AVMG 5090 TEST 2 QUESTIONS WITH VERIFIED
ANSWERS
Aviation insurance is sold in what 3 ways? - Answers - agents, brokers, and direct
companies
True - Answers - (T/F) There is no limitation of liability for your own torts.
Stages of insurance policy creation - Answers - Insurance company- underwriter- agent
-consumer
claims adjuster- consumer or agent
Lienholder's Endorsement - Answers - 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 - Answers - (T/F) The boss has the right to direct their employees but not the
independent contractors.
Lloyd's of London does what - Answers - writes all insurance plans/forms
Assumption of Risk - Answers - _____________ 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. - Answers - What is Workman's
Compensation?
1st Basic Principle of Insurance - Answers - Spreading the Risk
exceptions to FTCA of 1946 - Answers - - 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. - 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?
Montreal Convention of 1999 - Answers - 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 - Answers - Minimizing the Risk
What is Hull Coverage? - Answers - damage to the airplane
Special drawing right - Answers - conversion currency
- 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?
types of hull coverage? - Answers - - 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.
- Answers - List and describe the three forms of Hull coverages.
What is Liability Coverage? - Answers - - damaging of property
- injury or death of someone
- Current Market Value
- Stated Value - Answers - What are the two types of Valuation?
2 types of Valuation - Answers - - 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. - Answers - What is
Stated Value?
What are the 6 types of purposes of use? - Answers - - pleasure and business
- industrial aid
- limited commercial
ANSWERS
Aviation insurance is sold in what 3 ways? - Answers - agents, brokers, and direct
companies
True - Answers - (T/F) There is no limitation of liability for your own torts.
Stages of insurance policy creation - Answers - Insurance company- underwriter- agent
-consumer
claims adjuster- consumer or agent
Lienholder's Endorsement - Answers - 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 - Answers - (T/F) The boss has the right to direct their employees but not the
independent contractors.
Lloyd's of London does what - Answers - writes all insurance plans/forms
Assumption of Risk - Answers - _____________ 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. - Answers - What is Workman's
Compensation?
1st Basic Principle of Insurance - Answers - Spreading the Risk
exceptions to FTCA of 1946 - Answers - - 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. - 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?
Montreal Convention of 1999 - Answers - 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 - Answers - Minimizing the Risk
What is Hull Coverage? - Answers - damage to the airplane
Special drawing right - Answers - conversion currency
- 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?
types of hull coverage? - Answers - - 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.
- Answers - List and describe the three forms of Hull coverages.
What is Liability Coverage? - Answers - - damaging of property
- injury or death of someone
- Current Market Value
- Stated Value - Answers - What are the two types of Valuation?
2 types of Valuation - Answers - - 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. - Answers - What is
Stated Value?
What are the 6 types of purposes of use? - Answers - - pleasure and business
- industrial aid
- limited commercial
