[Code of Federal Regulations]
[Title 14, Volume 4]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 14CFR205.3]

[Page 18-19]
 
                     TITLE 14--AERONAUTICS AND SPACE
 
   CHAPTER II--OFFICE OF THE SECRETARY, DEPARTMENT OF TRANSPORTATION 
                         (AVIATION PROCEEDINGS)
 
PART 205--AIRCRAFT ACCIDENT LIABILITY INSURANCE--Table of Contents
 
Sec. 205.3  Basic requirements.

    (a) A U.S. or foreign direct air carrier shall not engage in air 
transportation unless it has in effect aircraft accident liability 
insurance coverage that meets the requirements of this part for its air 
carrier or foreign air carrier operations. The minimum amounts of 
coverage required by this part may be provided either by insurance 
policies or by self-insurance plans. The currently effective policy of 
insurance or complete plan for self-insurance shall be available for 
inspection by the Department at the carrier's principal place of 
business. The current certificate of insurance or a summary of the 
complete self-insurance plan on file with the Department, as required by 
Sec. 205.4, shall be available for public inspection at the carrier's 
principal place of business.
    (b) For purposes of this part, a certificate of insurance is one or 
more certificates showing insurance by one or more insurers (excluding 
reinsurers) of currently effective and properly endorsed policies of 
aircraft accident liability insurance in compliance with this part. When 
more than one such insurer is providing coverage, the limits and types 
of liability assumed by each insurer (excluding reinsurers) shall be 
clearly stated in the certificate of insurance. Insurance policies and 
self-insurance plans named in a certificate of insurance that 
accompanies an application for initial registration or for operating 
authority shall become effective not later than the proposed starting 
date for air carrier operations as shown in the application.
    (c) The certificate of insurance shall list the types or classes of 
aircraft, or the specific aircraft by FAA or foreign government 
registration number, with respect to which the policy of insurance 
applies, or shall state that the policy applies to all aircraft owned or 
operated by the carrier in its air transportation operations. With 
respect to certificates of insurance that list aircraft by government 
registration number, the policy or self-insurance plan shall state that, 
while an aircraft owned or leased by the carrier and declared in the 
policy is withdrawn from normal use because of its breakdown, repair, or 
servicing, such insurance as is provided by the policy or plan for that 
aircraft shall apply also to another aircraft of similar type, 
horsepower, and seating capacity, whether or not owned by the insured, 
while temporarily used as a substitute aircraft.
    (d) Each certificate of insurance shall be signed by an authorized 
officer, agent, or other representative of the insurer or the insurance 
broker.
    (e) Insurance coverage to meet the requirements of this part shall 
be obtained from one or more of the following:
    (1) An insurer licensed to issue aircraft accident liability 
policies in any State, Commonwealth, or Territory of the United States, 
or in the District of Columbia;
    (2) Surplus line insurers named on a current list of such insurers 
issued and approved by the insurance regulatory authority of any State, 
Commonwealth, or Territory of the United States or of the District of 
Columbia; or
    (3) Insurers licensed or approved by a foreign government.

[[Page 19]]


This requirement may be waived by the Department in the public interest.

[ER-1253, 46 FR 52577, Oct. 27, 1981, as amended by Docket No. 47939, 57 
FR 40100, Sept. 2, 1992]