INSURANCE FOR DEPARTMENTS AND AGENCIES OF THE UNITED STATES.

SEC. 401. INSURANCE FOR DEPARTMENTS AND AGENCIES OF THE UNITED STATES. (a) In General.—Section 1304(a) of the Federal Aviation Act of 1958 (49 U.S.C. App. 1534(a)) is amended— (1) by inserting after “under this title” the following: “, including insurance to cover any risk from the operation of an aircraft while such aircraft is engaged in intrastate, interstate, or overse£U3 air commerce”; and (2) by adding at the end the following new sentence: “In addition, such department or agency may, with the approval of the President, procure such insurance to cover any risk arising from the provision of goods or services directly related to and necessary for an operation of an aircraft covered by insurance procured under the preceding sentence if such operation is in the performance of a contract of such department or agency or is for the purpose of transporting military forces or materiel on behalf of the United States pursuant to an agreement between the United States and a foreign government.”. (b) Conforming Amendment.—Section 1302(a)(3) of such Act (49 U.S.C. App. 1532(a)(3)) is amended by striking “Insurance” and inserting “Subject to section 1304(a), insurance”.