By Memorandum of September 28, 2011–Provision of Aviation Insurance Coverage for Commercial Air Carrier Service in Domestic and International Operations published in the Federal Register today, the President has authorized the Department of Transportation to continue to make insurance coverage available to U.S. Flag Commercial Carriers until September 30, 2012.
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. The Presidential Memorandum merely extends the time period for that legislative program.