Federal Aviation Administration, DOT

Section 198.15

Section 198.5 Types of insurance coverage
available.
Application may be made for insurance against loss or damage to the following persons, property, or interests:
(a) Aircraft, or insurable items of an
aircraft, engaged in eligible operations
under Section 198.1.
(b) Any individual employed or transported on the aircraft referred to in
paragraph (a) of this section.
(c) The baggage of persons referred to
in paragraph (b) of this section.
(d) Property transported, or to be
transported, on the aircraft referred to
in paragraph (a) of this section.
(e) Statutory or contractual obligations, or any other liability, of the aircraft referred to in paragraph (a) of
this section or of its owner or operator,
of the nature customarily covered by
insurance.
Section 198.7 Amount of insurance coverage
available.
(a) For each aircraft or insurable
item, the amount insured may not exceed the amount for which the applicant has otherwise insured or self-insured the aircraft or insurable item
against damage or liability arising
from any risk. In the case of hull insurance, the amount insured may not exceed the reasonable value of the aircraft as determined by the FAA or its
designated agent.
(b) Policies issued without premium
may be revised from time to time by
the FAA with notice to the insured, to
add aircraft or insurable items or to
amend amounts of coverage if the insured has changed the amount by
which it has otherwise insured or selfinsured the aircraft or itself.
Section 198.9

Applicant for insurance.

(a) Application for premium or nonpremium insurance must be made in
accordance with the applicable form
supplied by the FAA.
(b) Each applicant for insurance with
the premium under this part must submit to the FAA with its application a
letter describing in detail the operations in which the aircraft is or will
be engaged and stating the type of insurance coverage being sought and the
reason it is being sought. The applicant

must also submit any other information deemed pertinent by the FAA.
(c) Each applicant for premium or
non-premium insurance must, upon request by the FAA, submit to the FAA
evidence that commercial insurance is
not available on reasonable terms for
each flight or ground operation for
which insurance is sought. Each aircraft operator who has a standby nonpremium insurance policy must, upon
request by the FAA, submit evidence
to the FAA that commercial insurance
is not available on reasonable terms
before the FAA activates that policy.
The adequacy of the evidence submitted is determined solely by the
FAA.
(d) The standby non-premium policy
issued to the aircraft operator does not
provide actual coverage until formally
activated by the FAA.
Section 198.11 Change in status of aircraft.
In the event of sale, lease, confiscation, requisition, total loss, or other
change in the status of an aircraft or
insurable items covered by insurance
under this part, the insured party must
notify the office administering the
Aviation Insurance Program before, or
as soon as practicable after, the change
in status.
Section 198.13 Premium insurance - payment
of premiums.
The insured must pay the premium
for insurance issued under this part
within the stated period after receipt
of notice that premium payment is due
and in accordance with the provisions
of the applicable FAA insurance policy.
Premiums must be sent to the FAA,
and made payable to the FAA.
Section 198.15 Non-premium insurance - payment of registration binders.
(a) The binder for initial registration
is $575 for each aircraft or insurable
item. This binder is adjusted not more
frequently than annually based on
changes in the Consumer Price Index of
All Urban Consumers published by the
Secretary of Labor.
(b) An application for non-premium
insurance must be accompanied by the
proper binder, payable to the FAA. A
binder is not returnable unless the application is rejected.

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