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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) Any loss arising from the ownership, maintenance, or use of any large aircraft except, subject to the provisions of paragraph (j) of this section, turbojet aircraft having a maximum takeoff weight of over 12,500 pounds authorized for use by air taxi operators pursuant to § 298.21;

(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;

(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 de

fending against such an occurrence; confiscation by any government or p lic authority;

(g) Any loss arising from operati within any geographic areas other th the following:

(1) Between points in the 48 conti ous States, the District of Colum Canada, and Mexico;

(2) Between points in Puerto Rico a the Virgin Islands;

(3) Between points within the Sta of Alaska and Hawaii;

(4) Between points in Alaska a points in Canada; and

(5) Within any other geographic a for which coverage is specified in policy of insurance;

Provided, That a loss caused by m misadventure in flying over or landing any geographic area not specified in si paragraphs (1) through (5) of this pa graph shall not be excluded;

(h) Any loss arising from operatio by the named insured to or from instal tions of the Distant Early Warning S tem (DEW line) or the Ballistic Mis Early Warning System (BMEWS);

(i) Any loss arising from operat of an aircraft under command of a pi not named in or meeting the equal cation, experience, and currency quirements provided in the policy insurance:

(j) Any loss arising from the ope tion of an aircraft falling within any the following aircraft groupings, if spe fied in the policy of insurance: Pist engine rotary-wing; turbine engine i tary-wing; single engine piston fixe wing; multiengine piston fixed-wir single engine turbo prop fixed-wir multiengine turbo prop fixed-wir multiengine turbo jet fixed-wing; mul engine center line thrust fixed-wir single engine water alighting fixed-wir multiengine water alighting fixed-win Provided, That no grouping shall be specified if any aircraft type falli within such grouping is included with the coverage of the policy;

(k) Any loss arising from operatio other than the carriage by aircraft persons or property as a common carri for compensation or hire, or the carria of mail by aircraft, in interstate, ove seas, or foreign air transportation;

(1) Any loss arising from operatio with aircraft for which an airworthine certificate has not been issued, has be

rendered, or has been suspended or oked by the Administrator of the eral Aviation Administration, or has ired by its terms;

m) Any loss arising from operations aircraft which, at takeoff, have not inspections, maintenance, prevenmaintenance, and alterations permed when required by the Federal ation Regulations, or which have not I such inspections, maintenance, pretive maintenance, and alterations formed by persons authorized by the eral Aviation Regulations.

FR. 18234, Dec. 7, 1968]

98.45 Cancellation, withdrawal, modification, expiration, or replacement of insurance coverage.

a) Each policy of insurance shall cify that, unless replaced as proed in paragraph (b) of this section, nay not be canceled or withdrawn, or dified to reduce the limits of liability, il after 10 days' written notice by the urer to the Board's Bureau of Operat

Rights, Washington, D.C. 20428, ch 10-day notice period shall comnce to run from the date such notice actually received by the Board. Each icy shall further provide that the urer will notify the Board, 10 days ore the expiration date of the policy, less the policy has been renewed.

b) Policies of aircraft liability inance and certificates of insurance Cepted by the Board under this part, y be replaced by other policies of inrance, and certificates of insurance nforming to this subpart. The liability the retiring insurer shall be consided terminated as of the effective date the replacement policy of aircraft liaity insurance and certificate of insur

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An air carrier which engages directly in the operation of aircraft in air transportation shall be exempt from sections 408(a) (2) and 408(a) (3) of the Federal Aviation Act of 1958,1 insofar as the pro

1 This exemption does not release a party to an aircraft sale or lease agreement from conditions in any Board order prohibiting or limiting transactions involving such party. It should be further noted that an air carrier subject to Part 42 of this title must, as required by § 42.11, have the exclusive use of all large aircraft operated by it for the carriage of goods or persons for compensation or hire. Section 42.1 defines the exclusive "use of an aircraft for flight arising from either (i) a lease or other agreement or arrangement under which the air carrier is to have the right to such possession, control, and use for a period of at least six consecutive months from the date of such lease or other agreement or arrangement, or (11) ownership of the aircraft."

visions thereof relate to the purchase, lease, or lease with purchase option of aircraft from another air carrier or from any person engaged in any phase of aeronautics, if the underlying agreement has been entered into after arm's length bargaining and does not involve:

(a) A purchase, lease, or lease with purchase option by an air carrier:

(1) Which has an officer, director, proprietor, member, partner, employee or stockholder who is, or has a representative or nominee who represents such person as, an officer, director, proprietor, member, owner, partner, or stockholder of the person whose aircraft are being purchased or leased;

(2) Which owns, directly or beneficially, any financial interest in the person whose aircraft are being purchased or leased;

(3) In which any financial interest is owned, directly or beneficially, by the person whose aircraft are being purchased or leased;

(4) Which controls, is controlled by, or is under the common control with, a person whose aircraft are being purchased or leased;

(5) Which has an officer or director who is an officer or director of a corporation or member of a firm which is a stockholder of the person whose aircraft are being purchased or leased; or

(6) Which is a party to an executory agreement with the person whose aircraft are being purchased or leased which will, or may upon consummation thereof, result in any of the relationships set forth in this paragraph.

