News

September 2009 | July 2009 | May 2009 | March 2009

January 2009 | November 2008 | September 2008 | July 2008 | May 2008 | March 2008 | January 2008

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September 2009 

Several months ago, we had a rather interesting scenario which might be food for thought. A client whom we had insured for many years was very unfortunately fatally injured while a passenger in his friend’s experimental aircraft. Actually both he and his pilot friend were lost in the accident. We did not insure the experimental aircraft. Apparently, our client, though not the PIC of that flight, had filed a VFR flight plan. He was in the habit of always filing plans, IFR or not. His friend had not seen a need to file a plan since this was going to be a VFR flight. However, our client, always in the habit of doing so, insisted on the filing and did so. During the VFR flight, the weather changed to IFR conditions. Our client’s buddy was not instrument rated. Our client was neither authorized nor qualified to be PIC of the experimental aircraft. However, since he did have an instrument rating, he did what he could to assist his buddy in flying the aircraft in worsening weather conditions. Sadly they did not make it. Although unfortunate, this claim was pretty much uneventful and nothing more came of it for over a year. After several months, we received a call from the widow of our insured advising us that she was being sued by the estate of her late husband’s flying buddy. According to the NTSB, since our client had filed the flight plan, they determined that he was responsible for that flight even though, as stated above, he was not qualified to fly the aircraft. The estate wanted to recover under the clause in our pilot’s policy extending coverage to non owned aircraft. The problem with this is our client’s policy did not include coverage for experimental aircraft. One lesson to be learned from all of this – there are probably several – is that the PIC should file the flight plan. The NTSB placed the entire burden of responsibility on our client even though there were several factors indicating otherwise. This story brings up other matters of interest. If a passenger is a non pilot, he is nothing more than a passenger. However, when a passenger is a pilot, a higher degree of involvement may be required from him at some point during a flight. What if the PIC becomes unable to fly the aircraft? Will the pilot/passenger be able to take over the controls? (Many years ago, one of our clients had a heart attack and died during an IFR flight. His son who only had 100 hours had to take over the controls. With the help of a Delta airline pilot who had picked up his signal for help, the son was able to safely land the aircraft which also had his mother onboard.) If possible, it is always best to be named on another’s policy if you will be flying together often. This incident is not meant to discourage anyone from filing flight plans. From the incident above, one can see that the PIC should do the filing. Of course, on a VFR flight, do not forget to close your plan as this can be costly.
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July 2009 

A couple of issue ago, we wrote about how the commercial insurance division of AIG was totally separating itself from the mortgage side of the company. As this process continues, the commercial division now has launched a new name – Chartis Insurance Company. This is another step in AIG’s Commercial Insurance Division on their path toward operating independently from the mortgage operations. This new name was developed with input from over 7,000 brokers, customers and employees. Chartis is the Greek word for map. The commercial insurance division will continue to provide worldwide coverage as they did under the AIG name and feels that their new name will help clients and brokers alike identify with the very large scope of coverages that this company is able to offer. Their new logo is a compass in the shape of the letter “C” for Chartis. Their brand line is “Your World, Insured”. Today Chartis serves 40 million clients in over 160 countries and jurisdictions. You can visit the new website at www.chartisinsurance.com to find out more about Chartis and the products and services that they have created for you. On behalf of 34,000 Chartis employees, John Doyle, the President and Chief Executive Officer of Chartis, wishes to extend appreciation to all the insureds and brokers who have supported and been loyal during this transition period. Some of you may have seen or heard of articles about AIG’s transition, some of which were recently published in the New York Times . The unfounded reports in these articles relied on sources without detailed knowledge of the structure and without having accurate financial data. State regulators who have examined AIG’s (now Chartis’) books have confirmed that the commercial companies are well capitalized and can very well meet the obligations of policyholders at strong capital levels. Following is some important information emphasizing the strength of AIG Commercial Insurance for 2008 and the new Chartis Company in 2009.

• Generated worldwide combined operating income in 2008 of $3.3 billion and in 2008 had gross premiums of $50 billion worldwide.
• In 2008 had $32 billion statutory surplus for the year.
• In 2008 cash flow from operations was $5.7 billion.
• In 2008 paid an average of $71 million worldwide in claims every single day.
• First quarter in 2009 had an operating income before realized gains and losses of $816 million.
• The property casualty companies have no debt.
  
