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Subject: Lancair Insurance
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From: "Joe Bartels" <JoeB@lancair.com>

This is a multi-part message in MIME format.

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Let's get the facts straight first regarding what AIG requires and why!
=20
Prior to May 1, 2005, there was little or no insurance availability for =
Lancair kit aircraft.  I had to negotiate with Jim Anderson, then in =
charge of amateur/experimental aircraft with AIG, to allow for a plan =
that would provide Lancair aircraft coverage.  The concerns he expressed =
were as to the amount and uniformity of training, construction/assembly =
methods and powerplant selection.  Lancair agreed to impose conditions =
that are now in effect and would at least give us some insurance =
availability through AIG.  1)     The aircraft submitted for insurance =
must be inspected by Lancair;  and,   2)     The pilot must receive =
training from HPAT or an HPAT designee.
=20
Within those two requirements lie the following:  Prior to first flight, =
Lancair has to inspect the aircraft;  If the aircraft has already flown, =
Lancair has to inspect the aircraft prior to AIG issuing insurance;  If =
the aircraft is sold, Lancair has to inspect the aircraft again to =
insure that there has been no changes that would prevent it from being =
insurable.
=20
The inspections are available nation wide.  Lancair has and continues to =
schedule inspections no matter where the aircraft may be.  The =
inspections are not generally conducted by Tim or I, but by Tim Wilson.  =
If the aircraft passes the inspection, a certificate is sent to the =
owner.  That "Insurance Inspection" is signed by Tim or I.  The =
inspections are the best means possible to show compliance with the =
original building instructions and methods expressed in the Lancair =
literature.  The inspections additionally may reveal areas that Lancair =
has found to be problematic.  Where a system or component may increase =
the potential of loss to the insurer, Lancair will not issue the =
insurance certificate until and unless that condition is resolved.
=20
The second condition is for standardized and continuous training.  The =
person seeking coverage must participate in an initial training, a =
second training session 6 months after the first and a final training =
session 6 months following the second.  Training must take place =
annually thereafter.  Let there be no mistake...HPAT is the training =
company we are using.  Many will disagree and suggest that HPAT is not =
easy with which to communicate or that they are expensive (add your own =
comment here ____________________).  When I receive a comment about =
HPAT, I immediately bring that concern to the attention of Pete =
Zaccagnino.  It is up to Pete and his employees to provide training.  It =
is up to you to schedule with him well in advance for your training =
needs and not wait until the last minute to schedule training.  Based on =
comments received, I have asked Pete to expand his list of available =
instructors.  I expect that he will do this, however, there are some =
instructors who are not fully willing to work within the structure set =
by HPAT.  Those instructors should work with Pete to resolve any =
incompatibility problems for the good of the Lancair owners and pilots.  =
Let me be clear, Lancair has never received a dime from HPAT nor is it =
anticipated that it ever will.  Lancair is not an owner or member of the =
HPAT organization and will never be.  Finally, this is not a lifelong =
endorsement of HPAT.  Should HPAT fail to provide all that I expect from =
it in providing full training to our Lancair owners and pilots, you can =
be assured that I will seek out another organization that will fulfill =
the needs of both Lancair and those pilots owning and operating Lancair =
kit aircraft.
=20
None of this is for any purpose other than to provide the greatest =
opportunity for us all to have access to hull and liability insurance.  =
Lancair's only potential for profit comes from the opportunity to =
continue to develop and sell aircraft kits that can be insured.  Lancair =
has no product liability insurance because it is not available to us.  =
When one of our customers augers in, Lancair sends someone to the crash =
site to assist in the investigation.  While Lancair has never been found =
at fault, it has had to expend tremendous amounts to defend itself.  The =
fact that Lancair conducts these inspections can create additional =
liability problems yet we do it to assist in maintaining the =
availability of insurance.=20
=20
The aviation insurance industry is supposed to be "softening."  I have =
recently heard that Avemco is offering insurance without these =
restrictions.  I don't know the truth of that.  Perhaps when the =
accident rate subsides to a more understandable rate (there will always =
be accidents as the weakest part of the airframe sits in the pilot =
seat), then availability of insurance will go up and premiums will go =
down.  Accident rates will not go down appreciably until rigorous and =
repetitive training, especially training regarding handling emergencies, =
goes up.
