Docstoc

AVIATION INSURANCE

Document Sample
AVIATION INSURANCE Powered By Docstoc
					AVIATION INSURANCE




    Blais Aviation Insurance Services
     Insurance Professional & Pilot
                Philip Blais

                                        1
      AVIATION INSURANCE
               BLAIS AVIATION INSURANCE SERVICES
                       TABLE OF CONTENTS
Introduction                               Slide 7


Angel Flight Coverage                      Slide 8


Damage History Decreases                   Slide 9
Value
Insure To The Value Of The Loan         Slide 10 – 11


Reimbursement Or Rental                 Slide 12 - 14


Reimbursement From Your Own               Slide 15
Company

                                                        2
       AVIATION INSURANCE
                BLAIS AVIATION INSURANCE SERVICES
                        TABLE OF CONTENTS
The Aircraft Sale Is Final               Slide 16-22

Hot Starts On Turbine and Jet              Slide 23
Engines
Warranty or Insurance                      Slide 24

Canadian Travel                            Slide 25

Mexico Travel                            Slide 26 – 27

Age vs. Price                              Slide 28


Approved Annual Training                   Slide 29
                                                         3
       AVIATION INSURANCE
               BLAIS AVIATION INSURANCE SERVICES
                       TABLE OF CONTENTS
Too Small To Require Training             Slide 30


Why are contracts relating to my
aircraft important from an                Slide 31
insurance perspective?

How much liability coverage is          Slide 32 – 34
enough?

How do I determine the proper
insured value for my aircraft?            Slide 35


What measures can I take to
improve my aviation insurance           Slide 36 – 38
program?

What’s the deal with single-pilot         Slide 39
operations?
                                                        4
       AVIATION INSURANCE
               BLAIS AVIATION INSURANCE SERVICES
                       TABLE OF CONTENTS
Should we carry war insurance             Slide 40
or TRIA insurance or both?
Who may use our airplane?               Slide 41 – 42


Can pilots be sued?                       Slide 43


How is a pilot who is injured (or
worse) compensated after an               Slide 44
accident?
What is a Broker of Record
Letter (or Agent of Record              Slide 45 – 47
Letter) and what does it do?


                                                        5
       AVIATION INSURANCE
                 BLAIS AVIATION INSURANCE SERVICES
                         TABLE OF CONTENTS
How can I get the lowest                  Slide 48 – 52
available rate on my insurance?
Who can pilot my aircraft ? Pilot
requirements and open pilot               Slide 53 – 61
warranty.
Who Are The Aviation Markets?             Slide 62 – 71

Glossary Aviation Insurance               Slide 72 – 77
Aircraft Insurance
Aviation Facts                            Slide 78 – 97

Coverages Provided By Blais               Slide 98 – 106
Aviation Insurance Services
Aviation Pictures                        Slides 107 – 118

Closing                                  Slide 119 – 125
                                                            6
       AVIATION INSURANCE

                    INTRODUCTION
This presentation, provided by Blais Aviation Insurance Services, a division
  of the Blais Group, is meant to answer a number of the questions often
   asked by people concerned about aviation insurance. In addition, an
 overview of the market with information relating to key aviation insurance
    terms and insights about Blais Aviation Insurance Services is being
                                  provided.

  Blais Aviation Insurance Services is considered a leading
   facility in the design, placement and service of aviation
                   related insurance products.

                                                                               7
        AVIATION INSURANCE
                           Angel Flight Coverage

         If I fly an Angel Flight, will this void or cause a problem
                        with my insurance coverage?

 No, not if the Angel Flight is done without any compensation to the aircraft
   owner or operator. Under "pleasure and business" or "industrial aid"
   purposes of use, the key is if you are compensated for the use of the
              aircraft. In this situation, clearly, no charge is made.

 You may want to review your liability limits, however. Many aircraft owners
purchase relatively low limits of liability either to save premium dollars or due
  to a lack of availability. The increased responsibility for your Angel Flight
         guest may increase your exposure in the event of a mishap.


                                                                                    8
       AVIATION INSURANCE
                 Damage History Decreases Value

 If my aircraft is damaged in an accident, the hull value can be
                     significantly decreased.
This damage history seems to live forever. Is this loss of value
          covered by my aircraft hull insurance policy?

                                     No!
 Diminution of value is not covered under any aircraft hull insurance
policy on the insured aircraft. If someone else damages your aircraft
and they are found to be negligent, they are liable for the loss. In this
     situation, their liability coverage may reimburse you for the
    (negotiated) estimate of the decreased value to your aircraft.


                                                                            9
         AVIATION INSURANCE
                          Insure To The Value Of The Loan

The value of my aircraft has fallen significantly during the past three years. My
            lien at the bank is more than the aircraft is currently worth.
It is time to renew my insurance. I would prefer to insure the aircraft for its true
  value and save the premium dollars but the bank requires me to insure to the
                           value of the loan. What to do?

                                      Page 1 of 2

  This is one of those strange snap-shots in time where economic pressures have
  caused some aircraft values to fall faster than loan repayments. There are three
conflicts or problems with this situation. The banker wants full protection for the asset
 collateralizing his loan. This is understandable. The insurance underwriter does not
    want to significantly over insure the risk. This could cause what the insurance
   community refers to as a moral hazard. The insured does not want to pay more
                          insurance premium than is necessary.


                                                                                            10
         AVIATION INSURANCE
                                      Page 2 of 2

The only solution is negotiation. The insurance underwriter usually will agree to insure
   an aircraft for the "Blue Book" (Aircraft Price Digest) published value plus 10% to
   20%. This variation could be even higher with documentation of extra or updated
 equipment or aircraft modification. Sometimes the underwriter will insure for the loan
value if he understands the bank's requirements. The banker may be willing to reduce
his demand to insure to the value of the loan if your financial strength is adequate and
you guarantee any shortfall in coverage. Some of our clients are simply pledging other
                                assets to secure the loan.

In either case, unless you insure to the pay-off value of the loan or to the market value
  of the aircraft (Bluebook), you may be purchasing less insurance than it will take to
  make you whole and pay off the lien. In the event of a total loss, you would have to
 pay the difference to satisfy the debt to the bank. It then must be pointed out that the
                  small savings in premium may not justify the exposure.



                                                                                        11
           AVIATION INSURANCE
                                         Reimbursement Or Rental

I have a friend who wants to use my aircraft. He will reimburse me for the cost of operating the aircraft and
                                          will hire his own pilot.
                         Is this covered under my pleasure and business policy?

                                                 Page 1 of 3


This arrangement may not be as simple as it seems. Good business would dictate that you have a
 written agreement. The best of friends may find it difficult to agree after a loss occurs. To assure
 full compliance with your insurance policy, we recommend that a copy of the insurance policy be
                         included as a part of this formal lease agreement.

    Depending upon the terms of this lease, you may have problems with your insurance. Some
 "pleasure and business" policies allow for reimbursement of direct operating expenses. This may
   be defined by the underwriter as an amount equal to one time the cost of fuel and oil. In other
policies, the flight is approved if no profit is made. Give special attention to your aviation insurance
                        policy's cost reimbursement requirements and definitions.




                                                                                                            12
          AVIATION INSURANCE
                                      Page 2 of 3

  It is always a good idea to advise your underwriter and seek his approval. In most
 cases, the lessee will want to be covered as an additional insured under your policy
             and will request a certificate of insurance confirming coverage.

 Another area of concern when leasing your aircraft to a friend is that he abides by the
terms and conditions of your insurance policy. If the lessee doesn't understand aviation
  insurance, he may inadvertently void coverage by violating policy requirements. For
  example, if your friend is furnishing his own pilot, he must either meet the open pilot
requirements of your policy or be specifically approved by your underwriter. Your friend
  must be warned about changing pilots. Anyone allowed to operate your aircraft must
 meet these pilot requirements. Just because the lease is approved by the underwriter
            doesn't mean that the lessee can ignore the policy's provisions.




                                                                                        13
          AVIATION INSURANCE
                                        Page 3 of 3

 Many of our clients enter into such agreements with friends. We refer to these as "dry
 leases". We advise the underwriter of these leases and allow him to make a nominal
   premium charge. We usually ask that the "dry lessee" be named as an additional
insured under the liability section of the policy with a waiver of subrogation on the hull.
     Subrogation is the assumption of an insured's rights of recovery by the
    insurance company. If an insurance company pays a loss on an insured's
aircraft that was the result of someone else's negligence, the company assumes
    the insured's legal rights of recovery from the negligent party. A waiver of
subrogation is when the insurance company relinquishes their right of recovery.

