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FREQUENTLY ASKED AVIATION INSURANCE QUESTIONS – 2013

Blais Aviation Insurance Services has grouped a number of aviation insurance related questions and answers that are typically asked into the following categories. .

Owned Aircraft - (Pages 2-8) Renters/Borrowers - (Pages 9-15) CFI Owned - (Page 16) CFI Non-Owned - (Pages 17-19) Flying Clubs - (Pages 20-21) Homebuilt - (Pages 22-24) Hangars - (Pages 25-26) General - (Pages 27-36)

Do not hesitate to call a Blais Aviation Insurance representative for further details and/or questions. One of our aviation brokers

will be glad to assist you.

www.blaisaviation.com 972 818-4090

These FAQs and answers are general in nature and are not intended to address the specific requirements of an individual's policy. These should be discussed

directly with one of Blais Aviation Insurance Services staff members. In all cases, the terms, conditions of the policy and policy endorsements will

determine the outcome of a specific situation.

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Owned Aircraft Insurance Frequently Asked Questions Have a question about Owned Aircraft insurance? Browse through our list of frequently asked questions below. If you still can't find the answer you're looking for, contact us. One of our aviation broker/agents will be happy to assist you.

1. How can I recognize the differences in aviation insurance policies? 2. What is liability insurance? 3. What limits of liability should I carry? 4. What is a "Combined Single Limit of Liability" or "Smooth" Limit? 5. Are my legal costs included in the liability coverage? 6. How do I ensure my family is protected when they fly with me? 7. What is the difference between a direct writer and an independent agent? 8. What is the highest limit of liability that an aviation carrier will provide? 9. Is there liability coverage if I injure a co-owner of my aircraft? 10. What coverage options are generally available on an aviation insurance policy? 11. How can I reduce my insurance costs? 12. Is there any type of additional training that would lower my premium? 13. What factors do insurance companies use to determine my premium? 14. Is there a premium difference if I register my aircraft in the name of my business? 15. Does your policy allow me to make a profit from an approved pilot who uses my

aircraft? 16. If I start a policy for a pending purchase will there be a penalty for canceling if the

deal falls through? 17. In the event of a total loss to my aircraft during the policy period, am I entitled to a

premium refund for the remainder of the policy period? 18. What is an A.M. Best rating? 19. How does your company define a "non-commercial" flying club? 20. What are some common exclusions that can void my coverage? 21. How do I report a claim? 22. Do I have liability protection after I sell my aircraft? Why would I need it? 23. Are personal belongings of an occupant covered? 24. Who is permitted to fly my aircraft? 25. Does your policy have any exclusion against landing on a private grass strip? 26. Can I get coverage for aircraft damage on my homebuilt if I equip it with an

automobile engine? 27. Does your company offer coverage for rotorcraft, balloons, ultralights, gyroplanes,

or gyrocopters? 28. Will aviation carriers insure fractional ownership arrangements? 29. Are you able to provide coverage for my flight instructor? 30. Do I need to add my CFI to my policy in order to receive dual flight instruction? 31. Are you able to provide liability coverage for a hangar that I own?

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1. Q: How can I recognize the differences in aviation insurance policies? A: Because state law does not regulate aviation insurance extensively, policy language varies considerably. Be sure to ask for a sample policy and review it to understand what is and is not covered. Since every aircraft owner has different coverage needs, be aware that the least expensive policy may not provide the best protection to meet your needs. It is important for the insured to read the policy fine print because while coverage may appear to be similar from one policy to the next, the policy's exclusions may cause you to pay more for uncovered losses.

2. Q: What is liability insurance? A: Liability insurance protects you against claims arising from Bodily Injury or Property Damage you may have caused to others. Your insurance company's commitment is to defend you if you are sued, and if you are at fault, to pay for the damages according to the terms of the policy. This coverage is not first party medical or life insurance (the policyholder/insured pilot would be a first party), but rather, liability coverage for claims made against you by third parties for which the law holds you legally liable.

3. Q: What limits of liability should I carry? A: Because different people have different needs, there is no standard recommended amount of liability coverage you should carry. You need to consider factors such as your personal assets, earnings, the liability limits you carry on your other insurance policies such as auto or homeowners, whom you carry as passengers, how the aircraft is used, and how much insurance you can afford or that is available, among others. You might also want to ask Blais Aviation Insurance Services about the most popular limits purchased by owners of comparable aircraft, although this will probably not be the principal factor on which you rely. Obviously, buying the most coverage you can reasonably afford and that is available is your safest bet. Also remember that as important as the limit of liability is, the ability of your insurance company to resolve claims within those policy limits is just as important. You want to be sure that the company defending you has a proven track record of success in the complex world of aviation litigation.

4. Q: What is a "Combined Single Limit of Liability" or "smooth" limit? A: Most aircraft insurance policies contain liability coverage sub-limits. An example would be, $100,000 Bodily Injury each person per accident $1,000,000, Property Damage per accident, with an overall accident limit of $1,000,000. With sub-limits, the most that can be collected under each coverage per accident is the stated maximum limit. A combined single limit (CSL), often called a "smooth" limit, has the total stated limit available with no specific sub-limits for Bodily Injury or Property Damage claims.

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5. Q: Are my legal costs included in the liability coverage?

A: Under most policies, legal and defense costs are not limited. The carrier will continue to pay your legal defense costs even if your limits of liability have been exhausted by the payment of judgments or claims. In addition, some policies also provide up to $5,000 for legal defense costs if a pilot enforcement or civil penalty action is brought against you as a result of a covered accident. Since you may have an FAA action brought against you if you have an accident, this coverage is important. Note: While most policies provide for a legal defense for claims by passengers, not all policies provide protection for FAA enforcement actions.

6. Q: How do I ensure my family is protected when they fly with me? A: Aviation policies normally pay for Bodily Injury to your spouse, parent or child caused by an accident for which you are legally liable. Also, most aircraft insurance policies offer medical expense coverage that can provide you and your family with additional medical coverage. Please note, however, that aviation insurance is "third party" liability and only responds if you are legally liable to someone else for the accident. Life insurance is one important way to protect your family when you fly as well. It is important that you check your family's current life insurance policy to see if it covers general aviation activities.

7. Q: What is the difference between a direct writer and an independent broker/agent? A: There are only one or two aviation direct writers (at this time 2013). In the case of a direct writer, you deal directly with the insurance company. Employees of the direct writer do not represent you. An aviation independent broker/agent represents you and deals with many companies who offer different policies. The broker/agent acts as an intermediary between you and the insurance company.

8. Q: What is the highest limit of liability an aviation carrier will provide? A: The maximum per accident limit of liability being offered by aviation carriers varies. Most carriers provide a $1,000,000 limit for Bodily Injury and Property Damage in any one accident subject to underwriting criteria. Various combinations of Bodily Injury and Property Damage Liability limits, with a maximum per occurrence limit, are available.

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9. Q: Is there liability coverage if I injure a co-owner of my aircraft? A: This coverage varies significantly among insurance companies. A number of policies provide liability coverage between insured persons like partners or flying club members when they fly together. This is a very important feature to look for since it is likely a partner or another flying club member will be with you in the aircraft on numerous occasions.

