174 
claim adjusted, compromised, settled, adjudged, or paid may not exceed the 
stated valuation. However, if the insured has rejected the valuation, the in-
sured— 
‘‘(1) shall be paid, as a tentative advance only, 75 percent of the 
stated valuation; and 
‘‘(2) may bring a civil action against the United States in a court 
having jurisdiction of the claim to recover a valuation equal to the just 
compensation the court determines would have been payable if the own-
ership of the vessel had been requisitioned under chapter 563 of this 
title at the time the insurance attached under the policy. 
‘‘(d) ADJUSTING PREMIUMS.—If a court makes a determination as pro-
vided under subsection (c)(2), premiums paid under the policy shall be ad-
justed based on the court’s determination and the rates provided for in the 
policy. 
‘‘§ 53907. Reinsurance 
‘‘(a) IN GENERAL.—To the extent the Secretary of Transportation is au-
thorized to provide insurance under this chapter, the Secretary may provide 
reinsurance to a company authorized to do insurance business in a State 
of the United States. The Secretary may obtain reinsurance from such a 
company for any insurance provided by the Secretary under this chapter. 
‘‘(b) RATES.—The Secretary may not provide reinsurance at rates less 
than, nor obtain reinsurance at rates more than, the rates established by 
the Secretary on the same or similar risks or the rates charged by the insur-
ance company for the insurance reinsured, whichever is more advantageous 
to the Secretary. However, the Secretary may provide an allowance to the 
insurance company for the costs of services and facilities the company pro-
vides, in an amount the Secretary considers reasonable according to good 
business practice. The allowance to the company may not include any 
amount for soliciting or stimulating insurance business. 
‘‘§ 53908. Additional insurance privately obtained 
‘‘With the approval of the Secretary of Transportation, a person having 
an insurable interest in a vessel may obtain insurance on the vessel with 
other underwriting agents in addition to the insurance with the Secretary. 
The Secretary is not entitled to the benefit of the additional insurance. 
‘‘§ 53909. War risk insurance revolving fund 
‘‘(a) IN GENERAL.—There is a war risk insurance revolving fund in the 
Treasury. 
‘‘(b) DEPOSITS.—There shall be deposited in the fund amounts appro-
priated to carry out this chapter and amounts received in carrying out this 
chapter. 
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‘‘(c) PAYMENTS.—There shall be paid from the fund amounts for return 
premiums, losses, settlements, judgments, and all liabilities incurred by the 
United States Government under this chapter. 
‘‘(d) INVESTMENT.—The Secretary of Transportation may request the 
Secretary of the Treasury to invest such portion of the fund as is not, in 
the judgment of the Secretary of Transportation, required to meet the cur-
rent needs of the fund. These investments shall be made by the Secretary 
of the Treasury in public debt securities of the Government, with maturities 
suitable to the needs of the fund, and bearing interest rates determined by 
the Secretary of the Treasury, taking into consideration current market 
yields on outstanding marketable obligations of the Government of com-
parable maturity. Interest and benefits from the securities shall be deposited 
in the fund. 
‘‘§ 53910. Administrative 
‘‘(a) ACCORDANCE WITH COMMERCIAL PRACTICE.—In carrying out this 
chapter, the Secretary of Transportation may act in accordance with com-
mercial practice in the marine insurance business. 
‘‘(b) REGULATIONS.—The Secretary may prescribe regulations the Sec-
retary considers appropriate to carry out this chapter. 
‘‘(c) POLICIES, RATES, AND ANNUAL FEES.—The Secretary may pre-
scribe and change forms and policies, and fix and change the amounts in-
sured and rates of premium, under this chapter. 
‘‘(d) ANNUAL FEES.—The Secretary may charge and collect an annual 
fee in an amount calculated to cover the expenses of processing applications 
for insurance, employing underwriting agents, and appointing experts under 
this chapter. 
‘‘(e) PAYMENT OF CLAIMS AND JUDGMENTS.—The Secretary may settle 
and pay claims, and pay judgments against the United States, related to 
insurance under this chapter. 
‘‘(f) UNDERWRITING AGENTS.— 
‘‘(1) IN GENERAL.—The Secretary may, and when the Secretary 
finds it practical to do so shall, employ a domestic company or group 
of domestic companies, authorized to do marine insurance business in 
a State of the United States, to act as underwriting agent for the Sec-
retary. The services of an underwriting agent may be used in adjusting 
claims, but a claim may not be paid until approved by the Secretary. 
‘‘(2) COMPENSATION.—The Secretary may allow the company or 
group of companies reasonable compensation for services as the under-
writing agent. The compensation may include an allowance for expenses 
reasonably incurred by the agent, but may not include any amount for 
soliciting or stimulating business. 
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176 
‘‘(g) FEES FOR ARRANGING INSURANCE.—Except as provided in sub-
section (f)(2), the Secretary may not pay an insurance broker or other per-
son acting in a similar intermediary capacity a fee or other consideration 
for participating in arranging insurance when the Secretary directly insures 
any of the risk. 