Some underwriters are reluctant to allow dry leases. Others have no problem with this
practice if only one or two lessees are involved. At the risk of underwriter rejection, it is
 always best to have full disclosure to the underwriter in the event of a loss. If you are
 allowing too many friends to use your aircraft, your underwriter may look at you as a
rental operation. Keep in mind, changing to a rental purpose of use may be expensive.



                                                                                            14
        AVIATION INSURANCE
                   Reimbursement From Your Own Company

I own my aircraft in a shell corporation and charge my own company for its use
    when it is operated on business. Does this cause an insurance problem?

Most underwriters understand that this is an accepted and frequently used method of
 arranging aircraft ownership. Often attorneys and accountants shelter liabilities or
            improve tax situations by using shell corporations or LLCs.

    The best way to avoid any conflict with your insurance policy is to advise the
 underwriter of your intentions. Most companies want to be added as an additional
  insured under the policy. This should be confirmed by a certificate of insurance.
Usually, the underwriter makes little or no premium charge for such a request. Many
 of the broader policies define "insured" as any person riding on the aircraft or any
 organization responsible for its use. Having your company added as an additional
          insured and being a certificate holder is still the best arrangement.


                                                                                        15
       AVIATION INSURANCE
                              The Aircraft Sale Is Final

Have you ever purchased an aircraft and wondered when the sale is final and
when you are responsible for insuring the aircraft? Is it when you post your
deposit? Is it when you pay money to the escrow agent or when you sign the
            bill of sale? Is it when the aircraft is delivered to you?

                                      Page 1 of 7

    These are questions that should be asked to determine who should insure the
aircraft. They say, "The Devil is in the detail". This certainly applies to the change of
  aircraft ownership. Why is it so important? We have heard stories of overlapping
 policies on the same aircraft at the time of purchase. Which one pays in the event
   of a loss? Both insurance companies could point to the other, hoping to avoid a
   claim. In like fashion, there are stories where the seller drops coverage and the
                     buyer has not yet put coverage in force. Oops.


                                                                                        16
       AVIATION INSURANCE
                             Page 2 of 7

In order for insurance to be valid and collectable, you must have an
 insurable interest in the aircraft you are insuring. Insurable interest
  means you are at risk of having an economic loss if the aircraft is
     damaged, stolen, or destroyed. Second, there must be an
            occurrence resulting in damage to the aircraft.

 But who has the insurable interest? If my aircraft were destroyed,
you would suffer no economic loss and thus you could not purchase
     insurance or collect a settlement on my aircraft. If you are
purchasing someone else's aircraft and the sale is not final, you are
not at risk of an economic loss until the sale is final. So, when is the
                             sale final?

                                                                           17
      AVIATION INSURANCE
                                Page 3 of 7

               When the sales agreement is signed?
                 When the bill of sale is signed?
                  When the title is transferred?
                 When the aircraft is delivered?
                      When funds transfer?

An aviation claims attorney answered the question by saying "it depends".
 It depends upon the State law in question. In some jurisdictions, the case
law says that title is transferred when the Bill of Sale is signed. Others say
  the title is transferred when the Bill of Sale is recorded by the governing
                    agency, in the case of aviation, the FAA.


                                                                             18
        AVIATION INSURANCE
                                 Page 4 of 7

Of course, a title must transfer free and clear. This means that there must be
      a complete exchange of funds. No sales contract is fulfilled without
 consideration. But from the way it is stated by my attorney friend, in certain
States you could have an exchange of funds but the sale is not final until the
                             Bill of Sale is recorded.
    The recommended way to conduct a sales situation is with a properly
  worded sales contract and the involvement of an escrow agent and your
  attorney. Such a contract will outline the sale process. Many professional
 aircraft dealers and traders employ the services of an escrow agent. For a
       small fee, the escrow company accepts funds from the buyer and
accumulates the necessary paperwork to close the sale. Upon confirmation
  from both buyer and seller, the escrow agent accepts the paperwork and
     releases the funds simultaneously. The necessary documentation is
                   recorded with the FAA and the deal is done.

                                                                              19
        AVIATION INSURANCE
                                 Page 5 of 7

 The sales contract should contain a statement giving the escrow agent the
 authority to handle the closing. Wording such as, "Upon the Escrow Agent
being advised by the Seller and the Purchaser that the terms and conditions
    of this Agreement have been met and the Escrow Agent has all of the
  documents required for closing and holds the Purchase Price, the parties
  agree that the Escrow Agent shall concurrently (1) release the Purchase
 Price to Seller, (2) file a Federal Aviation Administration (FAA) Bill of Sale,
 Form 8050-2 conveying title to the Aircraft on behalf of Purchaser with the
    FAA and (3) forward Seller's original executed Warranty Bill of Sale to
                                   Purchaser.
The risk of loss, injury, destruction or damage to the Aircraft by fire or other
   casualty or occurrence shall transfer to Purchaser upon transfer of title
  documents." The important word is concurrently. Using an escrow agent
   eliminates much of the guesswork as to when the sale is final and when
                   insurable interest shifts to the new owner.
                                                                               20
      AVIATION INSURANCE
                             Page 6 of 7

  My attorney friend said, "As for insurable interest, this is another
  question in its entirety. Was there a deposit? Was it refundable?
Was there pecuniary interest in the aircraft? After you answer these
 questions, will an insurance policy cover it? You must look at the
specific policy wording. Most policies do not cover title or ownership
   disputes." Now, we are back to a good sales contract and the
                  disciplines of a good escrow agent.

 Unfortunately, many aircraft change hands without a proper sales
contract. In some cases, the only contract is verbal. In other cases,
               the sales agreement is just assumed.


                                                                        21
        AVIATION INSURANCE
                                  Page 7 of 7

  The absence of a written contract is fine if there is no loss and there are no
  disputes during the transaction. Problems do occur, however. If the aircraft
    suffers a physical damage loss during the sale process and there is no
 insurance in force, which party suffers the loss? If there is an insurable loss
    and the old owner and the new owner both have an insurance policy in
force, which one pays? If a disagreement does arise, an attorney friend said,
                              "Only the attorneys win".
 I realize that the aircraft sales process is not really an insurance question. It
  is a legal question and should be addressed by an attorney. I am certainly
   no attorney. This is why I discussed this article with several attorneys and
professional aircraft dealers. All recommend the use of an escrow agent and
   a formal closing. Involve an attorney who is familiar with the laws of your
                                       State.


                                                                                 22
      AVIATION INSURANCE

       Hot Starts On Turbine and Jet Engines


 Hot starts are not covered under standard aviation hull
 insurance policies. Aviation physical damage policies
specifically exclude engine losses resulting from internal
                          heat.



                                                             23
      AVIATION INSURANCE
                Warranty or Insurance

 My windshield broke in flight at 28,000 feet. No bird
         strike, it just broke. Is it covered?

 No. This would be considered to be wear and tear. If a
bird or some other object had hit the windshield, the hull
insurance policy would respond. This is possible but not
 likely at 28,000 feet. My suggestion is to investigate to
   see if this is a recurring problem with your make and
model aircraft. It could be a problem with the manufacture
                or installation of the windshield.
                                                         24
       AVIATION INSURANCE
                          Canadian Travel

 I am planning a pleasure trip to Canada . Do I have coverage
 under my aircraft insurance? Do I need any special papers or
    certificates of insurance to present to the authorities?

 Yes. Canada is covered under the territorial limits of your standard
                    aviation insurance policy.

  No. You do not need any special certification to enter Canada on a
   non-commercial flight. Unlike Mexico , no special insurance policy
   and no certificate of insurance are required for a non-commercial
flight into Canada . It is recommend that a pilot carrying a copy of his
      or hers insurance policy, just in case you need to refer to it.

                                                                        25
          AVIATION INSURANCE
                                          Mexico Travel

     I am planning a pleasure trip to Mexico . Do I have coverage under my aircraft
 insurance? Do I need any special papers or certificates of insurance to present to the
                                       authorities?

No. Mexico is not covered under the territorial limits of your standard aviation
insurance policy.

Yes. You do need special certification to enter Mexico on a non-commercial flight.
Mexico requires a special insurance policy and certificate of insurance are required
for a non-commercial flight into Mexico.

                           With the purpose of facilitating General Aviation Flights
                                to Mexico, information has been prepared by
                      SENEAM, the Mexican government Air Traffic Service provider,
                            responsible for the Air Navigation Service in Mexican
     Airspace. A copy of this document can be found on the Blais Aviation Insurance Services Website.


