LIABILITY FOR VESSEL ACCIDENTS.

SEC. 3509. LIABILITY FOR VESSEL ACCIDENTS. (a) Commission Liability Subject to Claimant Insurance.— (1) Section 1411(a) (22 U.S.C. 3771(a)) is amended by inserting 112 STAT. 2270“to section 1419(b) of this Act and” after “Subject” in the first sentence. (2) Section 1412 (22 U.S.C. 3772) is amended by striking out “The Commission” in the first sentence and inserting in lieu thereof “Subject to section 1419(b) of this Act, the Commission”. (3) Section 1416 (22 U.S.C. 3776) is amended by striking out “A claimant” in the first sentence and inserting in lieu thereof “Subject to section 1419(b) of this Act, a claimant”. (b) Authority To Require Claimants To Be Covered by Insurance.— Section 1419 (22 U.S.C. 3779) is amended— (1) by inserting “(a)” before “The Commission”; and (2) by adding at the end the following: “(b) (1) The Commission may by regulation require as a condition of transit through the Panama Canal or presence in the Panama Canal or waters adjacent thereto that any potential claimant under section 1411 or 1412 of this Act be covered by insurance against the types of injuries described in those sections. The amount of insurance so required shall be specified in those regulations, but may not exceed $1,000,000. “(2) In a claim under section 1411 or 1412 of this Act for which the Commission has required insurance under this subsection, the Commission’s liability shall be limited to the amount of damages in excess of the amount of insurance required by the Commission. “(3) In regulations under this subsection, the Commission may prohibit consideration or payment by it of claims presented by or on behalf of an insurer or subrogee of a claimant in a case for which the Commission has required insurance under this subsection.”.