96-13037. War Risk Insurance

[Federal Register Volume 61, Number 101 (Thursday, May 23, 1996)]
[Notices]
[Page 25936]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-13037]



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DEPARTMENT OF TRANSPORTATION

War Risk Insurance

    The Office of Inspector General of the Department of Transportation 
conducted an audit of the Maritime Administration's (MARAD) Financial 
Statement as of September 30, 1994 (Report No: AD-MA-5-006). Section 
II: AUDIT REPORT stated that MARAD needed to clarify the participating 
shipowners' responsibility for losses under the Title XII war risk 
interim binder program. MARAD had not specifically stated in program 
documents that losses incurred during the 30 day binder period would be 
fully recovered through the premiums assessed to participating 
shipowners.
    The purpose of this Notice is to clarify the arrangements for the 
funding of losses under the binder program, if and when it is ever 
activated. It remains the intent of this program that all losses will 
be paid through the assessment of premiums to the shipowners enrolled 
in the program. Rates will be fixed promptly upon the activation of the 
program. Should there be any claims and any shortfall in the Title XII 
War Risk Insurance Fund, additional premiums would be assessed to 
enrolled shipowners on a mutual basis. Such assessments will be based 
on this formula: Each participating shipowner's values for its vessels 
(numerator) over total stated values for all vessels (denominator) 
times the shortfall. This assessment procedure will be incorporated on 
revised Form MA-942, which may be obtained from MARAD or from the 
American War Risk Agency, which is incorporated by reference in 46 CFR 
308.3(a), as revised (61 FR 1130; Jan. 16, 1996). For further 
information contact: Edmond J. Fitzgerald, Director, Office of Subsidy 
and Insurance, Maritime Administration, Washington, DC 20590 or 
telephone [phone].


    By order of the Maritime Administrator.

    Dated: May 16, 1996.
Joel C. Richard,
Secretary.
[FR Doc. 96-13037 Filed 5-22-96; 8:45 am]
BILLING CODE 4910-81-P