Category Archives: aircraft insurance

EAA STATEMENT ON FAA RELEASE OF THIRD-CLASS MEDICAL REFORM RULE

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Exciting news!

EAA STATEMENT ON FAA RELEASE OF THIRD-CLASS MEDICAL REFORM RULE
FAA’s BasicMed will take effect on May 1, 2017

EAA AVIATION CENTER, OSHKOSH, Wisconsin — (January 10, 2017) — Years of effort by EAA and AOPA culminated on Tuesday morning as the FAA announced regulations that will implement the aeromedical reform law passed last July. The regulations will be published Wednesday as a final rule, to take effect May 1, 2017.  According to the FAA, no changes have been made to the language in the law.

Because it is final, the rule – named “BasicMed” by the FAA – will not go out for a typical public comment period. The FAA also said it would publish an advisory circular describing the implementation of the rule later this week.
“This is the moment we’ve been waiting for, as the provisions of aeromedical reform become something that pilots can now use,” said Jack J. Pelton, EAA CEO/chairman. “EAA and AOPA worked to make this a reality through legislation in July, and since then the most common question from our members has been, ‘When will the rule come out?’ We now have the text and will work to educate members, pilots, and physicians about the specifics in the regulation.”
Tuesday’s announcement finalized the highly anticipated measure that was signed into law last July as part of an FAA funding bill. That was the ultimate success of a long effort by EAA and AOPA to bring significant aeromedical reform to pilots flying recreationally and eliminate the time and expense burdens on those holding third-class medical certificates.
The law guaranteed that pilots holding a valid third-class medical certificate issued in the 10 years before the reform was enacted will be eligible to fly under the new rules. New pilots and pilots whose most recent medical expired more than 10 years prior to July 2016 will be required to get a one-time third-class exam from an FAA-designated AME.
The FAA was required to implement the law within 180 days of its signing, or this Thursday (January 12). Since AirVenture 2016, FAA senior leadership has been assuring EAA that the 180-day deadline would be met. Despite the release of the regulations as a final rule, EAA will be reviewing the language carefully to ensure it fully reflects the language and intent of the law.
EAA has updated its Q&A and will continue to update them to provide the latest information. EAA is also working with its aeromedical and legal advisory councils to provide resources that will help members and their personal doctors understand the provisions of the new regulations.
About EAA
EAA embodies the spirit of aviation through the world’s most engaged community of aviation enthusiasts. EAA’s 200,000 members and 1,000 local chapters enjoy the fun and camaraderie of sharing their passion for flying, building and restoring recreational aircraft. For more information on EAA and its programs, call 800-JOIN-EAA (800-564-6322) or go to www.eaa.org. For continual news updates, connect with www.twitter.com/EAA.
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EAA STATEMENT ON FAA RELEASE OF THIRD-CLASS MEDICAL REFORM RULE

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EAA STATEMENT ON FAA RELEASE OF THIRD-CLASS MEDICAL REFORM RULE

FAA’s BasicMed will take effect on May 1, 2017

EAA AVIATION CENTER, OSHKOSH, Wisconsin — (January 10, 2017) — Years of effort by EAA and AOPA culminated on Tuesday morning as the FAA announced regulations that will implement the aeromedical reform law passed last July. The regulations will be published Wednesday as a final rule, to take effect May 1, 2017.  According to the FAA, no changes have been made to the language in the law.

Because it is final, the rule – named “BasicMed” by the FAA – will not go out for a typical public comment period. The FAA also said it would publish an advisory circular describing the implementation of the rule later this week.

“This is the moment we’ve been waiting for, as the provisions of aeromedical reform become something that pilots can now use,” said Jack J. Pelton, EAA CEO/chairman. “EAA and AOPA worked to make this a reality through legislation in July, and since then the most common question from our members has been, ‘When will the rule come out?’ We now have the text and will work to educate members, pilots, and physicians about the specifics in the regulation.”

Tuesday’s announcement finalized the highly anticipated measure that was signed into law last July as part of an FAA funding bill. That was the ultimate success of a long effort by EAA and AOPA to bring significant aeromedical reform to pilots flying recreationally and eliminate the time and expense burdens on those holding third-class medical certificates.