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May 2009 

Letting someone else fly your aircraft is a very personal issue. For many, this will never happen. On the other hand, some of you are OK with this and have either named others on your policy or loan your plane on occasion to pilots who meet the “Open Pilot Clause”. For those of you who do allow others to fly your plane, remember that if another pilot has a reportable claim against your policy, it will be on your history record for up to three to five years depending on which company you are with. Even if you decide to drop that pilot, you will have to report that claim for a few renewals even after he is out of the picture. Also to be considered, if you wish to add a pilot who has had a claim in the last three to five years, he may increase your premium more than if he had a clear record. Over the years, we have had several such claims. This type of scenario is not meant to detour anyone from adding pilots to their policy, but it is certainly something to keep in the back of your mind. If you do allow others to fly your aircraft, it should be your responsibility to make sure your pilots are current on their medicals and biennial flight reviews as these will be the first things an adjuster will be reviewing if a claim is made. If you allow others who are not named pilots but meet the “Open” clause to fly your plane, do you check their log books to make sure they meet the parameters of that clause? Quite often, pilots think they have so many number of hours, but when they actually go back and check their log books, they do not have as many as they had estimated. If they are flying under the “Open” clause, and there is an accident, and if the pilot does not meet the parameters of the clause, you will be at the mercy of the insurance company. If you are insured with Global, for example, that clause requires those pilots to have at least 300 total hours of which at least 25 are in your model Grumman. If you are insured with AIG, their clause is actually very broad. All they need is a private rating and your permission. If you are insured with Britt Paulk, that clause not only stipulates that they have at least 300 total hours and at least 10 in your model Grumman, but they also need a CFI check out within the prior twelve months. Each company is different so be sure to check your policy. Also – the two place and four place Grumman hours are not interchangeable for make and model time. In other words, hours in a two place Grumman do not count as time in a four place Grumman and visa versa. If you have changed companies at renewal, do not assume the new clause will be like the one in your last policy. If in doubt, please call your agent. I know we have mentioned this before, but in the last week, we have received calls from a couple of clients who are not sure if they should be adding a student now or if they should wait until the student is ready to solo. NOW is the time. Students need to be named at all times. Having a CFI in the aircraft does not override the fact that a student is manipulating the controls. If a student has an accident and has not been named onto the policy, even if there is a CFI in the aircraft, there may be no coverage.
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March 2009 

As the AIG saga continues, we also continue to receive calls from our clients with great concern about their policies written through AIG. Until now, we have been advising our clients that the “good” side of AIG which we use for insurance property and casualty policies continues to be very strong and healthy. We now have even better news. We are pleased to announce that the “good” side (the commercial insurance operations) is totally isolating itself from the holding and parent company which has created the financial dilemma that has attracted attention around the world. The commercial insurance division is under restructuring plans and announced that it intends to form a General Insurance holding company to be called AIU Holdings, Inc. (American International Underwriters Holdings, Inc.). with its own board of directors and management team. It will take several months to get through all the legal maze involved. Before this is all completed, we may even be seeing another name change to something totally different to accentuate the break with the parent company. This move will protect the commercial insurance operations and ensure the strong financial stability and performance which has been realized by both clients and brokers alike. The new organization will have excellent financial strength and substantial liquidity with $43 billion in equity. Surplus has grown 50% from December 31, 2005 to December 31, 2008. The restructuring will create a stronger and sounder company attracting investor, client, and broker confidence.

The commercial insurance division (AIU Holdings, Inc.) employs folks all over the world and offers over 500 products and services including our own aviation insurance. It serves over forty million commercial and individuals customers. It will be a stand-alone entity the size of a Fortune 500 company. The new company will be headed mostly by the same folks who have been instrumental in the success of AIG’s worldwide property-casualty operations. Even though AIU is wanting to distance itself from the current and troublesome AIG operations, it remains mindful and connected to a great history of decades of worldwide underwriting.

All of our clients are familiar with the strict guidelines and hoops that AIG, as well as other companies such as Global and US Specialty to name just a couple, make our pilots jump through when they want something. Just remember that when a pilot wants to purchase a plane he is unfamiliar with and has no time in, the hours of dual he is required to take is only because the insurance company is doing the right thing to safely guard their reserves for legitimate claims, one of which may be your own. If they didn’t realize it before, the world is in agreement now that being on the conservative side doesn’t hurt anything. In our many years of business (over 34), we have watched as companies have gone by the wayside (not the A rated companies we use). These companies have offered rates which were ridiculously low. We have even lost a client here and there (not very many however) over the years to these companies. We can assure you that 100% of the time, these folks come back in a panic (often before their policies expire with those companies) because something has gone wrong. Remember that when something sounds too good to be true, it’s better to stay clear and not take the easy route.
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January 2009 

