ministration and shall not be operated unless liability insurance coverage has attached.

(ER-574, 34 F.R. 7126, May 1, 1969, as amended by ER-628, 35 F.R. 10508, June 27, 1970] § 298.42 Minimum limits of liability.

(a) The minimum limits of liability coverage maintained by an air taxi operator who carries passengers in air transportation shall be:

(1) Liability for bodily injury to or death of aircraft passengers. A limit for any one passenger of at least seventyfive thousand dollars ($75,000), and a limit for each occurrence in any one aircraft of at least an amount equal to the sum produced by multiplying seventyfive thousand dollars ($75,000) by seventy-five percent (75%) of the total number of passenger seats installed in the aircraft.

(2) Liability for bodily injury to or death of persons (excluding passengers). A limit of at least seventy-five thousand dollars ($75,000) for any one person in any one occurrence, and a limit of at least three hundred thousand dollars ($300,000) for each occurrence.

(3) Liability for loss of or damage to property. A limit of at least one hundred thousand dollars ($100,000) for each Occurrence.

(b) The minimum limits of liability coverage maintained by an air taxi operator who restricts his operations in air transportation to the carriage of mail or property, or both, shall be those specified in paragraphs (a) (2) and (3) of this section.

(c) Notwithstanding the provisions of paragraphs (a) and (b) of this section, an air taxi operator may be insured for a single limit of liability for each occurrence. In that event, coverage must be equal to or greater than the combined required minimums for bodily injury, property damage, and/or passenger liability for the type of use to which such aircraft is put, as the case may be."

11 For example: the minimum single limit of liability acceptable for an aircraft in passenger service with 16 passenger seats would be computed on the basis of limits set forth in paragraph (a) as follows: 16 x .75 equals 12; 12 x $75,000 equals $900,000; $900,000 plus $300,000 (nonpassenger liability per occurrence), plus $100,000 (property damage per occurrence) equals $1,300,000. The latter is the amount in which a single limit liability policy may be written.

(d) In the case of a single limit of liability, aircraft may be insured by a combination of primary and excess policies. Such policies must have combined coverage equal to or greater than the required minimums for bodily injury to nonpassengers, property damage, and/or passenger liability for the type of use to which the aircraft is put, as the case may be.

[ER-574, 34 F.R. 7126, May 1, 1969, as amended by ER-628, 35 F.R. 10508, June 27, 1970] § 298.43 Terms and conditions of insurance coverage.

Liability insurance coverage required by this part shall meet the following minimum requirements:

(a) Insurance contracts shall provide for payment by the insurer on behalf of the insured air taxi operator, within the specified limits of liability, of all sums which the insured carrier shall become legally obligated to pay as damages for bodily injury to or death of persons, or for loss or damage to property of others (except as exclusion of coverage is permitted by § 298.44) resulting from the insured operator's negligent operation, maintenance or use of aircraft in "air transportation," as that term is defined by the Federal Aviation Act of 1958.

(b) The liability of the insurer shall apply to all operations by the insured operator in "air transportation," as that term is defined by the Federal Aviation Act of 1958. The liability of the insurer shall not be subject to any exclusion by virtue of violations, by the insured operator, of any applicable safety or economic provision of the Federal Aviation Act or of any applicable safety or economic rule, regulation, order, or other legally imposed requirement prescribed thereunder by the Federal Aviation Administration or the Civil Aeronautics Board or any other State or Federal law or regulation. No special waiver or exemption issued by the Federal Aviation Administration or the Civil Aeronautics Board shall affect the insurance afforded by the policy.

(c) The liability of the insurer shall not be contingent upon the financial condition, solvency, or freedom from bankruptcy of the insured. The limits of the insurer's liability for the amounts prescribed herein shall apply separately to each occurrence. Any payment made under the policy because of any one occurrence shall not reduce the liability of

the insurer for payment of other damages resulting from any other occurrence.

(d) Within the limits of liability herein prescribed, the insurer shall not be relieved from liability by any condition, warranty, or exclusion in the policy or any endorsement thereon, or violation thereof by the insured air taxi operator, other than by the exclusions set forth in § 298.44 or such other exclusions as may be individually approved by the Board.

(e) The policy of insurance shall state that, pursuant to any statute of any State, Territory, or District of the United States which makes provision therefor, the insurer designates the Superintendent, Commissioner, or Director of Insurance or other officer specified for that purpose in the statute (or his successor or successors in office) as the insurer's attorney upon whom may be served process in any action arising out of the policy of insurance.