                                                                                                        26
         AVIATION INSURANCE
                               Mexico Travel

It is important to obtain adequate protection when flying into Mexico by
private aircraft. Blais Aviation Insurance Services can arrange a Mexican
Aviation Liability Policy that meets the requirements of the Mexican
authorities.

We offer a policy, written in Spanish and English and prepared in our office,
through one of the largest Mexican Insurance Companies. We give immediate
service and the policy is normally issued the same day application and
money are received in our office.

Why Mexico Insurance? American Insurance is not recognized in Mexico.
According to Mexican Law, foreigners flying into Mexico must purchase
insurance from an authorized Mexican Insurance Company. Since we issue
the policies directly in our office, we can mail your policy to you or you can
come by to pick it up.


                                                                                 27
      AVIATION INSURANCE

                         AGE vs. PRICE

 I am 67 years old. My current insurance company has insured
  me for five years. I have been given a premium quotation for
significantly less money than my current underwriter quoted to
    renew my account. Should I change and save the money?

 This is a judgment call. Obviously, we don't want to waste money.
But, the age factor is a real problem when purchasing insurance. If
your current insurance company has the reputation of continuing to
    work with their clients as they age, you may want to pay the
      additional premium and stay with your current company.


                                                                      28
        AVIATION INSURANCE
                           Approved Annual Training

 I don't want to go to SimCom or FlightSafety International for annual training. It
is too expensive, too far away, and takes too long. I have a local CFI who is very
                     good. Can he give me my annual training?

The probable answer is no. It depends upon the type of aircraft you fly. With
     larger aircraft or high performance aircraft, many underwriters require
annual simulator training. Smaller, less sophisticated aircraft may not require
  simulator-based training but may require a formal school. Most insurance
    companies have a list of approved training facilities for each make and
      model of aircraft. Your local CFI is probably not on the underwriter's
 approved list. This does not mean the local guy does not do a good job; he
       simply has not formalized his school and submitted the necessary
  information to the underwriting community to be recognized. In fact, most
 local instructors do not want to do the work necessary to obtain underwriter
                                     approval.

                                                                                  29
        AVIATION INSURANCE
                      Too Small To Require Training

    I have a Cessna 172. Is annual recurrency training necessary to
               comply with underwriting requirements?

   Small, light, single engine aircraft, under 200Hp with less than six seats
  usually are considered primary trainers. Most underwriters do not require
  annual training on these aircraft. This does not mean that an occasional
refresher is not advisable. There is a difference in training for the purpose of
   compliance and training for the sake of safety. If you are training just to
             satisfy the underwriter, your priorities may be wrong.

Don't forget the FAA Wings Program. You may have one in your area. This
is an excellent opportunity for the light aircraft owner to get an annual flight
check without extreme cost. Many underwriters recognize and recommend
                          the FAA Wings Program.

                                                                                   30
       AVIATION INSURANCE
    Why are contracts relating to my aircraft important from an insurance
                                perspective?

Did you know that every aviation contract or agreement has the potential to
     limit or even void your insurance coverage? Most contracts you enter
        relating to your aircraft contain insurance and/or hold harmless-
 indemnification clauses. Signing these agreements contractually obligates
    you to comply with the provisions they contain. If the insurance-related
     stipulations fall outside the scope of your coverage, the assumed risk
becomes yours. Not good. All agreements, including Purchase Agreements,
Bank Loan Agreements, Maintenance/FBO contracts, Hangar Agreements,
 Charter Agreements, etc. should be reviewed by appropriate legal counsel
    for any legal ramifications with a copy sent to your insurance broker to
  review from an insurance perspective. Hold harmless agreements can be
       particularly troublesome. Reference our article entitled “Insurance
   Perspective on Hold Harmless Agreements." Request a copy from Blais
                            Aviation Insurance Services.

                                                                            31
         AVIATION INSURANCE

                       How much liability coverage is enough?
                                    Page 1 of 3


1.   Since there is no definitive method available to determine the appropriate
     liability coverage limit to select, your response to the following questions
     can help guide you in selecting a reasonable limit based on your
     exposure;

2.   Number of passenger seats in the aircraft. Obviously, an aircraft with 14 passenger
     seats presents a greater exposure and will require a higher liability coverage limit
     than one with 7.


3.   Average passenger load per flight. Again, if your average passenger load per flight
     is 5, you would need to carry a higher coverage limit than if it was 2.



                                                                                            32
       AVIATION INSURANCE

                                    Page 2 of 3


4.   Composition of passengers (Employee vs Guests). If the majority of
     passengers carried on the aircraft are employees, you may be able to justify a
     lower liability limit since a properly structured Workers Compensation program
     should be the sole remedy for injuries to employees. Conversely, if the majority
     of passengers are guests, you would need to select a higher liability limit.


5.   What assets need to be protected? Don’t let a holding company give you a
     false sense of security. Savvy plaintiff attorneys will attempt to pierce shell
     companies and corporate veils in an effort to get at the “real money” whether it
     be a larger corporation or an individual’s net worth.




                                                                                        33
       AVIATION INSURANCE

                          Page 3 of 3

6.   If you have an umbrella policy that covers the aviation
     exposure, you will need to make sure your aviation liability limit
     meets the minimum required umbrella limit.

7.   Generally speaking, since it is impossible to determine the
     exact coverage limit you need, it is best to buy as much as you
     can reasonably afford. Obtain quotes for alternate limits each
     year, as rating of this coverage can vary greatly year to year.


                                                                          34
         AVIATION INSURANCE

      How do I determine the proper insured value for my aircraft?
Unlike many other property policies, aircraft policies are usually written on an
  “agreed-value” basis. Therefore, you can over insure and under insure to
your detriment. If you over insure, the insurance company will typically elect
to repair the aircraft even when there is major damage – leaving you to deal
with significant damage history. If you under insure, the insurance company
may elect to pay you for the total loss and sell the salvage – you would lose
   your equity. The proper insured value to carry is the amount of money it
  would take to purchase another aircraft exactly like yours (i.e. same year,
    make and model, etc. – not a brand new one). The aircraft dealer you
  purchased the aircraft from should be able to give you the best idea of its
 current value. In addition, your insurance broker should have resources to
 help give you an idea of this value. This coverage limit should be reviewed
                annually on renewal and adjusted accordingly.


                                                                               35
       AVIATION INSURANCE

What measures can I take to improve my aviation insurance program?
                             Page 1 of 3


A.   Develop, implement and maintain a documented flight safety program.
     Address critical areas such as approach and landing accidents and
     controlled flight into terrain (ALAR/CFIT), dissimilar aircraft operations,
     runway incursions, ground handling safety, etc. Not having accidents
     or incidents in the first place in order to keep premiums down is
     fundamental risk management!

B.   Adhere to an Pilot Operating Handbook.

                                                                               36
          AVIATION INSURANCE

                                            Page 2 of 3

C. Get annual recurrent training in the make and model. Okay, so this is required anyway, but the
   fact is this is key to most insurance carrier's willingness to offer their broadest coverage and
   most competitive rates. Underwriters typically recognize the value of any given training for only
   a twelve month period, which equals a policy period, so that training completed two or more
   years ago does not impact the underwriting as favorably as recurrent training in the make and
   model within the last twelve months. In short, training does affect coverage availability and
   premium.

D. Develop and implement a security plan. There are numerous resources with sample security
   plans available. Example: AIG Aviation, Inc.’s Security Plan.

E. Develop and implement an accident response plan. Again there are valuable resources
   available to help you with this process. Example: USAIG’s Corporate Aircraft Accident
   Response Plan is an excellent template to use in getting started.




                                                                                                       37
          AVIATION INSURANCE

                                      Page 3 of 3

F. Details. Quantify all the things you do that make your operation superior. Standard
   Operating Procedures, training to supplement the manufacturer’s programs,
   personal minimums, documented Safety and Security programs, etc. Complete all
   applications and forms timely, completely and truthfully. Even though there are few
   line-item credits in aviation insurance, you should provide Blais Aviation Insurance
   Services (your broker) with as much “ammunition” as possible about your aircraft
   and flight operations. This will help your account stand out from the sea of
   submissions most underwriters have on their desks every day.

G. Review and evaluate your coverage regularly and thoroughly. Perhaps the value of
   the airplane has dropped in recent years but the insured value has not been
   properly adjusted. Operations change constantly so maybe there is coverage you
   didn't need last year that you should have this year. Consult with Blais Aviation
   Insurance Services (your broker) regularly, that’s why we’re here!


                                                                                          38
      AVIATION INSURANCE

     What’s the deal with single-pilot operations?

