AVIATION INSURANCE

1. AVIATION INSURANCE Blais Aviation Insurance Services Insurance Professional & Pilot Philip Blais

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7. AVIATION INSURANCE INTRODUCTION This presentation, provided by Blais Aviation Insurance Services, a division of the Blais Group, is meant to answer a number of the questions often asked by people concerned about aviation insurance. In addition, an overview of the market with information relating to key aviation insurance terms and insights about Blais Aviation Insurance Services is being provided. Blais Aviation Insurance Services is considered a leading facility in the design, placement and service of aviation related insurance products.

8. AVIATION INSURANCE Angel Flight Coverage If I fly an Angel Flight, will this void or cause a problem with my insurance coverage? No, not if the Angel Flight is done without any compensation to the aircraft owner or operator. Under "pleasure and business" or "industrial aid" purposes of use, the key is if you are compensated for the use of the aircraft. In this situation, clearly, no charge is made. You may want to review your liability limits, however. Many aircraft owners purchase relatively low limits of liability either to save premium dollars or due to a lack of availability. The increased responsibility for your Angel Flight guest may increase your exposure in the event of a mishap.

9. AVIATION INSURANCE Damage History Decreases Value If my aircraft is damaged in an accident, the hull value can be significantly decreased. This damage history seems to live forever. Is this loss of value covered by my aircraft hull insurance policy? No! Diminution of value is not covered under any aircraft hull insurance policy on the insured aircraft. If someone else damages your aircraft and they are found to be negligent, they are liable for the loss. In this situation, their liability coverage may reimburse you for the (negotiated) estimate of the decreased value to your aircraft.

10. AVIATION INSURANCE Insure To The Value Of The Loan The value of my aircraft has fallen significantly during the past three years. My lien at the bank is more than the aircraft is currently worth. It is time to renew my insurance. I would prefer to insure the aircraft for its true value and save the premium dollars but the bank requires me to insure to the value of the loan. What to do? Page 1 of 2 This is one of those strange snap-shots in time where economic pressures have caused some aircraft values to fall faster than loan repayments. There are three conflicts or problems with this situation. The banker wants full protection for the asset collateralizing his loan. This is understandable. The insurance underwriter does not want to significantly over insure the risk. This could cause what the insurance community refers to as a moral hazard. The insured does not want to pay more insurance premium than is necessary.

11. AVIATION INSURANCE Page 2 of 2 The only solution is negotiation. The insurance underwriter usually will agree to insure an aircraft for the "Blue Book" (Aircraft Price Digest) published value plus 10% to 20%. This variation could be even higher with documentation of extra or updated equipment or aircraft modification. Sometimes the underwriter will insure for the loan value if he understands the bank's requirements. The banker may be willing to reduce his demand to insure to the value of the loan if your financial strength is adequate and you guarantee any shortfall in coverage. Some of our clients are simply pledging other assets to secure the loan. In either case, unless you insure to the pay-off value of the loan or to the market value of the aircraft (Bluebook), you may be purchasing less insurance than it will take to make you whole and pay off the lien. In the event of a total loss, you would have to pay the difference to satisfy the debt to the bank. It then must be pointed out that the small savings in premium may not justify the exposure.

12. AVIATION INSURANCE Reimbursement Or Rental I have a friend who wants to use my aircraft. He will reimburse me for the cost of operating the aircraft and will hire his own pilot. Is this covered under my pleasure and business policy? Page 1 of 3 This arrangement may not be as simple as it seems. Good business would dictate that you have a written agreement. The best of friends may find it difficult to agree after a loss occurs. To assure full compliance with your insurance policy, we recommend that a copy of the insurance policy be included as a part of this formal lease agreement. Depending upon the terms of this lease, you may have problems with your insurance. Some "pleasure and business" policies allow for reimbursement of direct operating expenses. This may be defined by the underwriter as an amount equal to one time the cost of fuel and oil. In other policies, the flight is approved if no profit is made. Give special attention to your aviation insurance policy's cost reimbursement requirements and definitions.