Our article this month touches on what we spoke about in the last issue. However, we have discovered that some of you do not totally understand how your policy reads regarding value of your aircraft. Unlike auto policies, your aviation policy is a “stated” value policy. This means that should your aircraft be totaled, you would receive the amount “stated” in your policy, not a replacement value. With the recent decline in aircraft values lately, some of you have called to lower the insured values of your aircraft thinking you would receive replacement cost if your plane were destroyed. This is not the case. When insured hull values are lowered, there is not a substantial savings in premium anyway. Just to save about $100 in premium, one might lose $7000 to $8000 if something happened to his aircraft. Another point to keep in mind, is that if the plane is only damaged and not destroyed, the insurance companies have a formula to enable them to figure out at what point an aircraft should be totaled when it has incurred damage. If it makes more money sense for the insurance company to offer the insured the stated value of his aircraft and then turn around and sell the salvage, they will do so. With repair costs rising as they have, the insurance companies are totaling aircraft more often now than they were in the past. The higher the value of the aircraft, the harder it will be for the insurance company to total it in the case of moderate damages. On the other hand, when the value of the aircraft has been lowered, any minor damages can easily total it. We have had a couple of losses lately, both involving older tailwheel aircraft that are hard to replace, where the cost to repair will mean a loss to the insurance company. We have had to work on both claims to get the insurance companies to repair rather than total the aircraft. We are not always 100% successful at this. Sometimes we can come to a compromise where both our client and the insurance company have to give up some dollars. We would recommend leaving the values of your policies as they are as much as possible. Hopefully the economy will make a turn for the better some time in the foreseeable future, and the values of our aircraft will bounce back up as they have in the past. We have discussed this in the past, but many seem to forget about this when times are tuff. When and if you upgrade your avionics to perhaps a Garmin 430 or 530, be sure to contact us so that we can increase the hull value to reflect the values of the radios. Remember that if your plane is totaled, the radios go with aircraft and belong to the insurance company. When the economy is bad, manufacturers and avionics shops and engine manufacturers find themselves in a financial dilemma like most of us. This is a good time to upgrade or replace your engine if you’ve been thinking about it. An example is Air Power. They are currently offering zero down and factory engine financing.
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November 2008  

How are loss ratios these days? One would think that with more emphasis on safety including better training, better maintenance, etc. that the percentage of pilot error accidents would decrease. The ratio remains at 85% of accidents being attributed to pilot error. Since the number of hours flown is decreasing, this means that the number of accidents per hour is increasing. Pilot error can be corrected. We just have to figure out what causes pilot error. Safety programs focus on making better pilots – which is a good thing. However, pilots are not necessarily bad pilots. Just remember – practice makes perfect! In our litigated society, every one is being held more accountable for everything. This includes pilots. For those of you who fly other non owned aircraft, if your policy does not cover you for flying other aircraft, it is advisable to purchase a non owned aircraft policy. If you do not want to purchase both non owned liability and hull, you should consider at least purchasing liability to cover your defense costs. So now we have determined that the accidents per hour have increased. To compound this situation, the cost to repair has also increased dramatically. The older aircraft were so well built that when well maintained, they have many, many years still ahead of them. As of late however, the values of some of these older aircraft have been diminishing. When we compare the cost of repair for an aircraft to its actual value, it is easy to figure out why more and more aircraft are being categorized “total losses”. This not only represents a loss for the insured since he would much prefer to keep his aircraft and have it repaired, but for the insurance company as well whenever they cannot recoup their expenses by the sale of the salvage. For this reason, you should note to never underinsure your aircraft. We’ve written about this before and will do so again at a later date. As manufacturers come and go, support in the form of parts and service go along the wayside as well. This also contributes to the fact that it is getting more difficult to repair older aircraft. In addition, there are fewer mechanics knowledgeable of older aircraft. Fortunately, our Grumman organization has been able to turn this common scenario around. Another factor impacting rates on the liability side is the higher number of law suits. Liability limits have remained at the same levels for the majority of pilots for quite some time now. These are $1,000,000 per occurrence with passengers limited to $100,000. With increasing medical costs for injuries and repair costs also for property damage (damage to other property caused by your aircraft) these limits can get used up quickly. The insurance company faces additional costs in liability claims because the costs to defend you are not taken out of the limits stated in your policy. Any and all costs to defend you are paid by your company above and beyond what they may have to pay to other parties for actual injuries or property damage. Even claims that have no pay out to others incur defense costs on your behalf. With the support of our outstanding membership, including service support and parts availability, the Grumman aircraft does not face the dilemma that some of the other aircraft do. These are factors which contribute to the premium ratings for the various types of aircraft. Some of the older aircraft have been experiencing higher rates because it is so hard to repair them. On the other hand, our Grummans have actually been receiving favorable rates for several years now. Thank you! Folks.
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September 2008  

