VOL. 46 NO. 2 - SPRING 2021
STATE OF THE ASSOCIATION
THE FUTURE IS NOW! UNDERSTANDING SIMULATORS
FLY THE WAY YOU TRAIN TRAIN THE WAY YOU FLY WATTLES FELLOWSHIP INVESTING IN THE FUTURE
THE ONLY M600/SLS SIMULATOR TRAINING ANYWHERE.
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IN THIS ISSUE Editor KIM ROSENLOF
WATTLES FELLOWSHIP INVESTING IN THE FUTURE
AGENT BROKERS division REPORT APPLES AND ORANGES
FLY THE WAY YOU TRAIN. TRAIN THE WAY YOU FLY.
UNDERSTANDING FLIGHT SIMULATORS
CLAIMS DIvision REPORT OVERVIEW OF DAMAGED AIRCRAFT AND DIMINUTION IN VALUE
YOUNG PROFESSIONALS SPOTLIGHT
AIA PREMIER MEMBERS
ATTORNEYs DIvision REPORT STRANGE NEW WORLDS
The ideas and opinions expressed by authors of articles published in The Binder are wholly their own and do not necessarily represent those of the Aviation Insurance Association. The articles are not provided as legal advice.
Published by the Aviation Insurance Association 2365 Harrodsburg Road Suite A325 Lexington, KY 40504
PRESIDENT’S MESSAGE JIM GARDNER - AIA PRESIDENT, The James A Gardner Company Inc.
The State of the Association
The Future is Now! W
e have found “the right stuff” and are reset for the future.
Wow! Two years. It seems like yesterday and an eternity all at the same time. It wasn’t exactly the experience I was expecting. I think I hold two dubious distinctions: the oldest sitting president at 70 years, 10 months; and the only president to cancel two conferences. Even so, I am very grateful for the privilege of serving the AIA and must admit that I have enjoyed the challenges.
We’ve made a lot of progress and have reset for the future I want to say a huge THANK YOU to the Executive Committee and the Board of Directors. The AIA is very lucky to have such a talented group of people serving.
Through all the changes, we have worked together through each issue and agreed unanimously on the course to take. These are the young aviation insurance professionals who will lead us into the future.
The pandemic has played hell on association planning To paraphrase an old cliché, even though we can see the light at the end of the tunnel, I’m also aware it could be an oncoming freight train. The year 2021 is offering more challenges than 2020. While we had to adjust to plans already laid out in 2020, in 2021 we are having to plan in the dark, not knowing what impact the pandemic would make or when. Although the way seems a bit less murky now, there is still a lot of uncertainty since we have to make commitments months ahead of an event.
The Education Committee deserves the Medal of Honor The members of the Education Committee have stepped up their game answering the needs of the AIA. I cannot thank them enough. •
We had a very successful virtual Core Principles class in February. We are planning another Core Principles class in August. At this time, we are pointing towards both an in-person and virtual Core Principles class in late August. Planning for virtual CLE and CIE for 2021 is in full swing and on track. Tim Bonnell, Jr. is the new Education Committee chairman. He is energizing the committee to create more education opportunities for the AIA membership, both in person and virtual. Also, I want to give a huge THANK YOU to John Cunningham for his service as chairman for the past two years. Well done all. Our new management team is learning how to bring the licensing expertise in house. Thank you to Cindy Peck for all her help with the transition.
The AIA is Reset for the Future Executive Director Mary Gratzer has been joined by Alysia Caldwell, our newly appointed Operations and Membership Manager. They are both extremely talented and dedicated full time to the AIA. I can’t tell you how impressed I am with their experience and professionalism. I have no doubt they will take the AIA to the next level as an association. Besides our immediate needs, they are focusing on projects that will have a long-term impact on the association including our website, membership services development, member communications and recruitment, and many others. As they get to know the AIA better, they will be able to address many more of our needs and opportunities.
Our Biggest Challenge Right Now is Revenue We need to raise about $250,000 in net revenue in 2021. This is not out of line with years past, but since the vast majority of our net income was generated by the conference, 2021 is different.
In 2020, due to the generosity of our corporate sponsors and our membership-at-large, we were able to retain the bulk of the contributions that had already been paid or dedicated to the AIA 2020 Conference. In trade we offered all of the CIE, CLE, and keynote speaker sessions virtually. We also offered networking webinars for all insurance companies that wanted to participate. This year we will ask you to again contribute to the association and the AIA Education Foundation to generate much needed revenue in 2021. I know we can depend on you.
