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SUBCHAPTER N—WAR RISK INSURANCE
PART 198—AVIATION INSURANCE
Sec.
198.1
Eligibility of aircraft operation for in-
surance.
198.3
Basis of insurance.
198.5
Types of insurance coverage available.
198.7
Amount of insurance coverage avail-
able.
198.9
Application for insurance.
198.11
Change in status of aircraft.
198.13
Premium insurance—payment of pre-
miums.
198.15
Non-premium insurance—payment of
registration binders.
198.17
Ground support and other coverage.
A
UTHORITY
: 49 U.S.C. 106(g), 40113, 44301–
44310; 49 CFR 1.47(b).
S
OURCE
: Docket No. 28893, 63 FR 13739, Mar.
20, 1998, unless otherwise noted.
§ 198.1 Eligibility of aircraft operation
for insurance.
An aircraft operation is eligible for
insurance if—
(a) The President of the United
States has determined that the con-
tinuation of that aircraft operation is
necessary to carry out the foreign pol-
icy of the United States;
(b) The aircraft operation is—
(1) In foreign air commerce or be-
tween two or more places all of which
are outside the United States if insur-
ance with premium is sought; or
(2) In domestic or foreign air com-
merce, or between two or more places
all of which are outside the United
States if insurance without premium is
sought; and
(c) The Administrator finds that
commercial insurance against loss or
damage arising out of any risk from
the aircraft operation cannot be ob-
tained on reasonable terms from an in-
surance carrier.
§ 198.3 Basis of insurance.
(a) Premium insurance may be issued
by the FAA is the requirements of
§ 198.1 (a), (b)(1) and (c) are met.
(b) Subject to § 198.9(c), standby in-
surance without premium may be
issued by the FAA if all of the fol-
lowing conditions have been met:
(1) A department, agency, or instru-
mentality of the U.S. Government
seeks performance of air services oper-
ations, pursuant to a contract of the
department, agency, or instrumen-
tality; or transportation of military
forces or materiel on behalf of the
United States, pursuant to an agree-
ment between the United States and a
foreign government.
(2) Such department, agency, or in-
strumentality of the U.S. Government
has agreed in writing to indemnify the
Secretary of Transportation against all
losses covered by such insurance. Such
an agreement, when countersigned by
the President, constitutes a determina-
tion that the continuation of that air-
craft operation is necessary to carry
out the foreign policy of the United
States.
(3) A current copy of the aircraft op-
erator’s applicable commercial insur-
ance policy or policies is on file with
the FAA, including every endorsement
making a material change to the pol-
icy. Updated copies of these policies
must be provided upon each renewal of
the commercial policy. Every subse-
quent material change by endorsement
must be promptly provided to the FAA.
(c) Insurance is activated, placing the
insurance in full force, as specified by
the FAA’s written notification to the
operator and remains in force until
such time as either of the following oc-
curs:
(1) The requirements in § 198.1 are no
longer met; or
(2) In the case of non-premium insur-
ance, an aircraft operation is no longer
performed under contract to a depart-
ment, agency, or instrumentality of
the U.S. Government; or pursuant to
an agreement between the United
States and a foreign government; or
the Administrator finds that commer-
cial insurance can now be obtained on
reasonable terms.
(d) Insurance policies revert to stand-
by status upon written notification by
the FAA to the aircraft operator. A
policy will remain in standby status
until either—
(1) The insurance is activated by
written notice; or
(2) The policy is canceled.