X-Virus-Scanned: clean according to Sophos on Logan.com Return-Path: Sender: To: lml@lancaironline.net Date: Sun, 21 Dec 2008 17:47:30 -0500 Message-ID: X-Original-Return-Path: Received: from imo-m21.mx.aol.com ([64.12.137.2] verified) by logan.com (CommuniGate Pro SMTP 5.2.10) with ESMTP id 3374992 for lml@lancaironline.net; Sat, 20 Dec 2008 13:02:35 -0500 Received: from Sky2high@aol.com by imo-m21.mx.aol.com (mail_out_v39.1.) id q.c69.3d012095 (32914) for ; Sat, 20 Dec 2008 13:02:30 -0500 (EST) From: Sky2high@aol.com X-Original-Message-ID: X-Original-Date: Sat, 20 Dec 2008 13:02:30 EST Subject: Re: [LML] Insurance X-Original-To: lml@lancaironline.net MIME-Version: 1.0 Content-Type: multipart/alternative; boundary="-----------------------------1229796150" X-Mailer: AOL 9.1 sub 5000 X-Spam-Flag:NO -------------------------------1229796150 Content-Type: text/plain; charset="UTF-8" Content-Transfer-Encoding: quoted-printable Content-Language: en Pat, et al, =20 Isn't this is an issue that LOBO (_http://lancairowners.com/_=20 (http://lancairowners.com/) ) is going to focus on? Perhaps Jeff has an an= swer. =20 Scott Krueger =20 =20 In a message dated 12/20/2008 7:55:08 A.M. Central Standard Time, =20 n98pb@sbcglobal.net writes: =20 Right before Christmas isn't a good time to talk about this subject, but I'= m=20 afraid that if I wait, I'll have a case of CRS. After several comments=20 observed on the LML, I decided to talk to my insurance broker and see what=20= AIG=20 would be requiring at renewal. Seems that mosf the comments were on target= ,=20 AIG wants a complete inspection of the aircraft by either Joe Bartels or Ti= m=20 Ong. We are all aware that neither of these gentlemen are familiar with th= e=20 many variations of the builders, especially electrical and avionics. I ca= n=20 see the process causing more problems than they fix with chasing down broke= n=20 wires and the like. =20 I asked my broker to see what AIG was going to require at my April renewal=20 and received the following in response:=20 =E2=80=A6, AIG is requiring that all of the Lancairs they now write have=20= a new=20 inspection. Under XXX=E2=80=99s policy, and as your=E2=80=99s probably wou= ld be on renewal in=20 April, AIG states that an aircraft inspection by Joe Bartels or Tim Ong mus= t=20 be completed and the certificate received by AIG before renewal next year.= =20 In XXX=E2=80=99s case he would have had to have this done by November 15, 2= 009. They=20 have paid out $10,000,000 in claims and have only collected $3,000,000 in=20 premium. After this inspection is completed it will then need to be=20 reinspected every 3 =E2=80=93 5 years. It sounds as to all of their claims= are coming from=20 pilot error. However, if they are going to continue writing the business th= ey=20 feel they need to put on this additional requirement. A pilot=E2=80=99s ho= urs really=20 has nothing to do with this particular requirement at this particular time.= =20 A pilot needs to have the initial training, 6 month recurrent training, and= =20 then annual thereafter. =20 My broker was asked to talk to Global as several people said they got=20 insurance through them. The following was the answer received:=20 ( I spoke with Global=E2=80=99s manager this morning.=20 They are not writing any policies for any Lancair IV model, except for some= =20 that they have had on the books for years He said the loss experience has=20 been unbelievable and he made the decision back in 2003 not to write any mo= re=20 of them. Apparently AIG has had all the losses. =20 He is very surprised that they are willing to continue to write them. He=20 anticipates that the market will completely dry up and sometime in the futu= re no=20 one will write them at all.=20 I spoke with AIG again . They provide the insurance for the manufacturer=20 so it would put them in a difficult position if they were to decline to=20 provide insurance for the individual owners. =20 After reviewing the NTSB report, it appears as though the majority of the=20 accidents are pilot error. The aircraft inspection makes no sense to me, b= ut I=20 guess they had to put on some requirement and that was it.)=20 This seems to imply that we are going to have another bottleneck that will=20 be difficult to break. To indicate that only two people are able to certif= y=20 the flight worthiness of our aircraft puts both the owners and the company=20= in=20 dire straights. One, who in their right minds would buy a Lancair kit with= =20 this hanging over their head? Two, the requirement for reinspection at=20 whatever interval is onerous and expensive. Three, what is the value of th= e=20 completed and flying fleet? And Four, the requirement for training seems=20 appropriate to address the issues that the accident data reflects. How man= y of those=20 payouts came from pilots they insured without the HPAT training? Is the=20 company at fault for issuing coverage without assuring the training? What=20= exactly=20 are they trying to fix with this very time consuming and expensive=20 requirement? =20 Looks like a real problem is on the very near horizon. Thoughts and=20 comments appreciated.=20 Pat Brunner=20 LNC4 /P=20 780 Hours =20 **************One site keeps you connected to all your email: AOL Mail,=20 Gmail, and Yahoo Mail. Try it now.=20 (http://www.aol.com/?optin=3Dnew-dp&icid=3Daolcom40vanity&ncid=3Demlcntaolco= m00000025) -------------------------------1229796150 Content-Type: text/html; charset="UTF-8" Content-Transfer-Encoding: quoted-printable Content-Language: en
Pat, et al,
 
Isn't this is an issue that LOBO (http://lancairowners.com/) is going t= o=20 focus on?  Perhaps Jeff has an answer.
 
