US Code

Public Law 119-73 (01/23/2026)

49 U.S.C. § 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)

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)108 Stat. 1170Pub. L. 105–137, § 2(b)111 Stat. 2640Pub. L. 107–42, title II, § 201(d)115 Stat. 235Pub. L. 107–71, title I115 Stat. 631Pub. L. 107–296, title XII, § 1203116 Stat. 2287Pub. L. 108–176, title I, § 106(c)117 Stat. 2499(, , ; , , ; , , ; , §§ 124(b), 147, , , 645; , , ; , (e), , .)

Historical and Revision Notes

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.

Editorial Notes

Amendments

Pub. L. 108–176, § 106(c)2003—Subsec. (b). , substituted “by the insurance carrier” for “by the air carrier”.

Pub. L. 108–176, § 106(e)Pub. L. 107–71, § 124(b)Subsec. (c). , made technical correction to directory language of . See 2001 Amendment note below.

Pub. L. 107–296Pub. L. 107–71, § 1472002—Subsec. (c). made technical correction to directory language of . See 2001 Amendment note below.

Pub. L. 107–42, § 201(d)(2)2001—Subsec. (b). , added subsec. (b). Former subsec. (b) redesignated (c).

Pub.L. 107–71, § 147Pub. L. 107–296Subsec. (c). , as amended by , substituted “1 year” for “60 days” in two places.

Pub. L. 107–71, § 124(b)Pub. L. 108–176, § 106(e), as amended by , 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).

Pub. L. 107–42, § 201(d)(1)Subsec. (d). , redesignated subsec. (c) as (d).

Pub. L. 105–1371997—Subsec. (c). 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

section 106(c) of Pub. L. 108–176section 3 of Pub. L. 108–176section 106 of this titleAmendment by applicable only to fiscal years beginning after , except as otherwise specifically provided, see , set out as a note under .

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, § 1203116 Stat. 2287, , , provided that the amendment made by section 1203 is effective .

Delegation of Authority

section 44302 of this titleAuthority 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 .