13. AVIATION INSURANCE Page 2 of 3 It is always a good idea to advise your underwriter and seek his approval. In most cases, the lessee will want to be covered as an additional insured under your policy and will request a certificate of insurance confirming coverage. Another area of concern when leasing your aircraft to a friend is that he abides by the terms and conditions of your insurance policy. If the lessee doesn't understand aviation insurance, he may inadvertently void coverage by violating policy requirements. For example, if your friend is furnishing his own pilot, he must either meet the open pilot requirements of your policy or be specifically approved by your underwriter. Your friend must be warned about changing pilots. Anyone allowed to operate your aircraft must meet these pilot requirements. Just because the lease is approved by the underwriter doesn't mean that the lessee can ignore the policy's provisions.

14. AVIATION INSURANCE Page 3 of 3 Many of our clients enter into such agreements with friends. We refer to these as "dry leases". We advise the underwriter of these leases and allow him to make a nominal premium charge. We usually ask that the "dry lessee" be named as an additional insured under the liability section of the policy with a waiver of subrogation on the hull. Subrogation is the assumption of an insured's rights of recovery by the insurance company. If an insurance company pays a loss on an insured's aircraft that was the result of someone else's negligence, the company assumes the insured's legal rights of recovery from the negligent party. A waiver of subrogation is when the insurance company relinquishes their right of recovery. Some underwriters are reluctant to allow dry leases. Others have no problem with this practice if only one or two lessees are involved. At the risk of underwriter rejection, it is always best to have full disclosure to the underwriter in the event of a loss. If you are allowing too many friends to use your aircraft, your underwriter may look at you as a rental operation. Keep in mind, changing to a rental purpose of use may be expensive.

15. AVIATION INSURANCE Reimbursement From Your Own Company I own my aircraft in a shell corporation and charge my own company for its use when it is operated on business. Does this cause an insurance problem? Most underwriters understand that this is an accepted and frequently used method of arranging aircraft ownership. Often attorneys and accountants shelter liabilities or improve tax situations by using shell corporations or LLCs. The best way to avoid any conflict with your insurance policy is to advise the underwriter of your intentions. Most companies want to be added as an additional insured under the policy. This should be confirmed by a certificate of insurance. Usually, the underwriter makes little or no premium charge for such a request. Many of the broader policies define "insured" as any person riding on the aircraft or any organization responsible for its use. Having your company added as an additional insured and being a certificate holder is still the best arrangement.

16. AVIATION INSURANCE The Aircraft Sale Is Final Have you ever purchased an aircraft and wondered when the sale is final and when you are responsible for insuring the aircraft? Is it when you post your deposit? Is it when you pay money to the escrow agent or when you sign the bill of sale? Is it when the aircraft is delivered to you? Page 1 of 7 These are questions that should be asked to determine who should insure the aircraft. They say, "The Devil is in the detail". This certainly applies to the change of aircraft ownership. Why is it so important? We have heard stories of overlapping policies on the same aircraft at the time of purchase. Which one pays in the event of a loss? Both insurance companies could point to the other, hoping to avoid a claim. In like fashion, there are stories where the seller drops coverage and the buyer has not yet put coverage in force. Oops.

17. AVIATION INSURANCE Page 2 of 7 In order for insurance to be valid and collectable, you must have an insurable interest in the aircraft you are insuring. Insurable interest means you are at risk of having an economic loss if the aircraft is damaged, stolen, or destroyed. Second, there must be an occurrence resulting in damage to the aircraft. But who has the insurable interest? If my aircraft were destroyed, you would suffer no economic loss and thus you could not purchase insurance or collect a settlement on my aircraft. If you are purchasing someone else's aircraft and the sale is not final, you are not at risk of an economic loss until the sale is final. So, when is the sale final?

