Aviation Insurance and FAA Enforcement Procedures

Flashcards covering key terms and concepts related to aviation insurance policies, FAA enforcement procedures, response methods, and statutes of limitations.

Combined Single Limit

The best type of aviation liability coverage when compared to per person limitation.

Per Person Limitation

A type of aviation liability coverage that places a limit on liability per individual.

Stated Value

An aviation insurance term where the owner declares what the airplane is worth, unlike car insurance where value is debated.

Use Restriction

Provisions in aviation insurance that outline certain things you can and cannot do with the aircraft, such as flying for a customer fee without proper insurance.

Pilot Warranties

Clauses in an aviation insurance policy that impose restrictions on who is authorized to fly the aircraft.

10 Day Letter

A notification from the FAA stating they are conducting an investigation into an alleged legal violation and requesting your side within 10 days.

NASA Safety Report

An anonymous reporting tool to improve aviation safety that provides defensive immunity against certificate action if filed within 10 days of an incident.

Informal Conference

The best way to respond to a notice of certificate action or notice of correction, where you hire an attorney, request records, and seek to plea bargain and settle the case.

Stale Complaint Rule

The FAA's statute of limitations requiring the agency to initiate action within 6 months of an incident.

Subrogation

A critical legal and insurance issue that renters must be concerned with when renting an airplane.

Endorsement

A special addition to an aviation insurance policy allowing the pilot or aircraft to conduct a specific mission that is otherwise not permitted.

Letter of Correction

An FAA enforcement action or warning requiring a class or remedial action, which cannot be appealed or tried in court.

NTSB Appeal

An appeal to the National Transportation Safety Board, which almost always reduces the penalty imposed by the FAA, leading the FAA to ask for more severe penalties initially.

Tort Statute of Limitations

The legal time limit requiring an action involving a tort accident to be brought within 2 years.

Contract Statute of Limitations

The legal time limit requiring a contract dispute to be brought within 4 years.

Land Dispute Statute of Limitations

The legal time limit requiring a dispute involving land to be brought within 10 years.

T/F: most important part of pilot contract is warranties

F

Illegality clause in aviation can refer to civil and

T

 Insurance agent is friend

F

One type of liability insurance is stated value

F

When renting an airplane what's an issue to be concerned with

subrogation

 If you fly airplane for customer in charge of fee, you may be violated use restriction if not proper insurance

T

 The Miranda rule applies in aviation

F

Your instructor is BFF during investigation

F

The best option in investigation when... is nasa immunity

F

A letter of correction can be appealed and you can have it tried

F

Best way to respond to notice of correction

informer conference

NASA safety report must be filed how many days after incident

10 days

5 dif ways to respond to notice of certificate action

ignore it, admit it, answer in writing and spill your guts, hire an attorney and set up informal conference (best), nasa immunity.

Why should aviation insurance be updated often (specific)

not like car insurance, stated value can change, who's flying could change, use could change.