6/21/24, 9:52 PM Topic: 4.1 Scenario Discussion: Insurance & Exculpatory Contracts
c
This is a graded discussion: 100 points possible
due Mar 5
57 77
Scenario Discussion: Insurance & Exculpatory
Contracts
Module 4
Read
Read the following resources.
Practical Aviation & Aerospace Law | ERAU
Hunt Library - Ebook Central
(https://ebookcentral.proquest.com/lib/erau/detail.
action?docID=6273500)
Chapter 6 - Aviation Insurance
Chapter 7 - Exculpatory Contracts
Drone Insurance: A Step-by-Step Guide to Liability & Drone Hull Insurance | UAV
Coach (https://uavcoach.com/drone-insurance-guide/)
Post
Read through all the scenarios before choosing one to complete.
Post your thorough and complete answers to one of the following scenarios. Provide the
scenario number at the beginning of your post.
Make your original, primary posting by the fourth day of this module week.
Please read through all sections before proceeding to the next page and refer back whenever
necessary.
,6/21/24, 9:52 PM Topic: 4.1 Scenario Discussion: Insurance & Exculpatory Contracts
Scenario 1 Scenario 2
Identify the appropriate purpose of use for an aircraft insurance policy to cover each of the
following operations:
A. A private aircraft used for personal recreation and personal business travel
B. An aircraft used exclusively for flight training
C. A corporate business jet used only to transport officers and employees of the
corporation, guests, and customers
D. Aircraft used by an air cargo company, such as FedEx or UPS
E. Aircraft used by a full-service FBO offering flight training, aircraft rental, and charter
F. Aircraft engaged in experimental air launches of rocket-powered spaceships
Please proceed to Scenario 2.
For each of the following events, indicate whether the event would cause you to consider its
effect on your current aircraft insurance policy and explain why:
A. You have spent several thousand dollars on upgrading the aircraft’s avionics.
B. You are going to allow another pilot to fly your aircraft.
C. You have been using the aircraft only for your own recreational, proficiency, and
business travel. Now, you have earned your flight instructor certificate and want to also
use the aircraft to start a flight instruction business.
D. You have been flying your aircraft only within the contiguous (lower 48) U.S. but are
now planning to fly it on a trip to Belize.
E. You have paid off the loan you took out to purchase the aircraft.
Reply
Once you have made your post, reply thoughtfully to at least two of your classmates’ posts who
chose a different scenario from the one you originally answered.
Respond critically and analytically but also politely and professionally.
Express your agreement or disagreement with their analyses and clearly state your reasons.
Watch for, read, and reply to responses made on your initial post.
Refer to the attached rubric for grading guidelines.
This activity supports Module Objectives 1, 3, 4, 6, & 7 and Learning Outcomes 5 & 12.
(https://erau.instructure.com/courses/154575/pages/module-4-overview-and-objectives)
,6/21/24, 9:52 PM Topic: 4.1 Scenario Discussion: Insurance & Exculpatory Contracts
Search entries or author Unread Subscribed
Reply
(https:/ Grayson Brunjes (He/Him/His) (https://erau.instructure.com/courses/154575/users/272602) c
Feb 10, 2023
Scenario 2
1. Upgrading the aircraft’s avionics: Yes, this event would likely cause you to consider its
effect on your current aircraft insurance policy. The upgrade in avionics equipment may
increase the aircraft's value and potentially reduce the likelihood of a loss, making it
necessary to adjust the coverage to reflect the changes. Additionally, some insurance
policies may expressly exclude coverage for upgraded avionics or require additional
coverage.
2. Allowing another pilot to fly the aircraft: Yes, this event would also likely cause you to
consider its effect on your current aircraft insurance policy. Insurance policies typically only
cover you and other pilots who have been approved by the insurance company and meet
specific qualifications. Therefore, it may be necessary to make changes to your policy or
purchase additional coverage if you plan to allow another pilot to fly your aircraft.
3. Starting a flight instruction business: Yes, this event would cause you to consider its effect
on your current aircraft insurance policy. Creating a flight instruction business would likely
change the use of the aircraft and increase the risk of a loss, which may require purchasing
additional coverage or making changes to your current policy. Additionally, the insurance
company may require that all flight students be specifically listed on the policy or that you
purchase additional coverage for the flight instruction operations.
