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Article: FAA extends war risk coverage for airlines; Commercial-market alternative authorized through end of August.(News)(Federal Aviation Administration)
- Article from:
- Business Insurance
- Article date:
- January 12, 2009
- Author:
CopyrightCOPYRIGHT 2009 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: ZACK PHILLIPS
President Bush has authorized the Department of Transportation to continue a program to write war risk insurance for U.S. airlines, extending a government program that has become the sole avenue by which major U.S.-based air carriers place terrorism coverage.
The program allows the Federal Aviation Administration to offer aviation war risk insurance if the secretary of transportation concludes that an airline cannot purchase the cover at reasonable rates through the commercial market. All major U.S. commercial airline companies use the program to buy war risk insurance at a cheaper rate than would be available through the commercial ...