(b) A purchase, lease, or lease with purchase option by an air carrier from a certificated air carrier of aircraft of more than

(1) $10,000,000 in market value, or
(2) 10 in number, or

(3) 20 percent of either the total number, total market value, or total lift capacity (pay load) of aircraft of a certificated air carrier,

whichever is less, either in a single transaction or in successive transactions within a six month period. For purposes of computing total aircraft in accordance with subparagraph (3) of this paragraph, all aircraft of the certificated air carrier shall be included except aircraft which is under lease to such carrier for six months or less, and aircraft which is owned by such carrier but is under lease to some

other person for a period of more th six months.

(c) A lease with crew or an aircr interchange agreement.

(d) An aircraft purchase or le agreement wherein the payment to person whose aircraft are being p chased or leased is directly related to gross revenue or profits derived fr the operation of the aircraft.

[ER-252, 24 F.R. 759, Feb. 4, 1959, as amen by ER-288, 24 F.R. 8720, Oct. 28, 1959, amended by ER-418, 29 F.R. 13421, Sept. 1964]

§ 299.3 Filing requirements.

Two copies of the agreement to p chase, lease, or lease with option to p chase aircraft, or a memorandum of understanding where the transaction consummated without written agr ment, shall be filed with the Board with 15 days after the date of execut thereof,' together with a statement c taining a certification of a duly auth ized official of the air carrier in substa tially the following form:

on

The attached agreement was entered 19_-, and is being filed w the Board by pursuant to Part of the Board's Economic Regulations. submitting this agreement, the undersign herein certifies that such agreement (1) } been entered into after arm's length b gaining, (2) to his best knowledge and lief and so far as he could reasonably det mine does not involve any of the relatio ships set forth in paragraph (a) (4) of § 299 and (3) does not involve any of the other pi hibited relationships set forth in paragra (a) of § 299.2.

Insofar as applicable, a statement shou also be submitted containing a recital the specific data relied upon by the & carrier in concluding that the transa tion does not exceed any of the limit tions of § 299.2(b).

[ER-252, 24 FR. 759, Feb. 4, 1959, as amend by ER-283, 24 F.R. 8720, Oct. 28, 1959] § 299.4 Termination of exemption.

The exemption granted by this ps may be terminated by the Board, und appropriate procedures, with respect

To the extent that an agreement comir within this regulation is also subject to se tion 412, the air carrier must comply se arately with the filing requirements of Pa 261 of this chapter and, if involving suppl mental carriers, with any prior approv requirements imposed on them. An outrigh sale or lease of aircraft without crew is ne deemed to be within the purview of sec tion 412.

ransaction that the Board finds to consistent with the public interest. 83, 24 F.R. 8720, Oct. 28, 1959]

1.5

Effect of exemption.

e exemption granted by this part not be deemed to constitute a deter

mination for rate-making purposes of the reasonableness of the transaction or an "order made under sections 408, 409 and 412" within the meaning of section 414 of the act.

[ER-252, 24 F.R. 760, Feb. 4, 1959. Redesignated by ER-283, 24 FR. 8720, Oct. 28, 1959]

SUBCHAPTER B-PROCEDURAL REGULATIONS

RT 300-RULES OF CONDUCT IN BOARD PROCEEDINGS 1

Applicability.

Judicial standards of practice.
Hearing cases; improper influence.
Conciseness of presentation.
Attorney-client relationship.
[Reserved]

-300.9

) Gifts and unusual hospitality. Disqualification of Government officers and employees.

1 Practice of special Government employees permitted.

} Permanent disqualification of former Board members and employees in matters in which they personally participated.

Temporary disqualification of former

Board members and employees in matters formerly under their official responsibility.

5 Temporary disqualification of former Board members and employees who have acquired particular knowledge.

6 Waiver of §§ 300.13 and 300.14. 7 Disqualification of partners of Board members and employees.

8 Assistance from disqualified persons. 9 Use of confidential information. 0 Violations.

THORITY: The provisions of this Part 300 ed under secs. 202, 204, 1001, 72 Stat. 49 U.S.C. 1322, 1324, 1481. §§ 300.10 to 10 also issued under 18 U.S.C. 201-218.

0.0 Applicability.

he rules of conduct set forth in this shall govern the conduct of parties their representatives, and the renships between the Board, its staff, all other persons in all Board prolings and matters, except as otherwise vided in any Board regulation. -75, 28 F.R. 2707, Mar. 20, 1963] 00.1 Judicial standards of practice. many respects the functions of the rd are similar to those of a court parties to cases before it and those represent such parties are expected

PR-75, 28 FR. 2707, Mar. 20, 1963.

to conduct themselves with honor and dignity. By the same token, the members of the Board, and those of its employees who participate with the Board Members in the determination of cases upon a record, are expected to conduct themselves with the same fidelity to standards of propriety that characterize a court and its staff. The standing and effectiveness of the Board are in direct relation to its observance, that of its staff, and the parties and attorneys appearing before it, of the highest standards of judicial and professional ethics. [PR-10, 16 F.R. 2932, Apr. 4, 1951]

§ 300.2 Hearing cases; improper influ

ence.