10. Q: What coverage options are generally available on an aviation insurance policy? A: Coverage options vary widely from company to company. The most common coverages available are as follows: o Liability for Bodily Injury and Property Damage to third parties that can be

purchased as including or excluding occupants of the aircraft. o Aircraft Damage (hull) which can be purchased as including or excluding in-

flight. o Medical Expense, which includes payments for medical bills and funeral

expenses of an occupant of the aircraft, including the pilot.

11. Q: How can I reduce my insurance premium? A: There are many options, depending on your needs. For instance, remove occupant liability coverage if you don't carry passengers; change "including in-flight" aircraft damage coverage to "excluding in-flight" aircraft damage coverage during extended periods of time that you're not using your aircraft; select a higher deductible; or hangar your aircraft.

12. Q: Is there any type of additional training that would lower my premiums? A: Various carriers have discounts for training. Blais Aviation Insurance Services has a series of questions relating to training that it provides aviation underwriters as it seeks premium credits.

13. Q: What factors do insurance companies use to determine my premium? A: Each insurance company uses different criteria to determine your premium. Some of the most common factors include logged flight experience, whether the pilot(s) is instrument rated, aircraft make and model, limits of coverage, whether the aircraft is hangared, claims-free experience, deductible, and how the aircraft is used. The insurance company then applies prior experience in these various "classes" of business to predict future results, and the premium is determined.

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14. Q: Is there a premium difference if I register my aircraft in the name of my business? A: If the aircraft is to be used for pleasure and business as defined by the policy, the premium is the same for you or your business as long as your business is not an aviation business.

15. Q: Does your policy allow me to make a profit from a named approved pilot who uses my aircraft? A: The policy is not meant to be an aircraft rental policy and most carries monitor the number of pilot changes made to avoid such a situation. The policy also allows the sharing of expenses of the ownership, maintenance and use of your insured aircraft among the approved named pilots.

16. Q: If I start a policy for a pending purchase will there be a penalty for canceling if the deal falls through? A: You may start a policy for any effective date that is in the future. If the purchase of the aircraft is not finalized simply inform Blais Aviation Insurance Services the next business day with a fax or e-mail request, and we will cancel the policy with no penalty.

17. Q: In the event of a total loss to my aircraft during the policy period, am I entitled to a premium refund for the remainder of the policy period? A: Not always, it varies from policy to policy.

18. Q: What is an A.M. Best rating? A: The A.M. Best rating reflects an insurance company's financial strength and its ability to meet contractual obligations. The rating categories range from A++ and A+ (Superior) to F (in liquidation).

19. Q: How does your company define a "non-commercial" flying club? A: A non-commercial flying club is defined as being one or more aircraft owned by more than five individuals with equal ownership, operating under by-laws, and being used for personal and not-for-profit use.

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20. Q: What are some common exclusions that can void my coverage? A: Exclusions vary from policy to policy. Therefore, it is very important that you read your policy, and familiarize yourself with its specific exclusions. If you have any questions about your aircraft insurance policy, please call for clarification.

21. Q: How do I report a claim? A: Each carrier manages claims differently. Some have in house claims experts - other outsource their claims. After a claim is reported a field adjuster should contact you within 24 to 48 hours. You can assist in the claim process by having the following documents ready for the claims adjuster: o A copy of the aircraft registration. o A copy of the aircraft and engine log book pages showing the date of the last

annual inspection. o If your loss was in-flight, the pilot will need to provide copies of his/her license,

medical certificate and the page from their log book showing the date of the last BFR.

22. Q: Do I have liability protection after I sell my aircraft? Why would I need it? A: Some policies includes "extended sales coverage," which provides Bodily Injury and Property Damage Liability for covered claims after you have sold the aircraft for up to one year after the date of sale, or the period that the aircraft was insured, which is less. Note: Very few, policies provide this protection; therefore it is important to document your sale with a buy/sell agreement.

23. Q: Are personal belongings of an occupant covered? A: A number of policies provide liability coverage for personal effects of each occupant (excluding property belonging to an insured person).

24. Q: Who is permitted to fly my aircraft? A: Under most policies any pilot that you have named on your policy, mechanics employed by an FAA Approved Repair Station in connection with inspection or repairs of the insured aircraft, any CFI while accompanied by a named pilot (with qualifying time), or any pilot that meets the qualifications of your open pilot clause (if your policy has one).

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25. Q: Does your policy have any exclusion against landing on a private grass strip? A: Each policy is different, a number of policies do not have any exclusion against landing on a private grass strip or any other surface, regardless whether or not an emergency has occurred.

26. Q: Can I get coverage for aircraft damage on my homebuilt if I equip it with an automobile engine? A: Yes, a number of carriers provide coverage for several of the more popular firewall forward (FWF) converted automobile engine packages.

27. Q: Q. Does your company offer coverage for rotorcraft, balloons, ultralights, gyroplanes or gyrocopters? A: Yes

28. Q: Will aviation carriers insure fractional ownership arrangements? A: Yes – in some cases. In addition Blais Aviation Insurance Services provides coverage for partnerships, LLC's, owner operated flying clubs and other shared aircraft ownership arrangements.

29. Q: Are you able to provide coverage for my flight instructor? A: Under some circumstances we can provide liability coverage for a CFI who is providing dual flight instruction to named pilots in the insured aircraft.

30. Q: Do I need to add my CFI to my policy in order to receive dual flight instruction? A: Yes. In some policies it is automatic, but we recommend that you always check and secure an endorsement providing coverage.

31. Q: Are you able to provide liability coverage for a hangar that I own? A: We are able to provide liability coverage for an owned hangar.

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Renters & Borrowers Insurance Frequently Asked Questions

Have a question about Renters & Borrowers aircraft insurance? Browse through our list of frequently asked questions below. If you still can't find the answer you're looking for, contact us. One of our aviation broker/agents will be glad to assist you.

1. What is non-owned liability coverage? 2. What is subrogation? 3. What about the rental agreement I signed? I thought I only had to pay the

deductible? 4. Will a non-owned policy provide coverage for a borrowed aircraft that doesn't have

insurance? 5. What type of aircraft am I permitted to use if I purchase a non-owned liability policy? 6. Does your company offer any type of insurance for rotorcraft or seaplane rentals? 7. Does your company offer non-owned insurance for multi-engine aircraft rentals? 8. What limits of Bodily Injury and Property Damage Liability should I carry? 9. What limits of Aircraft Damage Liability should I carry? 10. Do my immediate family or I have protection if we're injured? 11. Is there a deductible on the Aircraft Damage Liability coverage? 12. What effect does pilot experience have on non-owned insurance premiums? 13. Who should purchase a non-owned policy? 14. When should I purchase a non-owned policy? 15. I want to borrow a friend's aircraft. My friend said it would raise his insurance

premium too much to add me as an approved pilot. Am I covered if I purchase a non-owned policy to fly his aircraft even though I'm not an approved pilot on his insurance policy?

16. Will a non-owned policy protect me if I use a non-owned aircraft for other than my own pleasure and business use?

17. If I rent a non-owned aircraft for an incidental business trip, how can I protect my employer?

18. What payment plans are available? 19. How do I report a claim? 20. What is an A.M. Best rating? 21. How can I recognize the differences in non-owned insurance policies? 22. If I have a non-owned policy and I later decide to purchase my own aircraft, can I

cancel my non-owned policy? 23. My FBO told me that I'm covered under his insurance policy when I rent his aircraft.

