Mailing List lml@lancaironline.net Message #49937
From: n98pb <n98pb@sbcglobal.net>
Sender: <marv@lancaironline.net>
Subject: RE: [LML] Lancair Insurance
Date: Mon, 22 Dec 2008 12:00:02 -0500
To: <lml@lancaironline.net>

Joe,

Thank you for clarifying the AIG insurance requirements.  I will forward your information on to our agent so that she understands them better and she can clarify her understanding with AIG directly.  One question however:  Is the inspection done by the test pilot (in our case Charlie Kohler nearly ten years ago) not an acceptable “inspection” for purposes of insurance?

Susan Brunner

(Pat’s wife)

 

-----Original Message-----
From: Lancair Mailing List [mailto:lml@lancaironline.net] On Behalf Of Joe Bartels
Sent: Sunday, December 21, 2008 2:48 PM
To: lml@lancaironline.net
Subject: [LML] Lancair Insurance

 

Let's get the facts straight first regarding what AIG requires and why!

 

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.

 

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.

 

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.

 

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.

 

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. 

 

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.

 

Merry Christmas/Happy Holidays to you and your families.  Please continue to fly safe.

 

Joseph C. Bartels, CEO

Lancair International, Inc.

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