§1282. Authority to provide insurance; consideration of risk
(a) Authorization, approval, and consultation; criteria
The Secretary, with the approval of the President, and after such consultation with interested agencies of the Government as the President may require, may provide insurance and reinsurance against loss or damage by war risks in the manner and to the extent provided in this subchapter, whenever it appears to the Secretary that such insurance adequate for the needs of the water-borne commerce of the United States cannot be obtained on reasonable terms and conditions from companies authorized to do an insurance business in a State of the United States.
(b) Consideration of risk
Any insurance or reinsurance issued under any of the provisions of this subchapter shall be based, insofar as practicable, upon consideration of the risk involved.
(c) Condition of availability in time of war or national emergency
Insurance and reinsurance for vessels may be provided by the Secretary under this subchapter only on the condition that such vessels be available for the United States in time of war or national emergency.
(June 29, 1936, ch. 858, title XII, §1202, as added Sept. 7, 1950, ch. 906,
Amendments
1989-Subsec. (c).
Provision of Marine War Risk Insurance Coverage
Memorandum of the President of the United States, Aug. 29, 1990, 55 F.R. 36257, provided:
Memorandum for the Secretary of State and the Secretary of Transportation
By virtue of the authority vested in me by the Constitution and laws of the United States, including 3 U.S.C. 301 and section 1202 of the Merchant Marine Act, 1936, as amended (Act), 46 U.S.C. App. 1282, I hereby:
approve the provision by the Secretary of Transportation of insurance or reinsurance of vessels (including cargoes and crew) entering the Middle East region against loss or damage by war risks in the manner and to the extent provided in Title XII of the Act, 46 U.S.C. App. 1281, et seq., for purposes of responding to the current crisis in the Middle East, whenever, after consultation with the Department of State, it appears to the Secretary of Transportation that such insurance adequate for the needs of the waterborne commerce of the United States cannot be obtained on reasonable terms and conditions from companies authorized to do an insurance business in a State of the United States. This approval is effective for sixty days. I hereby delegate to the Secretary of Transportation, in consultation with the Secretary of State and the Director of Office of Management and Budget, the authority vested in me by section 1202 of the Act, to approve the provision of insurance or reinsurance for these purposes after the expiration of the sixty days.
The Secretary of Transportation is directed to bring this approval to the immediate attention of all operators and to arrange for its publication in the Federal Register.
George Bush.
Cross References
Expiration of authority to provide insurance, see section 1294 of this Appendix.
Insurance of interests of United States, see sections 869 and 1202 of this Appendix.
Section Referred to in Other Sections
This section is referred to in sections 1283, 1285 of this Appendix.