Why do I still need renter's insurance? 24. Does your non-owned aircraft policy include "loss of use" coverage? 25. Does a non-owned policy provide coverage for losses in excess of the limits on our

flying club's policy? 26. Does your policy have any exclusion against landing on a private grass strip? 27. Why are residents of Kentucky unable to purchase non-owned insurance online? 28. I travel overseas a lot…does the non-owned policy give me coverage if I rent an

aircraft outside of the United States?

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1. Q: What is non-owned liability coverage? A: It is a liability insurance policy that protects you as a non-owned pilot against claims arising from Bodily Injury or damage you may have caused to others or to their property when using a non-owned aircraft. Your insurance company's commitment is to defend you if you are sued, and if you are at fault, to pay for the damages according to the terms of the policy. This coverage is not medical or life insurance, but rather, liability coverage for claims made against you by third parties for which the law holds you legally liable. This includes damage to the non-owned aircraft you are operating if you purchase optional Aircraft Damage Liability coverage.

2. Q: What is subrogation? A: It is the right of an insurance company to recover from a legally responsible third party, such as a non-owned pilot, for the payment of a covered claim to its policyholder, such as a flight school. This right to "subrogate" is found in almost every insurance policy and upon payment of a claim entitles the insurance company to all of the policyholder's legal rights of action against responsible third parties for the loss paid. It is common practice for insurers of flight schools to "subrogate" against renter pilots to recover their payment for damage over the deductible.

3. Q: What about the rental agreement I signed? I thought I only had to pay the deductible? A: Yes, you probably will be responsible for the deductible. If you purchased Aircraft Damage Liability coverage as part of your non owned policy it may pay a portion of the owner's deductible regardless of fault. However, it is not the only thing you may be responsible for. Some owner/FBO's hold their renters responsible for loss of income during the time the aircraft is down for repairs and depreciation of the aircraft's value due to its damage history. In addition, if the owner/FBO's insurance company pays for the damage above your deductible they can subrogate against you for the cost of the damages they paid.

4. Q: Will a non-owned policy provide coverage for a borrowed aircraft that doesn't have insurance? A: Most non-owned aircraft policy will provide you with liability coverage while using someone else's aircraft. If, however, there were an accident or loss not caused by your negligence (such as mechanical failure, hail, struck by another aircraft, etc.), the policies would defend you against any claims by the owner on the basis that you were not liable. Your non-owned coverage is

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not a substitute for the aircraft owner buying their own coverage to protect their interests.

5. Q: What type of aircraft am I permitted to use if I purchase a non-owned liability policy? A: The standard policy covers non-owned aircraft that have a standard airworthiness certificate, or are certified in the Special Light Sport Category, single engine with no more than 450 horsepower, United States registration, fixed wings, no more than 7 seats, and not having a turbine engine. Optional coverage is available at an additional charge to cover multi-engine aircraft. Be aware, the maximum engine horsepower and aircraft's seating capacity vary significantly among insurance companies.

6. Q: Does your company offer any type of insurance for rotorcraft or seaplane rentals? A: Yes

7. Q: Does your company offer non-owned insurance for multi-engine aircraft rentals? A: Yes

8. Q: What limits of Bodily Injury and Property Damage Liability should I carry? A: Because different people have different needs, there is no standard recommended amount of liability coverage you should carry. You need to consider factors such as your personal assets, earnings, the liability limits you carry on your other insurance policies such as auto or homeowners, whom you carry as passengers, how the aircraft is used, and how much insurance you can afford or that is available, among others. Obviously, buying the most coverage you can reasonably afford and that is available is your safest bet. Also remember that as important as the limit of liability is the ability of your insurance company to resolve claims within those policy limits. You want to be sure that the company defending you has a proven track record of success in the complex world of aviation litigation.

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9. Q: What limits of Aircraft Damage Liability should I carry? A: A guideline in the selection of your Aircraft Damage Liability policy limit would be the value of the non-owned aircraft you usually fly. Buying coverage for the highest value non-owned aircraft you fly is your safest bet.

10. Q: Do my immediate family or I have protection if we're injured? A: Yes. The policies will pay for Bodily Injury to your spouse, parent or child caused by an accident resulting from your use of a non-owned aircraft, up to the policy limit for which you are legally liable.

11. Q: Is there a deductible on the Aircraft Damage Liability coverage? A: This may vary among companies.

12. Q: What effect does pilot experience have on non-owned insurance premiums? A: Experience is one of many factors.

13. Q: Who should purchase a non-owned policy? A: Any pilot who rents or borrows someone else's aircraft should purchase a non-owned policy. Even if you are receiving dual flight instruction and not acting as pilot in command in a non-owned aircraft, you may be held responsible for any damages or injuries arising from your negligence. Do not make the common mistake of assuming that you are covered under the owner's or FBO's insurance policy, or that not being pilot in command relieves you of liability if you contribute to the cause of an accident, or that you won't be sued in any event.

14. Q: When should I purchase a non-owned policy? A: We recommend you purchase a non-owned policy when you first start your flying lessons. Again, keep in mind that the aircraft owner's insurance policy is designed to protect them in the event of a claim and you may be held legally liable for any losses that may occur. While their policy may protect them, the insurance company would have the right to subrogate against you to recover any claims paid.

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15. Q: I want to borrow a friend's aircraft. My friend said it would raise his insurance premium too much to add me as an approved pilot. Am I covered if I purchase a non-owned policy to fly his aircraft even though I'm not an approved pilot on his insurance policy? A: Yes. You have liability coverage from your non-owned aircraft insurance policy. However, your friend will have no coverage under his insurance, because you were not an approved pilot on that policy. Although your friend wasn't flying his aircraft at the time of the accident, he may still be sued and will have to pay all his legal costs and any judgment out of his own pocket. Therefore, while you are protected under your policy, for your friend's sake you should still either be a named pilot on his policy or meet the qualifications of his open pilot clause, if the policy has one.

16. Q: Will a non-owned policy protect me if I use a non-owned aircraft for other than my own pleasure and business use? A: Generally, no. Renter's policies are meant to be for non-commercial activities; however, if you are a Certificated Flight Instructor you can purchase an endorsement that provides coverage while you give others dual flight instruction, flight reviews and check rides. The policy does not provide coverage if you use a rented aircraft for any activity for which you get money or other benefits, the exception being for CFIs as noted above. There is no coverage for carrying passengers or cargo for hire, rental, aerial photography, or any special uses like parachute jumping, banner towing, maintenance test flights and traffic patrol.

17. Q: If I rent a non-owned aircraft for an incidental business trip, how can I protect my employer? A: For an additional premium, most insurance companies can add your employer to your policy as an additional insured. Your employer cannot be named if it is an aviation business. In that instance your employer should have its own aviation-related commercial business coverages.