Scott Krueger
 
In a message dated 12/20/2008 7:55:08 A.M. Central Standard Time,=20 n98pb@sbcglobal.net writes:
<= FONT=20 style=3D"BACKGROUND-COLOR: transparent" face=3DArial color=3D#000000 size= =3D3>

Right before Christmas isn't a good time to talk= about=20 this subject, but I'm afraid that if I wait, I'll have a case of=20 CRS.  After several comments observed on the LML, I dec= ided=20 to talk to my insurance broker and see what AIG would be requiring at=20 renewal.  Seems that mosf the comments were on target, AIG wants a=20 complete inspection of the aircraft by either Joe Bartels or Tim Ong. = ; We=20 are all aware that neither of these gentlemen are familiar with the many=20  variations of the builders, especially electrical and avionics. = ; I=20 can see the process causing more problems than they fix with chasing down=20 broken wires and the like. 

 

I asked my broker to see what AIG=20= was=20 going to require at my April renewal and received the following in=20 response:

 

=E2=80=A6, =20 AIG<= SPAN=20 style=3D"FONT-STYLE: italic"> is requiring that all of the Lancairs they n= ow=20 write have a new inspection.  Under XXX=E2=80=99s policy, and as your= =E2=80=99s probably=20 would be on renewal in April, AIG=20 states that an aircraft inspection by Joe Bartels or Tim Ong must be compl= eted=20 and the certificate received by AIG=20 before renewal next year.  In XXX=E2=80=99s case he would have had to= have this=20 done by November 15, 2009.  They have paid out $10,000,000 in claims=20= and=20 have only collected $3,000,000 in premium.  After this inspection is=20 completed it will then need to be reinspected every 3 =E2=80=93 5 years.&n= bsp; It=20 sounds as to all of their claims are coming from pilot error. However, if=20= they=20 are going to continue writing the business they feel they need to put on t= his=20 additional requirement.  A pilot=E2=80=99s hours really has nothing t= o do with=20 this particular requirement at this particular time.   A pilot n= eeds=20 to have the initial training, 6 month recurrent training, and then annual=20 thereafter.

&n= bsp;

My broker was asked to talk to Global as several= =20 people said they got insurance through them.  The following was the=20 answer received:

 

( I spoke with Global=E2=80= =99s manager=20 this morning.

 

They are not writing any pol= icies=20 for any Lancair IV model, except for some that they have had on the books=20= for=20 years  He said the loss experience has been unbelievable and he made=20= the=20 decision back in 2003 not to write any more of them.   Apparentl= y=20 AIG<= SPAN=20 style=3D"FONT-STYLE: italic"> has had all the losses. 

He is very surprised that th= ey are=20 willing to continue to write them. He anticipates that the market will=20 completely dry up and sometime in the future no one will write them at=20 all.

 

I spoke with=20 AIG<= SPAN=20 style=3D"FONT-STYLE: italic"> again .  They provide the insurance for= the=20 manufacturer so it would put them in a difficult position if they were to=20 decline to provide insurance for the individual owners.  <= /P>

After reviewing the NTSB rep= ort,=20 it appears as though the majority of the accidents are pilot error. =20= The=20 aircraft inspection makes no sense to me, but I guess they had to put on s= ome=20 requirement and that was it.)

 

This seems to imply that we are going to have an= other=20 bottleneck that will be difficult to break.  To indicate that only tw= o=20 people are able to certify the flight worthiness of our aircraft puts both= the=20 owners and the company in dire straights.  One, who in their right mi= nds=20 would buy a Lancair kit with this hanging over their head?  Two, the=20 requirement for reinspection at whatever interval is onerous and=20 expensive.  Three, what is the value of the completed and flying flee= t?=20 And Four, the requirement for training seems appropriate to address the is= sues=20 that the accident data reflects.  How many of those payouts came from= =20 pilots they insured without the HPAT training?  Is the company at fau= lt=20 for issuing coverage without assuring the training?  What exactly are= =20 they trying to fix with this very time consuming and expensive requirement= ?=20

 

Looks like a real problem is on the very near=20 horizon.  Thoughts and comments appreciated.

 

Pat Brunner

LNC4 /P

780 Hours

 

 




One site keeps you connected to all= your email: AOL Mail, Gmail, and Yahoo Mail. Try it no= w.
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