It is essential in cases to be determined after notice and hearing and upon a record, or any other cases which the Board by order may designate, that the Board's judicial character be recognized and protected. Therefore, from the time of filing of an application or petition which can be granted by the Board only after notice and hearing, or, in case of other matters, from the time of notice by the Board that such matters shall be determined after notice and hearing and upon a record or that its Rules of Conduct shall be applicable thereto:

(a) A written or oral communication on any substantive or procedural issue in the case to a Member of the Board or its staff, or to the examiner in the case other than in compliance with the Board's Rules of Practice by any person, either in private or public life, shall be deemed a private communication on the merits. Such communications, unless otherwise provided for by law or published rule are hereby prohibited: Provided, That this prohibition shall not be deemed to apply to informal complaints filed with the Board or to communications with staff members of the Board who are in the course of preparing a case, or for the purpose of determin

ing whether a complaint shall be docketed, or to the usual informal communications between counsel, including discussions to effectuate a stipulation, or to settlement discussion between parties and the Board's enforcement staff, or investigative activities, or to other communications which are deemed proper in proceedings in the Federal courts. Communications which merely make inquiry as to the status of a proceeding without discussing issues are not considered communications on the merits. Any prohibited communication in writing received by the Board or its staff or the examiner in the case, shall be made public by placing it in the correspondence file of the case which is available for inspection and copying during business hours in the Board's Docket Section, but will not be considered by the Board or the examiner as part of the record for decision.

(b) Requests for expeditious treatment of a pending application will be considered communications on the merits. If made by a party or applicant for intervention, such a request shall be made by motion (§ 302.18). If made by any other interested person, such a request shall be made in accordance with the requirements in § 302.14. A request which is not made in accordance with the Board's rules shall be placed in the public correspondence file and will not be considered by the Board.

(c) It is improper that there be any private communication on the merits of any substantive or procedural issue in the case to a Member of the Board or to the examiner in the case by any members of the Board's staff who participate in the hearing as witnesses or as counsel.

(d) It is improper that there be any effort by any person interested in the case to sway the judgment of the Board by attempting to bring pressure or influence to bear upon the Members of the Board, its staff or the examiner in the case, or that such person or any member of the Board's staff or an examiner, directly or indirectly, give statements to the press or radio, by paid advertisements or otherwise, designed to influence the Board's judgment in the case.

(e) It is improper that any person solicit communications to the Board or any of its members or its staff or to the examiner in the case other than proper communications by parties or non-parties permitted under Rules 14 and 15 of the Board's rules of practice. Anybody

soliciting the support of another pers shall call such person's attention to provisions of Rules 14 and 15.

[PR-43, 25 F.R. 12432, Dec. 6, 1960, amended by PR-48, 26 F.R. 4282, May 1961; 26 F.R. 4423, May 23, 1961, PR-75, F.R. 2708, Mar. 20, 1963]

§ 300.3

Conciseness of presentation

Persons practicing before the Boa should endeavor to present their cases concise form avoiding cumulative ar repetitious evidence, since the membe of the Board participating in the decisi of a case, after notice and hearing ai upon a record, must familiarize the selves with the evidence in the reco and with the arguments made on beha of the parties orally and in writ briefs, and must base their decisi solely on the record.

[PR-10, 16 F.R. 2932, Apr. 4, 1951]

§ 300.4 Attorney-client relationship.

Persons practicing or appearing befe the Board, whether or not members the bar, should have due regard for standards of professional conduct app cable to the lawyer-client relationsh and to the relationship between a lawy and a judicial tribunal.

(a) The nontechnical nature of t Board's procedure calls for special a herence, by practitioners, to scrupula standards of fairness, candor, and co sideration for the rights of others in t pleadings filed, evidence submitted, co duct of the hearing, and briefs and at guments made. In appearing for client, the practitioner thereby vouch on his honor that in his opinion t client's cause is one proper for determ nation, and in presenting pleadings an offering evidence he represents that same are not offered for unwarrante delay and that in his opinion the conte thereof is not misleading. Nor sho he indulge in offensive personalities, seemly wrangling, or intemperate ac sations or characterizations.

(b) A practitioner, moreover, shot advise his client to observe the law cording to his conscientious belief as its permissible meaning and should u his best efforts to restrain his client fro improprieties in dealing with the Bost or its staff. If a client persists in sud improprieties, the practitioner shoul terminate their relationship.

[PR-10, 16 F.R. 2982, Apr. 4, 1951. Redes nated by PR-75, 28 FR. 2708, Mar. 20, 196 §§ 300.5-300.9 [Reserved]

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