Aviation Law Exam 2 Review
Questions with Answers
hull coverage - -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
- hull coverage may be purchased to cover: - -all risks
all risks while not in flight, or
all risks while not in motion.2
- Purpose-of-use categories - -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
- FAR Violation Exclusion Clause - -says that if the operation was in violation
of a FAR, it is excluded from coverage by the insurance policy
- subrogation - -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.
- How renting pilots can avoid subrogation - --purchasing a waiver of
subrogation endorsement to their aircraft insurance policy
-have insurance company generically name renter pilots as additional
insureds on the policy
, - If your business is located on an airport, you will need - -airport liability
insurance
- types of airport liability insurance - -worker's compensation
unemployment
premises/hangar keeper's liability
products liability
- premises liability - -covers injury to nonemployees occurring at your place
of business
- Hangarkeepers Liability - -insurance that covers your liability for damages
to other people's aircraft while they are in your care, custody, or control
- product liability - -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
- Workers Compensation - -A form of insurance paid by the employer
providing cash benefits to workers injured or disabled in the course of
employment.
- stated value - -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
- Fair Market Value - -the price a willing buyer would pay a willing seller in a
free market
- GARA - -General Aviaiton Revitalization Act greatly affected overhaul
facilites and maintenance shops and aircraft rental operations
- Exculpatory contract - -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
Questions with Answers
hull coverage - -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
- hull coverage may be purchased to cover: - -all risks
all risks while not in flight, or
all risks while not in motion.2
- Purpose-of-use categories - -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
- FAR Violation Exclusion Clause - -says that if the operation was in violation
of a FAR, it is excluded from coverage by the insurance policy
- subrogation - -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.
- How renting pilots can avoid subrogation - --purchasing a waiver of
subrogation endorsement to their aircraft insurance policy
-have insurance company generically name renter pilots as additional
insureds on the policy
, - If your business is located on an airport, you will need - -airport liability
insurance
- types of airport liability insurance - -worker's compensation
unemployment
premises/hangar keeper's liability
products liability
- premises liability - -covers injury to nonemployees occurring at your place
of business
- Hangarkeepers Liability - -insurance that covers your liability for damages
to other people's aircraft while they are in your care, custody, or control
- product liability - -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
- Workers Compensation - -A form of insurance paid by the employer
providing cash benefits to workers injured or disabled in the course of
employment.
- stated value - -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
- Fair Market Value - -the price a willing buyer would pay a willing seller in a
free market
- GARA - -General Aviaiton Revitalization Act greatly affected overhaul
facilites and maintenance shops and aircraft rental operations
- Exculpatory contract - -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
