tem, together with related equipment, devices, com-
ponents, and parts. 
(2) THIRD
PARTY.—The term ‘‘third party’’ 
means any person who may institute a claim against 
a user for death, bodily injury, or loss of or damage 
to property. 
(3) USER.—The term ‘‘user’’ includes anyone 
who enters into an agreement with the Administra-
tion for use of all or a portion of a space vehicle, 
who owns or provides property to be flown on a 
space vehicle, or who employs a person to be flown 
on a space vehicle. 
(b) AUTHORIZATION.—The Administration is author-
ized on such terms and to the extent it may deem appro-
priate to provide liability insurance for any user of a space 
vehicle to compensate all or a portion of claims by third 
parties for death, bodily injury, or loss of or damage to 
property resulting from activities carried on in connection 
with the launch, operations, or recovery of the space vehi-
cle. Appropriations available to the Administration may be 
used to acquire such insurance, but such appropriations 
shall be reimbursed to the maximum extent practicable by 
the users under reimbursement policies established pursu-
ant to section 313 of this title.
(c) INDEMNIFICATION.—Under such regulations in 
conformity with this section as the Administrator shall 
prescribe taking into account the availability, cost, and 
terms of liability insurance, any agreement between the 
Administration and a user of a space vehicle may provide 
that the United States will indemnify the user against 
claims (including reasonable expenses of litigation or set-
tlement) by third parties for death, bodily injury, or loss 
of or damage to property resulting from activities carried 
on in connection with the launch, operations, or recovery 
of the space vehicle, but only to the extent that such 
claims are not compensated by liability insurance of the 
user. Such indemnification may be limited to claims re-
sulting from other than the actual negligence or willful 
misconduct of the user. 
(d) TERMS OF INDEMNIFICATION AGREEMENT.—An 
agreement made under subsection (c) that provides indem-
nification must also provide for— 
(1) notice to the United States of any claim or 
suit against the user for the death, bodily injury, or 
loss of or damage to the property; and 
(2) control of or assistance in the defense by 
the United States, at its election, of that suit or 
claim.
(e) CERTIFICATION
OF JUST
AND REASONABLE 
AMOUNT.—No payment may be made under subsection 
(c) unless the Administrator or the Administrator’s des-
ignee certifies that the amount is just and reasonable. 
(f) PAYMENTS.—Upon the approval by the Adminis-
trator, payments under subsection (c) may be made, at 
the Administrator’s election, either from funds available 
for research and development not otherwise obligated or 
from funds appropriated for such payments. 
§ 339. Insurance for experimental aerospace vehicles 
(a) DEFINITIONS.—In this section: 
(1) COOPERATING PARTY.—The term ‘‘cooper-
ating party’’ means any person who enters into an 
agreement with the Administration for the perform-
ance of cooperative scientific, aeronautical, or space 
activities to carry out the purposes of this chapter. 
(2) DEVELOPER.—The term ‘‘developer’’ means 
a United States person (other than a natural per-
son) who— 
(A) is a party to an agreement with the 
Administration for the purpose of developing 
new technology for an experimental aerospace 
vehicle; 
(B) owns or provides property to be flown 
or situated on that vehicle; or
(C) employs a natural person to be flown 
on that vehicle. 
(3) EXPERIMENTAL
AEROSPACE
VEHICLE.— 
The term ‘‘experimental aerospace vehicle’’ means 
an object intended to be flown in, or launched into, 
orbital or suborbital flight for the purpose of dem-
onstrating technologies necessary for a reusable 
launch vehicle, developed under an agreement be-
tween the Administration and a developer. 
(4) RELATED ENTITY.—The term ‘‘related enti-
ty’’ includes a contractor or subcontractor at any 
tier, a supplier, a grantee, and an investigator or 
detailee. 
(b) IN GENERAL.—The Administrator may provide li-
ability insurance for, or indemnification to, the developer 
of an experimental aerospace vehicle developed or used in 
execution of an agreement between the Administration 
and the developer. 
(c) TERMS AND CONDITIONS.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in this section, the insurance and indemnifica-
tion provided by the Administration under sub-
section (b) to a developer shall be provided on the 
same terms and conditions as insurance and indem-
nification is provided by the Administration under
section 338 of this title to the user of a space vehi-
cle. 
(2) INSURANCE.— 
(A) IN GENERAL.—A developer shall ob-
tain liability insurance or demonstrate financial 
responsibility in amounts to compensate for the 
maximum probable loss from claims by— 
(i) a third party for death, bodily in-
jury, or property damage, or loss resulting 
from an activity carried out in connection 
with the development or use of an experi-
mental aerospace vehicle; and 
(ii) the United States Government for 
damage or loss to Government property re-
sulting from such an activity. 
(B) MAXIMUM REQUIRED.—The Adminis-
trator shall determine the amount of insurance 
required, but, except as provided in subpara-
graph (C), that amount shall not be greater 
than the amount required under section 
70112(a)(3) of title 49 for a launch. The Ad-
ministrator shall publish notice of the Adminis-
trator’s 
determination 
and 
the 
applicable 
amount or amounts in the Federal Register 
within 10 days after making the determination.
(C) INCREASE IN DOLLAR AMOUNTS.—The 
Administrator may increase the dollar amounts 
set forth in section 70112(a)(3)(A) of title 49 
for the purpose of applying that section under 
this section to a developer after consultation 
with the Comptroller General and such experts 
and consultants as may be appropriate, and 
after publishing notice of the increase in the 
Federal Register not less than 180 days before 
the increase goes into effect. The Administrator 
shall make available for public inspection, not 
later than the date of publication of such no-
tice, a complete record of any correspondence 
received by the Administration, and a transcript 
of any meetings in which the Administration 
participated, regarding the proposed increase. 
(D) SAFETY
REVIEW
REQUIRED
BEFORE 
ADMINISTRATOR
PROVIDES
INSURANCE.—The 
Administrator may not provide liability insur-
ance or indemnification under subsection (b) 
unless the developer establishes to the satisfac-
tion of the Administrator that appropriate safe-
ty procedures and practices are being followed 
in the development of the experimental aero-
space vehicle.