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- Title 46. Shipping
- Subtitle V. Merchant Marine
- Part C. Financial Assistance Programs
- Chapter 539. War Risk Insurance
46 U.S.C. § 53907 Reinsurance
Library | United States Statutes |
Edition | prefLabel,label,title,shortLabel |
Currency | Current through P.L. 118-19 (published on www.congress.gov on 10/06/2023) |
Citation | 46 U.S.C. § 53907 |
(a) IN GENERAL.-To the extent the Secretary of Transportation is authorized to provide insurance under this chapter, the Secretary may provide reinsurance to a company authorized to do insurance business in a State of the United States. The Secretary may obtain reinsurance from such a company for any insurance provided by the Secretary under this chapter.
(b) RATES.-The Secretary may not provide reinsurance at rates less than, nor obtain reinsurance at rates more than, the rates established by the Secretary on the same or similar risks or the rates charged by the insurance company for the insurance reinsured, whichever is more advantageous to the Secretary. However, the Secretary may provide an allowance to the insurance company for the costs of services and facilities the company provides, in an amount the Secretary considers reasonable according to good business practice. The allowance to the company may not include any amount for soliciting or stimulating insurance business.
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