---
kind: "section"
citation: "46 U.S.C. § 53902"
title: "46"
title_heading: "Shipping"
number: "53902"
heading: "Authority to provide insurance"
release: "119-102"
url: "https://uscodex.org/usc/46/53902"
units:
  - "Subtitle V — Merchant Marine"
  - "Part C — Financial Assistance Programs"
  - "Chapter 539 — War Risk Insurance"
---

# §53902. Authority to provide insurance

- (a) **In General.—** With the approval of the President, and after such consultation with interested [agencies](/usc/46/101.md) of [United States](/usc/46/114.md) Government as the President may require, the Secretary of Transportation may provide insurance and reinsurance against loss or damage from [war risks](/usc/46/53901.md?p=4) as provided by this chapter whenever it appears to the Secretary that insurance adequate for the needs of the waterborne commerce of the [United States](/usc/46/114.md) cannot be obtained on reasonable terms and conditions from companies authorized to do insurance business in a [State](/usc/46/112.md) of the [United States](/usc/46/114.md).
- (b) **Consideration of Risk.—** Insurance or reinsurance under this chapter shall be based, insofar as practicable, on consideration of the risk involved.
- (c) **Availability of Vessel During War or National Emergency.—** Insurance or reinsurance for a [vessel](/usc/46/115.md) may be provided under this chapter only on the condition that the [vessel](/usc/46/115.md) will be available to the Government in time of war or national emergency.

## Source credit

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1627.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Revised<br>Section | Source (U.S. Code) | Source (Statutes at Large) |
| 53902 | 46 App.:1282. | June 29, 1936, ch. 858, title XII, § 1202, as added Sept. 7, 1950, ch. 906, 64 Stat. 773; Pub. L. 101–115, § 7(a), Oct. 13, 1989, 103 Stat. 694. |