[Code of Federal Regulations]

[Title 14, Volume 4]

[Revised as of January 1, 2006]

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]