CHAPTER 443 -- INSURANCE                             
      Sec.                                                                     
      44301.  Definitions.                                                     
      44302.  General authority.                                               
      44303.  Coverage.                                                        
      44304.  Reinsurance.                                                     
      44305.  Insuring United States Government property.                      
      44306.  Premiums and limitations on coverage and claims.                 
      44307.  Revolving fund.                                                  
      44308.  Administrative.                                                  
      44309.  Civil actions.                                                   
      44310.  Ending effective date.                                           
                                                                               
      Sec. 44301. Definitions                                                  
            In this chapter --                                                 
                (1) "American aircraft" means --                               
                    (A) a civil aircraft of the United States; and             
                    (B) an aircraft owned or chartered by, or made             
                available to --                                                
                        (i) the United States Government; or                   
                        (ii) a State, the District of Columbia, a              
                    territory or possession of the United States, or a         
                    political subdivision of the State, territory, or          
                    possession.                                                
                (2) "insurance carrier" means a person authorized to do        
            aviation insurance business in a State, including a mutual         
            or stock insurance company and a reciprocal insurance              
            association.                                                       
                                                                               
      Sec. 44302. General authority                                            
            (a) Insurance and Reinsurance. -- (1) Subject to subsection        
      (b) of this section and section 44305(a) of this title, the              
      Secretary of Transportation may provide insurance and reinsurance        
      against loss or damage arising out of any risk from the operation        
      of an American aircraft or foreign-flag aircraft --                      
                (A) in foreign air commerce; or                                
                (B) between at least 2 places, all of which are outside        
            the United States.                                                 
            (2) An aircraft may be insured or reinsured for not more           
      than its reasonable value as determined by the Secretary.                
      Insurance or reinsurance may be provided only when the                   
      Secretary decides that the insurance cannot be obtained on               
      reasonable terms from an insurance carrier.                              
            (b) Presidential Approval. -- The Secretary may provide            
      insurance or reinsurance under subsection (a) of this section            
      only with the approval of the President.  The President may              
      approve the insurance or reinsurance only after deciding that the        
      continued operation of the American aircraft or foreign-flag             
      aircraft to be insured or reinsured is necessary to carry out            
      the foreign policy of the United States Government.                      
            (c) Consultation. -- The President may require the                 
      Secretary to consult with interested departments, agencies, and          
      instrumentalities of the Government before providing insurance or        
      reinsurance under this chapter.                                          
            (d) Additional Insurance. -- With the approval of the              
      Secretary, a person having an insurable interest in an aircraft          
      may insure with other underwriters in an amount that is more than        
      the amount insured with the Secretary.  However, the Secretary           
      may not benefit from the additional insurance.  This subsection          
      does not prevent the Secretary from making contracts of                  
      coinsurance.                                                             
                                                                               
        Sec. 44303. Coverage                                                   
            The Secretary of Transportation may provide insurance and          
      reinsurance authorized under section 44302 of this title for the         
      following:                                                               
                (1) an American aircraft or foreign-flag aircraft              
            engaged in aircraft operations the President decides are           
            necessary to carry out the foreign policy of the United            
            States Government.                                                 
                (2) property transported or to be transported on               
            aircraft referred to in clause (1) of this section,                
            including --                                                       
                    (A) shipments by express or registered mail;               
                    (B) property owned by citizens or residents of the         
                United States;                                                 
                    (C) property --                                            
                        (i) imported to, or exported from, the United          
                    States; and                                                
                        (ii) bought or sold by a citizen or resident of        
                    the United States under a contract putting the risk        
                    of loss or obligation to provide insurance against         
                    risk of loss on the citizen or resident; and               
                    (D) property transported between --                        
                        (i) a place in a State or the District of              
                    Columbia and a place in a territory or possession          
                    of the United States;                                      
                        (ii) a place in a territory or possession of           
                    the United States and a place in another territory         
                    or possession of the United States; or                     
                        (iii) 2 places in the same territory or                
                    possession of the United States.                           
                (3) the personal effects and baggage of officers and           
            members of the crew of an aircraft referred to in clause           
            (1) of this section and of other individuals employed or           
            transported on that aircraft.                                      
                (4) officers and members of the crew of an aircraft            
            referred to in clause (1) of this section and other                
            individuals employed or transported on that aircraft               
            against loss of life, injury, or detention.                        
                (5) statutory or contractual obligations or other              
            liabilities, customarily covered by insurance, of an               
            aircraft referred to in clause (1) of this section or of           
            the owner or operator of that aircraft.                            
                                                                               
