[Code of Federal Regulations]
[Title 32, Volume 5]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 32CFR766.9]

[Page 482-483]
 
                       TITLE 32--NATIONAL DEFENSE
 
                   CHAPTER VI--DEPARTMENT OF THE NAVY
 
PART 766_USE OF DEPARTMENT OF THE NAVY AVIATION FACILITIES BY CIVIL 
AIRCRAFT--Table of Contents
 
Sec. 766.9  Insurance requirements.

    (a) Control of insurance. The Commander, Naval Facilities 
Engineering Command, or his designee, shall be responsible for requiring 
aircraft owners or operators to procure and maintain liability insurance 
conforming to the standards prescribed by the Chief of Naval Material. 
The insurance policy must be obtained at the expense of the civil 
aircraft owner or operator and with a company acceptable to the U.S. 
Navy.
    (b) Insurance coverage. Except for those aircraft exempted by 
paragraph (c) below, each civil aircraft is required to be covered by 
insurance of the types and minimum limits established by the Chief of 
Naval Material. The Certificate of Insurance, must state all coverages 
in U.S. dollars. Current minimums are:
    (1) Privately owned commercially-operated aircraft used for cargo 
carrying only and aircraft being flight-tested or ferried without 
passengers will be insured for:
    (i) Bodily injury liability. At least $100,000 for each person in 
any one accident with at least $1 million for each accident.
    (ii) Property damage liability. At least $1 million for each 
accident.
    (2) Privately owned commercially-operated aircraft used for 
passenger carrying and privately owned noncommercially-operated aircraft 
of 12,500 pounds or more certified maximum gross takeoff weight will be 
insured for:
    (i) Bodily injury liability (excluding passengers). At least 
$100,000 for each person in any one accident with at least $1 million 
for each accident.
    (ii) Property damage liability. At least $1 million for each 
accident.
    (iii) Passenger liability. At least $100,000 for each passenger, 
with a minimum for each accident determined as follows: multiply the 
minimum for each passenger, $100,000 by the next highest whole number 
resulting from taking 75 percent of the total number of passenger seats 
(exclusive of crew seats). For example: The minimum passenger coverage 
for each accident for an aircraft with 94 passenger seats is computed: 
94x0.75=70.5--next highest whole number resulting in 71. Therefore, 
71x$100,000=$7,100,000.
    (3) Privately owned noncommercially-operated aircraft of less than 
12,500 pounds will be insured for:
    (i) Bodily injury liability (excluding passengers). At least 
$100,000 for each person in any one accident with at least $500,000 for 
each accident.
    (ii) Property damage liability. At least $500,000 for each accident.
    (iii) Passenger liability. At least $100,000 for each passenger, 
with a minimum for each accident determined by multiplying the minimum 
for each passenger, $100,000 by the total number of passenger seats 
(exclusive of crew seats).
    (4) Aircraft insured for a single limit of liability must have 
coverage equal to or greater than the combined required minimums for 
bodily injury, property damage, and passenger liability for the type of 
use requested and for the passenger capacity and gross takeoff weight of 
the aircraft being operated. For example: the minimum single limit of 
liability acceptable for an aircraft operating as described in paragraph 
(b)(2) of this section is $1,000,000 + $1,000,000 + $7,100,000 = 
$9,100,000.
    (5) Aircraft insured by a combination of primary and excess policies 
must have combined coverage equal to or greater than the required 
minimums for bodily injury, property damage, and passenger liability, 
for the type of use, and for the passenger capacity and gross takeoff 
weight of the aircraft.
    (6) Each policy must specifically provide that:
    (i) The insurer waives any right to subrogation the insurer may have 
against the United States by reason of

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any payment under the policy for damage or injury which might arise out 
of or in connection with the insured's use of any Navy installation or 
facility.
    (ii) The insurance afforded by the policy applies to the liability 
assumed by the insured under OPNAV Form 3770/1, Aviation Facility 
License.
    (iii) If the insurer cancels or reduces the amount of insurance 
afforded under the listed policy, the insurer shall send written notice 
of the cancellation or reduction to Commander, Naval Facilities 
Engineering Command, Department of the Navy, Washington, DC 20390 by 
registered mail at least 30 days in advance of the effective date of the 
cancellation; the policy must state that any cancellation or reduction 
will not be effective until at least 30 days after such notice is sent, 
regardless of the effective date specified therein.
    (iv) If the insured requests cancellation or reduction, the insurer 
shall notify the Commander, Naval Facilities Engineering Command, 
Department of the Navy, Washington, DC 20390 immediately upon receipt of 
such request.
    (c) Exemption. Government aircraft, as defined in Sec. 766.2(e) are 
exempt from the insurance requirements specified above. However, this 
exemption applies to bailed aircraft only if the contract under which 
the aircraft is bailed specifies that insurance is not required.