By Presidential Determination 2005-15 dated December 21, 2004 and published in the Federal Register today, the Department of Transportation has been authorized to continued to make insurance coverage available to U.S. Flag Commercial Carriers. The order is effective through August 31, 2005 and no later than December 31, 2005.
This insurance coverage was originally implemented pursuant to 49 U.S.C. 44302 as a direct result of the events of September 11, 2001. Following the terrorist attacks, most aviation insurers cancelled the war risk coverage they previously provided to air carriers. The insurers that did not cancel the coverage increased their premiums so significantly that the government intervened to ensure that air carriers would still be able to obtain the needed coverage. Presidential Determination 2005-15 merely extends the time period for that legislative program.