=20
Merry Christmas/Happy Holidays to you and your families.  Please =
continue to fly safe.
=20
Joseph C. Bartels, CEO
Lancair International, Inc.

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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"><HTML =
DIR=3Dltr><HEAD><META HTTP-EQUIV=3D"Content-Type" CONTENT=3D"text/html; =
charset=3Diso-8859-1"></HEAD><BODY>=0A=
<DIV id=3DidOWAReplyText65999 dir=3Dltr>=0A=
<DIV dir=3Dltr><FONT face=3D"Times New Roman" color=3D#000000 =
size=3D3>Let's get the =0A=
facts straight first regarding what AIG requires and why!</FONT></DIV>=0A=
<DIV dir=3Dltr>&nbsp;</DIV>=0A=
<DIV dir=3Dltr>Prior to May 1, 2005, there was little&nbsp;or no =
insurance =0A=
availability for Lancair kit aircraft.&nbsp; I had to negotiate with Jim =0A=
Anderson, then in charge of amateur/experimental aircraft with AIG, to =
allow for =0A=
a plan that would provide Lancair aircraft coverage.&nbsp; The concerns =
he =0A=
expressed were as to the amount and uniformity of training, =0A=
construction/assembly methods and powerplant selection.&nbsp; Lancair =
agreed to =0A=
impose conditions that are now in effect and would at least give us some =0A=
insurance availability through AIG.&nbsp; 1)&nbsp;&nbsp;&nbsp;&nbsp; The =0A=
aircraft submitted for insurance must be inspected by Lancair;&nbsp; =
and,&nbsp; =0A=
&nbsp;2)&nbsp;&nbsp;&nbsp;&nbsp; The pilot must receive training from =
HPAT or an =0A=
HPAT designee.</DIV>=0A=
<DIV dir=3Dltr><FONT face=3D"Times New Roman" color=3D#000000 =0A=
size=3D3></FONT>&nbsp;</DIV>=0A=
<DIV dir=3Dltr>Within those two requirements lie the following:&nbsp; =
Prior to =0A=
first flight, Lancair has to inspect the aircraft;&nbsp; If the aircraft =
has =0A=
already flown, Lancair has to inspect the aircraft prior to AIG issuing =0A=
insurance;&nbsp; If the aircraft is sold, Lancair has to inspect the =
aircraft =0A=
again to insure that there has been no changes that would prevent it =
from =0A=
being&nbsp;insurable.</DIV>=0A=
<DIV dir=3Dltr>&nbsp;</DIV>=0A=
<DIV dir=3Dltr>The inspections are available nation wide.&nbsp; Lancair =
has and =0A=
continues to schedule inspections no matter where the aircraft may =
be.&nbsp; The =0A=
inspections are not generally conducted by Tim or I, but by Tim =
Wilson.&nbsp; If =0A=
the aircraft passes the inspection, a certificate is sent to the =
owner.&nbsp; =0A=
That "Insurance Inspection" is&nbsp;signed by Tim or I.&nbsp; The =
inspections =0A=
are the best means possible to show compliance with the original =
building =0A=
instructions and methods expressed in the Lancair literature.&nbsp; The =0A=
inspections additionally may reveal areas that Lancair has found to be =0A=
problematic.&nbsp; Where a system or component may increase the =
potential of =0A=
loss to the insurer, Lancair will not issue the insurance certificate =
until and =0A=
unless that condition is resolved.</DIV>=0A=
<DIV dir=3Dltr>&nbsp;</DIV>=0A=
<DIV dir=3Dltr>The second condition is for standardized and continuous =0A=
training.&nbsp; The person seeking coverage must participate in an =
initial =0A=
training, a second training session 6 months after the first and a final =0A=
training session 6 months following the second.&nbsp; Training must take =
place =0A=
annually thereafter.&nbsp; Let there be no mistake...HPAT is the =
training =0A=
company we are using.&nbsp; Many will disagree and suggest that HPAT is =
not easy =0A=