A Conference in 2021? At this writing, we are still exploring Fall options. There is nothing more I would like than to have an “in person” conference this year. There are so many variables and unknowns. For this reason, we have decided to make CIE and CLE virtual again this year. The membership depends on these education opportunities for licensing credits, and this offering is a reliable revenue stream. The big question is whether the level of attendance, exhibitors, and sponsorships will be enough to support a conference, virtual or otherwise. It is solely dependent on whether we can raise the revenue to make the conference pay for itself. Can a downsized conference work? At this point we cannot afford a big loss. It may be better to protect our cash assets, while having smaller in-person events in the Fall in Atlanta, and then point to an extravaganza at Nashville in 2022.
A Note of Personal Thanks Greg Sterling, Chris Morin, and Luke Uithoven have been exceptional partners in navigating the past 24 months. Never has an executive committee been required to participate so actively and so often. I couldn’t have had better partners to work with.
A special thanks to Doug Johnson and Nancy Gratzer. Their support for the AIA as an association, and to me personally, has never wavered. In any endeavor, leaders need advisers and Doug and Nancy have been mine. Lastly, I would like to thank our dedicated members at large. One of the reasons I fell in love with the AIA was because its members were dedicated to excellence in the world of aviation insurance and the association. And they were willing to share. They carried the “spirit of aviation” for the good of the whole. I’ve made some great professional acquaintances and contacts that I could not have done without. More importantly, I’ve also made some great friends. May they live long and prosper.
Pay it Forward. The AIA Wants YOU. It has been an absolute honor and the pinnacle of my 40+ year aviation career to serve as AIA president these last two years. The fact that it has been the most extraordinary two years in our history has made serving you all the sweeter. I would like to believe that I have left the association in a better place, reset to face the challenges of the future and a changing world. I ask one last thing of every aviation insurance professional: • If you have not already, pay it back for all the association has offered you in the past. • Most importantly, pay it forward, for all the association can and will offer all of us in the future.
The Future is Now!
AGENT/BROKERS DIVISION REPORT
Apples & Oranges DAVID HAMPSON, CPCU, ARM, CAIP President - Schrager Hampson Aviation Insurance Agency LLC
fter many years in decline, classic board games experienced a sharp sales spike during the Covid-19 pandemic. Much like getting the occasional handwritten letter can be comforting in our digital age of emails and texts, board games can be a comforting respite from screens and a fun way for families to bond. One such game called “Apples to Apples” involves finding the noun card in your hand that provides the best match to an adjective card drawn by the “judge.” The player who is judged to provide the best matches over the requisite number of rounds wins.
As the hard aviation insurance market persists into 2021, brokers are under increasing pressure to provide clients with options, and it can feel a bit like playing rounds of “Apples to Apples” to ensure that coverage alternatives are comparable. Most of the time they are not the same, but we should provide the best match and then identify the differences as we guide clients toward a decision. Legal precedent in most states imposes a higher standard of care for insurance brokers who purport to be specialists in a certain area or industry segment (such as aviation) or advertise providing professional risk management services to clients.
Beyond the obvious declaration page differences such as liability limits, hull values, and deductibles, there are many details not immediately apparent to the insurance consumer but important for us to identify to our clients as their insurance professional. Not identifying these items could leave your client unknowingly exposed to an uninsured loss and could leave you exposed to an errors and omissions claim if there was no record of material differences being disclosed prior to binding. Since we do not use standard ISO coverage forms in aviation insurance, each insurer develops their own proprietary version. To make a comprehensive comparison, you need to read your insurers’ coverage forms and become familiar with them.
Some of the important differences between insurer
erage and/or limits available. During the trough of the
policy language include: • Definition of aircraft • Covered policy territory • Whether FAA airworthiness is required, and if there is any exception for a ferry permit • Whether the Open Pilot Warranty has any age restrictions, requirements for an FAA medical, and applies to the “pilot in command” or to who is “operating the aircraft” • Whether there is an exclusion for bodily injury to crew • Definition of different use categories (i.e., to what extent cost reimbursement is permitted for pleasure and business use) • Whether there is a liability exclusion for punitive damages • Whether policy excludes liability brought by one insured against another insured • Whether the use of other aircraft provision (non-owned liability and physical damage) is limited to one individual and spouse or extends to officers and members of a corporate entity • Definition of a total loss • How the claim is paid if “you” make the repairs
soft market, there seemed to be no limit as to what was included. Back then, I wouldn’t have been very surprised if a new insurer entered the market with a homeowner’s coverage endorsement tacked onto their aircraft policy.
