Aviation Insurance

Provide Comprehensive and all-encompassing Answers to the following questions: 1. What was the first company to write aviation insurance in the post-World War I Period? What Lines did it Underwrite? Why did it withdraw from the market? 2. Why is the industrial aid class of business considered one of the best by aviation underwriters? Describe one unique coverage provided aid accounts. Most aircraft risks fall into which class of business. 3.How might the FAA incur liability in carrying out it’s responsibilities. What is the Lloyd’s syndicate? Can any agent or broker place business directly with Lloyd’s of London? What is the role of the underwriter? The Lloyd’s brokers? 4. Define the law of large numbers and explain it’s role in insurance? 5. Name and explain four dimensions of a risk that must be measured by the risk manager. 6. Describe the four parts of a negligence act. Distinguish between the degree of care owed trespassers, licensees, and invitees. What is the justification for different degrees of care? Explain the types of liability hazards to which an FBO is exposed? 7. What is a representation? How is the materiality of a misrepresentation determined? What is a warranty? Give an example of a promissory and an affirmative warranty. How are warranties distinguished from representations? 8. What is the purpose for deductibles? Distinguish between the following deductibles: Straight, franchise, disappearing, and aggregate. 9. What expenses will the company pay in the event of a partial loss repaired by someone other than the insured? By the insured? 10. What is the purpose of the airport premises liability policy? Give some examples of accidents which would be covered under this policy. Describe some of the basic items found under the declarations. Who is covered as an insured? List 10 exclusions found under the policy. What is the purpose of many of the exclusions? 11. What is the purpose of loss of use coverage? Who might be a likely prospect for such coverage? Under what circumstances would loss of license insurance apply. Describe the coverages available for ultralight aircraft owners. 12. Decribe the unique nature of aviation exposures as distinguished from other lines of insurance? Why is the limited spread of risk such a difficult problem for underwriters. How does diversification of aircraft and rapidity of change complicate this problem? 13. What are the three most important criteria in airline risk selection? How are rates determined? Why might an air carrier experience an increase in rates when it has had NO claims? 14. Which valuation method is best: replacement cost or actual cash value? 15. Is the liability of a common carrier absolute? Explain. 16. Describe the typical components of a workers’ compensation cost control program? 17. Explain how underwriting is different for group insurance when compared with individual insurance? 18. Describe the three principal business uses of life insurance/