18. AVIATION INSURANCE Page 3 of 7 When the sales agreement is signed?When the bill of sale is signed?When the title is transferred?When the aircraft is delivered?When funds transfer? An aviation claims attorney answered the question by saying "it depends". It depends upon the State law in question. In some jurisdictions, the case law says that title is transferred when the Bill of Sale is signed. Others say the title is transferred when the Bill of Sale is recorded by the governing agency, in the case of aviation, the FAA.

19. AVIATION INSURANCE Page 4 of 7 Of course, a title must transfer free and clear. This means that there must be a complete exchange of funds. No sales contract is fulfilled without consideration. But from the way it is stated by my attorney friend, in certain States you could have an exchange of funds but the sale is not final until the Bill of Sale is recorded. The recommended way to conduct a sales situation is with a properly worded sales contract and the involvement of an escrow agent and your attorney. Such a contract will outline the sale process. Many professional aircraft dealers and traders employ the services of an escrow agent. For a small fee, the escrow company accepts funds from the buyer and accumulates the necessary paperwork to close the sale. Upon confirmation from both buyer and seller, the escrow agent accepts the paperwork and releases the funds simultaneously. The necessary documentation is recorded with the FAA and the deal is done.

20. AVIATION INSURANCE Page 5 of 7 The sales contract should contain a statement giving the escrow agent the authority to handle the closing. Wording such as, "Upon the Escrow Agent being advised by the Seller and the Purchaser that the terms and conditions of this Agreement have been met and the Escrow Agent has all of the documents required for closing and holds the Purchase Price, the parties agree that the Escrow Agent shall concurrently (1) release the Purchase Price to Seller, (2) file a Federal Aviation Administration (FAA) Bill of Sale, Form 8050-2 conveying title to the Aircraft on behalf of Purchaser with the FAA and (3) forward Seller's original executed Warranty Bill of Sale to Purchaser. The risk of loss, injury, destruction or damage to the Aircraft by fire or other casualty or occurrence shall transfer to Purchaser upon transfer of title documents." The important word is concurrently. Using an escrow agent eliminates much of the guesswork as to when the sale is final and when insurable interest shifts to the new owner.

21. AVIATION INSURANCE Page 6 of 7 My attorney friend said, "As for insurable interest, this is another question in its entirety. Was there a deposit? Was it refundable? Was there pecuniary interest in the aircraft? After you answer these questions, will an insurance policy cover it? You must look at the specific policy wording. Most policies do not cover title or ownership disputes." Now, we are back to a good sales contract and the disciplines of a good escrow agent. Unfortunately, many aircraft change hands without a proper sales contract. In some cases, the only contract is verbal. In other cases, the sales agreement is just assumed.

22. AVIATION INSURANCE Page 7 of 7 The absence of a written contract is fine if there is no loss and there are no disputes during the transaction. Problems do occur, however. If the aircraft suffers a physical damage loss during the sale process and there is no insurance in force, which party suffers the loss? If there is an insurable loss and the old owner and the new owner both have an insurance policy in force, which one pays? If a disagreement does arise, an attorney friend said, "Only the attorneys win". I realize that the aircraft sales process is not really an insurance question. It is a legal question and should be addressed by an attorney. I am certainly no attorney. This is why I discussed this article with several attorneys and professional aircraft dealers. All recommend the use of an escrow agent and a formal closing. Involve an attorney who is familiar with the laws of your State.

23. AVIATION INSURANCE Hot Starts On Turbine and Jet Engines Hot starts are not covered under standard aviation hull insurance policies. Aviation physical damage policies specifically exclude engine losses resulting from internal heat.

24. AVIATION INSURANCE Warranty or Insurance My windshield broke in flight at 28,000 feet. No bird strike, it just broke. Is it covered? No. This would be considered to be wear and tear. If a bird or some other object had hit the windshield, the hull insurance policy would respond. This is possible but not likely at 28,000 feet. My suggestion is to investigate to see if this is a recurring problem with your make and model aircraft. It could be a problem with the manufacture or installation of the windshield.

