AVMG 5090 Test 2 Questions With
Correct Answers
Aviation insurance is sold in what 3 ways? - ANSWER agents, brokers, and
direct companies
True - ANSWER (T/F) There is no limitation of liability for your own torts.
Stages of insurance policy creation - ANSWER Insurance company- underwriter-
agent -consumer
claims adjuster- consumer or agent
Lienholder's Endorsement - ANSWER when the insurance company will pay the
bank the loan balance if something happens to the aircraft that the insurance
company won't insure the plane for, such as an unqualified pilot flying a plane
and crashing it, important when selling aircraft
True - ANSWER (T/F) The boss has the right to direct their employees but not the
independent contractors.
Lloyd's of London does what - ANSWER writes all insurance plans/forms
Assumption of Risk - ANSWER _____________ can't be used as a defense against
suits brought by injured passengers because they chose the known risk.
Insurance for workers who are injured on the job. - ANSWER What is Workman's
Compensation?
1st Basic Principle of Insurance - ANSWER Spreading the Risk
exceptions to FTCA of 1946 - ANSWER - Claim arises in foreign country
- Combatant activity
- Activity related to military service
- Discretionary activity (opposed to operational activity)
Policy vs actions (ATC mess up)
- Intentional torts
US assumes liability for your torts on the job
If the employee gets injured on the job, then they cannot hold you liable and sue
you for the accident. - ANSWER What is the benefit of having Workman's
Compensation for your employees?
, - Spread the risk
- Minimize the risk - ANSWER What are the two basic principles of insurance?
Montreal Convention of 1999 - ANSWER Strictly liable for up to 100,000 SDRs for
injury or death
Liable for the full economic value unless the airline proves NOT negligent
No punitive damages
Cargo - 17 SDRs/kg
2nd Basic Principle of Insurance - ANSWER Minimizing the Risk
What is Hull Coverage? - ANSWER damage to the airplane
Special drawing right - ANSWER conversion currency
- Liability = covers your liability for injuries and damage to others or their
property.
- Hull = damage to your own aircraft. - ANSWER What are the types of aircraft
insurance coverages and their definitions?
types of hull coverage? - ANSWER - all risk
- all risk/ not in motion
- all risk/ not in flight
- "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. - ANSWER List and describe the three forms of Hull coverages.
What is Liability Coverage? - ANSWER - damaging of property
- injury or death of someone
- Current Market Value
- Stated Value - ANSWER What are the two types of Valuation?
2 types of Valuation - ANSWER - current market value
- stated value
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. - ANSWER What is Stated Value?
What are the 6 types of purposes of use? - ANSWER - pleasure and business
Correct Answers
Aviation insurance is sold in what 3 ways? - ANSWER agents, brokers, and
direct companies
True - ANSWER (T/F) There is no limitation of liability for your own torts.
Stages of insurance policy creation - ANSWER Insurance company- underwriter-
agent -consumer
claims adjuster- consumer or agent
Lienholder's Endorsement - ANSWER when the insurance company will pay the
bank the loan balance if something happens to the aircraft that the insurance
company won't insure the plane for, such as an unqualified pilot flying a plane
and crashing it, important when selling aircraft
True - ANSWER (T/F) The boss has the right to direct their employees but not the
independent contractors.
Lloyd's of London does what - ANSWER writes all insurance plans/forms
Assumption of Risk - ANSWER _____________ can't be used as a defense against
suits brought by injured passengers because they chose the known risk.
Insurance for workers who are injured on the job. - ANSWER What is Workman's
Compensation?
1st Basic Principle of Insurance - ANSWER Spreading the Risk
exceptions to FTCA of 1946 - ANSWER - Claim arises in foreign country
- Combatant activity
- Activity related to military service
- Discretionary activity (opposed to operational activity)
Policy vs actions (ATC mess up)
- Intentional torts
US assumes liability for your torts on the job
If the employee gets injured on the job, then they cannot hold you liable and sue
you for the accident. - ANSWER What is the benefit of having Workman's
Compensation for your employees?
, - Spread the risk
- Minimize the risk - ANSWER What are the two basic principles of insurance?
Montreal Convention of 1999 - ANSWER Strictly liable for up to 100,000 SDRs for
injury or death
Liable for the full economic value unless the airline proves NOT negligent
No punitive damages
Cargo - 17 SDRs/kg
2nd Basic Principle of Insurance - ANSWER Minimizing the Risk
What is Hull Coverage? - ANSWER damage to the airplane
Special drawing right - ANSWER conversion currency
- Liability = covers your liability for injuries and damage to others or their
property.
- Hull = damage to your own aircraft. - ANSWER What are the types of aircraft
insurance coverages and their definitions?
types of hull coverage? - ANSWER - all risk
- all risk/ not in motion
- all risk/ not in flight
- "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. - ANSWER List and describe the three forms of Hull coverages.
What is Liability Coverage? - ANSWER - damaging of property
- injury or death of someone
- Current Market Value
- Stated Value - ANSWER What are the two types of Valuation?
2 types of Valuation - ANSWER - current market value
- stated value
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. - ANSWER What is Stated Value?
What are the 6 types of purposes of use? - ANSWER - pleasure and business
