Document
SUBCHAPTER N—WAR RISK INSURANCE
seeks performance of air services oper- PART 198—AVIATION INSURANCE ations, pursuant to a contract of the department, agency, or instrumen- Sec.
tality; or transportation of military 198.1 Eligibility of aircraft operation for in- surance. forces or materiel on behalf of the 198.3 Basis of insurance.
United States, pursuant to an agree- 198.5 Types of insurance coverage available.
ment between the United States and a 198.7 Amount of insurance coverage avail- foreign government.
able.
(2) Such department, agency, or in- 198.9 Application for insurance.
198.11 Change in status of aircraft. strumentality of the U.S. Government 198.13 Premium insurance—payment of pre- has agreed in writing to indemnify the miums.
Secretary of Transportation against all 198.15 Non-premium insurance—payment of losses covered by such insurance. Such registration binders.
an agreement, when countersigned by 198.17 Ground support and other coverage.
the President, constitutes a determina- A UTHORITY : 49 U.S.C. 106(g), 40113, 44301– tion that the continuation of that air- 44310; 49 CFR 1.47(b).
craft operation is necessary to carry S OURCE : Docket 28893, 63 FR 13739, Mar. 20, out the foreign policy of the United 1998, unless otherwise noted.
States.
(3) A current copy of the aircraft op- § 198.1 Eligibility of aircraft operation erator’s applicable commercial insur- for insurance.
ance policy or policies is on file with An aircraft operation is eligible for the FAA, including every endorsement insurance if— making a material change to the pol- (a) The President of the United icy. Updated copies of these policies States has determined that the con- must be provided upon each renewal of tinuation of that aircraft operation is the commercial policy. Every subse- necessary to carry out the foreign pol- quent material change by endorsement icy of the United States; must be promptly provided to the FAA.
(b) The aircraft operation is— (c) Insurance is activated, placing the (1) In foreign air commerce or be- insurance in full force, as specified by tween two or more places all of which the FAA’s written notification to the are outside the United States if insur- operator and remains in force until ance with premium is sought; or such time as either of the following oc- (2) In domestic or foreign air com- curs: merce, or between two or more places (1) The requirements in § 198.1 are no all of which are outside the United longer met; or States if insurance without premium is (2) In the case of non-premium insur- sought; and ance, an aircraft operation is no longer (c) The Administrator finds that performed under contract to a depart- commercial insurance against loss or ment, agency, or instrumentality of damage arising out of any risk from the U.S. Government; or pursuant to the aircraft operation cannot be ob- an agreement between the United tained on reasonable terms from an in- States and a foreign government; or surance carrier.
the Administrator finds that commer- § 198.3 Basis of insurance. cial insurance can now be obtained on reasonable terms.
(a) Premium insurance may be issued (d) Insurance policies revert to stand- by the FAA is the requirements of by status upon written notification by § 198.1 (a), (b)(1) and (c) are met.
the FAA to the aircraft operator. A (b) Subject to § 198.9(c), standby in- policy will remain in standby status surance without premium may be until either— issued by the FAA if all of the fol- (1) The insurance is activated by lowing conditions have been met: written notice; or (1) A department, agency, or instru- mentality of the U.S. Government (2) The policy is canceled.
VerDate Sep<11>2014 10:01 Aug 27, 2026 Jkt 268049 PO 00000 Frm 00974 Fmt 8010 Sfmt 8010 Y:\SGML\268049.XXX 268049 jgilmore on DSK4WB1RN3PROD with CFR Federal Aviation Administration, DOT § 198.15 must also submit any other informa- § 198.5 Types of insurance coverage available. tion deemed pertinent by the FAA.
(c) Each applicant for premium or Application may be made for insur- non-premium insurance must, upon re- ance against loss or damage to the fol- quest by the FAA, submit to the FAA lowing persons, property, or interests: evidence that commercial insurance is (a) Aircraft, or insurable items of an not available on reasonable terms for aircraft, engaged in eligible operations each flight or ground operation for under § 198.1.
which insurance is sought. Each air- (b) Any individual employed or trans- craft operator who has a standby non- ported on the aircraft referred to in premium insurance policy must, upon paragraph (a) of this section.
request by the FAA, submit evidence (c) The baggage of persons referred to to the FAA that commercial insurance in paragraph (b) of this section.
is not available on reasonable terms (d) Property transported, or to be before the FAA activates that policy.
transported, on the aircraft referred to The adequacy of the evidence sub- in paragraph (a) of this section.
mitted is determined solely by the (e) Statutory or contractual obliga- FAA.
tions, or any other liability, of the air- (d) The standby non-premium policy craft referred to in paragraph (a) of issued to the aircraft operator does not this section or of its owner or operator, provide actual coverage until formally of the nature customarily covered by activated by the FAA.
insurance.
§ 198.11 Change in status of aircraft.
§ 198.7 Amount of insurance coverage In the event of sale, lease, confisca- available.
tion, requisition, total loss, or other (a) For each aircraft or insurable change in the status of an aircraft or item, the amount insured may not ex- insurable items covered by insurance ceed the amount for which the appli- under this part, the insured party must cant has otherwise insured or self-in- notify the office administering the sured the aircraft or insurable item Aviation Insurance Program before, or against damage or liability arising as soon as practicable after, the change from any risk. In the case of hull insur- in status.
ance, the amount insured may not ex- ceed the reasonable value of the air- § 198.13 Premium insurance—payment craft as determined by the FAA or its of premiums.
designated agent.
The insured must pay the premium (b) Policies issued without premium for insurance issued under this part may be revised from time to time by within the stated period after receipt the FAA with notice to the insured, to of notice that premium payment is due add aircraft or insurable items or to and in accordance with the provisions amend amounts of coverage if the in- of the applicable FAA insurance policy.
sured has changed the amount by Premiums must be sent to the FAA, which it has otherwise insured or self- and made payable to the FAA.
insured the aircraft or itself.
§ 198.15 Non-premium insurance—pay- § 198.9 Applicant for insurance.
ment of registration binders.
(a) Application for premium or non- (a) The binder for initial registration premium insurance must be made in is $575 for each aircraft or insurable accordance with the applicable form item. This binder is adjusted not more supplied by the FAA. frequently than annually based on (b) Each applicant for insurance with changes in the Consumer Price Index of the premium under this part must sub- All Urban Consumers published by the mit to the FAA with its application a Secretary of Labor.
letter describing in detail the oper- (b) An application for non-premium ations in which the aircraft is or will insurance must be accompanied by the be engaged and stating the type of in- proper binder, payable to the FAA. A surance coverage being sought and the binder is not returnable unless the ap- reason it is being sought. The applicant plication is rejected.
VerDate Sep<11>2014 10:01 Aug 27, 2026 Jkt 268049 PO 00000 Frm 00975 Fmt 8010 Sfmt 8010 Y:\SGML\268049.XXX 268049 jgilmore on DSK4WB1RN3PROD with CFR 14 CFR Ch. I (1–1–26 Edition) § 198.17 (c) Requests made after issuance of a § 198.17 Ground support and other non-premium policy for the addition of coverage.
an aircraft or insurable item must be An aircraft operator may apply for accompanied by the binder for each insurance to cover any risks arising aircraft and insurable item.
from the provision of goods or services (d) When an operator acquires an air- directly supporting the operation of an craft or insurable item that was pre- aircraft that meets the requirements of viously covered under an active or § 198.3(b).
standby policy, the new operator must register that aircraft or item on its policy and pay the binder for each air- PART 199 [ RESERVED ] craft and insurable item.
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