(f) With respect to certificates of insurance which list aircraft by FAA registration number, the policy of insurance shall state that, while an aircraft owned by the named insured and declared in the policy is withdrawn from normal use because of its breakdown, repair, servicing, loss or destruction, such insurance as is afforded by the policy with respect to such aircraft shall apply also with respect to another aircraft of similar type, horsepower, and seating capacity, whether or not owned by the insured, while temporarily used as the substitute for such aircraft.

[ER-574, 34 F.R. 7126, May 1, 1969, as amended by ER-628, 35 F.R. 10508, June 27, 1970] § 298.44 Authorized exclusions of liability.

Unless other exclusions are individually approved by the Board, no policy or certificate of insurance required by this part shall contain any exclusion other than the following authorized exclusions:

(a) Any loss against which the named insured has other valid and collectible insurance, except that the limits of liability provided under this policy shall be in excess of the limits provided by such other valid and collectible insurance up to the limits certified in a certificate of insurance, but in no event exceeding the limits of liability expressed elsewhere in this policy;

(b) [Reserved]

(c) Liability assumed by the named

insured under any contract or agreement, unless such liability would have attached to the insured even in the absence of such contract or agreement: Provided, however, That this exclusion shall not apply to the named insured's waiver of liability limitations under the Warsaw Convention by signing a counterpart to the agreement of carriers (Agreement CAB 18900), as approved by Board Order E-23680, May 13, 1966, agreeing to a minimum liability for injury or death of passengers of $75,000 per passenger, or any amendment or amendments to such agreement which may be approved by the Board and to which the named insured becomes a party.

(d) Bodily injury, sickness, disease, mental anguish, or death of any employee of the named insured while engaged in the duties of his employment, or any obligation for which the named insured or any company as his insurer may be held liable under any workmen's compensation or occupational disease law;

(e) Loss of or damage to property owned, rented, occupied, or used by, or in the care, custody, or control of the named insured, or carried in or on any aircraft with respect to which the insurance afforded by this policy applies;

(f) Personal injuries or death, or damage to or destruction of property, caused directly or indirectly by hostile or warlike action, including action in hindering, combating, or defending against an actual, impending or expected attack by any government or sovereign power, de jure or de facto, or military, naval, or air forces, or by an agent of such government, power, authority, or forces; the discharge, explosion, or use of any weapon of war employing atomic fission or atomic fusion, or radioactive materials; insurrection, rebellion, revolution, civil war, or usurped power, including any action in hindering, combating, or defending against such an occurrence; or confiscation by any government or public authority;

(g) Any loss arising from operations within any geographic areas other than the following:

(1) Between any points in the "area of operation" as described in the operations specifications issued by the FAA in conjunction with its issuance of the applicable ATCO certificate to each air taxi operator: Provided, however, That

if one or more of the 48 contiguous States or the District of Columbia is listed in such area of operation, all 48 contiguous States and the District of Columbia must be included within the coverage of insurance under this subpart; and

(2) Within any other geographic area for which coverage is specified in the policy of insurance: Provided, further, That a loss caused by mere misadventure in flying over or landing in any geographic area not specified in subparagraphs (1) or (2) of this paragraph shall not be excluded.

Provided, That a loss caused by mere misadventure in flying over or landing in any geographic area not specified in subparagraphs (1) through (5) of this paragraph shall not be excluded;

(h) Any loss arising from operations by the named insured to or from installations of the Distant Early Warning System (DEW line) or the Ballistic Missile Early Warning System (BMEWS);

(i) Any loss arising from operation of an aircraft (1) without a copilot, if one is required under the policy of insurance or (2) by a pilot (or pilot and copilot) not named in or meeting the qualification, experience, and currency requirements provided in the policy of insurance;

(j) Any loss arising from the ownership, maintenance, or use of any aircraft of a type or class not specified for coverage in the policy, or any aircraft not declared to the Insurer in accordance with the terms and conditions of the policy, other than substitute aircraft as provided in § 298.43 (f);

(k) Any loss arising from operations other than the carriage by aircraft of persons or property as a common carrier for compensation or hire, or the carriage of mail by aircraft, in interstate, overseas, or foreign air transportation;

(1) Any loss arising from operations with aircraft for which an airworthiness certificate has not been issued, has been surrendered, or has been suspended or revoked by the Administrator of the Federal Aviation Administration, or has expired by its terms;

(m) Any loss arising from operations with aircraft which, at takeoff, have not had inspections, maintenance, preventive maintenance, and alterations performed when required by the Federal

Aviation Regulations, or which have not had such inspections, maintenance, preventive maintenance, and alterations performed by persons authorized by the Federal Aviation Regulations.