In addition to variations in policy language, there can also be many varieties of ancillary coverage menus available. Differences can arise in specific types of cov-
Perhaps that was taking a bit of journalistic license to get my point across, but during the soft market there were a number of traditionally non-aviation coverages readily available such as off airport excess auto liability, excess employers liability, medical malpractice, and employee benefits liability. These are now only available on a limited basis for accounts with enough overall premium to justify the extra non-aviation exposure. In addition, insurers have been substantially reducing limits available for traditional ancillary aviation coverages. While it is critical to make a detailed comparison of ancillary coverages between quote options and point out any discrepancies, you also need to guard against getting so deep in the weeds that you can’t see the forest for the trees. For example, an agent may become concerned about a renewal proposal or alternate quote option that excludes or has a reduced limit for coverage on spare parts, cargo, or mechanics tools. When I ask if the client has such exposures, the agent usually tells me they are not sure, then invariably comes back after speaking to the client to say they have no need for such items.
As brokers we need to pick our battles carefully, and I recommend against battling to obtain coverage for an exposure your client does not have or need. This exemplifies the importance of knowing your clients and customizing a menu of ancillary coverages to suit their specific needs. Some ancillary coverages may need to be increased or added while there may be no coverage implications for reducing or eliminating others. It is also important to prioritize when identifying ancillary coverage differences. Some coverages, while nice to have, would not result in serious financial implications if absent. Others could cause severe loss if uninsured and/or are more commonly claimed. Those are the ones usually worth the battle, and can include: • Extra Expense for Temporary Substitute Aircraft • Extra Expense for Temporary Replacement Parts • Trip Interruption Expense • Family Assistance • Non-owned Aircraft Liability and Physical Damage • Premises Liability and Medical Payments • On Airport Auto Liability
You may find that after making a complete and exhaustive comparison, your client elects to proceed with the less robust coverage plan to save money. This scenario unfortunately seems to be all the more common as we proceed through our third renewal cycle of hard market conditions. It is acceptable to place coverage on a less comprehensive plan if the client is aware of any differences and you have appropriately documented that they chose to accept the uninsured exposures that exist. We have a duty to guide our clients and offer our best professional recommendations, but we serve at their pleasure, and ultimately should provide what they request even if that sometimes means compromising coverage to save money. Before you bind the lower cost option, just be sure you have taken the time to properly educate your clients. Don’t let them think they are getting apples when you are really giving them oranges!
David Hampson is President of the Schrager Hampson Aviation Insurance group and holds the insurance designations of Chartered Property Casualty Underwriter (CPCU), Associate in Risk Management (ARM) and Certified Aviation Insurance Professional (CAIP). He is also an instrument-rated commercial pilot.
Fly the way you train. Understanding Simulators, Flight Training Devices and Advanced Aviation Training Devices
Douglas Carmody - EXECUTIVE FLIGHT TRAINING
perating a jet or turboprop is expensive. Your clients want to save money on insurance, training, fuel, and maintenance. They employ contract pilots and fly hundreds of miles out of the way to save ten cents on fuel. Since we are in a hard insurance market, many pilots and owners have turned to their annual training looking to cut costs. They find alternative schools to the big three and want to ensure that they are approved by the insurance company. Most agents will go to bat for their clients and try to get approval while others may read off school names on an approved list and won’t budge. Numerous schools now have simulators or training devices, and the intention of this article is to present a clearer understanding of simulator types found at various schools.
Devices and Simulators The FAA recognizes seven levels of flight training devices and four levels of flight simulators. They all perform the same basic function of training pilots, but each one has different capabilities and varies in function according to the required training task. Flight Training Devices (FTDs) are generally station-
Train the way you fly. ary and provide task or system-related training. Full flight simulators (FSS) include at least 3-axis motion and night visuals. FTD levels are numbers 1-7 while FSS levels are labeled with letters A-D.