      Sec. 44304. Reinsurance                                                  
            (a) General Authority. -- To the extent the Secretary of           
      Transportation is authorized to provide insurance under this             
      chapter, the Secretary may reinsure any part of the insurance            
      provided by an insurance carrier.  The Secretary may reinsure            
      with, transfer to, or transfer back to, the carrier any insurance        
      or reinsurance provided by the Secretary under this chapter.             
            (b) Premium Levels. -- The Secretary may provide                   
      reinsurance at premiums not less than, or obtain reinsurance at          
      premiums not higher than, the premiums the Secretary establishes         
      on similar risks or the premiums the insurance carrier charges           
      for the insurance to be reinsured by the Secretary, whichever is         
      most advantageous to the Secretary.  However, the Secretary may          
      make allowances to the insurance carrier for expenses incurred in        
      providing services and facilities that the Secretary considers           
      good business practice, except for payments by the carrier for           
      the stimulation or solicitation of insurance business.                   
                                                                               
      Sec. 44305. Insuring United States Government property                   
            (a) General. -- With the approval of the President, a              
      department, agency, or instrumentality of the United States              
      Government may obtain --                                                 
                (1) insurance under this chapter, including insurance          
            for risks from operating an aircraft in intrastate or              
            interstate air commerce, but not including insurance on            
            valuables subject to sections 1 and 2 of the Government            
            Losses in Shipment Act (40 U.S.C. 721, 722); and                   
                (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.                          
                                                                               
      Sec. 44306. Premiums and limitations on coverage and claims              
            (a) Premiums Based on Risk. -- To the extent practical, the        
      premium charged for insurance or reinsurance under this chapter          
      shall be based on consideration of the risk involved.                    
            (b) Time Limits. -- The Secretary of Transportation may            
      provide insurance and reinsurance under this chapter for a period        
      of not more than 60 days.  The period may be extended for                
      additional periods of not more than 60 days each only if the             
      President decides, before each additional period, that the               
      continued operation of the aircraft to be insured or reinsured is        
      necessary to carry out the foreign policy of the United States           
      Government.                                                              
            (c) Maximum Insured Amount. -- The insurance policy on an          
      aircraft insured or reinsured under this chapter shall specify a         
      stated amount that is not more than the value of the aircraft, as        
      determined by the Secretary.  A claim under the policy may not be        
      paid for more than that stated amount.                                   
                                                                               
      Sec. 44307. Revolving fund                                               
            (a) Existence, Disbursements, Appropriations, and Deposits.        
      -- (1) There is a revolving fund in the Treasury.  The Secretary         
      of the Treasury shall disburse from the fund payments to carry           
      out this chapter.                                                        
            (2) Necessary amounts to carry out this chapter may be             
      appropriated to the fund.  The amounts appropriated and other            
      amounts received in carrying out this chapter shall be deposited         
      in the fund.                                                             
            (b) Investment. -- On request of the Secretary of                  
      Transportation, the Secretary of the Treasury may invest any part        
      of the amounts in the revolving fund in interest-bearing                 
      securities of the United States Government.  The interest on, and        
      the proceeds from the sale or redemption of, the securities              
      shall be deposited in the fund.                                          
            (c) Excess Amounts. -- The balance in the revolving fund in        
      excess of an amount the Secretary of Transportation determines is        
      necessary for the requirements of the fund and for reasonable            
      reserves to maintain the solvency of the fund shall be deposited         
      at least annually in the Treasury as miscellaneous receipts.             
            (d) Expenses. -- The Secretary of Transportation shall             
      deposit annually an amount in the Treasury as miscellaneous              
      receipts to cover the expenses the Government incurs when the            
      Secretary of Transportation uses appropriated amounts in carrying        
      out this chapter.  The deposited amount shall equal an amount            
      determined by multiplying the average monthly balance of                 
      appropriated amounts retained in the revolving fund by a                 
      percentage that is at least the current average rate payable on          
      marketable obligations of the Government.  The Secretary of the          
      Treasury shall determine annually in advance the percentage              
      applied.                                                                 
                                                                               
