Provides that in determining whether to grant insurance or reinsurance to foreign-flag vessels, pursuant to the Merchant Marine Act of 1936, the Secretary of Commerce shall consider the characteristics, the employment, and the general management of the vessel by the owner or charterer. Requires American and foreign-flag vessels so insured or reinsured be subject to such vessel location reporting requirements as the Secretary may establish by regulation.

Authorizes the Secretary to charge and collect an annual fee in an amount calculated to cover the expenses of processing applications for insurance, the employment of underwriting agents, and the appointment of experts.