H.R. 3973: Ukraine War Risk Insurance Act

This bill, titled the Ukraine War Risk Insurance Act, aims to establish a temporary war risk insurance program for commercial vessels involved in importing and exporting goods to and from Ukraine. The main provisions of the bill include:

Insurance Eligibility

Commercial vessels that are engaged in transporting cargo to or from Ukraine will be deemed eligible for war risk insurance for five years following the enactment of the bill. This applies even if they do not fully meet certain existing criteria in U.S. maritime law.

Expansion of Cargo Eligibility

The bill specifies that some cargo types that are usually restricted from receiving insurance will not apply when these goods are related to Ukrainian trade.

Definition of Covered Vessels

A "covered vessel" refers to boats that are owned by citizens of:

• North Atlantic Treaty Organization (NATO) member countries,
• Ukraine, or
• Any country deemed eligible for insurance by the U.S. Secretary of State for national security reasons.

Establishment of the Insurance for Ukraine Initiative

The bill creates an entity within the U.S. Department of State called the Insurance for Ukraine Initiative. This initiative has several objectives:

• Increase confidence in Ukraine's economic recovery from the ongoing conflict.
• Encourage financing and investment in Ukraine from European allies and partners through war risk insurance.
• Promote economic integration between Ukraine and Europe, as well as the U.S.
• Facilitate discussions with private insurers regarding war risk policies for Ukraine.
• Cooperate with Ukraine and allies to ensure the efficient shipment of essential commodities like grain.

Reporting Requirements

Annually, for four years after the bill's enactment, the Secretary of State must submit reports to Congress detailing progress towards the objectives of the initiative and any legislative proposals needed to further these goals.

Support for Countries Offering Insurance

The Secretary of State is required to coordinate with other federal agencies to provide diplomatic and political support to nations that support or implement war risk insurance for Ukraine. This includes leveraging U.S. diplomatic influence to assist these countries.

Multilateral Insurance Mechanism

The Secretary of State must direct the U.S. representative to the Food and Agriculture Organization of the United Nations to use U.S. influence to develop a multilateral insurance mechanism aimed at safeguarding the shipment of Ukrainian grain and other commodities.

Relevant Companies

None found.