              Single-pilot operations are possible;
    however,underwriters are less willing to extend high
liability limits, offer preferred rates and will flat out require
two-pilot operations in some circumstances. The industry
  is also attempting to address the upcoming proliferation
  of “microjets” that will open up high-performance, flight-
             level operations to many owner-pilots.

                                                                39
       AVIATION INSURANCE

  Should we carry war insurance or TRIA insurance or both?


 The subject of war insurance and the expanded terrorism coverage
available under the Terrorism Risk Insurance Act (TRIA) of 2002 can
be confusing. Please visit with Blais Aviation Insurance Services and
  ask for more information about War coverage and read our article
           about the Terrorism Risk Insurance Act of 2002.




                                                                    40
        AVIATION INSURANCE

                        Who may use our airplane?
                              Page 1 of 2

 This question is often addressed in the context of cost reimbursement. That
is, how much can be charged for the use of the airplane before running afoul
    of the insurance policy and/or the FARs. The short answer is, you can’t
  charge anything for the use of the airplane and “charge” doesn’t just mean
 cash payments. Aircraft insurance policies are designed for “your” use. The
   “your” is the Named Insured. Therefore the Named Insured can use the
  airplane for its pleasure and business. For example, ABC Company owns
the airplane and utilizes it to transport ABC employees to conventions, move
parts between plants, send ABC executives to meetings or bring ABC clients
                         to visit company headquarters.




                                                                           41
        AVIATION INSURANCE

                             Page 2 of 2

      Problems arise when XYZ Company, whose jet is down for
  maintenance, wants to be able to use the ABC Company plane for
 supplemental lift. Or when ABC Company’s CEO has a buddy who
 wants to use the plane for a trip to the Bahamas. Or ABC Company
   makes widgets and the CEO is John Smith. John Smith owns an
 airplane under John Smith, LLC and he utilizes the airplane both for
his family travel and also allows ABC Company personnel to utilize it,
 as needed. These alternative uses should be orchestrated with the
 help of an aviation attorney, your tax advisor and your broker so the
  insurance company can properly address any cost reimbursement
              that may fall outside the policy parameters.

                                                                     42
         AVIATION INSURANCE
                             Can pilots be sued?

 Absolutely. For example, in the aftermath of an accident, the policyholder is
sued for negligence as the owner of the aircraft. Meanwhile, a lawsuit naming
     the pilot personally for negligence is also filed. The insurance carrier’s
   obligation is to defend and take care of the policyholder. If the pilot is an
employee of the policyholder or has been specifically added as an additional
 insured, the insurance carrier will defend the additional lawsuit for the pilot.
 (Remember the liability limit is shared by all parties; it is not a per person or
per lawsuit occurrence limit!) If the pilot is an independent contractor and has
 not been added to the policy as an insured, the pilot will have to defend that
    lawsuit “solo.” Remember, it is possible to be an approved pilot but not
 necessarily a covered pilot. The fact that you are an approved pilot, whether
 by name in the policy or by meeting the policy’s open pilot warranty, simply
  means that if there is a loss while you are at the controls, coverage will still
                          be in place for the policyholder.


                                                                                 43
        AVIATION INSURANCE
How is a pilot who is injured (or worse) compensated
                 after an accident?

  It depends. If the pilot is an employee of the policyholder, workers
 compensation coverage should apply. Independent contractor pilots
should still have their own workers compensation coverage, in theory.
Absent workers compensation, perhaps there is major medical or life
  insurance to fall back on. Workers compensation laws usually bar
 employees from suing their employers. If however the pilot is not an
  employee, he or she could potentially sue the policyholder just like
any other passenger! This is a big reason why underwriters prefer the
                     regular use of employee pilots.

                                                                     44
         AVIATION INSURANCE
    What is a Broker of Record Letter (or Agent of Record Letter) and what does it do?

                                      Page 1 of 3

Insurance companies rely on insurance brokers to bring account
submissions to them for evaluation. There are only a few aviation insurance
companies, each with limited staff, and they do not want to tie up their
underwriters by quoting the same risk to several different brokers.
Therefore, each will recognize only one broker on any given risk on a first-
come, first-serve basis. The first broker who presents a submission to an
aviation insurance underwriter is the official "broker (or agent) of record."
The insurance carrier assumes this person was your first choice since they
contacted them first. The choice of broker belongs entirely to the customer,
so the broker can be later changed if that is the wish of the customer. Enter
the Broker of Record Letter. It is a serious document that accomplishes the
following:


                                                                                         45
          AVIATION INSURANCE
                                        Page 2 of 3

A. Terminates the relationship between you and the current broker and suspends the
   current broker's ability to negotiate on your behalf with the insurance company.

B. Affirms the appointment of a new broker, giving that broker the sole ability to
   negotiate with the insurance company for you, and grants access to any
   underwriting information or proposals that are currently "on the table." (Without a
   significant change in the basic underwriting information, if the insurance company
   has already made a firm commitment to the first broker to either decline or provide
   a quote, the new broker usually "inherits" that decision – whether it be a
   declination or a specific premium proposal.)

C. Provides a relief mechanism, expressed in terms of a specified number of days
   "waiting period," to allow full disclosure of the letter to all parties involved, thereby
   granting the former broker the opportunity to review the implications of the letter
   with you and to confirm your desire to change brokers.


                                                                                               46
      AVIATION INSURANCE

                       Page 3 of 3

   Be certain you understand the ramifications of this
  document. Have your broker explain its intent to you
 before you sign it! You are best served by selecting, up
front, one competent aviation insurance broker who has
access to all the markets and will consult with you on the
                    resulting proposals.


                                                             47
    AVIATION INSURANCE

 How can I get the lowest available rate on my insurance?

                        Page 1 of 5


    This is one of the most common questions in our
  business. Everyone wants the best coverage at the
   lowest rate, so we would like to share with you the
following tips that may help you lower your premium at
                    your next renewal.

                                                            48
          AVIATION INSURANCE
         How can I get the lowest available rate on my insurance?
                                       Page 2 of 5


                                     Annual Training
Annual recurrent training is usually required for higher limits of liability, pressurized
aircraft or turbine-powered aircraft. Some insurance underwriters even offer lower
rates or better coverage for pilots who take annual recurrent training. Ideally, this
consists of a manufacturer-recommended program that includes ground and flight
training. For single-engine and light twin-engine aircraft, an annual Flight Review and
Instrument Proficiency Check in the aircraft are usually acceptable if the flight
instructor meets the policy’s Open Pilot Warranty. This is usually the best choice when
manufacturer-recommended programs are not available and they can be coupled with
the FAA WINGS or SEAWINGS program, which is highly recommended as well. Also,
underwriters often require an annual FAA medical exam for pilots over 65 years of
age.


                                                                                            49
       AVIATION INSURANCE
      How can I get the lowest available rate on my insurance?
                             Page 3 of 5


              Association Memberships

Some aviation ownership clubs and advocacy groups, such as
the AOPA and EAA, have special insurance programs that can
provide a discount for their members. Blais Aviation Insurance
Services has access to these programs, so you can continue to
do business with the agent you trust knowing that you don’t
have to change agents to get the best price. We can apply for
these discounts on your behalf, so make sure your membership
is current and that we are aware of your membership numbers
for associations like these.

                                                                 50
          AVIATION INSURANCE
                 How can I get the lowest available rate on my insurance?
                                       Page 4 of 5

                            Pilot Ratings and Experience

Most underwriters agree that experience is the best teacher. One of the biggest
challenges in aviation insurance is finding affordable coverage for pilots transitioning
into more advanced aircraft. NTSB accident reports have shown the underwriters
which groups of pilots are the most at-risk, and they structure their rates accordingly.
For that reason, rates are higher for pilots with fewer than 1000 total logged hours or
those with fewer than 50 hours logged in the model of aircraft they will be insuring. An
IFR rating is highly recommended and often required for aircraft that have a "glass
cockpit" avionics, retractable landing gear or more than four seats. Also, be sure you
have logged at least 25 flight hours in the last 12 months, or you may be required to
get additional recurrent training. When transitioning to a more advanced aircraft,
understand that the first year of insurance may be more expensive, but if you commit
to an aggressive training and time-building program your renewal rate could drop
substantially.


                                                                                           51
            AVIATION INSURANCE
      How can I get the lowest available rate on my insurance?
                            Page 5 of 5
                                Commercial Aircraft

Commercial and corporate aviation faces a different challenge. Corporate turbine pilots usually
already have either a Commercial or ATP certificate and the appropriate ratings. Your choice of
training facilities can affect your premium and your overall cost of ownership. Well-known, full-
motion simulator training centers like Flight Safety International, SimCom and CAE Simuflite are
accepted by virtually all the underwriting companies. There are also lower-cost, in-aircraft training
options with which we are well acquainted, but not all underwriting companies accept every in-
aircraft training program. Because training and insurance go hand-in-hand, we can help you
compare the total cost involved so you can make the an informed decision about your insurance
and training options. Lowering your total cost of ownership is one of the ways Blais Aviation
Insurance Services makes corporate aviation more efficient and profitable.