25. AVIATION INSURANCE Canadian Travel I am planning a pleasure trip to Canada . Do I have coverage under my aircraft insurance? Do I need any special papers or certificates of insurance to present to the authorities? Yes. Canada is covered under the territorial limits of your standard aviation insurance policy. No. You do not need any special certification to enter Canada on a non-commercial flight. Unlike Mexico , no special insurance policy and no certificate of insurance are required for a non-commercial flight into Canada . It is recommend that a pilot carrying a copy of his or hers insurance policy, just in case you need to refer to it.

26. AVIATION INSURANCE Mexico Travel I am planning a pleasure trip to Mexico . Do I have coverage under my aircraft insurance? Do I need any special papers or certificates of insurance to present to the authorities? No. Mexico is not covered under the territorial limits of your standard aviation insurance policy. Yes. You do need special certification to enter Mexico on a non-commercial flight. Mexico requires a special insurance policy and certificate of insurance are required for a non-commercial flight into Mexico. With the purpose of facilitating General Aviation Flights to Mexico, information has been prepared by SENEAM, the Mexican government Air Traffic Service provider, responsible for the Air Navigation Service in Mexican Airspace. A copy of this document can be found on the Blais Aviation Insurance Services Website.

27. AVIATION INSURANCE Mexico Travel It is important to obtain adequate protection when flying into Mexico by private aircraft. Blais Aviation Insurance Services can arrange a Mexican Aviation Liability Policy that meets the requirements of the Mexican authorities. We offer a policy, written in Spanish and English and prepared in our office, through one of the largest Mexican Insurance Companies. We give immediate service and the policy is normally issued the same day application and money are received in our office. Why Mexico Insurance? American Insurance is not recognized in Mexico. According to Mexican Law, foreigners flying into Mexico must purchase insurance from an authorized Mexican Insurance Company. Since we issue the policies directly in our office, we can mail your policy to you or you can come by to pick it up.

28. AVIATION INSURANCE AGE vs. PRICE I am 67 years old. My current insurance company has insured me for five years. I have been given a premium quotation for significantly less money than my current underwriter quoted to renew my account. Should I change and save the money? This is a judgment call. Obviously, we don't want to waste money. But, the age factor is a real problem when purchasing insurance. If your current insurance company has the reputation of continuing to work with their clients as they age, you may want to pay the additional premium and stay with your current company.

29. AVIATION INSURANCE Approved Annual Training I don't want to go to SimCom or FlightSafety International for annual training. It is too expensive, too far away, and takes too long. I have a local CFI who is very good. Can he give me my annual training? The probable answer is no. It depends upon the type of aircraft you fly. With larger aircraft or high performance aircraft, many underwriters require annual simulator training. Smaller, less sophisticated aircraft may not require simulator-based training but may require a formal school. Most insurance companies have a list of approved training facilities for each make and model of aircraft. Your local CFI is probably not on the underwriter's approved list. This does not mean the local guy does not do a good job; he simply has not formalized his school and submitted the necessary information to the underwriting community to be recognized. In fact, most local instructors do not want to do the work necessary to obtain underwriter approval.

30. AVIATION INSURANCE Too Small To Require Training I have a Cessna 172. Is annual recurrency training necessary to comply with underwriting requirements? Small, light, single engine aircraft, under 200Hp with less than six seats usually are considered primary trainers. Most underwriters do not require annual training on these aircraft. This does not mean that an occasional refresher is not advisable. There is a difference in training for the purpose of compliance and training for the sake of safety. If you are training just to satisfy the underwriter, your priorities may be wrong. Don't forget the FAA Wings Program. You may have one in your area. This is an excellent opportunity for the light aircraft owner to get an annual flight check without extreme cost. Many underwriters recognize and recommend the FAA Wings Program.