‘‘(h) EMPLOYMENT OF MARINE INSURANCE EXPERTS.—The Secretary, 
without regard to the laws and regulations on the employment of Federal 
employees, may appoint and prescribe the duties of experts in marine insur-
ance as the Secretary considers necessary to carry out this chapter. 
‘‘(i) SERVICES OF OTHER GOVERNMENT AGENCIES.—With the consent of 
another agency of the United States Government, the Secretary may use in-
formation, services, facilities, officers, and employees of the agency in car-
rying out this chapter. 
‘‘(j) VESSEL LOCATION REPORTING.—The Secretary may prescribe by 
regulation vessel location reporting requirements for a vessel insured under 
this chapter. 
‘‘§ 53911. Civil actions for losses 
‘‘(a) IN GENERAL.—If there is a disagreement about a loss insured under 
this chapter, a civil action in admiralty may be brought against the United 
States in the district court of the United States for the district in which 
the plaintiff or the plaintiff’s agent resides. If the plaintiff has no residence 
in the United States, the action may be brought in the United States Dis-
trict Court for the District of Columbia or in the district court for any dis-
trict in which the Attorney General agrees to accept service. Any person 
who may have an interest in the insurance may be made a party, either ini-
tially or on the motion of either party. 
‘‘(b) EXCLUSIVE REMEDY.—A civil action against the United States 
under this section is exclusive of any other action by reason of the same 
subject matter against an officer, employee, or agent employed or retained 
by the Government under this chapter. 
‘‘(c) PROCEDURE.—A civil action under this section shall be heard and 
determined under chapter 309 of this title. 
‘‘(d) TOLLING OF LIMITATIONS PERIOD.—If a claim is filed with the Sec-
retary of Transportation, the running of the limitations period for bringing 
a civil action is suspended until the Secretary denies the claim, and for 60 
days thereafter. The Secretary is deemed to have denied the claim if the 
Secretary does not act on the claim within 6 months after the claim is filed, 
unless the Secretary for good cause shown agrees with the claimant on a 
different period for the Secretary to act on the claim. 
‘‘(e) INTERPLEADER.—If the Secretary acknowledges the indebtedness of 
the Government under the insurance and there is a dispute about the per-
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sons entitled to receive payment, the Government may bring a civil action 
interpleading those persons. The action shall be brought in the United 
States District Court for the District of Columbia or in the district court 
for the district in which any of those persons resides. A person not residing 
or found in the district may be made a party by service in any reasonable 
manner the court directs. If the court is satisfied that unknown persons 
might make a claim under the insurance, the court may direct service on 
those unknown persons by publication in the Federal Register. Judgment 
after service by publication in the Federal Register discharges the Govern-
ment from further liability to all persons. 
‘‘§ 53912. Expiration date 
‘‘The authority of the Secretary of Transportation to provide insurance 
and reinsurance under this chapter expires on December 31, 2010. 
‘‘PART D—PROMOTIONAL PROGRAMS 
‘‘CHAPTER 551—COASTWISE TRADE 
‘‘Sec. 
‘‘55101.
Application of coastwise laws. 
‘‘55102.
Transportation of merchandise. 
‘‘55103.
Transportation of passengers. 
‘‘55104.
Transportation of passengers between Puerto Rico and other ports in the United 
States. 
‘‘55105.
Transportation of hazardous waste. 
‘‘55106.
Merchandise transferred between barges. 
‘‘55107.
Empty cargo containers and barges. 
‘‘55108.
Platform jackets. 
‘‘55109.
Dredging. 
‘‘55110.
Transportation of dredged material. 
‘‘55111.
Towing. 
‘‘55112.
Vessel escort operations and towing assistance. 
‘‘55113.
Use of foreign documented oil spill response vessels. 
‘‘55114.
Unloading fish from foreign vessels. 
‘‘55115.
Supplies on fish processing vessels. 
‘‘55116.
Canadian rail lines. 
‘‘55117.
Great Lakes rail route. 
‘‘55118.
Foreign railroads whose road enters by ferry, tugboat, or towboat. 
‘‘55119.
Yukon River. 
‘‘55120.
Transshipment of imported merchandise intended for immediate exportation. 
‘‘55121.
Transportation of merchandise and passengers on Canadian vessels. 
‘‘§ 55101. Application of coastwise laws 
‘‘(a) IN GENERAL.—Except as provided in subsection (b), the coastwise 
laws apply to the United States, including the island territories and posses-
sions of the United States. 
‘‘(b) EXCEPTIONS.—The coastwise laws do not apply to— 
‘‘(1) American Samoa; 
‘‘(2) the Northern Mariana Islands, except as provided in section 
502(b) of the Covenant To Establish a Commonwealth of the Northern 
Mariana Islands in Political Union With the United States of America 
(48 U.S.C. 1801 note); 
‘‘(3) Canton Island until the President declares by proclamation that 
the coastwise laws apply to Canton Island; or 
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