                                                                                                        52
         AVIATION INSURANCE
                           Who Can Pilot My Aircraft?
                Pilot Requirements and the Open Pilot Warranty

                                   Page 1 of 9

We often get questions from our insured's regarding the Open Pilot Warranty
 (sometimes referred to as Open Pilot Clause) on their quote or policy. The
    Open Pilot Warranty (OPW) in your aircraft policy lets you know who is
   allowed to fly your aircraft in addition to the named pilots. The hours and
ratings listed under the Open Pilot Warranty do not reflect any of the named
    pilots. It simply states, if any pilot who meets or exceeds the following
    requirements, and is flying the aircraft with your (the named insured's)
permission, and within the scope of the policy, then you have coverage. That
  individual pilot may not have coverage, and in many cases should have a
    non-owned policy to cover his individual liability, but your liability is still
                                      protected.


                                                                                  53
      AVIATION INSURANCE
                 Who Can Pilot My Aircraft?
      Pilot Requirements and the Open Pilot Warranty

                       Page 2 of 9

A typical Open Pilot Warranty on a fixed gear, 180 horse
               power, aircraft might read:

Any Pilot, holding an FAA Private Pilot or more advanced
certificate, having a minimum of 300 Total Logged Flying
Hours, including 10 hours in the insured make and model
                          aircraft.

                                                           54
      AVIATION INSURANCE
                 Who Can Pilot My Aircraft?
      Pilot Requirements and the Open Pilot Warranty

                       Page 3 of 9

  This basically says that if a pilot has at least a
private pilot certificate with 300 hours total logged
 time, including 10 hours in that particular model
of aircraft, (i.e. Cessna 172, PA-28-180) than the
named insured is covered while that pilot is using
the aircraft within the scope of the policy and with
               the insured's permission.
                                                       55
        AVIATION INSURANCE
                         Who Can Pilot My Aircraft?
              Pilot Requirements and the Open Pilot Warranty

                               Page 4 of 9

     The OPW for a complex aircraft may require commercial, and
    instrument ratings, with a higher number of hours. Multi-Engine
  aircraft will usually require a multi-engine rating for their OPW, and
some aircraft may require a type rating, and make and model ground
  and flight school. Many larger aircraft will require make and model
  school in the last 12 months. As you can see, the OPW will greatly
   vary for different aircraft. Some policies with various aircraft and
situations may have a Named Pilot Only requirement, stating that you
           are only covered if the pilot is named to your policy.



                                                                       56
      AVIATION INSURANCE
                   Who Can Pilot My Aircraft?
        Pilot Requirements and the Open Pilot Warranty

                         Page 5 of 9


 What if someone who is going to be flying your aircraft
  does not meet the requirements of the OPW? You will
have to submit their pilot information to your company to
see if they will qualify to be added as a named pilot. The
"Catch-22" of this situation is that the companies do not
 like to add too many pilots to the policy. Many prefer to
            keep it at four pilots for an aircraft.

                                                             57
      AVIATION INSURANCE
                 Who Can Pilot My Aircraft?
      Pilot Requirements and the Open Pilot Warranty

                        Page 6 of 9

   The rule-of-thumb for any aircraft policy is that you
  usually want to name the pilots who will be flying your
  aircraft on a regular basis. If it were a very occasional
       use, then perhaps they would meet the OPW
requirements. At the same time, be sure that you are not
    adding more pilots than your company would feel
                     comfortable with.
                                                              58
        AVIATION INSURANCE
                      Who Can Pilot My Aircraft?
           Pilot Requirements and the Open Pilot Warranty

                            Page 7 of 9

  A very important point to remember is that even though a
 pilot may meet the requirements of your OPW, a Pleasure
and Business policy does not allow you to make a charge for
  the use your aircraft. If there is a loss and it is discovered
that the pilot was giving some sort of fee or remuneration for
using your aircraft, coverage could be in jeopardy. If you are
   ever in doubt, call Blais Aviation Insurance Services for
           verification of what your policy will cover.

                                                             59
     AVIATION INSURANCE
                   Who Can Pilot My Aircraft?
        Pilot Requirements and the Open Pilot Warranty

                         Page 8 of 9

Some insurers issue broadening endorsements on their
     policies for preferred insured, which allow for a
suspension of the Open Pilot Requirements to allow any
pilot in the employ of an FAA Certified Repair Station to
    operate the aircraft in conjunction with repairs or
   maintenance. The Key here is FAA Certified Repair
 Station. If your shop were not an FAA Certified Repair
        Station then this provision would not apply.

                                                            60
       AVIATION INSURANCE
                  Who Can Pilot My Aircraft?
       Pilot Requirements and the Open Pilot Warranty

                         Page 9 of 9


To summarize, always make sure that any pilot, who may
fly your aircraft is either named to the policy, or meets the
requirements of the Open Pilot Warranty. Also, make sure
  that they are using the aircraft in accordance with your
    policy's terms. If they do not, there is a good chance
                coverage could be in jeopardy.
                                                            61
AVIATION INSURANCE

  WHO ARE THE AVIATION MARKETS THAT
 BLAIS AVIATION INSURANCE REPRESENT?

            ACE USA (Formerly CIGNA)
                 AIG Aviation Inc.
            Phoenix Aviation Managers
        London Aviation Underwriters Inc.
United States Aircraft Insurance Group Inc. (USAIG)
          Aerospace Insurance Managers
          The Travelers Insurance Group
            W. Brown & Associates Inc.
US Specialty Insurance Co. (Formerly HCC Aviation)
                 Global Aerospace
                C.V. Starr & Co., Inc.
                                                      62
          AVIATION INSURANCE
                           AVIATION MARKETS

  Blais Aviation Insurance Services is proud to represent all the following major
insurance markets. Our long term contracts and personal relationships enable us
               to secure the best coverage for your premium dollar.




                   Aerospace Insurance Managers
                              Dallas, TX
                          aerospaceim.com
                                                                              63
          AVIATION INSURANCE
                           AVIATION MARKETS

  Blais Aviation Insurance Services is proud to represent all the following major
insurance markets. Our long term contracts and personal relationships enable us
               to secure the best coverage for your premium dollar.




                  American International Group (AIG)
                          Atlanta, GA/Dallas, TX
                             aigaviation.com

                                                                              64
          AVIATION INSURANCE
                           AVIATION MARKETS

  Blais Aviation Insurance Services is proud to represent all the following major
insurance markets. Our long term contracts and personal relationships enable us
               to secure the best coverage for your premium dollar.




                        Global Aerospace (AAU)
                         Kansas City, MO/Dallas, TX
                             global-aero.com
                                                                              65
          AVIATION INSURANCE
                           AVIATION MARKETS

  Blais Aviation Insurance Services is proud to represent all the following major
insurance markets. Our long term contracts and personal relationships enable us
               to secure the best coverage for your premium dollar.




                      London Aviation Underwriters
                                Seattle, WA
                            londonaviation.net

                                                                              66
          AVIATION INSURANCE
                           AVIATION MARKETS

  Blais Aviation Insurance Services is proud to represent all the following major
insurance markets. Our long term contracts and personal relationships enable us
               to secure the best coverage for your premium dollar.




                    National Hangar Insurance Program/
                       The Travelers Insurance Group
                                   Tulsa, OK
                               coveragefirst.com


                                                                              67
          AVIATION INSURANCE
                           AVIATION MARKETS

  Blais Aviation Insurance Services is proud to represent all the following major
insurance markets. Our long term contracts and personal relationships enable us
               to secure the best coverage for your premium dollar.




                      Phoenix Aviation Managers
                          Atlanta, GA/Dallas, TX
                        phoenixaviationmgrs.com                               68
          AVIATION INSURANCE
                           AVIATION MARKETS

  Blais Aviation Insurance Services is proud to represent all the following major
insurance markets. Our long term contracts and personal relationships enable us
               to secure the best coverage for your premium dollar.




           United States Aircraft Insurance Group (USAIG)
                        New York, NY/St. Louis, MO
                               usau.com

                                                                              69
          AVIATION INSURANCE
                           AVIATION MARKETS

  Blais Aviation Insurance Services is proud to represent all the following major
insurance markets. Our long term contracts and personal relationships enable us
               to secure the best coverage for your premium dollar.




