INSURANCE.

SEC. 106. INSURANCE.(a) Aircraft Manufacturers.—(1) In general.—Section 44302 is amended by adding at the end the following:“(g) Aircraft Manufacturers.—“(1) In general.—The Secretary may provide to an aircraft manufacturer insurance for loss or damage resulting from operation of an aircraft by an air carrier and involving war or terrorism.“(2) Amount.—Insurance provided by the Secretary under this subsection shall be for loss or damage in excess of the greater of the amount of available primary insurance or $50,000,000.“(3) Terms and conditions.—Insurance provided by the Secretary under this subsection shall be subject to the terms and conditions set forth in this chapter and such other terms and conditions as the Secretary may prescribe.”.(2) Definition of aircraft manufacturer.—Section 44301 is amended—(A) by redesignating paragraphs (1) and (2) as paragraphs (2) and (3), respectively; and(B) by inserting before paragraph (2) (as so redesignated) the following:117 STAT. 2499 “(1) ‘aircraft manufacturer’ means any company or other business entity, the majority ownership and control of which is by United States citizens, that manufactures aircraft or aircraft engines.”. (3) Coverage.—Section 44303(a) is amended—(A) in the subsection heading by striking “In general” and inserting “In General”; and(B) by adding at the end the following:“(6) loss or damage of an aircraft manufacturer resulting from operation of an aircraft by an air carrier and involving war or terrorism.”.(b) Aircraft Manufacturer Liability for Third-Party Claims Arising Out of Acts of Terrorism.—Section 44303(b) is amended by adding at the end the following: “The Secretary may extend the provisions of this subsection to an aircraft manufacturer (as defined in section 44301) of the aircraft of the air carrier involved.”.(c) Premiums and Limitations on Coverage and Claims.—Section 44306(b) is amended by striking “air” and inserting “insurance”.(d) Ending Effective Date.—Section 44310 is amended by striking “December 31, 2004” and inserting “March 30, 2008”.(e) Technical Correction.—Effective November 19, 2001, section 124(b) of the Aviation and Transportation Security Act (115 Stat. 631) is amended by striking “to carry out foreign policy” and inserting “to carry out the foreign policy”.