914 

14 CFR Ch. I (1–1–24 Edition) 

§ 198.5 

§ 198.5 Types of insurance coverage 

available. 

Application may be made for insur-

ance against loss or damage to the fol-
lowing persons, property, or interests: 

(a) Aircraft, or insurable items of an 

aircraft, engaged in eligible operations 
under § 198.1. 

(b) Any individual employed or trans-

ported on the aircraft referred to in 
paragraph (a) of this section. 

(c) The baggage of persons referred to 

in paragraph (b) of this section. 

(d) Property transported, or to be 

transported, on the aircraft referred to 
in paragraph (a) of this section. 

(e) Statutory or contractual obliga-

tions, or any other liability, of the air-
craft referred to in paragraph (a) of 
this section or of its owner or operator, 
of the nature customarily covered by 
insurance. 

§ 198.7 Amount of insurance coverage 

available. 

(a) For each aircraft or insurable 

item, the amount insured may not ex-
ceed the amount for which the appli-
cant has otherwise insured or self-in-
sured the aircraft or insurable item 
against damage or liability arising 
from any risk. In the case of hull insur-
ance, the amount insured may not ex-
ceed the reasonable value of the air-
craft as determined by the FAA or its 
designated agent. 

(b) Policies issued without premium 

may be revised from time to time by 
the FAA with notice to the insured, to 
add aircraft or insurable items or to 
amend amounts of coverage if the in-
sured has changed the amount by 
which it has otherwise insured or self- 
insured the aircraft or itself. 

§ 198.9 Applicant for insurance. 

(a) Application for premium or non- 

premium insurance must be made in 
accordance with the applicable form 
supplied by the FAA. 

(b) Each applicant for insurance with 

the premium under this part must sub-
mit to the FAA with its application a 
letter describing in detail the oper-
ations in which the aircraft is or will 
be engaged and stating the type of in-
surance coverage being sought and the 
reason it is being sought. The applicant 

must also submit any other informa-
tion deemed pertinent by the FAA. 

(c) Each applicant for premium or 

non-premium insurance must, upon re-
quest by the FAA, submit to the FAA 
evidence that commercial insurance is 
not available on reasonable terms for 
each flight or ground operation for 
which insurance is sought. Each air-
craft operator who has a standby non- 
premium insurance policy must, upon 
request by the FAA, submit evidence 
to the FAA that commercial insurance 
is not available on reasonable terms 
before the FAA activates that policy. 
The adequacy of the evidence sub-
mitted is determined solely by the 
FAA. 

(d) The standby non-premium policy 

issued to the aircraft operator does not 
provide actual coverage until formally 
activated by the FAA. 

§ 198.11 Change in status of aircraft. 

In the event of sale, lease, confisca-

tion, requisition, total loss, or other 
change in the status of an aircraft or 
insurable items covered by insurance 
under this part, the insured party must 
notify the office administering the 
Aviation Insurance Program before, or 
as soon as practicable after, the change 
in status. 

§ 198.13 Premium insurance—payment 

of premiums. 

The insured must pay the premium 

for insurance issued under this part 
within the stated period after receipt 
of notice that premium payment is due 
and in accordance with the provisions 
of the applicable FAA insurance policy. 
Premiums must be sent to the FAA, 
and made payable to the FAA. 

§ 198.15 Non-premium insurance—pay-

ment of registration binders. 

(a) The binder for initial registration 

is $575 for each aircraft or insurable 
item. This binder is adjusted not more 
frequently than annually based on 
changes in the Consumer Price Index of 
All Urban Consumers published by the 
Secretary of Labor. 

(b) An application for non-premium 

insurance must be accompanied by the 
proper binder, payable to the FAA. A 
binder is not returnable unless the ap-
plication is rejected.