As September comes to a close, all Americans have been affected in some way by our precarious economic situation. When the news about AIG was released mid-month, our phones were ringing off the hook from many of our clients insured with that company. When the nation became advised that there would be a bail out, everyone regained their breath. However, by the time this article is published, there is no telling what will have transpired from the time it was written. We would like to clarify a couple of points which should serve to soothe everyone’s stress levels. First of all, AIG’s insurance companies are financially sound. The problems we have been reading about are with the parent company, not the subsidiaries, of which AIG Aviation is a part. The funds of the subsidiary companies are more than adequate to easily pay all valid present and projected claims. Be assured that your policies are not in jeopardy. There is no need for anyone to switch to another company. Doing so would more than likely incur cancellation fees and a higher premium elsewhere. If you and your agent have chosen AIG as your insurer, it is because this company offered the best premium and coverages for your particular circumstance. Secondly, all the companies for which we write business are mandated to contribute to guarantee funds in all the states in which they are admitted. These guarantee funds would become accessible to the insurance commissioners should these companies become insolvent in their state. If it was not common knowledge before, it is now apparent to all Americans that there has been very little regulation at various levels of our financial institutions. We would like to make it clear that our insurance industry is very much regulated. When you pay your premium to our agency, as well as to any other agency, it goes into a special trust fund that cannot be touched until we pay your policy premium to the insurance company. Insurance agents are licensed and require many hours of continuing education in order to renew their licenses. Insurance agents partner with the insurance companies to underwrite risks in such a manner so as not to endanger the funds that will be needed to pay claims for those needing this service and restitution. This is why a new private pilot cannot obtain insurance in a Cessna 421 no matter how much money he has. Neither AIG nor any of the other insurance companies wants to tell you they don’t have any funds left for your claim because they just used up their reserves for the new privates renting Citations. This is why we ask so many questions and request forms and signatures that seem like such a nuisance at the time. The next time you are transitioning to a complex aircraft, and the underwriters are requiring a few more hours of dual than what you’d like, remember that they are protecting their reserves – maybe for you. If we did not follow through with these requirements, we would not be able to state as we did above that all the companies for which we write are financially sound. Lastly, if after you have reviewed all the information as it becomes available, you want to switch companies, please call your agent to do so. Normally, the insurance companies do not want to write a risk mid-term and will not offer quotes until your renewal is approaching. However, because of current circumstances, these requests to change to another carrier could be accommodated.
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July 2008  

A few months ago, we spoke about the “Open Pilot Warranty” clause and how it applied to CFI’s. Some pilots still believe that the CFI does not have to meet the requirements of this clause. If you are required to receive dual time prior to solo, then your CFI becomes PIC. It is therefore important that he meet the requirements of the “Open” Clause or be named. Some aircraft, usually experimental, have “NONE” or “NAMED PILOT ONLY” Stated in the Open Clause. If you are required to have dual time or any other time in which your CFI would become PIC ( i.e. BFR has lapsed), your CFI will need to be named as a named pilot in such a policy. This situation came up for one of our clients on an experimental aircraft policy that did not allow for anyone except named pilots to fly the aircraft. Our insured was transitioning to his insured aircraft and needed some dual hours. He thought that any CFI he chose would be covered by his policy, and that he did not even have to name that CFI. Just remember that in a situation such as this one, the CFI is PIC and will therefore have to be named since the policy reads: Named Pilots Only. CFI’s are like any other pilot. Any time they become PIC, they must either be named or meet the Open clause. One last thought on the CFI’s. If you are having trouble finding a CFI who meets the Open Clause, call your agent with the name of the best CFI you can find and request that he be approved and added to your policy. It is better for your CFI to be short on total hours than on make and model hours. Insurance companies like to see a CFI who is familiar with your make and model. It is extremely hard to add a CFI with zero time in your aircraft. - Have your received a request for a new application lately from your insurance company? If you have, please be sure to return as soon as you can. Insurance is a contract between yourself and the insurance company. AIG needs a new signed application every three years. US Specialty needs one ever two years for example. Applications are not to be confused with Pilot Update Forms which you all receive from your agents. The update forms are used by the agent to obtain renewal quotes for you. Once the coverage has been bound, you will have to then complete an application if it has been two or three years since the last one, or if you have switched to a new company, you will definitely have to fill one out then. If you fail to do so, your policy may be cancelled by the insurance company, or they may decline to renew your policy at renewal. The signed application confirms to the insurance company that the information you gave your agent is correct. Things change over time which is why the insurance companies stress obtaining new information (including your signature attesting to these changes) every few years. - This is hurricane time again. Please check your policies to see if you have any extra provisions for moving your aircraft out of harm’s way. Some of the companies are offering up to $500 to move the aircraft away from danger. For some companies, it has to be at least 75 miles away. For other companies, there is no minimum distance. If your policy does provide this extra coverage, take advantage and keep your plane safe.
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May 2008  

