Aircraft Accident Liability Insurance

What this document is

14 C.F.R. part 205 - Aircraft Accident Liability Insurance is a regulation published by U.S. Department of Transportation (Code of Federal Regulations, Title 14). It is one of the documents that insurance license exam questions are written from, including claims adjuster practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• 14 CFR § 205.6(a) (Prohibited exclusion of coverage)

  “(a) No warranty or exclusion in the policy or plan or in any endorsement or amendment to the policy or plan, nor any violation of the policy or plan by the carrier, shall remove the liability coverage required by this part, except as specifically approved by the Department. This requirement shall...”

• 14 CFR § 205.6(b)(1) (Prohibited exclusion of coverage)

  “(b) A policy of insurance or a self-insurance plan required by this part shall not contain the following exclusions: (1) Violation of any safety-related requirement imposed by statute or by rule of a government agency.”

• 14 CFR § 205.5(f) (Minimum coverage)

  “The limits of the liability for the amounts required by this part shall apply separately to each occurrence. Any payment made under the policy or plan because of any one occurrence shall not reduce the coverage for payment of other damages resulting from any other occurrence.”

• 14 CFR § 205.3(b) (Basic requirements)

  “When more than one such insurer is providing coverage, the limits and types of liability assumed by each insurer (excluding reinsurers) shall be clearly stated in the certificate of insurance.”

• 14 CFR § 205.3(c) (Basic requirements)

  “With respect to certificates of insurance that list aircraft by government registration number, the policy or self-insurance plan shall state that, while an aircraft owned or leased by the carrier and declared in the policy is withdrawn from normal use because of its breakdown, repair, or...”

• 14 CFR § 205.3(e) (Basic requirements)

  “(e) Insurance coverage to meet the requirements of this part shall be obtained from one or more of the following: (1) An insurer licensed to issue aircraft accident liability policies in any State, Commonwealth, or Territory of the United States, or in the District of Columbia; (2) Surplus line...”

• 14 CFR § 205.4(b) (Filing of evidence of insurance)

  “Aircraft shall not be listed in the carrier's operations specifications with the FAA and shall not be operated unless liability insurance coverage is in force.”

• 14 CFR § 205.7(a) (Cancellation, withdrawal, modification, expiration, or replacement of insurance coverage)

  “For purposes of this part, a policy will not be considered to have expired if the same insurer renews its coverage without reduction in the extent of coverage or amounts of coverage, and without a break in coverage, whether or not a new policy is issued, and notice to the Department is not required in that event.”

• 14 CFR § 205.7(b) (Cancellation, withdrawal, modification, expiration, or replacement of insurance coverage)

  “(b) The requirements of this section shall not apply if the policy contains a lesser time period for cancellation in a war risk exclusion. If the war risk exclusion is activated by the insurer, the insurer or its representative shall immediately notify the Department.”

• 14 CFR § 205.2 (Applicability)

  “These rules apply to all U.S. direct air carriers, including commuter air carriers and air taxi operators as defined in § 298.2 of this chapter, and foreign direct air carriers, including Canadian charter air taxi operators as defined in § 294.2(c) of this chapter.”

• 14 CFR § 205.8 (Cargo liability disclosure statement)

  “Every direct U.S. or foreign air carrier providing air cargo service in air transportation shall give notice in writing to the shipper, when a shipment is accepted, of the existence or absence of cargo liability insurance, and the limits on the extent of its liability, if any. The notice shall be...”

Practice this material

Questions about this source

More Federal sources sources

• Coverage for Pre-existing Conditions (Affordable Care Act) - HealthCare.govFederal guidance
• 20 C.F.R. § 404.1520 -- Evaluation of Disability in General (the five-step sequential evaluation process)Regulation
• Parts of Medicare (Medicare & You / medicare.gov)Federal guidance
• Continuation of Health Coverage (COBRA) - U.S. Department of LaborReference
• Portability of Health Coverage (HIPAA) - U.S. Department of LaborReference
• Fair Credit Reporting Act - 15 U.S.C. § 1681a (Definitions)State statute
• 15 U.S.C. s. 1681b: FCRA permissible purposes of consumer reportsState statute
• 15 U.S.C. s. 1681c: FCRA requirements relating to obsolete information in consumer reportsState statute