Flight Training Devices (FTD) Level 1-3 FTDs FTD Levels 1 through 3 are no longer manufactured. The few that do exist operate under an FAA “grandfather” clause. They are not normally recommended unless the device provides training for a unique aircraft where no other simulation alternative exists. These systems usually include non-motion training devices that have a visual system. Level 2 FTDs introduced more computing power. Level 3 FTDs laid the ground work for the development of advanced aviation training devices. The FAA has retired FTD Levels 1-3.
software necessary to represent a category and class of aircraft (or set of aircraft) [for example, twin-engine turboprop] operations in ground and flight conditions having the appropriate range of capabilities and systems installed in the device as described within this advisory circular (AC) for the specific basic or advanced qualification level.” An AATD must include an instrument panel arrangement representing a specific model aircraft (e.g., King Air) cockpit, digital avionics panel, GPS navigator with moving map display, two-axis autopilot and flight
AATDs Since the FAA no longer issues approval letters for Level 1, 2 or 3 FTDs, aviation training devices (ATDs) have taken their place. The FAA now qualifies ATDs as either Basic (BATD) or Advanced (AATD). Both have a Qualification Approval Guide and are considered by the FAA to meet the following design criteria as described in FAA Advisory Circular AC 61-136A: “An Aviation Training Device (ATD) is a training device, other than a full flight simulator (FFS) or flight training device (FTD), that has been evaluated, qualified, and approved by the Administrator. In general, this includes a replica of aircraft instruments, switches, equipment, panels, and controls in an enclosed aircraft cockpit. It includes the hardware and
director as appropriate, realistic rudder pedal/seat configurations as in the actual aircraft, independent visual system to provide realistic orientation cues in day and night conditions, and separate instructor station. AATDs are recommended for the majority of legacy aircraft, e.g., Cessna 421, older King Airs, Cessna Conquests, Piper Cheyennes, etc. Pilots with some experience in these types of airplanes seem to acclimate to the AATD faster. These are excellent choices for recurrent training.
Level 4 FTDs Level 4 FTDs are usually task trainers used to train pilots in specific systems or avionics such as Collins Proline 21 or Fusion, Garmin G-1000/750/530 series, Honeywell Primus Elite, or other avionics systems. These FTDs do not incorporate any aerodynamic modeling but accurately replicate a particular avionics suite using touchscreens or hard pads for tasks that involve flight management systems or data input. A Level 4 FTD usually does not have a control yoke, but some can be put into flight mode. These devices are an excellent choice for initial training without the added distraction of flying the simulator. Pilots at any experience level can benefit.
aerodynamic modeling. They also have a full visual and simulated vibration system. This is an excellent choice for helicopter instrument training.
Simulators Full flight simulators (FFS) replicate a specific type, make, model or series of aircraft, including the equipment and programming necessary to realistically represent operations in that aircraft in both ground and flight conditions. This includes a 3-axis or 6-axis motion system, a visual system providing an out-of-the-flight deck view, and full range of aircraft system capabilities.
Level A Simulators
Level 5 FTDs represent a class of aircraft that looks the same as the actual airplane. It incorporates systems and aerodynamic data. Excellent choice for recurrent training.
Only a dozen FFS Level A simulators are still in existence. Their visual systems are not very sophisticated (think of the video game “Pong”) and they are bereft of computer power. These are not recommended unless it’s the only type-specific simulator available (for example, Sabreliner or Jetstar).
Level 6 FTDs
Level B Simulators
Level 5 FTDs
Level 6 FTDs are more realistic than FTD levels 4-5, normally cockpit specific, and incorporate control feedback. These are very similar to Level 5 and an excellent choice for both initial and recurrent training.
Level 7 FTDs Level 7 FTDs are model specific to helicopters only. They include all flight controls, systems, and
There are slightly more than a dozen Level B sims still tormenting pilots around the world. These simulators are approved for 80% of the required training for a type rating and can still be used for recurrent training. Most do not have circle to land capability. They are good for recurrent training but still require in-aircraft training for a type rating.
LEVEL D SIMULATOR (PHOTO COURTESY OF FRASCA)
Level C Simulators Level C simulators have more computer power, less control delay, and a motion platform that includes all six degrees of freedom (6-axis motion). The visual system is more complex allowing each pilot a 75° field of view. There are about 230 Level C simulators in operation. With better data and computer speed, they are great training for landing, circle-to-land capability, and instrument currency.