The law guaranteed that pilots holding a valid third-class medical certificate issued in the 10 years before the reform was enacted will be eligible to fly under the new rules. New pilots and pilots whose most recent medical expired more than 10 years prior to July 2016 will be required to get a one-time third-class exam from an FAA-designated AME.

The FAA was required to implement the law within 180 days of its signing, or this Thursday (January 12). Since AirVenture 2016, FAA senior leadership has been assuring EAA that the 180-day deadline would be met. Despite the release of the regulations as a final rule, EAA will be reviewing the language carefully to ensure it fully reflects the language and intent of the law.

EAA has updated its Q&A and will continue to update them to provide the latest information. EAA is also working with its aeromedical and legal advisory councils to provide resources that will help members and their personal doctors understand the provisions of the new regulations.

About EAA

EAA embodies the spirit of aviation through the world’s most engaged community of aviation enthusiasts. EAA’s 200,000 members and 1,000 local chapters enjoy the fun and camaraderie of sharing their passion for flying, building and restoring recreational aircraft. For more information on EAA and its programs, call 800-JOIN-EAA (800-564-6322) or go to www.eaa.org. For continual news updates, connect with www.twitter.com/EAA.

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Do you need DRONE insurance?

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Depends on what you are doing with the drone, your appetite for risk and how deep your financial pockets are. There is an anonymous saying I like “flying is not inherently dangerous, but crashing is”.  If you have a risk of crashing you might have a need for insurance.
Risk can be handled in a number of ways.  You can take the risk on yourself (self-insure), you can stay away from risk (don’t fly), reduce the risk (better training, safety systems, only fly on calm days) and you can transfer the risk to someone else. 
Insurance is basically transference of risk. You are transferring the risk of your drone to the insurance company for a fixed smaller amount of premium. They hope you will not crash and they will not have to pay a claim. But for that privilege they have requirements that you are to follow. 
When do you need to consider buying insurance for your drone?
Are you flying as a hobby or recreational use?
If you are flying your drone as a hobby or recreation and you are not operating in the commercial category, most likely your homeowners (if you have one) policy will cover the liability insurance. Homeowners insurance might even cover the drone for theft or losses other than crashing. You would be subject to the homeowner policy deductibles. I don’t sell typical homeowners so I can’t tell you the details, but make sure you contact your homeowner’s insurance company and ask to know for sure.
Are you flying for hire? 
Commercial drone insurance is usually considered aviation insurance.
Reason I am saying aviation is because once you decide to make the transition to commercial operations, the homeowner insurance companies really do not want the risk. Aviation insurance companies already understand aircraft risk so the transition to drones is actually a little bit easier. In fact, many of the aviation insurance companies have been providing drone coverage for years but on a bigger scale. Just in the past couple of years did they start opening there “doors” to smaller more general aviation drone operators.
Commercial drone insurance coverage
1.     Liability
2.     Drone hull coverage
3.     Extra scheduled equipment
Typically, liability coverage in an aviation insurance policy will be for property damage and bodily injury.  You need to know the basic insurance definitions to understand the coverage.  The following definitions were taken from various policies and simplified as best as possible.
“Property damage”means any physical damage to “tangible” property.  This coverage does not cover the aircraft itself, any of your own property or property that you are in charge of.  This is just for the property belonging to others that was damaged by the accident.  This damage might include the loss of use of the property.   Example; houses, automobile, crops etc.
“Bodily injury” liability means the physical (bodily) injury to or the death of a person.
What does aircraft liability insurance protect you from? If you have an accident in your aircraft, the liability coverage will protect you from lawsuits from people that are injured, any of the heirs from anyone that is killed in the accident AND from anyone that has property destroyed or damaged.
But it is important to remember that the policy limit is typically the maximum the insurance company is responsible for (payments and legal defense).
Hull coverage is the protection you are buying for the actual cost of the drone and equipment attached to the drone.  Aviation insurance is generally an “agreed value” policy.  That means if you have a total loss, the claims department will pay the stated value of the “drone” on the policy (minus your deductible).  This is different from your auto insurance.  As an owner it is your decision to value the drone at a reasonable level.    Most underwriters will allow you to pick the value based on the type of drone and equipment and the age. Or they may request that you provide proof of the value (receipts etc). 

That’s the basics of the type of coverage that are available.  For  more information or with any questions, contact me, Scott Sky Smith “Name on the door”.