Aviation Insurance

This document revises Title 14, Code of Federal Regulations (CFR), part 198, to reflect statutory authority to issue non-premium insurance for certain types of flight operations and ground support activities essential to such flights; explain when insurance policies are in force and when they are in standby status; revise the process for amending insurance policies; increase the amount of the binder for non-premium insurance coverage; clarify that consistent with commercial aviation insurance practice, not only aircraft, but other insurable items may be insured; and clarify that the Presidential approval required for the issuance of non-premium insurance is demonstrated by the standing Presidential approval of the interagency indemnification agreement. The intent of this final rule is to improve the efficiency of FAA's Aviation Insurance Program (Program); explain Program procedures; conform certain Program procedures to commercial aviation insurance industry practice; and offset incurred administration costs resulting from the increased frequency of utilization of the Program. The changes allow the Program to be more responsive to the aviation industry when commercial coverage cannot be obtained on reasonable terms, and the insurance coverage may be provided by the Program. EFFECTIVE DATE: April 20, 1998.