Level D Simulators The top of the food chain. You can do everything in a Level D flight simulator including getting a full type rating. The only caveat to that requires a pilot to accumulate 25 hours of experience in the actual airplane if their first type rating is in a simulator. Daylight, dusk, and night scenery are required, as is 6° of motion. The pilots must have 150° of vision and be surrounded by realistic cockpit sounds. FFS Level D is recommended for high-end aircraft as the simulator will exactly replicate the aircraft equipment. This is a good choice for new pilots and new aircraft. As the fleet ages, avionics issues become problematic.
In a nutshell, simulator training for the uninitiated would be like buying a new Tesla and going to Tesla school where a highly-experienced car driver reads every line in the owner’s manual off of slides for seven days. Your instructor has never driven a Tesla but he has 10,000 hours driving a Buick, so he has a general understanding of how cars work. You then get into a simulated model of your new car and experience everything that can go wrong driving it. You graduate, knowing every nut and bolt of your new car and how to handle any on road emergency. Unfortunately, you can’t figure out how to parallel park it. Practical skills weren’t covered during your training. The point of this analogy is that one size doesn’t fit all. Pilots need to fly the way they train and train the way they fly. A King Air pilot flying parachute jumpers on the weekend will need different training than a pilot flying executives into Teterboro Airport (KTEB). To improve safety, we must improve training. It is our duty to recommend the appropriate training for the client’s type of flying.
Douglas Carmody was a former B737 instructor for a major airline and owns Executive Flight Training. He’s an FAA DPE on Cessna Citations and serves on the Safety Committee of the Aviation Insurance Association.
CLAIMS division REPORT
Overview of Damaged Aircraft and Diminution in Value Basic Concepts and Factors the Aircraft Appraiser Must Consider
Keith Bransky, ASA - Jet Appraisal Corporation
IMPACT AT WALKING SPEED RESULTED IN A MULTIMILLION-DOLLAR REPAIR AND AN AIRCRAFT OUT OF SERVICE FOR MANY MONTHS.
DAMAGE DIMINUTION CLAIMS – THEN AND NOW When I ﬁrst started out as an aircraft appraiser 29 years ago, it seemed that aircraft damage diminution claims were the exception rather than the rule. Today, damage diminution proceedings often begin before the paint is dry on the damage repair. In many of these cases an insurance company, attorney, or the aircraft owner/ operator will engage an appraiser to develop an opinion about any diminution in value that might have been suffered as a result of the damage incurred. Damaged aircraft appraisal assignments require the appraiser to have both a strong technical knowledge as well as a complete understanding of the various damage related factors that must be considered. There are no cookie-cutter approaches to damaged
aircraft appraisals. In this article I will highlight some of the important concepts, factors, and considerations.
AIRCRAFT DAMAGE DIMINUTION OVERVIEW The term diminution, when applied to the appraisal of aircraft and tangible aircraft-related items, refers to any post-repair loss of value resulting from an accident, incident, or damage event. It is generally accepted that if two aircraft are identical in every way except that one has a history of damage, the aircraft with damage history will command a lower price. The difference in value between an aircraft with damage history and an identical undamaged aircraft is referred to as the diminution in value. This diminution
is an external measure of lost value related to market perception, not airworthiness. Additionally, it is typically not related to the aircraft’s post-repair function or capability. It should be noted that not every aircraft damage event results in a post-repair diminution in value. There are situations where diminution in value is often not warranted (or is significantly mitigated). These situations can include: damage that is classified as superficial; damage to certain categories, classes, and types of aircraft; localized damage to a component that was completely removed and replaced with new (e.g. complete replacement of a damaged flight control with the same new OEM flight control). Additionally, with the passage of time, a damage repair becomes “seasoned” and the damage’s effect on value is often mitigated and sometimes eliminated.
