Aviation *Unit 13* Quiz

What are the territorial limits of the aircraft liability policy?

*A. All of the answers are correct B. Often coverage in Mexico is limited to within 100 miles of the United States border. C. In Florida, it is not uncommon to have the Bahamian Islands included by endorsement. D. Usually the United States, Canada and Mexico

Describe admitted aircraft liability.

*A. All of the answers are correct B. Requires the named insured to request it and requires the insurer to be released from further liability C. Covers payment for death or dismemberment D. Not written when carrying passengers for hire

What are some important exclusions found in all aircraft policies?

*A. All of the answers are correct B. There is no coverage if the aircraft is not registered under a standard category airworthiness certificate C. An aircraft is not covered while being maintained for any purpose other than the use classification in the policy declarations D. An aircraft is not covered while in flight if operated by a pilot not named in the declarations

How are aircraft hull policies valued?

*A. Both of the answers are correct B. Most aircraft hill policies are "valued" policies C. Some policies are written on an actual cash value or replacement cost basis D. None of the answers are correct

What is "admitted liability"?

A coverage written as an adjunct to passenger liability, not applicable to passengers carried for hire. It provides for principal sum payments for death or dismemberment if (1) the named insured requests it and (2) the company is released from further liability. It is a means by which an insured may save a guest from the necessity of bringing a legal action for injuries.

What underwriting considerations should be noted in an aircraft insurance policy?

A. Age and condition of the aircraft B. Size-light or heavy aircraft C. Pilots- qualifications and experience D. All of the answers are correct

Describe a hull policy

A. Available coverage includes all risk of physical damage on the aircraft whether in flight or not *B. All of the answers are correct C. It is provided to protect the risk of loss or damage to an insured aircraft itself D. Available coverage includes all risks of physical damage on the aircraft not in flight, and named peril coverage while in flight.

How are the limits of liability in an aircraft liability policy normally written?

A. Bodily injury limits might be for example $100,000 per person, $300,000 per occurrence and $50,000 each occurrence for property damage liability. B. Typically they are applied in the same manner as automobile liability insurance policies. *C. All of the answers are correct D. Alternatively, single limit coverage is common.

Which exclusion will deny liability coverage for an aircraft?

A. Coverage is denied for aircraft not registered under a standard category airworthiness certificate. *B. All of the answers are correct C. Maintained for any purpose other than the use classification permitted in policy declarations. D. Operated in flight by (a) other than the pilot named in the declarations, (b) by a declared pilot operating outside the limitations imposed in the declarations.

Describe "admitted aircraft liability" in an aviation policy.

A. Coverage is not applicable to passengers carried for hire. B. It provides for principal sum payments for death or dismemberment if the named insured requests it and the company is released from further liability. *C. All of the answers are correct D. A coverage written as an adjunct to passenger liability.

Explain what an aircraft "in motion" means.

A. None of the answers are correct B. "In motion" includes in flight C. The most common definition of "in motion" is while the aircraft is moving under its own power or momentum generated there from *D. Both of the answers are correct

Is there a difference in the deductibles for hull coverage when an aircraft is "in motion" or "not in motion"?

A. None of the answers are correct Incorrect *B. Both of the answers are correct Correct C. The "not in motion" basis may not require a deductible D. A deductible normally applies for "in motion" coverage, normally expressed as a percentage of the value; 2-1/2%, 5% and 10% are the most common.

Describe the medical payments coverage.

A. Provides medical expenses for bodily injuries by accident, without regard to legal liability. B. Coverage is provided while in, entering into, or alighting from the aircraft. C. Coverage is provided for medical, surgical, ambulance, hospital, etc. *D. All of the answers are correct

Describe aircraft liability coverage.

A. The company will pay on behalf of the insured all sums which the insured becomes legally obligated to pay as damages because of bodily injury, sickness or disease, including death at any time, or injury to or destruction of property. Covers public and passenger liabiity and property damage liability. B. Bodily injury liability (excluding passenger liability), passenger liability and property damage liability insurance. *C. All of the answers are correct

What do named peril policies include in aircraft hull policies?