18. Q: What payment plans are available? A: Most carriers will require annual payment at the time the policy is bound.

19. Q: How do I report a claim? A: Each carrier manages claims differently. Some have in house claims experts - other outsource their claims. After a claim is reported a field

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adjuster should contact you within 24 to 48 hours. You can assist in the claim process by having the following documents ready for the claims adjuster:

o A copy of the aircraft registration. o A copy of the aircraft and engine log book pages showing the date of the last

annual inspection. o If your loss was in-flight, the pilot will need to give us copies of his/her

license, medical certificate and the page from their log book showing the date of the last BFR.

20. Q: What is an A.M. Best rating? A: The A.M. Best rating reflects an insurance company's financial strength and its ability to meet its obligations to policyholders. The rating categories range from A++ and A+ (Superior) to F (in liquidation).

21. Q: How can I recognize the differences in non-owned insurance policies? A: Ask for a sample policy and review it to understand what is and is not covered. When in doubt, ask your insurance provider to clarify. Since every renter pilot has different coverage needs, be aware that the least expensive policy may not provide the best protection to meet your particular needs. Also be aware that policies with the same "limits" may not provide the same coverage due to differences in policy wording.

22. Q: If I have a non-owned policy and I later decide to purchase my own aircraft, can I cancel my non-owned policy? A: Yes.

23. Q: My FBO told me that I'm covered under his insurance policy when I rent his aircraft. Why do I still need renter's insurance? A: How do you really know if you are covered? It is not safe to just ask the FBO about its coverage. Experience has shown that an FBO may not fully understand or realize that its insurance coverage does not generally extend to renter pilots. The only way to determine if coverage is provided by the FBO's policy is to read and understand that policy. You also have to either rely upon the FBO or contact its insurance company directly every time you fly to verify coverage is still in force and has not been canceled for some reason, such as failure to pay the premium. Even if you live in one of the few states that require the FBO to carry renter's liability coverage, there is a

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chance that the FBO may not be fully aware of the law, or the coverage may be inadequate for your needs. It is not prudent to rely on someone else's insurance to protect your own assets. A non-owned aircraft liability policy is an easy, inexpensive way to give you peace of mind when dealing with the unknown hazards confronting the non-owned pilot.

24. Q: Does your non-owned aircraft policy include "loss of use" coverage? A: Most carriers provide this coverage, up to the limit of liability purchased.

25. Q: Does a non-owned policy provide coverage for losses in excess of the limits on our flying club's policy? A: Yes. Non-owned aircraft insurance policy will provide coverage once any other available coverage is exhausted. This insurance is excess insurance. If there is other insurance available to you, it will apply first.

26. Q: Does your policy have any exclusion against landing on a private grass strip? A: In most cases, NO. However, the policy does exclude coverage when the non-owned aircraft is operated into, on or from a landing area that is not designed, maintained and used as an airport. This exclusion will not apply to a forced landing due to emergency flight conditions.

27. Q: Why are residents of Kentucky unable to purchase non-owned insurance online? A: The state of Kentucky requires an additional tax for property and casualty insurance policies. These taxes are based on the county and municipality in which you reside and are not the same for all Kentucky residents so they must be individually calculated and added to your policy premium.

28. Q: I travel overseas a lot…does the non-owned policy give me coverage if I rent an aircraft outside of the United States? A: Most policies cover you anywhere within the policy territory. In some policies this means the Western Hemisphere between 13º & 67º North Latitude & between 52º West Longitude & the International Date Line. It does not include Bermuda, Central America or Cuba. At all times reference the policy for a clear understanding of the territory boundaries.

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CFI Owned Aircraft Insurance Frequently Asked Questions

1. How is this coverage different from policies designed specifically for flight schools and FBOs?

2. What does it mean when you say my flight instruction is incidental to my aircraft ownership?

3. Can I give dual instruction to pilots who wish to increase their proficiency or add a rating?

4. Is there coverage while my student is flying solo under my supervision? 1. Q: How is this coverage different from policies designed specifically for

flight schools and FBOs? A: Policies designed for FBO's are commercial policies and assume that the aircraft will be rented (and the instruction given) to the many different people who walk in the FBO's door. As a result, the insurer provides a very broad "pilot warranty" and assumes that the aircraft will be flown many hours each month. The premium charged for this coverage must reflect the extensive activity and broad use of the aircraft. CFI coverage, on the other hand, is a more controlled exposure and the aircraft owner's instruction will be to a small number of clearly identifiable individuals. By specifically naming the people eligible to give and receive instruction the carrier has a better understanding of the exposure to loss and the premiums can be considerably less than what is charged to an FBO. Most of the products are not designed for anyone who makes their living from flight instruction but is instead designed for the person for whom flight instruction is an avocation and is an incidental aspect of their aircraft ownership.

2. Q: What does it mean when you say my flight instruction is incidental to

my aircraft ownership? A: By "incidental" carriers mean that you own the aircraft for reasons other than for flight instruction. In other words, you would own the aircraft whether or not you chose to provide instruction in it. In addition, your giving flight instruction is not necessary to justify the cost of aircraft ownership.

3. Q: Can I give dual instruction to pilots who wish to increase their proficiency or add a rating? A: Most definitely. This type of training is particularly suited to the coverage carriers provide.

4. Q: Is there coverage while my student is flying solo under my

supervision?

A: Yes, solo operations are permitted under this coverage unless specifically excluded on that student's pilot warranty.

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CFI Non-Owned Aircraft Insurance Frequently Asked Questions

Have a question about CFI Non Owned Aircraft Insurance? Browse through our list of frequently asked questions below. If you still can't find the answer you're looking for, contact us. One of our aviation broker/agents will be glad to assist you.

1. What is CFI Non-Owned (Renter's/Borrower's) Insurance? 2. I would like to give instruction in my own plane. Does the CFI Renter's policy

cover me when I provide instruction in my own aircraft? 3. I am a CFI and work for a local FBO. What liability coverage should I get to

protect myself? 4. I have been contracted to provide instruction in another person's airplane.

Will the owner's insurance policy offer me liability protection if he names me as an approved pilot on that airplane?

5. Does the CFI Non-Owned policy cover me for claims asserting that I did not instruct someone properly?

6. I want to borrow a friend's airplane and give dual flight instruction. What coverage do you recommend I get?

7. What is the Safety Rewards Program? 8. What is an A.M. Best rating? 9. How do I report a claim? 10. How do I purchase CFI Non-Owned Insurance?

1. Q: What is CFI Non-Owned (Renter's/Borrower's) Insurance? A: CFI Non-Owned insurance is designed to protect both the part time and full time Certificated Flight Instructor when instructing in an aircraft not belonging to the CFI. The policy provides liability coverage for Bodily Injury and Property Damage you may cause to others or their property. Also available is Aircraft Damage Liability (ADL) for damage to the non-owned aircraft. Also included is your use of a non-owned aircraft for your personal (non-CFI/aviation) business and pleasure flying.

2. Q: I would like to give instruction in my own plane. Does the CFI Renter's policy cover me when I provide instruction in my own aircraft? A: No. The CFI Non-Owned Aircraft Insurance Policy only provides coverage when instructing in a "non-owned aircraft," as defined in the policy. However, a number of carriers will provide coverage if you instruct on a part-time basis in your own aircraft and notify them.