with which to communicate or that they are expensive (add your own =
comment here =0A=
____________________).&nbsp; When I receive a comment about HPAT, I =
immediately =0A=
bring that concern to the attention of Pete Zaccagnino.&nbsp; It is up =
to Pete =0A=
and his employees to provide training.&nbsp; It is up to you to schedule =
with =0A=
him well in advance for your training needs and not wait until the last =
minute =0A=
to schedule training.&nbsp; Based on comments received, I have asked =
Pete to =0A=
expand his list of available instructors.&nbsp; I expect that he will do =
this, =0A=
however, there are some instructors who are not fully willing to work =
within the =0A=
structure set by HPAT.&nbsp; Those instructors should work with Pete to =
resolve =0A=
any incompatibility problems for the good of the Lancair owners and =0A=
pilots.&nbsp; Let me be clear, Lancair has never received a dime from =
HPAT nor =0A=
is it anticipated that it ever will.&nbsp; Lancair is not an owner or =
member of =0A=
the HPAT organization and will never be.&nbsp; Finally, this is not a =
lifelong =0A=
endorsement of HPAT.&nbsp; Should HPAT fail to provide all that I expect =
from it =0A=
in providing full training to our Lancair owners and pilots, you can be =
assured =0A=
that I will seek out another organization that will fulfill the needs of =
both =0A=
Lancair and those pilots owning and operating Lancair kit aircraft.</DIV>=0A=
<DIV dir=3Dltr>&nbsp;</DIV>=0A=
<DIV dir=3Dltr>None of this is for any purpose other than to provide the =
greatest =0A=
opportunity for us all to have access to hull and liability =
insurance.&nbsp; =0A=
Lancair's only potential for profit comes from the opportunity to =
continue to =0A=
develop and sell aircraft kits that can be insured.&nbsp;&nbsp;Lancair =
has no =0A=
product liability insurance because it is not available to us.&nbsp; =
When one of =0A=
our customers augers in, Lancair sends someone to the crash site to =
assist in =0A=
the investigation.&nbsp; While Lancair has never been found at fault, it =
has had =0A=
to expend tremendous amounts to defend itself.&nbsp; The fact that =
Lancair =0A=
conducts these inspections&nbsp;can create additional liability problems =
yet we =0A=
do it to assist in maintaining the availability of insurance.&nbsp;</DIV>=0A=
<DIV dir=3Dltr>&nbsp;</DIV>=0A=
<DIV dir=3Dltr>The aviation insurance industry is supposed to&nbsp;be =0A=
"softening."&nbsp; I have recently heard that Avemco is offering =
insurance =0A=
without these restrictions.&nbsp; I don't know the truth of =0A=
that.&nbsp;&nbsp;Perhaps when&nbsp;the accident rate subsides to a more =0A=
understandable rate (there will always be accidents as the weakest part =
of the =0A=
airframe sits in the pilot seat), then availability of insurance will go =
up and =0A=
premiums will go down.&nbsp; Accident rates will not go down appreciably =
until =0A=
rigorous and repetitive training, especially training regarding handling =0A=
emergencies, goes up.</DIV>=0A=
<DIV dir=3Dltr>&nbsp;</DIV>=0A=
<DIV dir=3Dltr>Merry Christmas/Happy Holidays to you and your =
families.&nbsp; =0A=
Please continue to fly safe.</DIV>=0A=
<DIV dir=3Dltr>&nbsp;</DIV></DIV>=0A=
<DIV id=3DidSignature80836 dir=3Dltr>=0A=
<DIV><FONT face=3DArial color=3D#000000>Joseph C. Bartels, =
CEO</FONT></DIV>=0A=
<DIV><FONT face=3DArial color=3D#000000>Lancair International, =0A=
Inc.</FONT></DIV></DIV></BODY></HTML>
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