Description
Review the pdf and at the cover page, assume that you purchased the following limits:
- Coverage A: $1 million per occurrence, $100,000 per passenger
- Coverage B: $200,00
- And:
- The pilot endorsement includes:
- You, by name, and any other pilot holding a currently valid FAA Commercial Pilot Certificate with
Second Class Medical Certificate and having logged at least 500 hours as pilot in command in
the same category and class as the non-owned aircraft.
crosswind, when you lose control. The aircraft departs the runway, the nose wheel strikes a runway light,
and the aircraft flips over. - You, by name, and any other pilot holding a currently valid FAA Commercial Pilot Certificate with
Answer
Based on the Sample Non-Owned Aircraft policy, will the insurance company pay, (and if so, how
much) for each of the following losses? Cite the policy paragraph(s) relied on for each answer.
(Treat each numbered question as a separate question, rather than a continuation of or follow-on to the
previous question(s).)
- The aircraft is damaged beyond economical repair (it would cost $120,000 to repair the
damages, but an identical replacement aircraft can be purchased for $105,000). - Your passenger, a friend who was along for this recreational flight, is injured, and incurs
$20,000 in medical expenses as a result. - You are injured, and incur $18,000 in medical expenses as a result, and:
a. this was a recreational flight.
b. this was a flight made to visit a customer as a part of your employment. - Your passenger, a co-worker who was along on this business flight for your mutual
employer, was injured and incurred $20,000 in medical expenses as a result - You and your passenger each had an $1,800 laptop computer in the baggage compartment, and each was destroyed in the crash.
- Elk hunting season opens Monday and the purpose of the flight was to spot herds of elk
from the air to help you select your hunting area. How would this affect the insurance
company's liability for:
a. damage to the aircraft?
b. passenger injuries? - Your intended destination was the border town of Douglas, Arizona, but the wind had kicked
up a lot of blowing dust, causing you to mistake the close-by airport in Agua Prieta, Mexico
for the Douglas Airport. You landed there, where the accident occurred. How will this affect
the insurance company's liability for:
a. damage to the aircraft?
b. passenger injuries? - At the time of the accident, your FAA Medical Certificate had expired. How would this affect
the insurance company's liability for:
a. damage to the aircraft?
b. passenger injuries?
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Explanation & Answer
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SURNAME 1
Insurance Policy Analysis
Intuitional Affiliation
Instructor
Date
Post your answers in the appropriate thread on the Discussion Board forum titled 4.3 Policy Analysis.
1.The aircraft is damaged beyond economical repair (it would cost $120,000 to repair the
damages, but an identical replacement aircraft can be purchased for $105,000).
Based on the fact that the coverage purchased (covered B) is worth $200000 and the price of the aircraft
is less than the worth price of repairs due accident damage, the insurance company can replace the
aircraft. The insurance company thus can make money from replacing the aircraft with a lesser amount
than replacing the wreckage. The craft is also none owned thus policy coverage B will apply since it
was a physical damage.
2. Your passenger, a friend who was along for this recreational flight, is injured, and incurs
$20,000 in medical expenses as a result.
Definitely, coverage A covered a maximum of $10000 per passenger in case of an incident. Therefore,
this will be covered in the policy because the amount incurred as medical expenses amounting to
$20000 is less that assurance coverage amount that would be applied.
SURNAME 2
3. You are injured, and incur $18,000 in medical expenses as a result, and:
a. This was a recreational flight.
A...
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