PRIA, Government Policy, Made Personal

Summary

With the President’s approval, a U.S. department, agency, or part of the government can get insurance under this chapter for risks from operating an aircraft in intrastate or interstate air commerce. That does not include insurance for valuables covered by sections 17302 and 17303 of title 40. The insurance can also cover risks from goods or services needed to operate those insured aircraft when the aircraft is used under a government contract or to carry U.S. military forces or equipment under an agreement with a foreign government. With the same approval, the Secretary of Transportation may give that insurance free of premium if the Secretary of Defense or a designated agency head asks and agrees to pay any covered losses. If the President or the President’s designee countersigns such an agreement, it counts as the finding under section 44302(c) that continuing those aircraft operations is necessary for U.S. foreign policy.

Title 49, §44305

Transportation, Source: USLM XML via OLRC

(a)General.—

With the approval of the President, a department, agency, or instrumentality of the United States Government may obtain— (1)

(2)insurance for risks arising from providing goods or services directly related to and necessary for operating an aircraft covered by insurance obtained under clause (1) of this subsection if the aircraft is operated—

(A)in carrying out a contract of the department, agency, or instrumentality; or

(B)to transport military forces or materiel on behalf of the United States under an agreement between the Government and the government of a foreign country.

(b)Premium Waivers and Indemnification.—

With the approval required under subsection (a) of this section, the Secretary of Transportation may provide the insurance without premium at the request of the Secretary of Defense or the head of a department, agency, or instrumentality designated by the President when the Secretary of Defense or the designated head agrees to indemnify the Secretary of Transportation against all losses covered by the insurance. The Secretary of Defense and any designated head may make indemnity agreements with the Secretary of Transportation under this section. If such an agreement is countersigned by the President or the President’s designee, the agreement shall constitute, for purposes of section 44302(c), a determination that continuation of the aircraft operations to which the agreement applies is necessary to carry out the foreign policy of the United States.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 4430549 App.:1534.Aug. 23, 1958, Pub. L. 85–726, § 1304, 72 Stat. 802; Oct. 31, 1992, Pub. L. 102–581, § 401(a), 106 Stat. 4897. In this section, the words “a department, agency, or instrumentality” are substituted for “Any department or agency” for clarity and consistency in the revised title and with other titles of the United States Code. In subsection (a)(1), the words “obtain insurance under this chapter” are substituted for “procure from the Secretary any of the insurance provided under this subchapter” to eliminate unnecessary words. The words “overseas air commerce” are omitted for the reasons given in the revision note for section 40101. In subsection (b), the words “or the head of a department, agency, or instrumentality designated by the President” are substituted for “and such other agencies as the President may prescribe” as being more precise and for consistency in the revised title. The words “when the Secretary of Defense or the designated head agrees” are substituted for “in consideration of” for clarity. The words “any designated head” are substituted for “the agreement of . . . such agency” and “such other agencies” for clarity and because of the restatement.

Editorial Notes

Amendments

2002—Subsec. (a)(1). Pub. L. 107–217 substituted “section 17302 and 17303 of title 40” for “section 1 and 2 of the Government Losses in Shipment Act (40 U.S.C. 721, 722)”. 2001—Subsec. (b). Pub. L. 107–42 substituted “44302(c)” for “44302(b)”. 1997—Subsec. (b). Pub. L. 105–137 inserted at end “If such an agreement is countersigned by the President or the President’s designee, the agreement shall constitute, for purposes of section 44302(b), a determination that continuation of the aircraft operations to which the agreement applies is necessary to carry out the foreign policy of the United States.”

§44305 Insuring United States Government Property