Proposed ISPA Hull Insurance Program
Here is the possible structure of a self-insured hull insurance plan. Please post your thoughts on the following to the Insurance topic in The Hanger, our message board system:
A. Eligible Aircraft and Pilots:
Aircraft must be inspected by an inspector approved by the organization who verifies that the aircraft complies with the Seawind assembly manual with respect to all items which could present a safety issue, affect flight performance and handling characteristics, structural integrity, reliability, power plant and power plant fuel supply reliability and safe operation. The aircraft must remain as inspected with regard to these items or insurance is void.
The pilot or any named pilot must successfully complete an approved 5-hour training program prior to any solo land operations.
The pilot or any named pilot must successfully complete an approved 10 hour training program prior to any solo water operations.
B. Liability, property damage, hull NOT IN MOTION, and medical insurance would not be included in this plan.
C. Hull - Group Self Insurance
The owner keeps the salvage.
Start with $10,000 deductible.
Maximum policy face value $100,000, less $10,000 deductible, equals $90,000.
Initial premium 10% = 9,000
After each succeeding safe year of operation:
2nd year 9% = 8,100
3rd year 8% = 7,200
4th year 7% = 6,300
5th year 6% = 5,400
6th year 5% = 4,500
7th year 4% = 3,600
Pay Out:
A paid claim cannot exceed 25% of assets.
All paid claims in one year cannot exceed 75% of the assets.
When the fund exceeds the necessary assets, then dividends should be paid based on the proportion of each members' accident record after they have been a member for more than 5 full years.
This would probably have to be set up off-shore in the Caymans, Nevis or the British Virgins. U.S. insurance laws would make it prohibitive here in the U.S.
We'd probably need 20 or so initial participants to make this work.
Your thoughts on this are very important. Please post them in The Hangar.