S. 1193

One Hundred Fifth Congress

of the

United States of America

AT THE FIRST SESSION

Begun and held at the City of Washington on Tuesday,

the seventh day of January, one thousand nine hundred and ninety-seven

An Act

To amend chapter 443 of title 49, United States Code, to extend the authorization

of the aviation insurance program, and for other purposes.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Aviation Insurance Reauthorization Act of 1997’’.

SEC. 2. VALUATION OF AIRCRAFT.

(a) GENERAL AUTHORITY FOR INSURANCE AND REINSURANCE.— Section 44302(a)(2) of title 49, United States Code, is amended

by striking ‘‘as determined by the Secretary.’’ and inserting ‘‘as

determined by the Secretary in accordance with reasonable business

practices in the commercial aviation insurance industry.’’.

(b) LIMITATION ON MAXIMUM INSURED AMOUNT.—Section

44306(c) of title 49, United States Code, is amended by striking

‘‘as determined by the Secretary.’’ and inserting ‘‘as determined

by the Secretary in accordance with reasonable business practices

in the commercial aviation insurance industry.’’.

SEC. 3. EFFECT OF INDEMNITY AGREEMENTS.

Section 44305(b) of title 49, United States Code, is amended

by adding at the end the following: ‘‘If such an agreement is

countersigned by the President or the President’s designee, the

agreement shall constitute, for purposes of section 44302(b), a determination that continuation of the aircraft operations to which the

agreement applies is necessary to carry out the foreign policy of

the United States.’’.

SEC. 4. ARBITRATION AUTHORITY.

(a) AUTHORIZATION OF BINDING ARBITRATION.—Section

44308(b)(1) of title 49, United States Code, is amended by inserting

after the second sentence the following: ‘‘Any such policy may

authorize the binding arbitration of claims made thereunder in

such manner as may be agreed to by the Secretary and any commercial insurer that may be responsible for any part of a loss to

which such policy relates.’’.

(b) AUTHORITY TO PAY ARBITRATION AWARD.—Section

44308(b)(2) of such title is amended—

(1) by striking ‘‘and’’ at the end of subparagraph (A);

(2) by redesignating subparagraph (B) as subparagraph

(C); and

(3) by inserting after subparagraph (A) the following:
S. 1193—2

‘‘(B) pay the amount of a binding arbitration award

made under paragraph (1); and’’.

SEC. 5. EXTENSION OF PROGRAM.

(a) IN GENERAL.—Section 44310 of title 49, United States Code,

is amended by striking ‘‘September 30, 2002’’ and inserting ‘‘December 31, 1998’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

takes effect on October 1, 1997.

SEC. 6. USE OF AIRCRAFT FOR DEMONSTRATION.

Section 40102(a)(37)(A) of title 49, United States Code, is

amended—

(1) by striking ‘‘or’’ in clause (i);

(2) by redesignating clause (ii) as clause (iii); and

(3) by inserting after clause (i) the following:

‘‘(ii) owned by the United States Government and

operated by any person for purposes related to crew

training, equipment development, or demonstration;

or’’.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.