[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: 14CFR440.7]

[Page 874]
 
                     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. 440.7  Determination of maximum probable loss.

    (a) The FAA will determine the maximum probable loss (MPL) from 
covered claims by a third party for bodily injury or property damage, 
and the United States, its agencies, and its contractors and 
subcontractors for covered property damage or loss, resulting from a 
permitted or licensed activity. The maximum probable loss determination 
forms the basis for financial responsibility requirements issued in a 
license or permit order.
    (b) The FAA issues its determination of maximum probable loss no 
later than ninety days after a licensee or permittee has requested a 
determination and submitted all information required by the FAA to make 
the determination. The FAA will consult with Federal agencies that are 
involved in, or whose personnel or property are exposed to risk of 
damage or loss as a result of, a licensed or permitted activity before 
issuing a license or permit order prescribing financial responsibility 
requirements, and shall notify the licensee, or permittee, if 
interagency consultation may delay issuance of the MPL determination.
    (c) Appendix A of this part contains information requirements for 
obtaining a maximum probable loss determination. Any person requesting a 
determination of maximum probable loss must submit the information 
required by Appendix A, unless the FAA has waived a requirement. In lieu 
of submitting required information, a person requesting a maximum 
probable loss determination may designate and certify certain 
information previously submitted for a prior determination as complete, 
valid, and equally applicable to its current request. The requester is 
responsible for the continuing accuracy and completeness of information 
submitted under this part and must promptly report any changes in 
writing.
    (d) The FAA will amend a determination of maximum probable loss 
required under this section at any time prior to completion of licensed 
or permitted activities as warranted by supplementary information 
provided to or obtained by the FAA after the MPL determination is 
issued. Any change in financial responsibility requirements as a result 
of an amended MPL determination shall be set forth in a license or 
permit order.
    (e) The FAA may make a determination of maximum probable loss at any 
time other than as set forth in paragraph (b) of this section upon 
request by any person.