[Congressional Record Volume 144, Number 97 (Monday, July 20, 1998)]
[House]
[Pages H5879-H5880]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             WAR RISK INSURANCE REAUTHORIZATION ACT of 1998

  Mr. DUNCAN. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 4058) to amend title 49, United States Code, to extend the 
aviation insurance program, and for other purposes.
  The Clerk read as follows:

                               H.R. 4058

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. AVIATION INSURANCE PROGRAM AMENDMENTS.

       (a) Reimbursement of Insured Party's Subrogee.--Section 
     44309(a) of title 49, United States Code, is amended to read 
     as follows:
       ``(a) Losses.--
       ``(1) Actions against united states.--A person may bring a 
     civil action in a district court of the United States or in 
     the United States Court of Federal Claims against the United 
     States Government when--
       ``(A) a loss insured under this chapter is in dispute; or
       ``(B)(i) the person is subrogated under a contract between 
     the person and a party insured under this chapter (other than 
     section 44305(b)) to the rights of the insured party against 
     the United States Government; and
       ``(ii) the person has paid to the insured party, with the 
     approval of the Secretary of Transportation, an amount for a 
     physical damage loss that the Secretary has determined is a 
     loss covered by insurance issued under this chapter (other 
     than section 44305(b)).
       ``(2) Limitation.--A civil action involving the same matter 
     (except the action authorized by this subsection) may not be 
     brought against an agent, officer, or employee of the 
     Government carrying out this chapter.
       ``(3) Procedure.--To the extent applicable, the procedure 
     in an action brought under section 1346(a)(2) of title 28 
     applies to an action under this subsection.''.
       (b) Extension of Aviation Insurance Program.--Section 44310 
     of such title is amended by striking ``1998'' and inserting 
     ``2003''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Tennessee (Mr. Duncan) and the gentleman from Pennsylvania (Mr. Borski) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Tennessee (Mr. Duncan).
  Mr. DUNCAN. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, this bill reauthorizes the War Risk Insurance program 
for 5 years. The Committee on Transportation and Infrastructure 
unanimously approved H.R. 4058 on June 25.
  This bill is very similar to legislation, S. 1193, which the House 
passed on November 12, 1997. S. 1193 provided a short extension of the 
program in order to give us time to develop an alternative to borrowing 
authority that would help ensure that air carrier insurance claims 
could be paid in a timely manner.

[[Page H5880]]

  The War Risk Insurance Program expires on December 31 of this year. 
Our borrowing authority proposal was opposed by the administration last 
year, so we worked with the administration and others in developing 
this alternative. H.R. 4058 would reauthorize the War Risk Insurance 
Program for 5 years until the year 2003. It also includes a provision 
that would allow an air carrier to be reimbursed almost immediately 
from its private insurance company should the Federal Government be 
unable to pay promptly because of some unforeseen circumstance or 
because the insurance fund had been depleted.
  In short, if the Federal Government does not pay promptly, the 
airline can get the prompt payment from its private insurance company. 
The insurance company's prompt payment would then eventually be 
reimbursed by the Federal Government.
  The War Risk Insurance Program is vitally important to this Nation 
and to our national defense. It was first authorized in 1951 and over 
the years has been improved upon during the reauthorization process.
  The subcommittee held a hearing on this program in May of last year 
and has made great progress on this program.
  The War Risk Insurance Program was used extensively during operations 
Desert Shield and Desert Storm to ensure aircraft carrier and troops 
and supplies to the Middle East. Without this program, the military 
would have had to buy more aircraft for this purpose, which would have 
cost taxpayers billions of dollars. Instead, commercial aircraft, with 
the protection of war risk insurance, were willing to take on these 
dangerous missions.
  This is a good bill, Mr. Speaker, a needed bill, and I strongly urge 
its adoption.
  Mr. BORSKI. Mr. Speaker, I yield myself such time as I may consume.
  (Mr. BORSKI asked and was given permission to revise and extend his 
remarks.)
  Mr. BORSKI. Mr. Speaker, I rise in strong support of H.R. 4058, a 
bill to extend and improve the War Risk Insurance Program. This is a 
little known but very important program. It ensures commercial airline 
flights to high risk areas, such as countries at war or on the verge of 
war, where commercial insurance companies will not provide insurance. 
These flights must be directed to supporting the foreign policy or 
national security of the United States.
  Its largest, most recent use, was to support operation Desert Shield 
and Desert Storm, ferrying our troops and equipment to the Middle East.
  The bill before us today extends this program into the year 2003. It 
also provides us with a solution to a problem left unresolved from last 
year. During one of the Subcommittee on Aviation's hearings last year, 
GAO identified that there was a need for air carriers purchasing 
premium insurance to have a better guarantee that if they suffered a 
claim in excess of the amount in the aviation insurance fund they would 
be assured of complete and immediate reimbursement.
  Without this guarantee, significant problems could be created, 
especially for a small airline where the loss of one aircraft could be 
devastating. The solution contained in this bill would address this 
issue by making it easier for an airline to obtain prompt payment 
insurance from a commercial insurance company. Such insurance would 
ensure that the airline could obtain reimbursement for its loss from 
the insurance company quickly, even if the FAA's insurance fund was 
insufficient and Congress failed to replenish it promptly. The 
commercial insurer could then recover the money it paid to the airline 
when money was appropriated to replenish the insurance fund.
  I want to commend the gentleman from Tennessee, Chairman Duncan, and 
the gentleman from Illinois, Mr. Lipinski, the distinguished ranking 
member, for having the patience to find an acceptable bipartisan 
solution to this issue, and I strongly urge all Members of the House to 
support H.R. 4058 because of its importance to our Nation's foreign 
policy efforts.
  Mr. Speaker, I yield back the balance of my time.
  Mr. DUNCAN. Mr. Speaker, I yield myself such time as I may consume.
  I simply want to thank my good friend, the gentleman from 
Pennsylvania (Mr. Borski) for assisting us on this legislation, and I 
have no other speakers at this time so I simply urge support for this 
very important legislation.
  Mr. Speaker, I yield back the balance of my time.
  Mr. SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Tennessee (Mr. Duncan), that the House suspend the rules 
and pass the bill, H.R. 4058.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

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