31. AVIATION INSURANCE Why are contracts relating to my aircraft important from an insurance perspective?Did you know that every aviation contract or agreement has the potential to limit or even void your insurance coverage? Most contracts you enter relating to your aircraft contain insurance and/or hold harmless-indemnification clauses. Signing these agreements contractually obligates you to comply with the provisions they contain. If the insurance-related stipulations fall outside the scope of your coverage, the assumed risk becomes yours. Not good. All agreements, including Purchase Agreements, Bank Loan Agreements, Maintenance/FBO contracts, Hangar Agreements, Charter Agreements, etc. should be reviewed by appropriate legal counsel for any legal ramifications with a copy sent to your insurance broker to review from an insurance perspective. Hold harmless agreements can be particularly troublesome. Reference our article entitled “Insurance Perspective on Hold Harmless Agreements." Request a copy from Blais Aviation Insurance Services.

32. AVIATION INSURANCE How much liability coverage is enough? Page 1 of 3 Since there is no definitive method available to determine the appropriate liability coverage limit to select, your response to the following questions can help guide you in selecting a reasonable limit based on your exposure; Number of passenger seats in the aircraft. Obviously, an aircraft with 14 passenger seats presents a greater exposure and will require a higher liability coverage limit than one with 7. Average passenger load per flight. Again, if your average passenger load per flight is 5, you would need to carry a higher coverage limit than if it was 2.

33. AVIATION INSURANCE Page 2 of 3 Composition of passengers (Employee vs Guests). If the majority of passengers carried on the aircraft are employees, you may be able to justify a lower liability limit since a properly structured Workers Compensation program should be the sole remedy for injuries to employees. Conversely, if the majority of passengers are guests, you would need to select a higher liability limit. What assets need to be protected? Don’t let a holding company give you a false sense of security. Savvy plaintiff attorneys will attempt to pierce shell companies and corporate veils in an effort to get at the “real money” whether it be a larger corporation or an individual’s net worth.

34. AVIATION INSURANCE Page 3 of 3 If you have an umbrella policy that covers the aviation exposure, you will need to make sure your aviation liability limit meets the minimum required umbrella limit. Generally speaking, since it is impossible to determine the exact coverage limit you need, it is best to buy as much as you can reasonably afford. Obtain quotes for alternate limits each year, as rating of this coverage can vary greatly year to year.

35. AVIATION INSURANCE How do I determine the proper insured value for my aircraft?Unlike many other property policies, aircraft policies are usually written on an “agreed-value” basis. Therefore, you can over insure and under insure to your detriment. If you over insure, the insurance company will typically elect to repair the aircraft even when there is major damage – leaving you to deal with significant damage history. If you under insure, the insurance company may elect to pay you for the total loss and sell the salvage – you would lose your equity. The proper insured value to carry is the amount of money it would take to purchase another aircraft exactly like yours (i.e. same year, make and model, etc. – not a brand new one). The aircraft dealer you purchased the aircraft from should be able to give you the best idea of its current value. In addition, your insurance broker should have resources to help give you an idea of this value. This coverage limit should be reviewed annually on renewal and adjusted accordingly.

36. AVIATION INSURANCE What measures can I take to improve my aviation insurance program? Page 1 of 3 Develop, implement and maintain a documented flight safety program. Address critical areas such as approach and landing accidents and controlled flight into terrain (ALAR/CFIT), dissimilar aircraft operations, runway incursions, ground handling safety, etc. Not having accidents or incidents in the first place in order to keep premiums down is fundamental risk management! Adhere to an Pilot Operating Handbook.

37. AVIATION INSURANCE Page 2 of 3 Get annual recurrent training in the make and model. Okay, so this is required anyway, but the fact is this is key to most insurance carrier's willingness to offer their broadest coverage and most competitive rates. Underwriters typically recognize the value of any given training for only a twelve month period, which equals a policy period, so that training completed two or more years ago does not impact the underwriting as favorably as recurrent training in the make and model within the last twelve months. In short, training does affect coverage availability and premium. Develop and implement a security plan. There are numerous resources with sample security plans available. Example: AIG Aviation, Inc.’s Security Plan. Develop and implement an accident response plan. Again there are valuable resources available to help you with this process. Example: USAIG’s Corporate Aircraft Accident Response Plan is an excellent template to use in getting started.

