[Code of Federal Regulations]
[Title 14, Volume 4]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 14CFR440.13]

[Page 876]
 
                     TITLE 14--AERONAUTICS AND SPACE
 
     CHAPTER III--COMMERCIAL SPACE TRANSPORTATION, FEDERAL AVIATION 
              ADMINISTRATION, DEPARTMENT OF TRANSPORTATION
 
PART 440_FINANCIAL RESPONSIBILITY--Table of Contents
 
Subpart A_Financial Responsibility for Licensed and Permitted Activities
 
Sec. 440.13  Standard conditions of insurance coverage.

    (a) Insurance obtained under Sec. 440.9 must comply with each of 
the following terms and conditions of coverage:
    (1) Bankruptcy or insolvency of an insured, including any additional 
insured, shall not relieve an insurer of any of its obligations under 
any policy.
    (2) Policy limits shall apply separately to each occurrence and, for 
each occurrence to the total of claims arising out of a licensed or 
permitted activity in connection with any particular launch or reentry.
    (3) Except as provided in this section, each policy must pay claims 
from the first dollar of loss, without regard to any deductible, to the 
limits of the policy. A licensee or permittee may obtain a policy 
containing a deductible amount if the amount of the deductible is placed 
in an escrow account or otherwise demonstrated to be unobligated, 
unencumbered funds of the licensee or permittee, available to compensate 
claims at any time claims may arise.
    (4) No policy may be invalidated by any action or inaction of the 
licensee or permittee or any additional insured, even by nonpayment by 
the licensee or permittee of the policy premium, and each policy must 
insure the licensee or permittee and each additional insured regardless 
of any breach or violation of any warranties, declarations, or 
conditions contained in the policies by the licensee or permittee or any 
additional insured (other than a breach or violation by the licensee, 
permittee or an additional insured, and then only as against that 
licensee, permittee or additional insured).
    (5) Each exclusion from coverage must be specified.
    (6) Insurance shall be primary without right of contribution from 
any other insurance that is carried by the licensee or permittee or any 
additional insured.
    (7) Each policy must expressly provide that all of its provisions, 
except the policy limits, operate in the same manner as if there were a 
separate policy with and covering the licensee or permittee and each 
additional insured.
    (8) Each policy must be placed with an insurer of recognized 
reputation and responsibility that either:
    (i) Is licensed to do business in any State, territory, possession 
of the United States, or the District of Columbia; or
    (ii) Includes in each of its policies or insurance obtained under 
this part a contract clause in which the insurer agrees to submit to the 
jurisdiction of a court of competent jurisdiction within the United 
States and designates an authorized agent within the United States for 
service of legal process on the insurer.
    (9) Except as to claims resulting from the willful misconduct of the 
United States or any of its agents, the insurer shall waive any and all 
rights of subrogation against each of the parties protected by required 
insurance.
    (b) [Reserved]

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