AVMG 5090 AVIATION LAW - EXAM 2 QUESTIONS
WITH VERIFIED ANSWERS
True - Answers - (T/F) There is no limitation of liability for your own torts.
True - Answers - (T/F) The boss has the right to direct their employees but not the
independent contractors.
Insurance for workers who are injured on the job. - Answers - What is Workman's
Compensation?
If the employee gets injured on the job, then they cannot hold you liable and sue you for
the accident. - Answers - What is the benefit of having Workman's Compensation for
your employees?
- Spread the risk
- Minimize the risk - Answers - What are the two basic principles of insurance?
- Liability = covers your liability for injuries and damage to others or their property.
- Hull = damage to your own aircraft. - Answers - What are the types of aircraft
insurance coverages and their definitions?
- "All risks" (expensive)
- "All risks except flight" (cheaper) = can save possibly 50% of the usual bills to
insurance.
- "All risks with motion" (cheapest) = parked and not moved for any reason whatsoever.
- Answers - List and describe the three forms of Hull coverages.
- Current Market Value
- Stated Value - Answers - What are the two types of Valuation?
It is on the responsibility of the owner to tell the insurance company what the current
value is for the aircraft. Any modifications made that might increase or decrease the
value should be understood by the owner, in which case, it is up to the owner to tell the
insurance company what the new value is, or else it will not change. - Answers - What is
Stated Value?
True - Answers - (T/F) It is more beneficial for the owner to choose Stated Value over
CMV.
True - Answers - (T/F) You cannot buy a policy for more than the value that is worth.
, - Pleasure + Business = business does not include any other individual with regards to
said business except for yourself.
- Industrial Aid = aircraft usage can include transportation of business execs,
employees, guests, and customers, all with no charge gained.
- Commercial Except Instruction/Rental = excludes commercial flight instruction or rental
of the aircraft to other pilots.
- Limited Commercial = excludes carrying passengers or cargo for hire.
- Full Commercial = covers every use of the aircraft.
- Special Uses - Answers - What are the six "Purposes of Use"?
- If the aircraft is destroyed for any reason, then the insurance company will pay back
the loan balance.
- Lien = any claim of a piece of property for payment.
- Will always be payed regardless of the presence of illegal activity by the recipient. -
Answers - Describe Lienholder's Interest Endorsement.
- Aircraft Directives = FAR directives by which the pilot MUST adhere to with regards to
their aircraft.
- Special Flight Permits can be granted by the FAA to disregard an AD for a specific
purpose upon request by the pilot. - Answers - What are Aircraft Directives and what
can be used to be disregarded by them?
- Additional coverage that kicks in after the original policy coverage.
- It's a lot of risk for a little amount of money. - Answers - What is Excess Liability
Coverage (Umbrella Policy)?
- To pay up to the policy limits for losses incurred under said policy.
- To defend you in court at their total expense. - Answers - What are your insurance
company's duties to you?
- Contracts where one party says to another that they will relieve them of all liability of a
service in exchange for said service.
- Ex: bungee jumping, skydiving - Answers - What are Exculpatory Contracts and give
examples?
True; if one airliner changes something to better improve safety for their customers,
then the others must follow or else they risk harm to their business. - Answers - (T/F) All
airlines have the duty of highest care to their customers.
True - Answers - (T/F) Punitive Damages are rare within airlines nowadays.
True - Answers - (T/F) Airlines can limit liabilities on luggage but not on lives.
The entire agreement between you and the airline. - Answers - What is an Airline Tariff?
- The US withdraws from the Warsaw Convention of 1926.
WITH VERIFIED ANSWERS
True - Answers - (T/F) There is no limitation of liability for your own torts.
True - Answers - (T/F) The boss has the right to direct their employees but not the
independent contractors.
Insurance for workers who are injured on the job. - Answers - What is Workman's
Compensation?
If the employee gets injured on the job, then they cannot hold you liable and sue you for
the accident. - Answers - What is the benefit of having Workman's Compensation for
your employees?
- Spread the risk
- Minimize the risk - Answers - What are the two basic principles of insurance?
- Liability = covers your liability for injuries and damage to others or their property.
- Hull = damage to your own aircraft. - Answers - What are the types of aircraft
insurance coverages and their definitions?
- "All risks" (expensive)
- "All risks except flight" (cheaper) = can save possibly 50% of the usual bills to
insurance.
- "All risks with motion" (cheapest) = parked and not moved for any reason whatsoever.
- Answers - List and describe the three forms of Hull coverages.
- Current Market Value
- Stated Value - Answers - What are the two types of Valuation?
It is on the responsibility of the owner to tell the insurance company what the current
value is for the aircraft. Any modifications made that might increase or decrease the
value should be understood by the owner, in which case, it is up to the owner to tell the
insurance company what the new value is, or else it will not change. - Answers - What is
Stated Value?
True - Answers - (T/F) It is more beneficial for the owner to choose Stated Value over
CMV.
True - Answers - (T/F) You cannot buy a policy for more than the value that is worth.
, - Pleasure + Business = business does not include any other individual with regards to
said business except for yourself.
- Industrial Aid = aircraft usage can include transportation of business execs,
employees, guests, and customers, all with no charge gained.
- Commercial Except Instruction/Rental = excludes commercial flight instruction or rental
of the aircraft to other pilots.
- Limited Commercial = excludes carrying passengers or cargo for hire.
- Full Commercial = covers every use of the aircraft.
- Special Uses - Answers - What are the six "Purposes of Use"?
- If the aircraft is destroyed for any reason, then the insurance company will pay back
the loan balance.
- Lien = any claim of a piece of property for payment.
- Will always be payed regardless of the presence of illegal activity by the recipient. -
Answers - Describe Lienholder's Interest Endorsement.
- Aircraft Directives = FAR directives by which the pilot MUST adhere to with regards to
their aircraft.
- Special Flight Permits can be granted by the FAA to disregard an AD for a specific
purpose upon request by the pilot. - Answers - What are Aircraft Directives and what
can be used to be disregarded by them?
- Additional coverage that kicks in after the original policy coverage.
- It's a lot of risk for a little amount of money. - Answers - What is Excess Liability
Coverage (Umbrella Policy)?
- To pay up to the policy limits for losses incurred under said policy.
- To defend you in court at their total expense. - Answers - What are your insurance
company's duties to you?
- Contracts where one party says to another that they will relieve them of all liability of a
service in exchange for said service.
- Ex: bungee jumping, skydiving - Answers - What are Exculpatory Contracts and give
examples?
True; if one airliner changes something to better improve safety for their customers,
then the others must follow or else they risk harm to their business. - Answers - (T/F) All
airlines have the duty of highest care to their customers.
True - Answers - (T/F) Punitive Damages are rare within airlines nowadays.
True - Answers - (T/F) Airlines can limit liabilities on luggage but not on lives.
The entire agreement between you and the airline. - Answers - What is an Airline Tariff?
- The US withdraws from the Warsaw Convention of 1926.
