Federal government provision of third-party liability insurance to space vehicle users

Support decisions concerning the provision by the Federal Government of third-party liability insurance for commercial space activities were studied. The practices associated with third-party liability insurance in the marine, aviation, and electric utility industries in addition to those industries associated with space missions were reviewed. Theoretical considerations of rate setting are discussed and a methodology to determine the period of time over which the insurers of each industry intend to set aside reserves to recover from a maximum liability loss should one occur is introduced. The data were analyzed to determine the setaside period in each industry, and to suggest reasonable standards from the insurer's point of view. Criteria for Federal provision of insurance are discussed, an interpretation of the Price-Anderson Act, determinants of the availability of commercial insurance, potential insurer liability, and measures of reasonableness for premium rates from the user's point of view are presented. Options available to the government regarding third part liability protection are presented.