Pursuant to a congressional requirement, GAO reviewed the Federal Aviation Administration's (FAA) Aviation Insurance Program, focusing on: (1) whether sufficient funds are available to pay the insurance claims; (2) how FAA war-risk coverage compares with that of commercial insurers; and (3) how FAA administers the program. GAO found that: (1) the Aviation Insurance Program does not have sufficient funds available to pay potential insurance claims for many of the aircraft registered for the program; (2) FAA inability to pay a claim promptly could cause a financial hardship for the affected airline, jeopardize other airlines' confidence in the program, and reduce the airlines' willingness to provide needed airlift services; (3) FAA insurance policies do not specifically provide the same comprehensive coverage as commercial insurance policies; (4) although FAA recognized the need to revise its war-risk policies as early as May 1990, it did not complete new nonpremium policies until April 1994 and still has not established a date for issuing its new premium policies; and (5) weaknesses in the administrative process could hamper the program's effectiveness and result in delays in claims payment.