§53910 — Title 46 Shipping | U.S. Code

Summary

The Secretary of Transportation can run the federal marine insurance program like a private marine insurer. The Secretary can make rules, change forms and policies, set how much is insured, and set premium rates. The Secretary can charge an annual fee to cover application processing, underwriting agents, and expert help. The Secretary can settle and pay claims and judgments tied to this insurance. The Secretary may hire a U.S. marine insurance company to act as an underwriting agent and, when practical, must do so. An agent can help handle claims but the Secretary must approve payments. The Secretary can pay the agent reasonable compensation and expenses but not pay for soliciting business. The Secretary may not pay brokers for arranging insurance when the government directly covers a risk, can hire marine insurance experts outside normal federal hiring rules, may use other agencies’ people or resources with their consent, and can require insured vessels to report their location by rule.

Title 46, §53910

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(a)In carrying out this chapter, the Secretary of Transportation may act in accordance with commercial practice in the marine insurance business.

(b)The Secretary may prescribe regulations the Secretary considers appropriate to carry out this chapter.

(c)The Secretary may prescribe and change forms and policies, and fix and change the amounts insured and rates of premium, under this chapter.

(d)The Secretary may charge and collect an annual fee in an amount calculated to cover the expenses of processing applications for insurance, employing underwriting agents, and appointing experts under this chapter.

(e)The Secretary may settle and pay claims, and pay judgments against the United States, related to insurance under this chapter.

(f)(1)The Secretary may, and when the Secretary finds it practical to do so shall, employ a domestic company or group of domestic companies, authorized to do marine insurance business in a State of the United States, to act as underwriting agent for the Secretary. The services of an underwriting agent may be used in adjusting claims, but a claim may not be paid until approved by the Secretary.

(2)The Secretary may allow the company or group of companies reasonable compensation for services as the underwriting agent. The compensation may include an allowance for expenses reasonably incurred by the agent, but may not include any amount for soliciting or stimulating business.

(g)Except as provided in subsection (f)(2), the Secretary may not pay an insurance broker or other person acting in a similar intermediary capacity a fee or other consideration for participating in arranging insurance when the Secretary directly insures any of the risk.

(h)The Secretary, without regard to the laws and regulations on the employment of Federal employees, may appoint and prescribe the duties of experts in marine insurance as the Secretary considers necessary to carry out this chapter.

(i)With the consent of another agency of the United States Government, the Secretary may use information, services, facilities, officers, and employees of the agency in carrying out this chapter.

(j)The Secretary may prescribe by regulation vessel location reporting requirements for a vessel insured under this chapter.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 53910(a)46 App.:1289(c) (1st sentence).June 29, 1936, ch. 858, title XII, § 1209(a)(1), (b)–(f), as added Sept. 7, 1950, ch. 906, 64 Stat. 775; Aug. 3, 1956, ch. 929, § 1, 70 Stat. 984; Pub. L. 94–523, § 4, Oct. 17, 1976, 90 Stat. 2474. 53910(b)46 App.:1289(a)(1) (1st–19th words). 53910(c)46 App.:1289(b) (1st sentence). 53910(d)46 App.:1289(b) (last sentence). 53910(e)46 App.:1289(a)(1) (20th–last words). 53910(f)46 App.:1289(d). 53910(g)46 App.:1289(c) (last sentence). 53910(h)46 App.:1289(e). 53910(i)46 App.:1289(f). 53910(j)46 App.:1283(a) (last sentence).June 29, 1936, ch. 858, title XII, § 1203(a) (last sentence), as added Sept. 7, 1950, ch. 906, 64 Stat. 774; Pub. L. 94–523, § 1, Oct. 17, 1976, 90 Stat. 2474. Subsection (e) is substituted for “may adjust and pay losses, compromise and settle claims, whether in favor of or against the United States and pay the amount of any judgment rendered against the United States in any suit, or the amount of any settlement agreed upon, in respect of any claim under insurance authorized by this subchapter” to eliminate unnecessary words.

§53910 Administrative

Summary

Title 46, §53910

Notes & Related Subsidiaries

Historical and Revision Notes

Citations & Metadata