[ER-574, 34 F.R. 7126, May 1, 1969, as amended by ER-621, 35 F.R. 7695, May 19, 1970; as amended by ER-628, 35 F.R. 10509, June 27, 1970]

§ 298.45

Cancellation, withdrawal, mod. ification, expiration, or replacement of insurance coverage.

(a) Each policy of insurance shall specify that, unless replaced as provided in paragraph (b) of this section, it may not be canceled, withdrawn or modified to reduce the limits of liability, by the insurer, until after 10 days' written notice by the insurer to the Board's Bureau of Operating Rights, Washington, D.C. 20428, which 10-day notice period shall commence to run from the date such notice is actually received by the Board. Each policy shall further provide that, in the event of cancellation of the policy by the insured, the insurer shall, within 10 days after receipt of such notice of cancellation, notify the Board's Bureau of Operating Rights, Washington, D.C. 20428, of this action by the insured. In addition, each policy shall provide that the insurer will notify the Board, 10 days before the expiration date of the policy, unless the policy has been renewed.

(b) Policies of aircraft liability insurance, and certificates of insurance accepted by the Board under this part, may be replaced by other policies of insurance and certificates of insurance conforming to this subpart. The liability of the retiring insurer shall be considered terminated as of the effective date of the replacement policy of aircraft liability insurance and certificate of insurance. [ER-574, 34 F.R. 7126, May 1, 1969, as amended by ER-628, 35 F.R. 10509, June 27, 1970] Subpart E-Registration for Exemption

thereafter on or before July 1 of each succeeding year.

(b) Any person (whether or not he is a commuter air carrier as defined in this part) who commences operations under this part after July 1, 1969, shall, within 30 days after commencing such operations, register with the Board and shall reregister annually thereafter on or before July 1 of each succeeding year.

(c) Registration shall be accomplished by filing the following with the Board's Bureau of Operating Rights, Washington, D.C. 20428:

(1) A "Registration under Part 298 of the Economic Regulations of the Civil Aeronautics Board" (CAB Form 298-A, revised 6-70) executed in duplicate.12 This form shall be certified by a responsible official of such carrier and shall include the following information: (i) Name in which the FAA certificate is issued; (ii) the carrier's Federal Aviation Administration certificate number and the name in which the insurance policy is issued; (iii) address of its principal place of business and its mailing address; (iv) whether the carrier is currently performing at least 5 round trips per week pursuant to published schedules; (v) whether the carrier has currently effective insurance which complies with Subpart D of this part; (vi) whether the carrier is performing passenger, cargo and/or mail service; (vii) whether the carrier is operating turbojet aircraft in the 12,500-27,000 pound range; and (viii) whether the carrier has performed passenger service between a point in the United States and a point outside thereof during the past 12 months.

(2) A currently effective certificate of insurance as defined by § 298.41(b).

(3) A ten ($10) dollar registration fee. This shall be in the form of a check, draft, or postal money order, payable to the Civil Aeronautics Board.

[ER-574, 34 F.R. 7126, May 1, 1969, as amended by ER-628, 35 F.R. 10509, June 27, 1970] § 298.51 Processing by the Board.

After examination of an operator's filing under § 298.50, the Board will stamp and return to the carrier the duplicate copy of the CAB Form 298-A filed thereunder. This will serve to confirm that the

12 CAB Form 298-A (revised 6-70) is filed as part of the original document and can be obtained from the Publications Services Section, Civil Aeronautics Board, Washington, D.C. 20428.

carrier is registered with the Board in compliance with § 298.50.

[ER-628, 35 F.R. 10509, June 27, 1970]

Subpart F-Reporting of Scheduled Operations by Commuter Air Carriers

§ 298.60 Report of scheduled air taxi operations.

(a) Each "commuter air carrier" shall file CAB Form 298-C, entitled "Report of Scheduled Operations of Commuter Air Carriers" in accordance with the provisions of this part and in the manner set forth in said form, which is made a part hereof and annexed hereto.

(b) CAB Form 298-C shall be prepared for the quarter ending March 31, June 30, September 30 and December 31 of each calendar year." It shall be completed in triplicate and filed with the Board (i.e., postmarked) not more than forty (40) days after the end of each calendar quarter, and shall be addressed to the Civil Aeronautics Board, Attention of the Bureau of Accounts and Statistics, Washington, D.C. 20428.

§ 298.61 Filing of flight schedulescurrent schedules and subsequent modifications.

