its, that the case so removed is one in which a remedy by suit within the 
meaning of subsection (a) is not available against the United States, the 
case shall be remanded to the State court. 
(d) COMPROMISE OR SETTLEMENT OF CLAIMS.—The Attorney General 
may compromise or settle any claim asserted in such civil action or pro-
ceeding in the manner provided in section 2677 of title 28, and with the 
same effect. 
(e) APPLICABILITY OF OTHER PROVISIONS OF LAW.—For purposes of 
this section, the provisions of section 2680(h) of title 28 shall not apply to 
any cause of action arising out of a negligent or wrongful act or omission 
in the performance of medical, dental, or related health care functions (in-
cluding clinical studies and investigations). 
(f) LIABILITY INSURANCE FOR PERSONS ASSIGNED TO FOREIGN COUN-
TRIES OR NON-FEDERAL AGENCIES.—The Administrator or the Adminis-
trator’s designee may, to the extent that the Administrator or the designee 
deems appropriate, hold harmless or provide liability insurance for any per-
son described in subsection (a) for damages for personal injury, including 
death, caused by such person’s negligent or wrongful act or omission in the 
performance of medical, dental, or related health care functions (including 
clinical studies and investigations) while acting within the scope of such per-
son’s duties if such person is assigned to a foreign country or detailed for 
service with other than a Federal department, agency, or instrumentality or 
if the circumstances are such as are likely to preclude the remedies of third 
persons against the United States described in section 2679(b) of title 28, 
for such damage or injury. 
§ 20138. Insurance and indemnification 
(a) DEFINITIONS.—In this section: 
(1) SPACE VEHICLE.—The term ‘‘space vehicle’’ means an object in-
tended for launch, launched, or assembled in outer space, including the 
space shuttle and other components of a space transportation system, 
together with related equipment, devices, components, 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 Administration 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 authorized on such terms 
and to the extent it may deem appropriate to provide liability insurance for 
any user of a space vehicle to compensate all or a portion of claims by third 
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parties for death, bodily injury, or loss of or damage to property resulting 
from activities carried on in connection with the launch, operations, or re-
covery of the space vehicle. Appropriations available to the Administration 
may be used to acquire such insurance, but such appropriations shall be re-
imbursed to the maximum extent practicable by the users under reimburse-
ment policies established pursuant to section 20113 of this title. 
(c) INDEMNIFICATION.—Under such regulations in conformity with this 
section as the Administrator shall prescribe taking into account the avail-
ability, 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 settlement) 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 resulting 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 indemnification 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 Adminis-
trator’s designee certifies that the amount is just and reasonable. 
(f) PAYMENTS.—Upon the approval by the Administrator, 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. 
§ 20139. Insurance for experimental aerospace vehicles 
(a) DEFINITIONS.—In this section: 
(1) COOPERATING PARTY.—The term ‘‘cooperating party’’ means 
any person who enters into an agreement with the Administration for 
the performance of cooperative scientific, aeronautical, or space activi-
ties to carry out the purposes of this chapter. 
(2) DEVELOPER.—The term ‘‘developer’’ means a United States per-
son (other than a natural person) who— 
(A) is a party to an agreement with the Administration for the 
purpose of developing new technology for an experimental aero-
space vehicle; 
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(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 demonstrating tech-
nologies necessary for a reusable launch vehicle, developed under an 
agreement between the Administration and a developer. 
(4) RELATED ENTITY.—The term ‘‘related entity’’ includes a con-
tractor or subcontractor at any tier, a supplier, a grantee, and an in-
vestigator or detailee. 
(b) IN GENERAL.—The Administrator may provide liability insurance for, 
or indemnification to, the developer of an experimental aerospace vehicle de-
veloped or used in execution of an agreement between the Administration 
and the developer. 
(c) TERMS AND CONDITIONS.— 
(1) IN GENERAL.—Except as otherwise provided in this section, the 
insurance and indemnification provided by the Administration under 
subsection (b) to a developer shall be provided on the same terms and 
conditions as insurance and indemnification is provided by the Admin-
istration under section 20138 of this title to the user of a space vehicle. 
(2) INSURANCE.— 
(A) IN GENERAL.—A developer shall obtain 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 injury, or property dam-
age, or loss resulting from an activity carried out in connec-
tion with the development or use of an experimental aero-
space vehicle; and 
(ii) the United States Government for damage or loss to 
Government property resulting from such an activity. 
(B) MAXIMUM REQUIRED.—The Administrator shall determine 
the amount of insurance required, but, except as provided in sub-
paragraph (C), that amount shall not be greater than the amount 
required under section 50714(a)(3) of this title for a launch. The 
Administrator shall publish notice of the Administrator’s deter-
mination 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 50714(a)(3)(A) of 
this title for the purpose of applying that section under this sec-
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tion 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 Adminis-
trator shall make available for public inspection, not later than the 
date of publication of such notice, a complete record of any cor-
respondence 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 PRO-
VIDES INSURANCE.—The Administrator may not provide liability 
insurance or indemnification under subsection (b) unless the devel-
oper establishes to the satisfaction of the Administrator that ap-
propriate safety procedures and practices are being followed in the 
development of the experimental aerospace vehicle. 
(3) NO
INDEMNIFICATION
WITHOUT
CROSS-WAIVER.—Notwith-
standing subsection (b), the Administrator may not indemnify a devel-
oper of an experimental aerospace vehicle under this section unless 
there is an agreement between the Administration and the developer 
described in subsection (d). 
(4) APPLICATION OF CERTAIN PROCEDURES.—If the Administrator 
requests additional appropriations to make payments under this sec-
tion, like the payments that may be made under section 20138(c) of 
this title, then the request for those appropriations shall be made in 
accordance with the procedures established by subsections (d) and (e) 
of section 50715 of this title. 
(d) CROSS-WAIVERS.— 
(1) ADMINISTRATOR AUTHORIZED TO WAIVE.—The Administrator, 
on behalf of the United States, and its departments, agencies, and in-
strumentalities, may reciprocally waive claims with a developer or co-
operating party and with the related entities of that developer or co-
operating party under which each party to the waiver agrees to be re-
sponsible, and agrees to ensure that its own related entities are respon-
sible, for damage or loss to its property for which it is responsible, or 
for losses resulting from any injury or death sustained by its own em-
ployees or agents, as a result of activities connected to the agreement 
or use of the experimental aerospace vehicle. 
(2) LIMITATIONS.— 
(A) CLAIMS.—A reciprocal waiver under paragraph (1) may not 
preclude a claim by any natural person (including, but not limited 
to, a natural person who is an employee of the United States, the 
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