49 USC 44306: Premiums and limitations on coverage and claims

49 USC 44306: Premiums and limitations on coverage and claims Text contains those laws in effect on January 4, 1995

From Title 49-TRANSPORTATIONSUBTITLE VII-AVIATION PROGRAMSPART A-AIR COMMERCE AND SAFETYsubpart iii-safetyCHAPTER 443-INSURANCE

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§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) Time Limits.-The Secretary of Transportation may provide insurance and reinsurance under this chapter for a period of not more than 60 days. The period may be extended for additional periods of not more than 60 days each only if the President decides, before each additional period, 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.

(c) 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. 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 .)

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.