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3. Q: I am a CFI and work for a local FBO. What liability coverage should I get to protect myself? A: Unless you are absolutely sure you have coverage under the FBO's policy, and that the FBO's policy is in force, you should protect yourself by purchasing a non-owned aircraft policy with a CFI Endorsement. Since different people have different needs, there is no standard recommended amount of liability coverage you should carry. You need to consider factors such as your personal assets, earnings, the liability limits you carry on your other insurance policies such as auto or homeowners, whom you carry as passengers, and how much insurance you can afford or that is available, among others. Obviously, buying the most coverage you can afford and that is available is your safest bet.

4. Q: I have been contracted to provide instruction in another person's airplane. Will the owner's insurance policy offer me liability protection if he names me as an approved pilot on that airplane? A: No. Your being named as an approved pilot on their policy keeps their coverage in force when you operate their aircraft but does not automatically extend coverage to you. To do that you can purchase a CFI Non-Owned policy.

5. Q: Does the CFI Non-Owned policy cover me for claims asserting that I did not instruct someone properly? A: No. The CFI non owned policy is not intended to provide you with professional liability coverage. Coverage only applies when you are in the aircraft providing instruction.

6. Q: I want to borrow a friend's airplane and give dual flight instruction. What coverage do you recommend I get? A: You would need a CFI Non-Owned Aircraft Insurance Policy. In addition to Bodily Injury and Property Damage Liability coverage, you should purchase Aircraft Damage Liability in an amount that will cover the value of your friend's aircraft. Your friend should understand, however, that your use of their aircraft to give flight instruction will likely void their coverage unless that instruction is agreed to by their insurer.

7. Q: What is the Safety Rewards Program? A: FAA Safety Team (FAASTeam) WINGS Knowledge course

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8. Q: What is an A.M. Best rating?

A: The A.M. Best rating reflects an insurance company's financial strength and its ability to meet its obligations to policyholders. The rating categories range from A++ and A+ (Superior) to F (in liquidation).

9. Q: How do I report a claim? A: Each carrier manages claims differently. Some have in house claims experts - other outsource their claims. After a claim is reported a field adjuster should contact you within 24 to 48 hours. You can assist in the claim process by having the following documents ready for the claims adjuster:

o A copy of the aircraft registration. o A copy of the aircraft and engine log book pages showing the date of the last

annual inspection. o If your loss was in-flight, the pilot will need to give us copies of his/her

license, medical certificate and the page from their log book showing the date of the last BFR.

10. Q: How do I purchase CFI Non-Owned Insurance? A: Call Blais Insurance Services

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Flying Club Insurance Frequently Asked Questions

Have a question about Flying Club Insurance? Browse through our list of frequently asked questions below. If you still can't find the answer you're looking for, contact us. One of our aviation broker/agents will be glad to assist you.

1. Does Blais Aviation Insurance Services insure flying clubs? 2. How does a company define a "non-commercial" flying club? 3. Does the club need to report changes in membership? 4. Are multi-engine aircraft eligible for flying clubs? 5. Are Experimental aircraft eligible for coverage as a flying club? 6. What is the highest limit of liability coverage Blais Aviation Insurance

Services provides for a flying club? 7. Will the number of flying club members change the premium? 8. Will the policy cover a flying club member who sued another flying club

member for injuries resulting from a covered incident in a club aircraft?

1. Q: Does Blais Aviation Insurance Services insure flying clubs? A: Yes, Blais Aviation Insurance Services offers coverage for most flying clubs that meet the carrier’s non-commercial flying club guidelines.

2. Q: How does a company define a "non-commercial" flying club? A: A non-commercial flying club is defined as being one or more aircraft owned equally by more than five individuals, operating under by-laws, and being used for personal and not-for-profit use (see policy for definition of "commercial use").

3. Q: Does the club need to report changes in membership? A: Blais Aviation Insurance Services recommends regardless how the policy works that flying clubs report all deletions and additions during the policy to assure coverage.

4. Q: Are multi-engine aircraft eligible for flying clubs? A: Yes. The market though is limited. Most carriers prefer that clubs operate simple, fixed gear aircraft although coverage for some complex and high performance single engine land aircraft is available.

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5. Q: Are Experimental aircraft eligible for coverage as a flying club?

A: No. Most carriers require each aircraft operated in a flying club to have a standard airworthiness certificate.

6. Q: What is the highest limit of liability coverage Blais Aviation Insurance Services provides for a flying club? A: The standard liability limit Blais Aviation Insurance Services provides for flying clubs is $100,000 Per Person Bodily Injury, $1,000,000 Property Damage and $1,000,000 per occurrence. If a flying club member would like higher limits of liability coverage, the member may purchase a non-owned aircraft policy. The non-owned aircraft policy would be excess coverage over and above the coverage provided by the flying club policy limits.

7. Q: Will the number of flying club members change the premium? A: Yes, the carriers looks at the number of active (meaning the member has flown a club aircraft in the past six months) flying club members which are broken into groups to determine the premium.

8. Q: Will the policy cover a flying club member who sued another flying club member for injuries resulting from a covered incident in a club aircraft? A: Yes, some policies policy allows for cross liability protection between flying club members subject to the terms and limitations of the policy.

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Homebuilt Aircraft Insurance Frequently Asked Questions

Have a question about Homebuilt Aircraft Insurance? Browse through our list of frequently asked questions below. If you still can't find the answer you're looking for, contact us. One of our aviation broker/agents will be glad to assist you.

1. I build aircraft for a living. Does the Aviation Construction/Reconstruction policy cover me?

2. I intend to restore a damaged airplane and plan to start work within the next 90 days. Does this policy cover me?

3. I have special tools in order to complete this project. Would they be covered under your policy?

4. I have just completed the airplane and plan to begin taxi testing… does your policy cover this?

5. I am buying a kit. Can I increase coverage amounts as I add new components such as an engine, or avionics to the airplane?

6. Does this policy cover my labor costs and if so, how much? 7. Can I just purchase hull insurance, or must I take liability coverage as well? 8. Does this policy cover my kit while it is being transported to my home? 9. Can I get coverage for aircraft damage on my homebuilt if I equip it with an

automobile engine? 10. Do I have liability protection after I sell my aircraft? Why would I need it? 11. Who is permitted to fly my aircraft? 12. Does your policy have any exclusion against landing on a private grass

strip? 13. Do I need to add my CFI to my policy in order to receive dual flight

instruction?

1. Q: I build aircraft for a living. Does the Construction/Reconstruction policy cover me? A: No. The Aviation Construction/Reconstruction Endorsement does not cover an insured person's construction or reconstruction of the insured aircraft as a business or for sale to others.

2. Q: I intend to restore a damaged airplane and plan to start work within the next 90 days. Does this policy cover me? A: In most cases coverage will apply once the aircraft has been delivered to you. There are some exceptions and you should call Blais Aviation Insurance Services to ensure your situation is covered.

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3. Q: I have special tools in order to complete this project. Would they be

covered under your policy? A: Yes, as long as you have a receipt or other proof of purchase for them.

4. Q: I have just completed the airplane and plan to begin taxi testing… does your policy cover this? A: No. The Aviation Construction/Reconstruction Endorsement excludes coverage when your insured aircraft is in motion. When you are ready to begin taxi tests you should call us to discuss policy and coverage options.