                 U.S. Specialty Insurance Company
                              Dallas, TX
                          ussicaviation.com
                                                                              70
          AVIATION INSURANCE
                           AVIATION MARKETS

  Blais Aviation Insurance Services is proud to represent all the following major
insurance markets. Our long term contracts and personal relationships enable us
               to secure the best coverage for your premium dollar.




                         W. Brown & Associates
                       Newport Beach, CA/Memphis, TN
                                wbais.com
                                                                              71
      AVIATION INSURANCE
                       Glossary
        Aviation Insurance / Aircraft Insurance

Additional Insured - a person or persons other
than the original named insured, who are protected
under the terms of a policy.

Aircraft Liability Insurance - protects insureds
from claims by other parties ("third parties") for
bodily injury or death and property damage. The
claim has to result from an occurrence related to the
operation of the aircraft.

                                                        72
        AVIATION INSURANCE
                            Glossary
             Aviation Insurance / Aircraft Insurance

Guest Voluntary Settlement - also known as admitted liability,
provides coverage to a passenger who suffers certain forms of
bodily injury whereby a settlement is offered on a predetermined
basis in exchange for a release of liability.

Hull Insurance - coverage for physical damage done to the
aircraft. It is not liability coverage and is therefore triggered by a
covered event, regardless of the reason for the damage or loss.




                                                                         73
      AVIATION INSURANCE
                       Glossary
        Aviation Insurance / Aircraft Insurance

Industrial Aid - refers to corporate-owned aircraft
that are used for the transportation of executives,
employees, customers and guests, and which are
flown by full-time professional pilots.

Medical Payments - coverage that pays medical,
surgical, hospital and funeral expenses up to the
applicable limit, regardless of the liability of the
insured.

                                                       74
       AVIATION INSURANCE
                                 Glossary
                  Aviation Insurance / Aircraft Insurance

Named Insured - the actual policyholder who is specifically named
on the policy. Named insureds are responsible for premium payment,
have the authority to cancel or make changes to a policy, will have a
say in the claims process, and are included on any claim checks that
are issued.

Open Pilot Warranty - a clause in the policy that will state the
minimum qualifications for a pilot to meet who has not been previously
listed by name on the policy as a pilot. A pilot who is named on the
policy or who "meets the open" simply affirms to the named insured
that the pilot's legal and proper use of the aircraft will not void the
named insured's coverage. It does not necessarily mean that the
named pilot will be covered under the liability protection of the policy.


                                                                        75
       AVIATION INSURANCE
                           Glossary
            Aviation Insurance / Aircraft Insurance

Pleasure & Business - refers to aircraft that are owned and/or
operated by pilots who are not employed as full-time
professional pilots.

Smooth Limit - a limit of liability that offers a combined
single limit of coverage that applies to all bodily injury and
property damage claims. A specified maximum amount can be
paid out from a covered occurrence in any combination -
passenger bodily injury, other person's bodily injury or
property damage.



                                                                 76
       AVIATION INSURANCE
                           Glossary
            Aviation Insurance / Aircraft Insurance

Sub-Limit - usually a combined single limit of coverage that
applies to all bodily injury and property damage claims,
however, a reduced amount of coverage from the single limit is
available to pay for claims resulting from bodily injury.

Subrogation - a doctrine that gives an insurance company
the right to attempt to recoup some or all of the money they
have paid on behalf of the insured. They do this by proving that
another party was legally responsible for the loss and that the
party has the financial ability to reimburse the insurance
company.


                                                                   77
                       AVIATION FACTS

                             Number of U.S. Airports ¹
                               (As of December 31)

                                                2005       2004         2003
Total Airports.............................…   19,854     19,820        19,581
Public Use Airports.................…           5,270      5,288         5,286
# with Paved Runways....…                       3,942      3,941         3,938
# with Unpaved Runways.…                        1,328      1,347         1,348
# with Lighted Runways....…                     4,045      4,037         4,026
# with Unlighted Runways…                       1,225      1,251         1,260
Private Use Airports...............…           14,584     14,532        14,295r
# with Paved Runways.....…                       4,836      4,771         4,678
# with Unpaved Runways…                          9,748      9,761         9,617
# with Lighted Runways...…                       1,346      1,301         1,223
# with Unlighted Runways..                     13,238     13,231        13,072
Public use airports abandoned…                      14         10            19
Private use airports abandoned.                    115        117           214
Certificated Airports*...............…             575        599           628

¹ Includes civil and joint-use civil-military airports, heliports, STOLports, and
                 seaplane bases in the U.S. and its territories.
* Certificated airports serve Air Carrier Operations with aircraft seating more
                   than 9 passengers seats. (FAR Part 139).
                                     r revised
                    Source: AAS-330 As of: 03/15/06


                                                                                    78
AVIATION FACTS

       THE TEXAS SYSTEM OF AIRPORTS


         Commercial Service Airport

                  Red Stars


           General Aviation Airport

                  Blue Dots




                                      79
                 AVIATION FACTS
                 ACTIVE CERTIFICATED PILOTS 2005
                          TOTAL               %              WOMEN                 %

Pilot Certificates       609,737            100%              37,243              100%

     Student              87,213             14%               9,857              26%

     Private             245,020             40%              15,036              40%

   Commercial            132,551             22%               7,421              20%

       ATP               144,535             24%               4,908              13%

     Other *              29,686              5%                 21               0%

             •Includes helicopter (only). Glider (only) and recreational pilots
                Source: FAA Administrator’s Fact Book (November 2005)

                                                                                         80
                     AVIATION FACTS
                      ACTIVE CERTIFICATED PILOTS 2005
                               TOTAL                        %                     WOMEN                            %

 Non – Pilot                   515,293                    100%                       18,666                      100%
Certificates **
   Mechanic                    317,111                     62%                       5,932                        32%

   Repairmen                    39,231                      8%                       2,039                        11%

Ground Instructor               73,735                     14%                       5,500                        29%

 Flight Engineer                59,736                     12%                       2,007                        11%

    Other ***                   25,840                      5%                       3,188                        17%

     ** Excludes non pilots 70 years old or older in all certificate types except flight engineers and flight navigators
                            *** Includes flight navigators, parachute riggers and dispatchers
                                 Source: FAA Administrator’s Fact Book (November 2005)


                                                                                                                           81
               AVIATION FACTS
                 ACTIVE CIVIL AIRCRAFT 2005

                    TOTAL                         %               %
Total Aircraft        239,162                   100%              100%

    Piston            166,064                    69%

  Turboprop            10,681                    4%

   Turbojet            17,985                    8%

  Rotorcraft            9,556                    4%

    Other              27,150                    11%
                                     Source
                  FAA Administrator’s Fact Book (November 2005)
                 FAA Aerospace Forecasts Fiscal years 2005-2016          82
                  AVIATION FACTS
                       ACTIVE CIVIL AIRCRAFT 2005
                             TOTAL                       %               %
   GA Aircraft                  219,780                 100%             92%

Piston, Single Engine           144,530                 66%

Piston, Multi-Engine            17,480                   8%

     Turboprop                   8,030                   4%

      Turbojet                   8,628                   4%

     Rotorcraft                  7,595                   3%

    Experimental                22,300                  10%

       Other                     6,027                   3%

                                           Source
                        FAA Administrator’s Fact Book (November 2005)
                        FAA Aerospace Forecasts Fiscal years 2005-2016

                                                                               83
                  AVIATION FACTS

                   ACTIVE CIVIL AIRCRAFT 2005
                            TOTAL                       %               %
Air Carrier Aircraft           19,382                  100%             8%

       Piston                   4,269                  22%

     Turboprop                  3,281                  17%

      Turbojet                  9,235                  48%

     Rotorcraft                 2,571                  13%

                                           Source
                        FAA Administrator’s Fact Book (November 2005)
                       FAA Aerospace Forecasts Fiscal years 2005-2016




                                                                             84
                                                    AVIATION FACTS
                                                  US AIRPORTS 2003/2004
                                                                                     TOTAL                                %

Aircraft Landing Facilities                                                          19,842                             100%

Airports                                                                             13,817                              70%
Heliports                                                                             5,436                              27%
STOL ports                                                                             88                                 0%
Seaplane bases                                                                         501                                3%
Publicly Owned                                                                        5,130                              26%
Privately Owned                                                                      14,715                              74%
Public Use                                                                            5,288                              27%
Private Use                                                                          14,532                              73%
Airline Served (2003)                                                                  633                                3%
Regionally Served (2004)                                                               748                                4%

Longest Runway                                                                       19,842                             100%

