What factors determine the amount of coverage for non-performance?
The coverage is typically set at 110% of the cruise line’s unearned passenger revenue experienced in the two fiscal years prior to application. If this information is not available, e.g., the cruise line is initiating a new service, then an estimate is made based upon the fare structure, itinerary, pre-payment policy and other factors to determine a coverage amount. Commission staff will monitor the unearned passenger revenue reports filed with the Commission to ensure that the coverage amount is appropriate and request adjustment as necessary. Commission rules cap the coverage amount for non-performance at $15 million.