5. Q: I am buying a kit. Can I increase coverage amounts as I add new components such as an engine, or avionics to the airplane? A: Yes. You can and should so that you will have the correct amount of coverage to pay for a loss.

6. Q: Does this policy cover my labor costs and if so, how much? A: Yes. The Aviation Construction/Reconstruction Endorsement includes up to $TBD per hour for your documented labor.

7. Q: Can I just purchase hull insurance, or must I take liability coverage as well? A: In most states, with the Aviation Construction/Reconstruction Endorsement you have the option of purchasing only hull coverage. We encourage you, however, to purchase at least minimal liability coverage should someone be injured or have their property damaged as a result of your project since this provides you with legal defense coverage. If your homebuilt is located in a state that requires minimum liability limits check with us to determine requirements in your state.

8. Q: Does this policy cover my kit while it is being transported to my home? A: If you have physical possession of the kit and are transporting it yourself, yes, the kit is covered during transportation. Also if you do the majority of construction in one location (your home) and are transporting the aircraft and/or components (assembled wings, fuselage as an example) to the airport for final assembly that transportation is covered. If you have not taken physical possession of the kit you do not have coverage for loss that occurs

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prior to the delivery of your insured aircraft to you. Protection for that kind of loss should be provided by the common carrier who is delivering your kit.

9. Q: Can I get coverage for aircraft damage on my homebuilt if I equip it with an automobile engine? A: Yes. A number of carriers offer coverage for several of the popular FWF (Fire Wall Forward) converted automobile engine packages.

10. Q: Do I have liability protection after I sell my aircraft? Why would I need it? A: Some policies policy Include "extended sales coverage," which provides Bodily Injury and Property Damage Liability for covered claims after you have sold the aircraft. Note: Not all policies provide this extension of coverage and we recommend you secure a buy/sell agreement.

11. Q: Who is permitted to fly my aircraft? A: In most cases any pilot that you have named on your policy, mechanics employed by an FAA Approved Repair Station in connection with inspection or repairs of the insured aircraft and any CFI while accompanied by a named pilot. You need to review the open pilot warranty and policy wording.

12. Q: Does your policy have any exclusion against landing on a private grass strip? A: You need to review the policy. Most policies do not have any exclusion against landing on a private grass strip or any other surface, regardless whether or not an emergency has occurred.

13. Q: Do I need to add my CFI to my policy in order to receive dual flight instruction? A: Most policies provide approved pilot status to any CFI, current in aircraft make and model, while giving dual flight instruction to a pilot specifically named on the policy.

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Hangar Insurance Frequently Asked Questions

1. Will the National Hangar Insurance Program (NHIP) name my lien holder on my property policy?

2. Does my policy cover liability? 3. I am building my hangar; can I get coverage on the hangar during the

building phase? 4. Are there any areas of the country where the coverage is not available? 5. Is there a minimum premium? 6. Is payment required prior to binding or starting the policy? 7. Are the contents (my personal items) of the hangar insured? 8. Is the coverage underwritten by Blais Aviation Insurance Services?

1. Q: Will the National Hangar Insurance Program (NHIP) name my lien

holder on my property policy? A: Yes, we will need the name and address of the lien holder on the property. We will be happy then to name them to the policy.

2. Q: Does my policy cover liability? A: The National Hangar Insurance Program is able to include liability on the policy in many cases. Note: Liability coverage is not available in either case if the hangar is used for any commercial purpose including rental to or shared use by other parties.

3. Q: I am building my hangar; can I get coverage on the hangar during the building phase? A: Yes, the NHIP hangar coverage can be extended to cover the building while under construction.

4. Q: Are there any areas of the country where the coverage is not available? A: Coverage is not available in Florida along the Eastern seaboard or Gulf coast for wind. Coverage Excluding wind generally is available in these areas.

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5. Q: Is there a minimum premium? A: The minimum annual premium for physical damage coverage on a hangar is $600.00. If you also wish to add Liability Coverage, the minimum annual premium is $985.00 for the package.

6. Q: Is payment required prior to binding or starting the policy? A: Yes, payment must be received prior to starting coverage.

7. Q: Are the contents (my personal items) of the hangar insured? A: If the contents of the hangar are your personal items (tools, furniture, misc items) and they are not covered under another policy, such as your homeowners policy, they would be considered insured contents of the hangar. There are some items that are never covered as contents of a hangar, commonly excluded from the contents coverage are aircraft, boats, auto's, & R/V's. Please refer to the policy and endorsements to determine what is or is not covered as contents of the hangar.

8. Q: Is the coverage underwritten by Blais Aviation Insurance Services? A: No, the insurance coverage is placed by Blais Aviation Insurance Services through the National Hangar Insurance Program and underwritten by the Travelers Insurance Companies, Inc.

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General Frequently Asked Questions

1. My aircraft is currently at the FBO undergoing an overhaul. Do I need to have my own insurance policy, or will the FBO’s policy cover the aircraft?

2. What limit of liability should I carry? 3. I am operating under Part 91. Am I covered to charge for the use of my

aircraft? 4. What is TRIA coverage? 5. I am a student pilot. What type of aircraft do you recommend purchasing? 6. When do you recommend ground-not-in-motion (storage) coverage? 7. Do you offer any aviation association member discounts? 8. When are insurance premiums due? 9. Can I pay my premium in installments? 10. Are there any taxes or surcharges that will be added to my premium? 11. Can I cancel my policy during the policy period? 12. What are the Declarations page(s)? 13. If I cancel my policy prior to the stated expiration date, am I entitled to a full

refund of the unused portion of the premium? 14. What is short rate cancellation? 15. Can I find reasonable insurance after an accident? 16. I rent or borrow an aircraft. Should I purchase an insurance policy? 17. I purchased an aircraft from a friend. Can I just keep his insurance policy? 18. What is the difference between a per person sub limit and a per passenger

sub limit? 19. What factors do insurance companies use to determine my premium? 20. Why are your rates so much less for the same coverage I have with another

broker or company? 21. I have a corporate jet or turboprop. My corporate pilot is a very experienced

professional pilot. He completes school in other aircraft on a regular basis. Does he need to go to school in my make and model aircraft?

22. Can I just list my CFI as the only pilot since I am inexperienced and don’t plan to fly as pilot in command?

23. How long does it take to start a policy? 24. If I increase the deductibles, will my premium go down? 25. Why do I have to fill out an update form each year? 26. Can my local non-aviation specialist broker help with my aviation insurance? 27. What is the difference between an insurance company and an insurance

agent? 28. Does my current personal liability umbrella or business liability policy cover

my aviation risk? 29. Can I charge others for the use of my aircraft? 30. What is an Open Pilot Warranty? 31. I just made major upgrades to my aircraft and I want to increase my hull

value; what do I need to do?

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32. My airport wants to be listed as an additional insured on my policy. How does that affect my insurance?

33. I have a personal aircraft insurance policy and I am a CFI. Can I give instruction in my aircraft?

34. When will I receive my policy? 35. I applied for a quote and bound coverage. Why do I need to return an

application after coverage has already been in effect? 36. What does “CSL” mean? 37. What steps do I take to add a pilot to my policy? 38. Is Mexican Liability included in the liability limits of my policy? 39. Are you able to email my policy to me? 40. What happens if I add a low time pilot? 41. Do I need to call multiple aviation insurance brokers? 42. What can I do to lower my premium? 43. Where can I fly my aircraft?

