EMBRY RIDDLE ASCI404 4.2 - Insurance and Exculpatory Contracts

Topic 1

Identify the appropriate purpose of use for an aircraft insurance policy to cover each of the following operations:

a. A private aircraft for personal recreational use and personal business travel.

b. Aircraft used exclusively for flight training.

c. A corporate business jet.

d. An air cargo company, such as FedEx or UPS.

e. A full-service FBO offering flight training, aircraft rental, and charter.

f. Thunderstorm research requiring flights through fully-developed thunderstorms.

For each of the following events, indicate whether the event would cause you to consider its effect on your current aircraft insurance policy and explain why:

a. You have spent several thousand dollars to upgrade the aircraft’ s avionics.

b. You are going to allow another pilot to fly your aircraft.

c. You’ve been using the aircraft only for your own recreational, proficiency, and travel, but have earned your flight instructor certificate and want to use the aircraft to start a flight instruction business.

d. You’ve been flying your aircraft only within the contiguous (“ lower 48”) U.S., but are now planning taking it on a trip to Alaska.

e. You’ve paid off the loan you took out to purchase the aircraft.

Topic 3

What is subrogation? As a renter pilot, how can you protect yourself against subrogation? How could the aircraft owner protect you, the renter pilot, against subrogation?