, 804 91 Stat. 1279 98 Stat. 1706 108 Stat. 1170 111 Stat. 2640 115 Stat. 235, 631 116 Stat. 2287 117 Stat. 2499 |
| Public and Private Laws | Public Law 85-726, Public Law 95-163, Public Law 98-443, Public Law 103-272, Public Law 105-137, Public Law 107-42, Public Law 107-71, Public Law 107-296, Public Law 108-176 |
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(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) 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.
(c) 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.
(d) 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, §1(e), July 5, 1994, 108 Stat. 1170; Pub. L. 105–137, §2(b), Dec. 2, 1997, 111 Stat. 2640; Pub. L. 107–42, title II, §201(d), Sept. 22, 2001, 115 Stat. 235; Pub. L. 107–71, title I, §§124(b), 147, Nov. 19, 2001, 115 Stat. 631, 645; Pub. L. 107–296, title XII, §1203, Nov. 25, 2002, 116 Stat. 2287; Pub. L. 108–176, title I, §106(c), (e), Dec. 12, 2003, 117 Stat. 2499.)
| Revised Section | 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.
AMENDMENTS2003—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."
EFFECTIVE DATE OF 2003 AMENDMENTAmendment 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.
EFFECTIVE DATE OF 2002 AMENDMENTPub. L. 107–296, title XII, §1203, Nov. 25, 2002, 116 Stat. 2287, provided that the amendment made by section 1203 is effective Nov. 19, 2001.
DELEGATION OF AUTHORITYAuthority of President under subsec. (c) of this section delegated to Secretary of Transportation, with certain conditions, by Memorandum of President of the United States, Dec. 27, 2013, 79 F.R. 527, set out as a note under section 44302 of this title.
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