Every now and then, we are asked to add an FBO/Flight School as an additional insured with a waiver of subrogation to a policy.   Most of the companies are willing to do this for the larger and more well known schools.  However, if a school is not on their list, none of these companies seems willing to stray from their list to make an exception.  This only becomes an issue for a pilot if the CFI works for an FBO but is instructing in your aircraft.  The FBO’s have insurance for their own planes, but very few, if any at all, have coverage for their students’ personal aircraft.  Adding a school as additional insured to your policy is a way of shifting responsibility from the FBO’s policy to yours.  The insurance companies  are familiar with the larger training facilities and have reviewed their syllabi.  As a favor, they are willing to add these facilities as additional insureds.  By also including a waiver of subrogation to the additional insured clause means that in the case of an accident, the insurance companies cannot make a claim against the FBO’s or training facilities.  This is a risk they are willing to take with the approved training facilities because the insurance companies have already reviewed these training facilities and feel rather safe with them.  We recently had an insured who wanted to add a small school in his area to his policy.  Since the school was not on any of the insurance companies’ approved list of training facilities, we could not add them to the policy.  As you can imagine, the insurance companies cannot go out and inspect each facility.  Remember that the larger ones they are willing to add, they only do  as a favor.  No where does it state that insurance companies are required to add anyone or any facility as an additional insured to any policy.  Actually, one of our companies charges $150.00 per additional insured (if approved).   If your CFI is free lance, he might want to be added to your policy thinking this will offer him defense if there is a claim.  However, keep in mind, that naming him as a named pilot will not automatically exonerate him if there is a claim.  We have had a couple of claims where the insurance company paid our clients for damage to the aircraft but then went after the CFI’s.  In one case, they had run out of gas (this definitely was the CFI’s fault) and in the second case the CFI had used very poor judgment in landing a Grumman.  All CFI’s should purchase non owned insurance to cover their instruction.  This is similar to Errors and Omissions insurance or Malpractice insurance.  Before signing up with a CFI, please be sure to check your “Open Pilot Clause” to see if your CFI meets these qualifications.  The Open Pilot Clause  refers to “other” pilots who may operate your aircraft as PIC.  The requirements for the CFI’s are usually the same as those for the Open Clause.  Global Aerospace is the only company that does not follow suit.  Their requirement for Grumman CFI’s is that they have 5 hours in the same make and model.  They have no total time requirements.  The only times your CFI would not need to meet the Open Clause is if you are receiving your BFR, and it has not expired, or you are receiving some recurrency training.  If you are a student, getting IFR instruction, or transitioning to a more complex aircraft, your CFI will be PIC.  Please make sure to review this clause.  For the Grumman aircraft, it will read something like Private, 300 total hours and 25 in the same make and model.  AIG is the only company with an open clause for the Grumman and other similar aircraft which reads:  “Private or better with your permission”.  This means there are no particular total hours or make and model hours that other pilots must meet to fly your aircraft as PIC.  Do take note that the Open Pilot Clause is for “occasional” use only.  Any pilots who fly your aircraft all the time need to be named so that the premium can be based on all pilots who use the aircraft on a regular basis.
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March 2008  