1. Q: My aircraft is currently at the FBO undergoing an overhaul. Do I need to have my own insurance policy, or will the FBO’s policy cover the aircraft? A: It’s strongly recommended that you cover your aircraft with your own policy. Some FBO’s will carry hangarkeeper’s hull coverage (which is designed to protect the FBO in the event of damage to an aircraft under the care of but not owned by that FBO). Many do not carry hangarkeeper’s coverage. Additionally, even if the FBO’s policy includes the proper Hangarkeeper’s coverage, it may not pay out for certain types of losses, like those resulting from windstorm, vandalism, or mechanical failure, for example. If the FBO is not legally liable for the loss, the insurance company might not pay. 2. Q: What limit of liability should I carry? A: There is no one method to determine the amount of liability coverage you should have; however, there are several factors you may want to consider: average passenger load per flight, types of passengers (employee, guest, etc.), and the assets you need to protect. 3. Q: I am operating under Part 91. Am I covered to charge for the use of my aircraft? A: It’s a common misconception that your policy will cover all Part 91 uses. Most insurance policies do not define your covered use in coordination with an FAA defined use. You need an agent that understands the difference between the Non-Commercial use of your turbo prop and the FAA Part 91 use. Not knowing the difference can leave you uninsured in the event of a loss.

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4. Q: What is TRIA coverage? A: POLICYHOLDER DISCLOSURE STATEMENT UNDER TERRORISM RISK INSURANCE ACT OF 2002 AND TERRORISM RISK INSURANCE EXTENSION ACT OF 2005-You are hereby notified that under the federal Terrorism Risk Insurance Act of 2002 (the “Act”) effective November 26, 2002, and its amendment, the Terrorism Risk Insurance Extension Act of 2005 (jointly referred to as the “Act”), you now have a right to purchase insurance coverage for certain losses arising out of an Act of Terrorism, which is defined in the Act as an act certified by the Secretary of the Treasury (i) to be an act of terrorism, (ii) to be a violent act or an act that is dangerous to (A) human life; (B) property or (C) infrastructure, (iii) to have resulted in damage within the United States, or outside of the United States in case of an air carrier or vessel or the premises of a U.S. mission and (iv) to have been committed by an individual or individuals acting on behalf of any foreign person or foreign interest, as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. You should read the Act for a complete description of its coverage. The Secretary’s decision to certify or not to certify an event as an Act of Terrorism and thus covered by this law is final and not subject to review. There is a $100 billion dollar annual cap on all losses resulting from Acts of Terrorism above which no coverage will be provided under this policy and under the Act unless Congress makes some other determination. For your information, coverage provided by this policy(ies) for losses caused by an Act of Terrorism may be partially reimbursed by the United States under a formula established by the Act. Under this formula the United States pays 90% of terrorism losses covered by this law exceeding a statutorily established deductible that must be met by the insurer, and which deductible is based on a percentage of the insurer’s direct earned premiums for the year preceding the Act of Terrorism. Coverage for acts of Terrorism under your policy is included for an annual premium amount as below-referenced. 5. Q: I am a student pilot. What type of aircraft do you recommend purchasing? A: This answer can vary depending on what you want to do with the aircraft, how much you want to spend, where you plan to fly, and what type of flying you want to do. Discussing all of these things with your agent can help you make the decision on which aircraft will best fit your mission. We can competitively insure student pilots in almost any type of aircraft. 6. Q: When do you recommend ground-not-in-motion (storage) coverage? A: Each company takes into account that an aircraft may be occasionally down for repair. For this reason most companies will not offer competitive coverage for a

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short term storage policy. If the aircraft is being built or rebuilt, a longer term storage policy can usually be purchased at a reasonable rate. 7. Q: Do you offer any aviation association member discounts? A: Yes. We are able to offer significant discounts to members of several organizations. 8. Q: When are insurance premiums due? A: Almost all aviation insurance policies are annual, and it’s important to note that they do not renew automatically. The full premium is generally due by the start date of the policy. For new accounts and endorsements made during the policy period that result in additional premium due, payment is due immediately. 9. Q: Can I pay my premium in installments? A: Some premium finance options may be available. 10. Q: Are there any taxes or surcharges that will be added to my premium? A: Taxes and surcharges depend on the State in which your aircraft is based. Currently, policies for aircraft based in Florida, Kentucky, New Jersey, and West Virginia have taxes and / or surcharges. The rates vary depending on the State. These taxes and fees are mandated by State insurance regulations. 11. Q: Can I cancel my policy during the policy period? A: Yes, by sending a written request that must include the date you wish the policy to cancel as well as your signature. In most cases, your insurance company will also require the original Declarations page(s) from your policy. 12. Q: What are the Declarations page(s)? A: The Declarations page(s) (also called Coverage Summary Page by some insurers) is usually the first page of your policy. It lists your name and address, the aircraft description, and your insurance limits. 13. Q: If I cancel my policy prior to the stated expiration date, am I entitled to a full refund of the unused portion of the premium? A: Most policies state that if the policyholder cancels the policy prior to the stated expiration date, the return premium will be calculated short rate.

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14. Q: What is short rate cancellation? A: The most commonly used method reduces the unused policy premium by 10%. Here is an example: If you’re annual premium is $12,000 it equates to $1,000 per month. If the policy is cancelled with 6 months remaining on the policy the return premium will be approximately $5,400. ($600 short rate cancellation fee retained by the insurance company). Some insurance companies will have a minimum earned premium. 15. Q: Can I find reasonable insurance after an accident? A: Accidents happen. In most cases, the future insurability of the pilot who had the accident is based on the claim itself. A large insurance claim may have a greater impact on your insurability. If the claim was caused by a mechanical malfunction and had nothing to do with the pilot, the underwriter may be more understanding. In cases of pilot neglect or error, a new insurance policy can be a bit more difficult to obtain. An aviation insurance specialist is needed to assist in these unique situations. Rates are quoted on an individual case by case basis, so please call for your individual quote. 16. Q: I rent or borrow an aircraft. Should I purchase an insurance policy? A: Yes. Purchasing a non-owned aircraft insurance policy is a good idea. The owner’s policy may not include coverage for permissive pilots. The aircraft may be underinsured or uninsured. Even if the owner’s policy pays, the insurance company may subrogate. You may be liable for the damages. 17. Q: I purchased an aircraft from a friend. Can I just keep his insurance policy? A: NO! The owner or the insured entity of the insurance policy must have an insurable interest in the aircraft. Aviation insurance policies cannot be transferred from one owner to the next. Even if the former owner has paid for the policy in full and hands the policy to you there is no coverage. Please call our office prior to aircraft ownership. We can confirm whether or not proper coverage is in place. 18. Q: What is the difference between a per person sub limit and a per passenger sub limit? A: The majority of General Aviation light aircraft policies include a liability sub limit. The liability limits including sub limits are usually worded “$1,000,000 combined single limit bodily injury and property damage subject to $100,000 ‘per passenger’” or, in some cases, “per person.” A passenger is different than a person. Examples: In a per passenger policy a person who is not defined as a passenger may be able to collect the whole liability limit of $1,000,000. In a per person policy any bodily injury claims will be limited to only $100,000.