Less than 3,000 Ft.                                                                  13,726                              69%
Between 3,000 ft. and 5,999 ft.                                                       5,045                              25%
Between 6,000 ft. and 9,999 ft.                                                        802                                4%
10,000 ft. or more                                                                     269                                1%

Landing Facilities Abandoned                                                           127                              100%

Public Use                                                                             10                                 8%
Private Use                                                                            117                               92%
Source: FAA – Regional Airline Associates Notes: * Certificated airports serve Air Carrier Operations with aircraft seating more than 30
passengers (FAR Part 139 ** total airports receiving scheduled service (as per RAA)
                                                                                                                                           85
                             AVIATION FACTS

                TEN BUSIEST AIRPORTS (FY) 2005
                                           TOTAL            GA
                                         OPERATIONS     OPERATIONS
AIRPORT
Atlanta Int’l                                 984,390      11030
Chicago O’Hare Int’l                          980,372     25,312
Dallas Fort worth Int’l                       739,517      8,520
Los Angeles International                     653,534     14,297
Las Vegas/McCarran Int’l                      605,493     67,612
Washington Dulles                             588,712     75,118
Denver International                          566,036      9,592
Phoenix Sky Harbor Int’l                      559,887     40,945
Houston Bush Intercont’l                      552,353     17,124
Minneapolis St. Paul Int’l                    543,784     32,304
                                Source: FAA                          86
                   AVIATION FACTS

                       AVIATION ABBREVIATIONS
The following abbreviations are found in aviation insurance applications,
policies, aircraft advertisements, manuals and pilot operating handbooks.

                       Insurance abbreviations
                             Page 1 of 11

                   AMES – Aircraft multi engine, sea
                  ASES – Aircraft single engine, sea
                      ATP – Airline Transport Pilot
                     BFR – Biannual flight review
                        C – Commercial license
                    CFI – Certified flight instructor
              CFII – Certified flight instructor, instrument
            Conv - Conventional landing gear with tail wheel
             Dual – training given by a qualified instructor
                                                                            87
                  AVIATION FACTS

                       AVIATION ABBREVIATIONS
The following abbreviations are found in aviation insurance applications,
policies, aircraft advertisements, manuals and pilot operating handbooks.

                       Insurance abbreviations
                             Page 2 of 11

                 Fixed – non-retractable landing gear
                 Fixed tri – Fixed tri-cycle landing gear
                            FR – Flight review
                       G & F – ground and flight
                     GNIM – ground not in motion
                      GNIF – Ground not in flight
                        G & T – Ground and taxi
                     Heli – helicopter or rotor wing
                                Hr - Hours

                                                                        88
                   AVIATION FACTS

                       AVIATION ABBREVIATIONS
The following abbreviations are found in aviation insurance applications,
policies, aircraft advertisements, manuals and pilot operating handbooks.

                       Insurance abbreviations
                             Page 3 of 11

                            I – Instrument rated
                          IFR – Instrument rated
                   ICC – Instrument competency check
                    IPC – Instrument proficiency check
                              M – multi engine
                        Med – medical payments
                      Med pay – medical payments
                             ME – Multi engine
                         MEL – Multi engine land
                       MEI – Multi engine instructor
                          MM – Make and model
                        M & M – Make and model
                                                                            89
                    AVIATION FACTS


                       AVIATION ABBREVIATIONS
The following abbreviations are found in aviation insurance applications,
policies, aircraft advertisements, manuals and pilot operating handbooks.

                        Insurance abbreviations
                              Page 4 of 11

                           OPW – Open pilot warranty
                               P – Private license
                               Pax - Passengers
                             PIC - Pilot in command
                             RG – Retractable gear
                         Rotor – Helicopter or rotorcraft
                                RW – Rotor wing
                               SE – Single engine
                            SEL – Single engine land
                            SES – Single engine sea
                           SIC – Second in command
                Solo – no passengers or flight instructor in aircraft       90
                   AVIATION FACTS


                       AVIATION ABBREVIATIONS
The following abbreviations are found in aviation insurance applications,
policies, aircraft advertisements, manuals and pilot operating handbooks.

                       Insurance abbreviations
                             Page 5 of 11

                            TO – Take off
                    TO & L – Take off and landings
                            TRI – Tri-gear
                           TW – Tailwheel
                           TT – Total time
                       TTL – Total time logged


                                                                            91
       AVIATION FACTS



         AIRCRAFT ABBREVIATION
              Page 6 OF 11

0SFRM - zero time since a factory remanufacture
0SMOH - Zero time since major engine overhaul
           FWF - Firewall forward
         MDH - major damage history
          NDH - No damage history




                                                  92
              AVIATION FACTS



                AIRCRAFT ABBREVIATION
                     Page 7 OF 11

     SCMOH - Since chrome cylinder major overhaul
           SFRM - Since factory remanufacture
           SMOH - Since major engine overhaul
   SOH - since engine overhaul (not necessarily a major)
               SPOH - Since prop overhaul
STOH - Since top overhaul (pistons, cylinders and valve train)




                                                                 93
           AVIATION FACTS


             AIRCRAFT ABBREVIATION
                   Page 8 of 11

TBO - Time between overhauls (factory recommendations)
                      TT - Total time
            TTA - Total time on the airframe
      TTAE - Total time on the airframe and engine
             TTE - Total time on the engine
              TTSN - Total time since new




                                                         94
                   AVIATION FACTS


AIRCRAFT PERFORMANCE AND SPECIFICATION ABBREVIATIONS
                    Page 9 of 11

     Amp - Amperage of the alternator (electrical system rating)
                             Alt - Alternator
                          AOC - Angle of climb
 C/S - Constant speed (governed speed, adjustable pitch) propeller
            Cu. In. - Cubic inches displacement of engines
Fixed tri gear - non retractable tricycle landing gear with a nose wheel
              F/P - Fixed pitch (non adjustable) propeller
            FPM - Feet per minute (usually regarding climb)




                                                                           95
                       AVIATION FACTS


   AIRCRAFT PERFORMANCE AND SPECIFICATION ABBREVIATIONS
                      Page 10 of 11


                              Gen - Generator
                GPH - Gallons per hour MPH - Miles per hour
                         HP - Horsepower of engine
KTS - Knots (1 knot = 1.151 statue miles per hour, or 1852 kilometers per hour)
                            L/R - Long-range fuel
                 NM - Nautical mile = approximately 6,080 ft.
                         Oct. - Octane rating of fuel.




                                                                            96
                  AVIATION FACTS


AIRCRAFT PERFORMANCE AND SPECIFICATION ABBREVIATIONS
                    Page 11 of 11


        PSI - Pounds per square inch (tire and strut pressure)
  Ret. tri gear - Retractable tricycle landing gear with a nose wheel
                          ROC - Rate of climb
                      SM - Statue mile = 5,280 ft.
               Sq. Ft. - Square feet regarding wing area.
                           STD - Standard fuel
                                 V – Volts
                           Vis - Viscosity of oil




                                                                        97
AVIATION INSURANCE

   BLAIS AVIATION INSURANCE SERVICES
         PROVIDES COVERAGE FOR

                Page 1 of 9

          Pleasure and Business Aircraft
                Commercial Aircraft
     Non-Owned Liability (included Non-Owned
             Aircraft Liability Damage)
                  Airport Liability
               Fixed Base Operator
                 Hangar Coverage
                   Flight School
                      Warbirds



                                               98
AVIATION INSURANCE
   BLAIS AVIATION INSURANCE SERVICES
         PROVIDES COVERAGE FOR

                Page 2 of 9

     Experimental and Home-built Aircraft
                        Charter
                      Flying Clubs
                      Sales Demo
                     Industrial Aid
                      Helicopters
                    Transition Pilots
                    Banner Towing
                  Instruction - Rental
                      Sightseeing
            *All Aviation Insurance Needs




                                            99
    AVIATION INSURANCE
      BLAIS AVIATION INSURANCE SERVICES
                     Page 3 of 9

Blais Aviation Insurance Services is considered one of
the world’s leading general aviation insurance brokers.
  We provide top quality insurance for all areas of the
   general aviation sector. We can meet the varying
    insurance needs of all types of general aviation
    operations, from private pilots and corporate jet
  operators, to fixed based operators and owners and
    operators of maintenance facilities and airfields.


                                                          100
   AVIATION INSURANCE

     BLAIS AVIATION INSURANCE SERVICES
                   Page 4 of 9

  Our objective is to provide the very best service
combined with good value to our clients. This begins
 with the first request for a quote and is maintained
 across every facet of our relationship, from simple
policy amendments to renewals and claims handling.


