|
|
<<<<<<<<<<<<<<<<--->>>>>>>>>>>>>>>>
<< Lancair Builders' Mail List >>
<<<<<<<<<<<<<<<<--->>>>>>>>>>>>>>>>
>>
Gentlemen of the list:
I have some knowledge first hand of what prompted AVEMCO to stop underwriting
Lancairs and from what I gather, Glasairs too.
For the period of May thru July 2001, AVEMCO sustainted losses in excess of
$1 Million of hull losses in the Lancair IVP category of which two were fatal
accidents. In the case of the two fatal crashes, they are also at risk for
hundreds of thousands of dollars in litigation exposure from the families of
the dead pilots.
The VP of claims at AVEMCO said to me and I quote" we will probably stop
insuring Lancairs because of these losses as we would have to continue to
write the fleet for 20 years loss-free just to make up for the damages we
have suffered"
So it was purely a business decision on the part of AVEMCO which I think all
of us can understand.
To their credit, AVEMCO did pay all the claims as they had agreed to do in
their policy. I know this first hand as well for one of the Lancairs which
crashed was mine which was the one built by John Kerner that crashed in
Flagstaff AZ killing Tony Durizzi.
With the goal of learning from experience, I would offer the following
observations:
1) When you plunk down those big bucks for insurance, read the policy VERY
carefully because you can be sure the insurance co will if you ever have a
loss. For example, it was looking like AVEMCO might not pay me because even
though Tony was a named pilot on the insurance policy, we could not locate
his log book in order to prove his BFR date and the fact that he himself had
initial and re-current training in the Lancair as required in the policy.
Remember Tony was a 747 Capt with 30000 hrs and 1000TT in Lancairs and a CFII
and DAR not to mentioned Lancair and AVEMCO approved test pilot. Imagine
what they would do to one of us "average" guys.
2) When you add yourself as a named pilot, make sure you have everything
properly documented as to your training. You most likely will have to be
trained by a factory approved pilot for the initial training and re-current
training every year thereafter. This is a very short list of approved
people like Charlie Kohler, Dave Morss, Mike DeHate and a few others.
BUT...get this list from Lancair IN WRITING and send it along with your
signoff to your insurance co by certified mail so you can prove you have
coverage. This is a major issue because in my case I discovered that the
person who signed me off (Tony Durizzi) was approved by the factory for
re-current training but not for initial training according to the letter the
President of Lancair provided me after the crash. So if I had been flying
the plane when it crashed guess what...NO COVERAGE! What that HAS meant in
my case is that I have had to pay another instructor come out and provide
initial training all over again in order to make sure that if anything ever
happens, I have the coverage secured.
The short story is IF YOU DO NOT CURRENTLY POSSESS A LETTER FROM LANCAIR
WHICH SHOWS THAT YOUR INITIAL INSTRUCTOR IN THE LANCAIR YOU ARE FLYING IS
APPROVED BY THEM YOU MAY HAVE NO COVERAGE WHATSOEVER! Get the letter and
send it to your insurer TODAY!
3) Finally, we should all understand that this potential for encountering the
inability to secure insurance is one which we as a group have brought upon
ourselves. Our planes are crashing, those crashes cost money and the
insurance industry have to make a profit and this income verses loss ratio is
scaring them off. Every plane and every pilot should be checked very
carefully and the factory cannot perform this function because they too fear
the liability of one of their "approved" planes crashes. So what to we do?
Brent Regan in an earlier post brought up an excellent plan for self
insuring. Its worth reading on the list as he is a sharp cookie and has some
great ideas. The association designed for collective bargining Brian
mentions is valid and Jerry Brockhaus of AIG (1-800-733-9150) has already
started the dialog with some underwriters about bringing this to life.
In any event, the long term revolves around closer aircraft inspections,
better built planes and better trained pilots
If we don't start thinking that way we may wind up like the owners of a
BD-5J...cool plane, very fast but no one will finance it or insure it.
Regards,
Dave Riggs
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
LML website: http://members.olsusa.com/mkaye/maillist.html
LML Builders' Bookstore: http://www.buildersbooks.com/lancair
Please remember that purchases from the Builders' Bookstore
assist with the management of the LML.
Please send your photos and drawings to marvkaye@olsusa.com.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
|
|