38. AVIATION INSURANCE Page 3 of 3 Details. Quantify all the things you do that make your operation superior. Standard Operating Procedures, training to supplement the manufacturer’s programs, personal minimums, documented Safety and Security programs, etc. Complete all applications and forms timely, completely and truthfully. Even though there are few line-item credits in aviation insurance, you should provide Blais Aviation Insurance Services (your broker) with as much “ammunition” as possible about your aircraft and flight operations. This will help your account stand out from the sea of submissions most underwriters have on their desks every day. Review and evaluate your coverage regularly and thoroughly. Perhaps the value of the airplane has dropped in recent years but the insured value has not been properly adjusted. Operations change constantly so maybe there is coverage you didn't need last year that you should have this year. Consult with Blais Aviation Insurance Services (your broker) regularly, that’s why we’re here!

39. AVIATION INSURANCE What’s the deal with single-pilot operations? Single-pilot operations are possible; however,underwriters are less willing to extend high liability limits, offer preferred rates and will flat out require two-pilot operations in some circumstances. The industry is also attempting to address the upcoming proliferation of “microjets” that will open up high-performance, flight-level operations to many owner-pilots.

40. AVIATION INSURANCE Should we carry war insurance or TRIA insurance or both? The subject of war insurance and the expanded terrorism coverage available under the Terrorism Risk Insurance Act (TRIA) of 2002 can be confusing. Please visit with Blais Aviation Insurance Services and ask for more information about War coverage and read our article about the Terrorism Risk Insurance Act of 2002.

41. AVIATION INSURANCE Who may use our airplane? Page 1 of 2 This question is often addressed in the context of cost reimbursement. That is, how much can be charged for the use of the airplane before running afoul of the insurance policy and/or the FARs. The short answer is, you can’t charge anything for the use of the airplane and “charge” doesn’t just mean cash payments. Aircraft insurance policies are designed for “your” use. The “your” is the Named Insured. Therefore the Named Insured can use the airplane for its pleasure and business. For example, ABC Company owns the airplane and utilizes it to transport ABC employees to conventions, move parts between plants, send ABC executives to meetings or bring ABC clients to visit company headquarters.

42. AVIATION INSURANCE Page 2 of 2 Problems arise when XYZ Company, whose jet is down for maintenance, wants to be able to use the ABC Company plane for supplemental lift. Or when ABC Company’s CEO has a buddy who wants to use the plane for a trip to the Bahamas. Or ABC Company makes widgets and the CEO is John Smith. John Smith owns an airplane under John Smith, LLC and he utilizes the airplane both for his family travel and also allows ABC Company personnel to utilize it, as needed. These alternative uses should be orchestrated with the help of an aviation attorney, your tax advisor and your broker so the insurance company can properly address any cost reimbursement that may fall outside the policy parameters.

43. AVIATION INSURANCE Can pilots be sued? Absolutely. For example, in the aftermath of an accident, the policyholder is sued for negligence as the owner of the aircraft. Meanwhile, a lawsuit naming the pilot personally for negligence is also filed. The insurance carrier’s obligation is to defend and take care of the policyholder. If the pilot is an employee of the policyholder or has been specifically added as an additional insured, the insurance carrier will defend the additional lawsuit for the pilot. (Remember the liability limit is shared by all parties; it is not a per person or per lawsuit occurrence limit!) If the pilot is an independent contractor and has not been added to the policy as an insured, the pilot will have to defend that lawsuit “solo.” Remember, it is possible to be an approved pilot but not necessarily a covered pilot. The fact that you are an approved pilot, whether by name in the policy or by meeting the policy’s open pilot warranty, simply means that if there is a loss while you are at the controls, coverage will still be in place for the policyholder.

