From: AVIDWIZ@aol.com
Message-ID: <3b.1f33b97a.29503ead@aol.com>
Date: Tue, 18 Dec 2001 01:39:41 EST
Subject: Liability - Insurance _ etc.
To: lancair.list@olsusa.com
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Reply-To: lancair.list@olsusa.com

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Dear Ed,

>From your recent post I can see you did not read my commently in the proper 
context.  What I said was:

"In terms of liability my attorney in Hong Kong suggests I form a Liberian

> bearer share company which in turn would own a Panama offshore trust.   The

> offshore trust would own a Nevada Corporation whose sole asset would be the

> plane.   Then another California Corporation would lease the plane from the

> AZ Company and would receive rental payment for its usage from me.

The point of this structure is solely to avoid third party liability. NOT to 
make money from insurance in any form.  The issue raised by Brent was that 
while one can afford to lose the plane, ones assets may be at risk from 
litigation arising from any accident.  Hence as an OPTION to insurance for 
liability, the aforementioned structure would "judgement proof" the 
underlying owners of the aircraft.

Think about it:  If the plane crashes and someone decided to sue, they will 
be faced with sueing a Nevada Corporation who has no assets other than the 
defunct airplane.  Then they "might" get to the point of trying to sue to 
"beneficial owners" of the Nevada corporation which will turn out to be an 
offshore trust domiciled in Panama whose owners cannot be identified because 
of the fact the trust is owned by a Liberian offshore corporation whose 
owners have availed themselves of the "bearer share" provisions of Liberian 
law and cannot be traced.   All directors are "nominees" and hence the shell 
is air tight.

On the other end of the food chain, the Nevada corporation simply leases the 
plane to a California corporation who has clients who rent it hourly ... 
among which are the pilot who crashed.

The same structure should of course be employed to protect personal assets as 
well so that if "pilot error" is ruled as the accident cause, the pilots 
personal estate os protected.   Most probably though, anyone with enough 
money to buy one of these planes in the first place has already got very 
solid personal asset protection structures in place....right?

On the topic of forming a self insurance co-op, I do not have enough 
information to make an honest appraisal of this approach .... but I am 
listening.

Regards,

Dave Riggs
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