5 - F Aviation Insurance

Which of the following is not a common exclusion from aviation policies? A. Losses to tires B. Fire C. War risks D. Mechanical breakdown

B. Fire

Which of the following accurately characterizes aviation insurance? A. A small insurance pool and enormous exposure B. A small insurance pool and minimal exposure C. An extraordinarily large insurance pool and minimal exposure D. An extraordinarily large insurance pool and enormous exposure

A. A small insurance pool and enormous exposure

A plane was damaged while being towed by another vehicle. By policy definition, this damage is considered to have occurred while the aircraft was: A. In motion B. In transition C. Not in motion D. In flight

C. Not in motion

Which valuation method is most common among aviation hull policies? A, Replacement cost B. Fair market value C. Actual cash value D. Stated value

D. Stated value

At what point does a helicopter start to be "in flight," according to aviation policy definitions? A. When the engine is turned on B. When the pilot takes a seat in the cockpit C. When the landing skids leave the ground D. When the rotors begin to revolve

D. When the rotors begin to revolve

Andrew's friend Mario asked for a ride form Detroit to Cleveland, and Andrew decided to take Mario in his plane. Getting out of the plane, Mario trips and falls into the propeller and ends up losing 3 fingers on his right hand. Mario also signed a form agreeing to release Andrew from further liability in exchange for a sum of money. Which of the following is FALSE? A. Andrew has a form of coverage called guest voluntary settlement B. Andrew has a form of coverage that will make it possible to avoid a lawsuit with his friend Mario C. After Mario has received his monetary sum to indemnify him for the loss of his fingers, he can sue Andrew because of recurring back pain D. Andrew can decided whether he would like his friend's injuries to be covered under his base liability policy

C. After Mario has received his monetary sum to indemnify him for the loss of his fingers, he can sue Andrew because of recurring back pain

A man wanders onto the runway of a small airport and is injured by a taxiing plane. Which insurance policy would pay for his injuries? A. Hangarkeepers liability insurance B. Passenger bodily injury liability insurance C. Airport liability insurance D. Aircraft hull insurance

C. Airport liability insurance

In an aviation policy, which of the following is only covered through an endorsement? A. Lightning B. Explosion C. Hi-jacking D. Theft

C. Hi-jacking

One important characteristic of aviation insurance is the small insurance pool, combined with the enormous exposure. What is one of the results of this situation? A. Aviation insurance is only available to commercial airlines B. Terrorism and war risks are never covered in an aviation policy C. Insurers pool risk with re-insurers and underwriting groups D. Aviation insurance is so expensive that it will soon be obsolete

C. Insurers pool risk with re-insurers and underwriting groups

Cassandra opens the overhead bin after a flight, and a large, heavy bag falls out, giving her a concussion. Which aviation coverage will indemnify Cassandra for her injuries? A. All risks - ground and flight B. Cargo liability C. Passenger bodily injury liability D. Admitted aircraft liability

C. Passenger bodily injury liability

What type of deductible usually applies to partial losses under an aircraft hull policy? A. Franchise deductible B. Variable deductible C. Percentage deductible D. Fixed deductible

C. Percentage deductible

Jerrod owns two places and has liability insurance with the following limits: Bodily injury excluding passengers: - $250,000 / person - $500,000 / occurrence Passenger bodily injury: - $250,000 / person - $750,000 / occurrence Property damage: - $500,000 / occurrence When Jerrod crashes into a car while landing his plane, he injures the two people in the car and completely wrecks the car. The first person in the car suffers $200,000 in injuries, the second person suffers $300,000 in injuries. Replacing the car costs $45,000. Without taking deductibles into account, how much will Jerrod have to pay out of his own pocket? A. $95,000 B. $0 C. $100,000 D. $50,000

D. $50,000

Trevor is heading toward his gate, hoping to catch his flight on time, when he slips on a spilled slushie and breaks his ankle. Which liability coverage would pay for Trevor's injuries? A. Airport liability insurance B. Guest voluntary insurance C. Trevor's health insurance D. Bodily injury excluding passengers

A. Airport liability insurance

Jordan is moving from San Francisco to Philadelphia, and he is bringing his private plane along with him. While it's being transported, the plane is damaged in a minor accident. Which of the following is true? A. Because the damage took place while the plane was being transported, the deductible won't apply to this loss B. Because the damage took place while the plane was being transported, the loss will not be covered C. Jordan's plane was considered to be "in motion" at the time of the loss D. Jordan's loss will be covered under all risks - ground and flight

A. Because the damage took place while the plane was being transported, the deductible won't apply to this loss

John owns a storage facility for idle aircrafts. What type of liability insurance should be purchase to protect himself in case one of the planes is damaged while in his care? A. Hangarkeepers liability B. Cargo liability C. Airport liability D. Admitted aircraft liability

A. Hangarkeepers liability

A plane was damaged while on its takeoff run down the airport runway. by policy definition, this damage is considered to have occurred while the aircraft was: A. In flight B. In conveyance C. Not in flight D. Not in conveyance

A. In flight

Logan has a small plane that he enjoys flying on the weekends, but he never takes friends or passengers with him. Which of the following is TRUE? A. Logan should buy bodily injury excluding passengers and property damage liability, but he doesn't need to spend the money on passenger bodily injury liability B. If Logan does not purchase passenger bodily injury liability, he won't be able to get a single limit liability policy C. If Logan never plans to bring a passenger on board, he doesn't need to worry about purchasing any liability insurance D. Logan is required to purchase passenger bodily injury liability

A. Logan should buy bodily injury excluding passengers and property damage liability, but he doesn't need to spend the money on passenger bodily injury liability

Jason crashes his single-engine plane while Jim and Barbara are on board. Jim has a broken leg and Barbara has a concussion. Jason has a broken wrist. Which coverage in Jason's aviation insurance policy could cover Jim's broken leg? A. Medical payments B. All risks - ground and flight C. All risks - not in motion D. Bodily injury excluding passengers

A. Medical payments

When is someone considered a passenger, and thus covered under passenger bodily injury liability? A. Once she begins to board the plane B. After clearing the airport security checkpoint C. Once she takes a seat on the plane D. After booking a plane ticket

A. Once she begins to board the plane

Which of the following is TRUE about aviation insurance? A. There are no standard policy forms B. Each state imposes minimum liability insurance limits for aircraft C. The insurance pool is extraordinarily large, and the exposure is enormous D. Non-paying passengers are not covered

A. There are no standard policy forms

Amanda is walking her dog in a rural area when a small plane suddenly crashes only 15 feet in front of her. Amanda is not hurt, but she is so distressed that she files an insurance claim for mental anguish. Which aviation coverage would pay this claim? A. Passenger bodily injury liability B. Bodily injury excluding passengers C. All risks - ground and flight D. All risks - not in motion

B. Bodily injury excluding passengers