4. Flying to Belize: Yes, this event would also likely cause you to consider its effect on your
current aircraft insurance policy. Flying to another country may increase the risk of a loss
and affect your coverage, as some insurance policies may only cover flights within a
specific geographical area. Additionally, suppose the aircraft is damaged or lost while in
another country. In that case, it may be more challenging to access or transport the plane
for repairs, which may also impact the coverage.
5. Paying off the loan on the aircraft: No, this event does not likely cause you to consider its
effect on your current aircraft insurance policy. Paying off the loan on the plane would not
typically change the value or the use of the aircraft, so it would not affect the coverage.
, 6/21/24, 9:52 PM Topic: 4.1 Scenario Discussion: Insurance & Exculpatory Contracts
However, it is always a good idea to periodically review your insurance policy to ensure that
it still meets your needs and that the coverage is adequate.
Reply
( http Or El Amor (https://erau.instructure.com/courses/154575/users/401266) c
Feb 23, 2023
Grayson,
I agree, both updating the avionics and letting a different pilot operate the aircraft may have
an effect on the present insurance plan. Upgraded avionics may not be covered by
insurance, although they can raise the value of the aircraft and lower the risk of a loss. It
might be necessary to adjust the policy or add coverage if you let another pilot operate the
aircraft. Joining a flight school or traveling abroad can modify the use of the aircraft and
raise the danger of loss, necessitating more insurance coverage. However, paying off the
aircraft loan normally has no impact on the aircraft's worth or ability to be used, and as a
result, the current insurance coverage is unaffected. It is still recommended to periodically
review the policy to ensure adequate coverage for the aircraft and any related operations.
Great post,
Or El.
Reply
( http Matthew Gulotta (https://erau.instructure.com/courses/154575/users/2387) c
Feb 28, 2023
Or El,
If you didn't update the policy after the avionics were installed, it would not be covered,
under a stated value policy. Say the aircraft was worth 100,000, and the avionics cost
20,000. If the newly updated aircraft was worth 120,000 and you wrecked, the insurance
company would only pay up to 100,000, since that is the value of the policy. That may
have been what you meant, though I just wanted to clarify.
Matt
Reply
c
This is a graded discussion: 100 points possible
due Mar 5
57 77
Scenario Discussion: Insurance & Exculpatory
Contracts
Module 4
Read
Read the following resources.
Practical Aviation & Aerospace Law | ERAU
Hunt Library - Ebook Central
(https://ebookcentral.proquest.com/lib/erau/detail.
action?docID=6273500)
Chapter 6 - Aviation Insurance
Chapter 7 - Exculpatory Contracts
Drone Insurance: A Step-by-Step Guide to Liability & Drone Hull Insurance | UAV
Coach (https://uavcoach.com/drone-insurance-guide/)
Post
Read through all the scenarios before choosing one to complete.
Post your thorough and complete answers to one of the following scenarios. Provide the
scenario number at the beginning of your post.
Make your original, primary posting by the fourth day of this module week.
Please read through all sections before proceeding to the next page and refer back whenever
necessary.
,6/21/24, 9:52 PM Topic: 4.1 Scenario Discussion: Insurance & Exculpatory Contracts
Scenario 1 Scenario 2
Identify the appropriate purpose of use for an aircraft insurance policy to cover each of the
following operations:
A. A private aircraft used for personal recreation and personal business travel
B. An aircraft used exclusively for flight training
C. A corporate business jet used only to transport officers and employees of the
corporation, guests, and customers
D. Aircraft used by an air cargo company, such as FedEx or UPS
E. Aircraft used by a full-service FBO offering flight training, aircraft rental, and charter
F. Aircraft engaged in experimental air launches of rocket-powered spaceships
Please proceed to Scenario 2.
For each of the following events, indicate whether the event would cause you to consider its
effect on your current aircraft insurance policy and explain why:
A. You have spent several thousand dollars on upgrading the aircraft’s avionics.
B. You are going to allow another pilot to fly your aircraft.
C. You have been using the aircraft only for your own recreational, proficiency, and
business travel. Now, you have earned your flight instructor certificate and want to also
use the aircraft to start a flight instruction business.
D. You have been flying your aircraft only within the contiguous (lower 48) U.S. but are
now planning to fly it on a trip to Belize.
