AVIATION LAW EXAM 2 REVIEW UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Question:
1. hull coverage
Answer:
covers damage to or destruction of the insured aircraft resulting from an accident
-generally doesn't cover damage to the aircraft's engines in connection with an
engine failure, unless the engine failure leads to other damage to the aircraft
Question:
2. hull coverage may be purchased to cover:
Answer:
all risks
all risks while not in flight, or
all risks while not in motion.2
Question:
3. Purpose-of-use categories
Answer:
categories of airplane use that are used in aviation insurance classification and
rating
-pleasure and business
-industrial aid
-limited commercial
-commercial exept instruction or rental
-commercial
-special uses
Question:
4. FAR Violation Exclusion Clause
Answer:
says that if the operation was in violation of a FAR, it is excluded from coverage by
the insurance policy
Question:
5. subrogation
Answer:
The process by which an insurer can, after it has paid a loss under the policy,
recover the amount paid from any party (other than the insured) who caused the
loss or is otherwise legally liable for the loss.
,Question:
6. How renting pilots can avoid subrogation
Answer:
-purchasing a waiver of subrogation endorsement to their aircraft insurance policy
-have insurance company generically name renter pilots as additional insureds on
the policy
Question:
7. If your business is located on an airport, you will need
Answer:
airport liability insurance
Question:
8. types of airport liability insurance
Answer:
worker's compensation
unemployment
premises/hangar keeper's liability
products liability
Question:
9. premises liability
Answer:
covers injury to nonemployees occurring at your place of business
Question:
10. Hangarkeepers Liability
Answer:
insurance that covers your liability for damages to other people's aircraft while
they are in your care, custody, or control
Question:
11. product liability
Answer:
insurance needed to cover claims arising out of faulty workmanship, oversights in
inspection, errors and defects in design or manufacture of goods sold, and faults
in the quality, storage, and delivery of fules
needed by all businesses that perform aircraft inspection, maintenance, or
modification, or supply aircraft parts, fuel and lubricants
, Question:
12. Workers Compensation
Answer:
A form of insurance paid by the employer providing cash benefits to workers
injured or disabled in the course of employment.
Question:
13. stated value
Answer:
the most common valuation method in whcih the insurance policy specifies the
exact dollar amount the insurance company will pay to the aircraft owner in the
event of a total loss
Question:
14. Fair Market Value
Answer:
the price a willing buyer would pay a willing seller in a free market
Question:
15. GARA
Answer:
General Aviaiton Revitalization Act greatly affected overhaul facilites and
maintenance shops and aircraft rental operations
Question:
16. Exculpatory contract
Answer:
an agreement between the aircraft or airport operator and a participant in an
aviation operation by which the participant agrees not to sue the operator of the
aircraft or airport if the participant is killed or injured during the operation
Question:
17. Although exculpatory contracts are banned in NY, most
other states the courts very closer strutinize such
contracts but enforce them if:
Answer:
1. there is some equality in bargaining power between the parties, and
2. the subject matter is not an essential of life (food, medicine, medical care,
shelter, public utilities, public transportation, or communications
QUESTIONS AND CORRECT ANSWERS
Question:
1. hull coverage
Answer:
covers damage to or destruction of the insured aircraft resulting from an accident
-generally doesn't cover damage to the aircraft's engines in connection with an
engine failure, unless the engine failure leads to other damage to the aircraft
Question:
2. hull coverage may be purchased to cover:
Answer:
all risks
all risks while not in flight, or
all risks while not in motion.2
Question:
3. Purpose-of-use categories
Answer:
categories of airplane use that are used in aviation insurance classification and
rating
-pleasure and business
-industrial aid
-limited commercial
-commercial exept instruction or rental
-commercial
-special uses
Question:
4. FAR Violation Exclusion Clause
Answer:
says that if the operation was in violation of a FAR, it is excluded from coverage by
the insurance policy
Question:
5. subrogation
Answer:
The process by which an insurer can, after it has paid a loss under the policy,
recover the amount paid from any party (other than the insured) who caused the
loss or is otherwise legally liable for the loss.
,Question:
6. How renting pilots can avoid subrogation
Answer:
-purchasing a waiver of subrogation endorsement to their aircraft insurance policy
-have insurance company generically name renter pilots as additional insureds on
the policy
Question:
7. If your business is located on an airport, you will need
Answer:
airport liability insurance
Question:
8. types of airport liability insurance
Answer:
worker's compensation
unemployment
premises/hangar keeper's liability
products liability
Question:
9. premises liability
Answer:
covers injury to nonemployees occurring at your place of business
Question:
10. Hangarkeepers Liability
Answer:
insurance that covers your liability for damages to other people's aircraft while
they are in your care, custody, or control
Question:
11. product liability
Answer:
insurance needed to cover claims arising out of faulty workmanship, oversights in
inspection, errors and defects in design or manufacture of goods sold, and faults
in the quality, storage, and delivery of fules
needed by all businesses that perform aircraft inspection, maintenance, or
modification, or supply aircraft parts, fuel and lubricants
, Question:
12. Workers Compensation
Answer:
A form of insurance paid by the employer providing cash benefits to workers
injured or disabled in the course of employment.
Question:
13. stated value
Answer:
the most common valuation method in whcih the insurance policy specifies the
exact dollar amount the insurance company will pay to the aircraft owner in the
event of a total loss
Question:
14. Fair Market Value
Answer:
the price a willing buyer would pay a willing seller in a free market
Question:
15. GARA
Answer:
General Aviaiton Revitalization Act greatly affected overhaul facilites and
maintenance shops and aircraft rental operations
Question:
16. Exculpatory contract
Answer:
an agreement between the aircraft or airport operator and a participant in an
aviation operation by which the participant agrees not to sue the operator of the
aircraft or airport if the participant is killed or injured during the operation
Question:
17. Although exculpatory contracts are banned in NY, most
other states the courts very closer strutinize such
contracts but enforce them if:
Answer:
1. there is some equality in bargaining power between the parties, and
2. the subject matter is not an essential of life (food, medicine, medical care,
shelter, public utilities, public transportation, or communications