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19. Q: What factors do insurance companies use to determine my premium? A: All aviation insurance companies are different. Factors include the age of the aircraft, use of the aircraft, experience of the pilot, loss history of the make and model, territory in which the aircraft is used, pilot training, value of the aircraft, and limit of liability. For these reasons it is important to work with an aviation insurance specialist who knows the market and understands how to place your individual risk. 20. Q: Why are your rates so much less for the same coverage I have with another broker or company? A: The insurance industry is based on actuarial statistics and loss ratios. Loss ratios are determined by past and predicted losses. In auto insurance, life insurance, home insurance, and other standard markets, millions of units are available to help determine rates. In the United States, we have only about 250,000 – 300,000 aircraft on which to base rating and underwriting guidelines. It is much more difficult to determine a premium for an individual risk because a single accident can determine a profit or loss for an insurance company. One insurance company may rate an aircraft / pilot combination two or three times more expensive than another company for the same coverage. It is important to use a broker who specializes in aviation insurance to help navigate the aviation insurance marketplace. 21. Q: I have a corporate jet or turboprop. My corporate pilot is a very experienced professional pilot. He completes school in other aircraft on a regular basis. Does he need to go to school in my make and model aircraft? A: Most insurance policies will require pilots to complete annual factory-approved school in the make and model for all turbine aircraft. There are exceptions to the rule based on several different factors. Always consult your aviation specialist. 22. Q: Can I just list my CFI as the only pilot since I am inexperienced and don’t plan to fly as pilot in command? A: No, all pilots flying the aircraft whether they are Pilot In Command or receiving dual instruction need to be reported to the insurance company. Always consult your aviation specialist, don’t chance voiding your coverage. 23. Q: How long does it take to start a policy? A: We are usually able to bind coverage the same day. 24. Q: If I increase the deductibles, will my premium go down? A: Yes.

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25. Q: Why do I have to fill out an update form each year? A: In some cases, the insurance company will not release renewal terms without updated underwriting information. More importantly, we work hard each year to get you the best coverage at the lowest possible premium. We ask you to give us an update each year to make sure that we are basing our quotes on your most recent experience. 26. Q: Can my local non-aviation specialist broker help with my aviation insurance? A: An experienced aviation specialist has the knowledge and contacts of the aviation insurance marketplace. He or she can help you understand the different types of coverage available. Your broker needs to be an expert in policy language and everything aviation related. 27. Q: What is the difference between an insurance company and an insurance agent? A: An insurance agent places the insurance coverage with the insurance company. Most insurance companies work only through insurance agents. The insurance company creates the policy and pays the claims. The companies differ in their business focus, policy language, pricing, and claims support capability. It is a broker’s job to place the individual customer with the insurance company that best fits his needs. 28. Q: Does my current personal liability umbrella or business liability policy cover my aviation risk? A: Coverage for physical damage or loss to your aircraft, or coverage for liability related to any aviation operation, is almost universally excluded from a business or homeowner’s insurance policy. To obtain this kind of coverage, you must purchase a specific aviation insurance policy. 29. Q: Can I charge others for the use of my aircraft? A: Most personal aircraft insurance policies will allow for a small amount of cost reimbursement. Some policies will not allow for any cost reimbursement. It is always important to read your policy and talk with your agent or attorney to help determine if cost reimbursement or a fee can be charged. Commercial policies are different and can be obtained. Please ask your professional Travers representative to clarify.

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30. Q: What is an Open Pilot Warranty? A: An Open Pilot Warranty is the minimum qualifications required to be approved to fly the aircraft without being a named pilot. The pilot must meet every qualification of the open pilot warranty to fly the aircraft. Some policies do not contain Open Pilot Warranties. In many cases, we can request to specifically approve a pilot who does not meet your specific Open Pilot Warranty on your policy. 31. Q: I just made major upgrades to my aircraft and I want to increase my hull value; what do I need to do? A: Changing your hull value can be easy. In some cases, we can increase the value over the phone. In other cases, your insurance company will require an equipment list including the avionics in the aircraft, engine hours, paint quality, interior quality, and time on the airframe. 32. Q: My airport wants to be listed as an additional insured on my policy. How does that affect my insurance? A: This is a common requirement at many airports where you hangar your aircraft. Anytime an Additional Insured is added to your policy the limits of liability are shared with that entity. 33. Q: I have a personal aircraft insurance policy and I am a CFI. Can I give instruction in my aircraft? A: Instruction or rental to non-named or non-approved pilots is excluded unless specifically approved. We can often specifically approve individual pilots. (even student pilots) 34. Q: When will I receive my policy? A: Depending on the insurance company and your preference, we will mail or email the policy to you the same day we receive it from the insurance company. Some of the insurance companies will send the insurance policy to us quickly. Other insurance companies can take up to four weeks to print and mail the policy to us. 35. Q: I applied for a quote and bound coverage. Why do I need to return an application after coverage has already been in effect? A: All aviation insurance companies require a new application if you are a new customer to them. This application is specifically worded with your individual effective date, your exact liability limits, your hull value, and questions tailored to your exact policy. Even if you have already started a policy, the insurance company will require an application with your information and an original signature. The application becomes part of your policy.

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36. Q: What does “CSL” mean? A: CSL stands for combined single limit. If you have 1 CSL, you have $1Million Dollars combined single limit. You may have a per passenger or per person sub limit under the $1,000,000 CSL. 37. Q: What steps do I take to add a pilot to my policy? A: In order to add a pilot, we will need to submit some basic information about the pilot to the underwriting department at the insurance company. Once approved, we will know if there are requirements or any changes in premium. 38. Q: Is Mexican Liability included in the liability limits of my policy? A: Mexican Liability is not included as part of your aviation insurance policy. It is an insurance requirement of the Mexican Government that requires the purchase of Mexican Liability insurance from an insurance carrier licensed in Mexico. Your aircraft insurance company may or may not offer this coverage for an additional charge. If you are planning a trip to Mexico, please call our office to discuss your options. 39. Q: Are you able to email my policy to me? A: Yes. 40. Q: What happens if I add a low time pilot? A: Often we can add lower time pilots without too much disruption. We specialize in tough-to-place aircraft and pilot combinations. 41. Q: Do I need to call multiple aviation insurance brokers? A: No. Blais Aviation has access to all of the major aviation insurance companies. Each year we will shop the markets for you. Our job is to find you the best price and policy for your operation. 42. Q: What can I do to lower my premium? A: One of the biggest factors of premium is the pilot experience. Make sure we have your most up-to-date hours to ensure the best rate. Training is also an option to help reduce insurance cost. Some companies give discounts for annual training. 43. Q: Where can I fly my aircraft? A: Each policy varies in coverage territory. Please consult your insurance policy or your Travers representative.

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www.blaisaviation.com 972 818-4090

These FAQs and answers are general in nature and are not intended to address the specific requirements of an individual's policy. These

should be discussed directly with one of Blais Aviation Insurance Services staff members. In all cases, the terms, conditions of the policy and policy endorsements will determine the outcome of a

specific situation.

C:\Documents and Settings\Phil Blais\My Documents\AVIATION FAQ 2013.docx