49 U.S.C. § 70112 : US Code - Section 70112: Liability insurance and financial responsibility requirements

Search 49 U.S.C. § 70112 : US Code - Section 70112: Liability insurance and financial responsibility requirements

(a) General Requirements. - (1) When a launch or reentry license
is issued or transferred under this chapter, the licensee or
transferee shall obtain liability insurance or demonstrate
financial responsibility in amounts to compensate for the maximum
probable loss from claims by -
(A) a third party for death, bodily injury, or property damage
or loss resulting from an activity carried out under the license;
and
(B) the United States Government against a person for damage or
loss to Government property resulting from an activity carried
out under the license.
(2) The Secretary of Transportation shall determine the amounts
required under paragraph (1)(A) and (B) of this subsection, after
consulting with the Administrator of the National Aeronautics and
Space Administration, the Secretary of the Air Force, and the heads
of other appropriate executive agencies.
(3) For the total claims related to one launch or reentry, a
licensee or transferee is not required to obtain insurance or
demonstrate financial responsibility of more than -
(A)(i) $500,000,000 under paragraph (1)(A) of this subsection;
or
(ii) $100,000,000 under paragraph (1)(B) of this subsection; or
(B) the maximum liability insurance available on the world
market at reasonable cost if the amount is less than the
applicable amount in clause (A)(i) or (ii) of this paragraph.
(4) An insurance policy or demonstration of financial
responsibility under this subsection shall protect the following,
to the extent of their potential liability for involvement in
launch services or reentry services, at no cost to the Government:
(A) the Government.
(B) executive agencies and personnel, contractors, and
subcontractors of the Government.
(C) contractors, subcontractors, and customers of the licensee
or transferee.
(D) contractors and subcontractors of the customer.
(b) Reciprocal Waiver of Claims. - (1) A launch or reentry
license issued or transferred under this chapter shall contain a
provision requiring the licensee or transferee to make a reciprocal
waiver of claims with its contractors, subcontractors, and
customers, and contractors and subcontractors of the customers,
involved in launch services or reentry services under which each
party to the waiver agrees to be responsible for property damage or
loss it sustains, or for personal injury to, death of, or property
damage or loss sustained by its own employees resulting from an
activity carried out under the applicable license.
(2) The Secretary of Transportation shall make, for the
Government, executive agencies of the Government involved in launch
services or reentry services, and contractors and subcontractors
involved in launch services or reentry services, a reciprocal
waiver of claims with the licensee or transferee, contractors,
subcontractors, crew, space flight participants, and customers of
the licensee or transferee, and contractors and subcontractors of
the customers, involved in launch services or reentry services
under which each party to the waiver agrees to be responsible for
property damage or loss it sustains, or for personal injury to,
death of, or property damage or loss sustained by its own employees
or by space flight participants, resulting from an activity carried
out under the applicable license. The waiver applies only to the
extent that claims are more than the amount of insurance or
demonstration of financial responsibility required under subsection
(a)(1)(B) of this section. After consulting with the Administrator
and the Secretary of the Air Force, the Secretary of Transportation
may waive, for the Government and a department, agency, and
instrumentality of the Government, the right to recover damages for
damage or loss to Government property to the extent insurance is
not available because of a policy exclusion the Secretary of
Transportation decides is usual for the type of insurance involved.
(c) Determination of Maximum Probable Losses. - The Secretary of
Transportation shall determine the maximum probable losses under
subsection (a)(1)(A) and (B) of this section associated with an
activity under a license not later than 90 days after a licensee or
transferee requires a determination and submits all information the
Secretary requires. The Secretary shall amend the determination as
warranted by new information.
(d) Annual Report. - (1) Not later than November 15 of each year,
the Secretary of Transportation shall submit to the Committee on
Commerce, Science, and Transportation of the Senate and the
Committee on Science of the House of Representatives a report on
current determinations made under subsection (c) of this section
related to all issued licenses and the reasons for the
determinations.
(2) Not later than May 15 of each year, the Secretary of
Transportation shall review the amounts specified in subsection
(a)(3)(A) of this section and submit a report to Congress that
contains proposed adjustments in the amounts to conform with
changed liability expectations and availability of insurance on the
world market. The proposed adjustment takes effect 30 days after a
report is submitted.
(e) Launches or Reentries Involving Government Facilities and
Personnel. - The Secretary of Transportation shall establish
requirements consistent with this chapter for proof of financial
responsibility and other assurances necessary to protect the
Government and its executive agencies and personnel from liability,
death, bodily injury, or property damage or loss as a result of a
launch or operation of a launch site or reentry site or a reentry
involving a facility or personnel of the Government. The Secretary
may not relieve the Government of liability under this subsection
for death, bodily injury, or property damage or loss resulting from
the willful misconduct of the Government or its agents.
(f) Collection and Crediting Payments. - The head of a
department, agency, or instrumentality of the Government shall
collect a payment owed for damage or loss to Government property
under its jurisdiction or control resulting from an activity
carried out under a launch or reentry license issued or transferred
under this chapter. The payment shall be credited to the current
applicable appropriation, fund, or account of the department,
agency, or instrumentality.