Temporary insurance

Source Credit

(a) In General.—The Secretary may provide insurance or reinsurance under this section to or for an air carrier for 1 coverage period not to exceed 90 days. Except as otherwise provided in this section, such insurance or reinsurance shall be subject to the requirements of this chapter.
(b) Restrictions.—A policy for insurance or reinsurance issued under this section—
(1) may not be issued unless the insurance carrier of the air carrier has unilaterally terminated the air carrier's war risk liability coverage pursuant to—
(A) notice under the policy;
(B) an endorsement to the policy; or
(C) an automatic termination provision in the policy or any endorsement thereto; and
(2) may cover hull, comprehensive, and third party liability risks.
(c) Premium.—A premium for insurance or reinsurance provided under this section shall be calculated based on a prorated amount equivalent to the premium that was in effect under the terminated insurance carrier policy.
(d) Approval.—A policy for insurance or reinsurance provided under this section—
(1) shall be exempt from the requirements of section 44302(c); and
(2) may provide coverage to the extent allowed under section 44303, as determined by the Secretary, notwithstanding any determination by the President in subsection (a)(1) of such section.

History

(Added Pub. L. 117–328, div. Q, §103(a), Dec. 29, 2022, 136 Stat. 5252.)