On or before July 1, 1969, or within 30 days after commencing operations as a commuter air carrier, whichever is later, each commuter air carrier shall file with the Director, Office of Facilities and Operations, Civil Aeronautics Board, Washington, D.C. 20428, a copy of its most recent published flight schedules, along with a statement of rates and fares charged for transportation on scheduled flights. Thereafter, if any modification in such schedules or statement of rates or fares is made, a copy of such modifications shall be filed (i.e., postmarked) not later than ten (10) days after the modification becomes effective.

§ 298.62 Extension of filing time.

If circumstances prevent the filing of a report within the prescribed time limit, consideration will be given to the granting of an extension upon receipt of a written request therefor, addressed to

24 CAB Form 298-C is filed as part of the original document and can be obtained from the Publications Services Section, Civil Aeronautics Board, Washington, D.C. 20428.

25 The first report required to be filed under this subpart shall be for the quarter commencing July 1, 1969.

the Director, Bureau of Accounts and Statistics, Civil Aeronautics Board, Washington, D.C. 20428. Such a request must give a sufficient reason for granting the extension, set forth the date when the report can be filed, and be submitted sufficiently in advance of the due date to permit proper time for consideration and communication to the carrier of the action taken. Except in cases of emergency, no request for extension will be entertained which is not received in sufficient time to enable the Board to pass thereon before the prescribed due date. If a request is denied, the carrier remains subject to the filing requirements to the same extent as if no request for extension had been made. § 298.63

Certification.

The certificate contained in CAB Form 298-C shall be executed by the officer in charge of the carrier's accounts.

§ 298.64 Reporting instructions.

(a) Schedules A-1, T-1, and T-2 of CAB Form 298-C shall be filed quarterly by each reporting carrier. The information included in each schedule shall cover only flights performed pursuant to published schedules or contracts with the Post Office Department for the transportation of mail.

(b) Schedule A-1 shall describe the aircraft used in scheduled service or mail service by the carrier.

(1) Column (1) shall set forth the aircraft registration number of each aircraft.

(2) Column (2) shall set forth the type and model of each aircraft listed in Column (1).

(3) Column (3) shall set forth the capacity in passenger seats of each aircraft. Crew seats should not be counted.

(Column (4) shall set forth the carr's best estimate in pounds as to totalpacity available for cargo in both cargo nd passenger compartments of each aircraft under normal operating conditions over the carrier's system. Estimates should take into consideration both limitations on lift capacity of aircraft as well as limitations imposed by the space available for cargo and average density per cubic feet of cargo carried. If passenger aircraft are also employed in all-cargo configuration, give the cargo capacity with all seats in place and with all seats removed.

(c) Schedule T-1 shall set forth the traffic carried, in each direction, between

the points served by the carrier's operation.

(1) Definitions: On-line origin is the point of initial boarding of traffic on the reporting carrier's operation. On-line destination is the point of final deplanement of traffic in the reporting carrier's operation.

(2) Columns (1) and (2) shall reflect the points of on-line origin and on-line destination, respectively, of traffic which was carried during the reporting period.

(3) Columns (3), (4), and (5) shall reflect the total number of revenue passengers, pounds of cargo, and pounds of mail, respectively, carried from the point of on-line origin to the point of on-line destination shown in Columns (1) and (2).

(d) Schedule T-2 shall set forth all routings for scheduled and mail flights. performed by the reporting carrier, with the number of flights performed and the aircraft type(s) used on each routing.

(1) Column (1) shall set forth the origin point of each routing.

(2) Column (2) shall set forth the intermediate points on each routing whose origin is listed in Column (1). When there are two or more intermediate points on a routing they should be listed from top to bottom in the order in which the stops are performed.

(3) Column (3) shall set forth the destination point of the routing.

(4) Column (4) shall set forth the total number of flights performed in the reporting quarter over the routing indicated in Columns (1)–(3). In instances. where more than one type of aircraft is operated between a pair of points, a subtotal shall indicate the total number of flights by all types of aircraft between each pair of points.

(5) Column (5) shall set forth the type of aircraft used on the routing. $298.65 Data processing.

The information requested in Schedules A-1, T-1, or T-2 of CAB Form 298-C as provided in § 298.64 may be submitted on any comparable form prepared on automatic data processing equipment: Provided, however, That such substitute form has been approved by the Director, Bureau of Accounts and Statistics, Washington, D.C. 20428. Data in any approved format shall be submitted in triplicate and shall contain the same columnar headings arranged in the same sequence as the schedules called for in CAB Form 298-C.