Any or all of the following coverages: fire, stationary land damage, windstorms, crash insurance and theft.

The special aviation coverage, which protects against legal liability for loss or damage to cargo or baggage, is called?

Cargo Liability

What important exclusions are found in all aircraft insurance policies?

Coverage is denied for aircraft not registered under a standard category airworthiness certificate, in full force and effect, by the Federal Aviation Administration; maintained for any purpose other than the use classification permitted in policy declarations; operated in flight by (a) other than the pilot named in the declarations, (b) by a declared pilot operating outside the limitations imposed in the declarations, (c) in flight under any conditions requiring special permit or waiver from the FAA even if such permit or waiver has been granted.

Coverage written to protect the insured's liability for damage to aircraft stored for safekeeping or repair is called?

Hanger keeper's liability coverage

What are common options for hull coverage?

Named peril coverage in flight, all risk coverage not in flight, or all risk coverage both

The special aviation coverage, which provides manufacturers and sales or repair organizations with liability coverage attributable to defective products or work, is called?

Products liability

Describe the medical payments coverage in an aircraft insurance policy?

Provides medical expenses for bodily injuries by accident, without regard to legal liability. Coverage is similar to automobile medical payments insurance in that it provides coverage for medical, surgical, ambulance, hospital, etc., while in, entering into, or alighting from the aircraft.

Is there a difference in the insurance coverage of an aircraft when it is "in motion" or "not in motion"?

The "not in motion" basis may not require a deductible, but a deductible normally applies for "in motion" coverage, normally expressed as a percentage of the value; 2-1/2%, 5% and 10% are the most common. Most aircraft hill policies are "valued" policies, but some are written on an actual cash value or replacement cost basis.

Essentially what does the policy agreement state in an aircraft liability policy?

The company will pay on behalf of, the insured all sums which the insured becomes legally obligated to pay as damages because of bodily injury, sickness or disease, including death at any time, or injury to or destruction of property, arising out of ownership, maintenance, or use of the aircraft.

Describe aircraft hull coverage.

The hull policy is provided to protect from the risk of loss or damage to an insured aircraft itself, generally available in two options-all risks of physical damage on the aircraft "not in flight," and named peril coverage while "in flight." Coverage on the hull can be written for "in-flight" or "not in-flight," or "in motion" or "not in motion."

Explain what is meant by an aircraft "in motion" and when "not in motion."

The most common definition of "in motion" is while the aircraft is moving under its own power or momentum generated therefrom including in flight. In all other situations the aircraft is considered "not in motion."

Describe hangar keeper's liability Coverage?

This is a form of bailee's insurance, which covers the insured's liability for damage to aircraft stored for safekeeping or repair. This coverage protects the insured against legal obligations for injury to or destruction of aircraft belonging to others in the custody of the insured for storage, repair or safekeeping. This coverage is normally written on an "all risk" basis. Coverage is typically written by attachment to the airport liability policy.

What are the limits of liability in an aircraft liability policy?

Typically they are applied in the same manner as automobile liability insurance policies. Bodily injury limits might be for example $100,000 per person, $300,000 per occurrence and $50,000 each occurrence for property damage liability. Alternatively, "single limit" coverage is commonly written; for example, $300,000 bodily injury and property damage per occurrence.

What are some underwriting considerations when writing an aircraft insurance policy?

Under an aircraft hull policy, basic questions on usage as well as the following questions are asked; 1) Pilots- qualifications and experience, 2) Size- light or heavy aircraft, 3) Type- land plane, seaplane or helicopter. 4) Age and condition.

Aircraft liability coverage includes?

Bodily injury liability, passenger liability and property damage liability

In addition to general policy exclusions are there any specific exclusions, which apply to hull insurance?

No coverage for loss caused by conversion, embezzlement or secretion by any lessee or any other person in possession of the aircraft under a bailment lease, conditional sale, mortgage, or other encumbrance.

What does a typical aircraft liability policy include?

Bodily injury liability (excluding passenger liability), passenger liability and property damage liability insurance. Single limit bodily injury and property damage liability (excluding passenger liability) and single limit bodily injury and property damage liability insurance (including passenger liability insurance) are also available.