Aviation Insurance Reauthorization Act of 1997
PL 105-137 (S.1193), enacted 12/02/1997

I l l STAT. 2640 
PUBLIC LAW 105-137—DEC. 2, 1997 
Public Law 105-137 
105th Congress 
Dec. 2, 1997 
[S. 1193] 
Aviation 
Insurance 
Reauthorization 
Act of 1997. 
49 u s e 40101 
note. 
An Act 
To £unend 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 Reauthoriza-
tion 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 gimended 
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 deter-
mination 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 commer-
cial 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: 
PUBLIC LAW 105-137—DEC. 2, 1997 
111 STAT. 2641 
"(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 "Decem-
ber 31, 1998". 
(b) EFFECTIVE DATE.—^The amendment made by subsection (a) 49 use 44310 
takes effect on October 1, 1997. 
note. 
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". 
Approved December 2, 1997. 
LEGISLATIVE HISTORY—S. 1193 (H.R. 2036): 
HOUSE REPORTS: No. 105-244 accompanying H.R. 2036 (Comm. on Transpor-
tation and Infrastructure). 
SENATE REPORTS: No. 105-140 (Comm. on Commerce, Science, and Transpor-
tation). 
CONGRESSIONAL RECORD, Vol. 143 (1997): 
Nov. 8, considered and passed Senate. 
Nov. 13, considered and passed House.