E. You have paid off the loan you took out to purchase the aircraft.
Reply
Once you have made your post, reply thoughtfully to at least two of your classmates’ posts who
chose a different scenario from the one you originally answered.
Respond critically and analytically but also politely and professionally.
Express your agreement or disagreement with their analyses and clearly state your reasons.
Watch for, read, and reply to responses made on your initial post.
Refer to the attached rubric for grading guidelines.
This activity supports Module Objectives 1, 3, 4, 6, & 7 and Learning Outcomes 5 & 12.
(https://erau.instructure.com/courses/154575/pages/module-4-overview-and-objectives)
,6/21/24, 9:52 PM Topic: 4.1 Scenario Discussion: Insurance & Exculpatory Contracts
Search entries or author Unread Subscribed
Reply
(https:/ Grayson Brunjes (He/Him/His) (https://erau.instructure.com/courses/154575/users/272602) c
Feb 10, 2023
Scenario 2
1. Upgrading the aircraft’s avionics: Yes, this event would likely cause you to consider its
effect on your current aircraft insurance policy. The upgrade in avionics equipment may
increase the aircraft's value and potentially reduce the likelihood of a loss, making it
necessary to adjust the coverage to reflect the changes. Additionally, some insurance
policies may expressly exclude coverage for upgraded avionics or require additional
coverage.
2. Allowing another pilot to fly the aircraft: Yes, this event would also likely cause you to
consider its effect on your current aircraft insurance policy. Insurance policies typically only
cover you and other pilots who have been approved by the insurance company and meet
specific qualifications. Therefore, it may be necessary to make changes to your policy or
purchase additional coverage if you plan to allow another pilot to fly your aircraft.
3. Starting a flight instruction business: Yes, this event would cause you to consider its effect
on your current aircraft insurance policy. Creating a flight instruction business would likely
change the use of the aircraft and increase the risk of a loss, which may require purchasing
additional coverage or making changes to your current policy. Additionally, the insurance
company may require that all flight students be specifically listed on the policy or that you
purchase additional coverage for the flight instruction operations.
4. Flying to Belize: Yes, this event would also likely cause you to consider its effect on your
current aircraft insurance policy. Flying to another country may increase the risk of a loss
and affect your coverage, as some insurance policies may only cover flights within a
specific geographical area. Additionally, suppose the aircraft is damaged or lost while in
another country. In that case, it may be more challenging to access or transport the plane
for repairs, which may also impact the coverage.
5. Paying off the loan on the aircraft: No, this event does not likely cause you to consider its
effect on your current aircraft insurance policy. Paying off the loan on the plane would not
typically change the value or the use of the aircraft, so it would not affect the coverage.
, 6/21/24, 9:52 PM Topic: 4.1 Scenario Discussion: Insurance & Exculpatory Contracts
However, it is always a good idea to periodically review your insurance policy to ensure that
it still meets your needs and that the coverage is adequate.
Reply
( http Or El Amor (https://erau.instructure.com/courses/154575/users/401266) c
Feb 23, 2023
Grayson,
I agree, both updating the avionics and letting a different pilot operate the aircraft may have
an effect on the present insurance plan. Upgraded avionics may not be covered by
insurance, although they can raise the value of the aircraft and lower the risk of a loss. It
might be necessary to adjust the policy or add coverage if you let another pilot operate the
aircraft. Joining a flight school or traveling abroad can modify the use of the aircraft and
raise the danger of loss, necessitating more insurance coverage. However, paying off the
aircraft loan normally has no impact on the aircraft's worth or ability to be used, and as a
result, the current insurance coverage is unaffected. It is still recommended to periodically
review the policy to ensure adequate coverage for the aircraft and any related operations.
Great post,
Or El.
Reply
( http Matthew Gulotta (https://erau.instructure.com/courses/154575/users/2387) c
Feb 28, 2023
Or El,
If you didn't update the policy after the avionics were installed, it would not be covered,
under a stated value policy. Say the aircraft was worth 100,000, and the avionics cost
20,000. If the newly updated aircraft was worth 120,000 and you wrecked, the insurance
company would only pay up to 100,000, since that is the value of the policy. That may
have been what you meant, though I just wanted to clarify.
Matt
Reply