                                                        101
   AVIATION INSURANCE
           BLAIS AVIATION INSURANCE SERVICES
                        Page 5 of 9

 Blais Aviation Insurance Services is equipped to handle all
 types of loss from propeller strikes to major incidents, from
hangar keepers' liability claims to third party property damage
                             claims.
  Our experienced specialist underwriting team will provide
    advice and tailor the policy to cater for each individual
policyholder's requirements. Together with our other forms of
 support we are able to offer a level of service unsurpassed
         anywhere in the aviation insurance market.



                                                                  102
   AVIATION INSURANCE
       BLAIS AVIATION INSURANCE SERVICES
                    Page 6 of 9


We cover every sector of general aviation including:

     Corporate aircraft
     Helicopters
     Charter and business aircraft
     Managed and fractional aircraft
     Airports and heliports
     Aircraft financial institutions
     Component manufacturers


                                                       103
    AVIATION INSURANCE
               BLAIS AVIATION INSURANCE SERVICES
                            Page 7 of 9


     Blais Aviation Insurance Services provides automated
    underwriting service for single-engine and specialty (kit)
recreational and non-commercial aircraft across the US. On-line
  quotes are be available to select brokers and agents via the
                             Internet.
We offer substantial limits for physical damage, third party and
 passenger liability coverage within our product range which
 includes: hull all risks, hull war, liabilities to passengers and
third parties, cargo liability, aviation products liability, airports,
    hangar keepers, premises, spares and also loss of use
                             insurance.


                                                                         104
    AVIATION INSURANCE
               BLAIS AVIATION INSURANCE SERVICES
                            Page 8 of 9
                The light aircraft insurance solution

 Blais Aviation Insurance Services operates a centralized dedicated
office in Dallas, Texas to meet the insurance needs of pleasure and
business aircraft across the US. The Pleasure and Business Aircraft
 Operations Unit (PBO) takes pride in its customer friendly service,
          which is based on the following simple objectives:

    To simplify placement of your pleasure and business accounts
To deliver a product targeted at the buyer’s needs at a competitive price
  To provide same day quotes and policies with automated systems.




                                                                            105
  AVIATION INSURANCE
       BLAIS AVIATION INSURANCE SERVICES
                    Page 9 of 9
       The light aircraft insurance solution

  The unit underwrites light aircraft of all types including:
Pleasure & business aircraft: owner-operated piston engine
powered airplanes used for pleasure (recreation) and private
          business (non-commercial) purposes.

Specialty aircraft: including (kit) aircraft produced by Van’s,
   Zenith/Zenair, Murphy, Skystar and Europa aircraft.


                                                                  106
AVIATION INSURANCE




    Blais Aviation Insurance Services
            Corporate Aircraft
             Pilot: Philip Blais
                                        107
AVIATION INSURANCE




    Blais Aviation Insurance Services
            Corporate Aircraft
             Pilot: Philip Blais
                                        108
AVIATION INSURANCE
    BLAIS AVIATION INSURANCE SERVICES




     Blais Aviation Insurance Services
             Corporate Aircraft
              Pilot: Philip Blais




                                         109
AVIATION INSURANCE
    BLAIS AVIATION INSURANCE SERVICES




                                        110
AVIATION INSURANCE
    BLAIS AVIATION INSURANCE SERVICES




                                        111
AVIATION INSURANCE
    BLAIS AVIATION INSURANCE SERVICES




                                        112
AVIATION INSURANCE
    BLAIS AVIATION INSURANCE SERVICES




                                        113
AVIATION INSURANCE
    BLAIS AVIATION INSURANCE SERVICES




                                        114
AVIATION INSURANCE
    BLAIS AVIATION INSURANCE SERVICES




                                        115
AVIATION INSURANCE
    BLAIS AVIATION INSURANCE SERVICES




                                        116
AVIATION INSURANCE
    BLAIS AVIATION INSURANCE SERVICES




                                        117
AVIATION INSURANCE
    BLAIS AVIATION INSURANCE SERVICES




                                        118
                  BLAIS AVIATION
               INSURANCE SERVICES

            A leading expert in the design, placement
        and service of aviation related insurance products.

              TOP 3 VALUES DELIVERED BY BLAIS

   Technical expertise on coverage, limits, and industry trends.

   Service through out policy term including but not limited to claims
    support, client coverage updates and timely information pertaining to
    Aviation Insurance.

   Senior level market relationships that enable Blais to quickly deliver
    the most comprehensive and competitive programs available in the
    market.


                                                                             119
              BLAIS AVIATION
           INSURANCE SERVICES

                        WHO WE ARE
Blais Aviation Insurance Services operates as a wholesale and retail
facility throughout the United States and specializes in aviation
insurance.

Blais Aviation Insurance Services provides expert services for all general
aviation and specialty aircraft insurance requirements. Our staff of
professionals has broad experience in aviation insurance that is
supported by market relationships and resources to provide the best
insurance programs for our clients.

Blais Aviation Insurance Services is a wholly owned subsidiary of Blais
Group and operates as dba of Blais Excess & Surplus Agency of Texas,
Ltd.

                                                                       120
                     BLAIS AVIATION
                  INSURANCE SERVICES
                                    General Aviation

Our general aviation department provides a wide variety of fixed wing and rotor wing
                           aircraft insurance products as detailed below.
                              Corporate Aviation / Industrial Aid
         Aircraft owned / operated by companies maintaining an aircraft or fleet of aircraft
       flown by professional flight crews. Coverages can include but not be limited to hull,
             liability, War & Confiscation, expanded territories, and extensive coverage
                                            enhancements.
                                Pleasure and Business aircraft
      Aircraft ranging in size from small single engine to executive jet aircraft flown by the
                                            owner/operator
                                        Charter Service
      Aircraft operating under the guidelines of the FAR 135 certificate that would include
     passenger and cargo for hire. Other uses that would fall under this area would include
      but not be limited to power line/pipeline patrol, aerial photography, aerial advertising,
                             predator control, fish spotting, and fire patrol.
                                         Aircraft sales
                 Aircraft companies specializing in the sale of new and used aircraft
                                          Helicopters
        This would include both piston and turbine rotor wing for example R-22 and R-44.
      Blais Aviation Insurance Services can provide coverage for a wide spectrum of uses
        for helicopters which include but not be limited to industrial aid uses, pleasure and
       business, commercial use including charter, instruction, sightseeing, movie filming,
         Electronic news gathering (ENG), traffic patrol, fire patrol, control burning, animal
                               herding, predator control and frost patrol.                        121
           BLAIS AVIATION
        INSURANCE SERVICES
               Airport Liability
      Blais Aviation Insurance Services can
 provide a wide range of Airport coverages from
  individuals who own or lease hanger space to
                    entire airports.

  Blais Aviation Insurance Services also arranges
  extensive coverage for Fixed Based Operations
including; Repair and Service, Parts (not installed),
 Sale of New and Used Aircraft, Sale of Fuel & Oil,
     Contractual, Independent Contractors and
                  Premises Medical.                     122
                BLAIS AVIATION
             INSURANCE SERVICES
                                    Special Risk
There area a number of unique class of aircraft with special risk requirements.
        Our specialty underwriters offer a wealth of experience to assist our
                   producers in all of their specialty aircraft needs.
                                       Warbirds
     This would include military surplus aircraft both prop driven and jet aircraft, both
     domestic and foreign, for example, PT17 basic trainers, P-51 Mustangs and B-
                                             24s.
                                     Homebuilts
    Experimental aircraft that are derived from kits or plans. These could range from
                                  a Vans RV-4 to a Glastar.
                                 Antiques / Classics
       Antiques are aircraft built between the years of 1903 – 1954. Classic aircraft
                          include aircraft built from 1955 - 1960.
                                      Seaplanes
       This would include amphibious aircraft and aircraft fitted with straight floats.
                                     Ferry flights
                    Delivery of aircraft internationally or domestically.
                                   Transition Pilots
        Provides coverage for pilots who are transitioning from one type aircraft to
                                           another.
                                 Non-standard risks
    This would include contracts where special uses and special aircraft are required
          such as Air Racing, Air Show performers and Aerobatic competitions.
                                                                                            123
      BLAIS AVIATION
   INSURANCE SERVICES




    A leading facility in the design, placement
and service of aviation related insurance products.


                  CONTACT
               PHILIP BLAIS
               972 818-4090
          PHIL@BLAISEXCESS.COM

                                                      124
   BLAIS AVIATION
INSURANCE SERVICES




                     125

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:5
posted:10/15/2011
language:English
pages:125
ktixcqlmc ktixcqlmc
About