A bill to amend the Regional Rail Reorganization Act of 1973 to require ConRail to make premium payments under certain medical and life insurance policies, to provide that ConRail shall be entitled to a loan under section 211(h) of such act in an amount required for such premium payments, and to provide that such premium payments shall be deemed to be expenses of administration of the respective railroads in reorganization.

(Reported to Senate from the Committee on Commerce, Science, and Transportation with amenement, S. Rept. 95-1041)

Amends the Regional Rail Reorganization Act of 1973 to direct the Consolidated Rail Corporation (Con Rail) to make premium payments in order to maintain medical or life insurance policies providing benefits to individuals who retired prior to April 1, 1976, if such policies were maintained by a railroad undergoing reorganization immediately prior to such date. Directs the Corporation, in the case of such individual whose policy lapsed after such date due to nonpayment of premiums, to purchase comparable insurance for such individual, and to pay any claim for such individual if such claim arose during the period of the lapse.

Entitles the Corporation to a loan for the payment of insurance premiums and benefits.

States that amounts required for such premium payments shall be deemed to be expenses of administration of the respective estates of the railroads in reorganization (1) upon the determination by the district court having jurisdiction that such premiums and benefits were contractual obligations, or (2) in the case of a railroad which is not subject to a bankruptcy proceeding. 10/11/78 hfac088 House agreed to Senate amendments with an amendment

Amends the Regional Rail Reorganization Act of 1973 to direct the Consolidated Rail Corporation (Con Rail) to make premium payments in order to maintain medical or life insurance policies providing benefits to individuals who retired prior to April 1, 1976, if such policies were maintained by a railroad undergoing reorganization immediately prior to such date. Directs the Corporation, in the case of such individual whose policy lapsed after such date due to nonpayment of premiums, to purchase comparable insurance for such individual, and to pay any claim for such individual if such claim arose during the period of the lapse.

Entitles the Corporation to a loan for the payment of insurance premiums and benefits.

States that amounts required for such premium payments shall be deemed to be valid administrative claims against the respective estates of the railroads in reorganization, and shall not be construed (1) as affecting the jurisdiction of the appropriate district court to determine whether such premiums and benefits are enforceable contractual obligations, or (2) as reordering any priorities for reimbursement.

Permits the successor to a railroad in reorganization to assert any claims or defenses available to such railroad in reorganization with respect to whether the benefits and premiums constitute enforceable contractual obligations.