44. AVIATION INSURANCE How is a pilot who is injured (or worse) compensated after an accident? It depends. If the pilot is an employee of the policyholder, workers compensation coverage should apply. Independent contractor pilots should still have their own workers compensation coverage, in theory. Absent workers compensation, perhaps there is major medical or life insurance to fall back on. Workers compensation laws usually bar employees from suing their employers. If however the pilot is not an employee, he or she could potentially sue the policyholder just like any other passenger! This is a big reason why underwriters prefer the regular use of employee pilots.

45. AVIATION INSURANCE What is a Broker of Record Letter (or Agent of Record Letter) and what does it do? Page 1 of 3 Insurance companies rely on insurance brokers to bring account submissions to them for evaluation. There are only a few aviation insurance companies, each with limited staff, and they do not want to tie up their underwriters by quoting the same risk to several different brokers. Therefore, each will recognize only one broker on any given risk on a first-come, first-serve basis. The first broker who presents a submission to an aviation insurance underwriter is the official "broker (or agent) of record." The insurance carrier assumes this person was your first choice since they contacted them first. The choice of broker belongs entirely to the customer, so the broker can be later changed if that is the wish of the customer. Enter the Broker of Record Letter. It is a serious document that accomplishes the following:

46. AVIATION INSURANCE Page 2 of 3 Terminates the relationship between you and the current broker and suspends the current broker's ability to negotiate on your behalf with the insurance company. Affirms the appointment of a new broker, giving that broker the sole ability to negotiate with the insurance company for you, and grants access to any underwriting information or proposals that are currently "on the table." (Without a significant change in the basic underwriting information, if the insurance company has already made a firm commitment to the first broker to either decline or provide a quote, the new broker usually "inherits" that decision – whether it be a declination or a specific premium proposal.) Provides a relief mechanism, expressed in terms of a specified number of days "waiting period," to allow full disclosure of the letter to all parties involved, thereby granting the former broker the opportunity to review the implications of the letter with you and to confirm your desire to change brokers.

47. AVIATION INSURANCE Page 3 of 3 Be certain you understand the ramifications of this document. Have your broker explain its intent to you before you sign it! You are best served by selecting, up front, one competent aviation insurance broker who has access to all the markets and will consult with you on the resulting proposals.

48. AVIATION INSURANCE How can I get the lowest available rate on my insurance? Page 1 of 5 This is one of the most common questions in our business. Everyone wants the best coverage at the lowest rate, so we would like to share with you the following tips that may help you lower your premium at your next renewal.

49. AVIATION INSURANCE How can I get the lowest available rate on my insurance? Page 2 of 5 Annual Training Annual recurrent training is usually required for higher limits of liability, pressurized aircraft or turbine-powered aircraft. Some insurance underwriters even offer lower rates or better coverage for pilots who take annual recurrent training. Ideally, this consists of a manufacturer-recommended program that includes ground and flight training. For single-engine and light twin-engine aircraft, an annual Flight Review and Instrument Proficiency Check in the aircraft are usually acceptable if the flight instructor meets the policy’s Open Pilot Warranty. This is usually the best choice when manufacturer-recommended programs are not available and they can be coupled with the FAA WINGS or SEAWINGS program, which is highly recommended as well. Also, underwriters often require an annual FAA medical exam for pilots over 65 years of age.

50. AVIATION INSURANCE How can I get the lowest available rate on my insurance? Page 3 of 5 Association Memberships Some aviation ownership clubs and advocacy groups, such as the AOPA and EAA, have special insurance programs that can provide a discount for their members. Blais Aviation Insurance Services has access to these programs, so you can continue to do business with the agent you trust knowing that you don’t have to change agents to get the best price. We can apply for these discounts on your behalf, so make sure your membership is current and that we are aware of your membership numbers for associations like these.