Foreign Aid Insurance Act of 1988

Foreign Aid Insurance Act of 1988 - Requires each executive agency or military department responsible for economic or military assistance to foreign countries to take such actions as may be necessary to ensure that U.S. insurance companies have a fair and open competitive opportunity to provide insurance whenever such insurance is necessary or proper in connection with Government-assisted supplies or activities. Specifies that such actions shall include: (1) including in any contract or solicitation for procurement of such supplies or activities a clause requiring that U.S. insurance companies have a competitive opportunity; (2) certifying to the United States Trade Representative (USTR) that all necessary and practicable actions have been taken to provide U.S. insurance companies with competitive opportunities.

Provides that if the USTR determines that any foreign government or country discriminates against U.S. insurance companies in connection with U.S. economic or military assistance, insurance for such activities may be provided only: (1) by U.S. insurance companies; or (2) by insurance companies of foreign countries which have entered into agreements concerning nondiscriminatory treatment of U.S. insurance companies or which have provided assurance of such nondiscriminatory treatment. Provides exceptions to such requirements if: (1) no insurance was reasonably available from a U.S. insurance company; or (2) the USTR certifies to the Congress that negotiations concerning discriminatory treatment of U.S. insurance companies are in progress.

Requires the USTR to review the actions of each executive agency and military department required by this Act and to include a report concerning such actions in the USTR's required annual report to the Congress.