We often receive inquiries from our clients about flying with a buddy if their medical has expired. The first thing to do is make sure your buddy meets the requirements and parameters of the Open Pilot Clause Warranty. This is the clause in your policy which refers to the other pilots besides yourself who can fly the aircraft. For Grumman aircraft, these parameters are usually something like a private rating with a minimum of 300 total hours and 10 in the make and model or 300 total hours and 25 in the make and model. If you are insured with AIG, the open clause only requires a private rating and your permission. Please note that make and model does not mean any single engine fixed gear aircraft. It means Grumman (or American or American General) and the model of your aircraft such as AA-1 or AA-5. If you own an AA-5B, someone with AA-1 time but no AA-5 time would not meet the open clause (unless you are insured with AIG which again allows for anyone private or better to fly your aircraft). This is true for all other aircraft as well. Make is Grumman, Cessna, Beech, etc. and model is AA-1, AA-5 for the Grummans, 172, 182, 177 etc. for the Cessnas and for the Beeches 23, 24R, 35, 36A, etc. If you loan your aircraft to someone else, please check all these parameters listed in your policy. If an accident occurs, these hours will the first on the list of what the adjuster will be looking for to verify coverage. With that done, make sure your buddy agrees to be named PIC for the flight. If there is an accident, and your buddy tells the adjuster he was not PIC, there will be no coverage on your policy. If you are flying with a CFI, he will automatically be PIC if you are out of medical or BFR. CFI’s normally check on these things, but make sure they are fully aware of what’s going on. With most policies, the CFI needs to meet the parameters of the Open Clause. Again with AIG, private or better is good. Global Aerospace does have a special provision for the CFI’s which is that they only need to have at least five hours in the make and model (MM). There is no requirement for their total hours. If you are out of medical and wish to renew your policy, it would be advisable to find a pilot who is current to name on your policy as the PIC in your place. Some companies will not issue a policy without a current pilot even though it is assumed you will not fly unless you obtain your medical and BFR first. If you become out of medical or BFR during the policy period, you will need to find someone else to fly with if you don’t want your bird to sit. On the flip side of this, sometimes one client would like to let someone fly with him to build time. This becomes a bit tricky. Our client tells us that he will be PIC at all times, but then his buddy can’t log the time if that’s the case. If the other pilot wants to log the time, we will have to name him as a pilot even though our insured will also be in the aircraft with him. There may or may not be a charge for this depending on the other fellow’s hours. In case of an accident, the adjuster would check out the other pilot’s log book, and if he had been logging time and building up hours, there would be no coverage unless he had been named to the policy.
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January 2008  

Are all policies exactly the same? There are only about four to five companies which are competitive for the Grumman aircraft. There are about half a dozen more which we agents use for the more complex aircraft. All policies are written in two parts – one for the liability which covers damage to other property and injury to others, either people on the ground or passengers. The second part of your policy covers the hull of your aircraft if you choose to purchase this option of the policy. All of the companies which we represent are rated A+ or better. Most of the policies are written very much in the same way. Sometimes the wording is also very much the same. As pilots become more familiar with how the insurance works, they are expecting their agents to procure quotes from several companies. If lower quotes are offered from different companies, you may find yourselves with a new company every now and then. If this happens, please be sure to read your new policy. (This is something you should be doing anyway.) Do not assume that all policies are exactly alike. Even though the differences are not many, there is one area that is very critical. This is the list of exclusions. Please be sure that you refresh your mind regarding the exclusions every time you receive your new policy. Each company has a different list. I would like to point out specifically that for those of you who work with the Civil Air Patrol and have an AIG policy, there is an exclusion for “search and rescue” operations. AIG has been working on an endorsement to add to their policy which will cover these operations. It will be out by the time you read this issue of the STAR. Depending on how many hours of CAP you perform, the rate to add this operation to an AIG policy will range from 10% to 25% of the existing premium. Global Aerospace and US Specialty Insurance Company do not carry any exclusions relating to this type of flying as long as you are not being compensated for your time. Reimbursement for fuel and oil is OK however. Now that we are in the middle of winter, some of you who own a second tailwheel aircraft, like to use skis for your winter flying. Not all of the companies are willing to cover the aircraft once the wheels come off. Global excludes skis and floats. U.S. Specialty is not crazy about them but will not exclude them. AIG used to write skis, but they have seen too many accidents out in the wilderness and have discontinued offering coverage for them. A second area of difference is the “Open Pilot Warranty”. If you are being moved from one company to another, again please re-check the “Open” clause before you loan your aircraft. Each company is slightly different. The most liberal is AIG which states that you may loan your Grumman (or other single engine/tricycle gear) aircraft to a private or better pilot who has your permission. Global requires at least 300 total hours and at least 25 in the same make and model. U.S. Specialty requires at least 300 total hours and at least 10 in the same make and model. These are small differences, but they can make a world of difference if you have a claim. If you are doing anything which you think might pose a concern with the insurance company, please call us to review the situation with you.
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