        Sec. 44308. Administrative                                             
            (a) Commercial Practices. -- The Secretary of                      
      Transportation may carry out this chapter consistent with                
      commercial practices of the aviation insurance business.                 
            (b) Issuance of Policies and Disposition of Claims. -- (1)         
      The Secretary may issue insurance policies to carry out this             
      chapter.  The Secretary may prescribe the forms, amounts insured         
      under the policies, and premiums charged.  The Secretary may             
      change an amount of insurance or a premium for an existing policy        
      only with the consent of the insured.                                    
            (2) For a claim under insurance authorized by this chapter,        
      the Secretary may --                                                     
                (A) settle and pay the claim made for or against the           
            United States Government; and                                      
                (B) pay the amount of a judgment entered against the           
            Government.                                                        
            (c) Underwriting Agent. -- (1) The Secretary may, and when         
      practical shall, employ an insurance carrier or group of                 
      insurance carriers to act as an underwriting agent.  The                 
      Secretary may use the agent to adjust claims under this chapter,         
      but claims may be paid only when approved by the Secretary.              
            (2) The Secretary may pay reasonable compensation to an            
      underwriting agent for servicing insurance the agent writes for          
      the Secretary.  Compensation may include payment for reasonable          
      expenses incurred by the agent but may not include a payment by          
      the agent for stimulation or solicitation of insurance business.         
            (3) Except as provided by this subsection, the Secretary           
      may not pay an insurance broker or other person acting in a              
      similar capacity any consideration for arranging insurance when          
      the Secretary directly insures any part of the risk.                     
            (d) Budget. -- The Secretary shall submit annually a budget        
      program for carrying out this chapter as provided for wholly             
      owned Government corporations under chapter 91 of title 31.              
            (e) Accounts. -- The Secretary shall maintain a set of             
      accounts.  The Comptroller General shall audit those accounts            
      under chapter 35 of title 31.  Notwithstanding chapter 35, the           
      Comptroller General shall allow credit for expenditures under            
      this chapter made consistent with commercial practices in                
      the aviation insurance business when shown to be necessary               
      because of the business activities authorized by this chapter.           
                                                                               
        Sec. 44309. Civil actions                                              
            (a) Disputed Losses. -- A person may bring a civil action          
      in a district court of the United States against the United              
      States Government when a loss insured under this chapter is in           
      dispute.  A civil action involving the same matter (except the           
      action authorized by this subsection) may not be brought                 
      against an agent, officer, or employee of the Government carrying        
      out this chapter.  To the extent applicable, the procedure in an         
      action brought under section 1346(a)(2) of title 28 applies to an        
      action under this subsection.                                            
            (b) Venue and Joinder. -- (1) A civil action under                 
      subsection (a) of this section may be brought in the judicial            
      district for the District of Columbia or in the judicial district        
      in which the plaintiff or the agent of the plaintiff resides if          
      the plaintiff resides in the United States.  If the plaintiff            
      does not reside in the United States, the action may be brought          
      in the judicial district for the District of Columbia or in the          
      judicial district in which the Attorney General agrees to accept         
      service.                                                                 
            (2) An interested person may be joined as a party to a             
      civil action brought under subsection (a) of this section                
      initially or on motion of either party to the action.                    
            (c) Time Requirements. -- When an insurance claim is made          
      under this chapter, the period during which, under section 2401          
      of title 28, a civil action must be brought under subsection (a)         
      of this section is suspended until 60 days after the Secretary of        
      Transportation denies the claim.  The claim is deemed to be              
      administratively denied if the Secretary does not act on the             
      claim not later than 6 months after filing, unless the Secretary         
      makes a different agreement with the claimant when there is good         
      cause for an agreement.                                                  
            (d) Interpleader. -- (1) If the Secretary admits the               
      Government owes money under an insurance claim under this chapter        
      and there is a dispute about the person that is entitled to              
      payment, the Government may bring a civil action of interpleader         
      in a district court of the United States against the persons that        
      may be entitled to payment.  The action may be brought in the            
      judicial district for the District of Columbia or in the judicial        
      district in which any party resides.                                     
            (2) The district court may order a party not residing or           
      found in the judicial district in which the action is brought to         
      appear in a civil action under this subsection.  The order shall         
      be served in a reasonable manner decided by the district court.          
      If the court decides an unknown person might assert a claim under        
      the insurance that is the subject of the action, the court may           
      order service on that person by publication in the Federal               
      Register.                                                                
            (3) Judgment in a civil action under this subsection               
      discharges the Government from further liability to the parties          
      to the action and to all other persons served by publication             
      under paragraph (2) of this subsection.                                  
                                                                               
        Sec. 44310. Ending effective date                                      
            The authority of the Secretary of Transportation to provide        
      insurance and reinsurance under this chapter is not effective            
      after September 30, 1997.