From: AVIDWIZ@aol.com
Message-ID: <14e.a8c716f.29c4d10f@aol.com>
Date: Sat, 16 Mar 2002 11:47:11 EST
Subject: AVEMCO Insurance
To: lancair.list@olsusa.com
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Reply-To: lancair.list@olsusa.com

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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


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