MOST AIRCRAFT DAMAGE OCCURS ON THE GROUND While damage events can occur to an aircraft in flight, almost all of the diminution in value cases I have been involved with were to aircraft damaged during movement on the ground or when the aircraft was stationary. In addition to ground-based damage while the aircraft is operating under its own power, the repositioning of aircraft by airport personnel can result in airframe damage from collisions with airport structures, vehicles, objects, or other aircraft. These seemingly minor impacts to an aircraft, even at walking speed, can result in serious damage and expensive repairs. Other ground-based damage can include those caused by fire, severe weather, fire suppression foam release (usually inadvertent), and hangar structure collapse. As the civil aircraft fleet gets older and accumulates more flight hours, the percentage of aircraft in the fleet ever having been involved in some type of damage event increases. Occasionally, in the course of performing an appraisal for financing, I will discover unexpected pre-existing aircraft damage history during the review
of maintenance records. However, more often I am specifically engaged to develop an opinion of diminution in value resulting from a known damage event. In either case, it is incumbent upon me to properly document and analyze the damage as it relates to the value of the subject aircraft. When the intended use of the appraisal is related to a particular damage event, I am typically contacted by an insurance company, attorney, or owner/operator associated with the damaged aircraft. Usually by the time I am contacted, the damaged aircraft is already at a maintenance facility undergoing the necessary repairs, or it has already been fully repaired and returned to an airworthy condition. In most cases the insurance company has either already paid or agreed to pay the repair bill in accordance with the insured’s policy. However, most insurance policies written for aircraft hull damage do not cover any associated diminution in value. When insured parties realize they will not be reimbursed for diminution in value suffered at the hands of another party, they begin to explore their options for recovery.
COMMON FACTORS AIRCRAFT APPRAISERS CONSIDER Contrary to conventional wisdom, diminution in value from damage cannot be determined by simply applying a universal percentage deduction of 10% or 20%, or by looking up a number on a chart; there are too many factors to consider. Diminution in value must be approached logically and systematically as it relates to a damaged aircraft. Just like fingerprints, no two aircraft and no two damage events are exactly the same. However, when determining the amount (if any) of value diminution suffered by a damaged aircraft, there are some common factors that appraisers must consider and reconcile. These common factors include: • The type and extent of the damage • The method and quality of repair • How long ago the damage occurred
• • •
The existence of previous damage How the repair was recorded in the aircraft’s maintenance logbooks The sales market for the aircraft type that suffered the damage.
Let’s examine these common factors further…
TYPE AND EXTENT OF DAMAGE Understanding the type and extent of damage is the first step in developing an opinion of the amount (if any) of diminution in value. Aircraft damage can range from superficial in a non-structural area to major damage that requires extensive repair on structural portions of the airframe. Determining the level of damage is often neither obvious nor clear-cut and can require reviewing highly technical repair documents. In these situations, it is desirable for an appraiser to have an aviation maintenance or aeronautical engineering background. Without those backgrounds, and depending upon the complexity of the assignment, the aircraft appraiser should consider engaging the consulting services of a licensed aircraft mechanic or an FAA DER (Designated Engineering Representative) for guidance. In general, the more invasive the repair, the greater the diminution. Sometimes a little detective work is required to determine the cause of damage, especially when a logbook entry is vague or incomplete. In these situations, contacting the repair facility directly or crosschecking the aircraft in the FAA or NTSB databases can often provide a clearer picture of the damage history. In some cases, the cause of the damage can affect the market’s perception of the damage itself. For example, did the aircraft damage result from a publicly reported accident or incident? Were there any associated deaths or serious injuries? Was it a dynamic or static damage event (i.e., was the aircraft moving or stationary)? An aircraft’s dynamic or static state at the time of a damage event is important to both insurance companies seeking to determine claims obligations, and to appraisers
assessing market perception of a damage event for diminution in value. In general, the market perceives dynamic damage more negatively and this often results in a larger diminution in value than a static aircraft would suffer with the same damage.
METHOD AND QUALITY OF REPAIR The quality of the repair to a damaged aircraft is the next factor to consider. Was the repair done at the manufacturer’s (or manufacturer’s authorized) MRO facility to factory standards using new replacement parts or was it done by an independent MRO facility using approved repair methods and rebuilt parts? While both repairs may be equally airworthy and of similar work quality, the market generally places greater value on a repair done at the manufacturer’s (or manufacturer’s authorized) MRO facility. Additionally, aircraft MRO facilities can vary in reputation, work quality and repair expertise. When determining the quality of a repair, questions to be asked include: • Were damaged components repaired, or were they completely removed and replaced with new? Example: If a damaged flight control such as a rudder was completely replaced with new one instead of being repaired, there is often no diminution in value. • Is the completed repair externally visible? Examples: Was damaged skin patched or replaced? Does the paint on the repaired area perfectly match the rest of the aircraft? • Was the repair to “factory new standards” or to less stringent “field standards?” • Does the repair require any special recurring inspections or are there performance changes related specifically to the repair?
HOW LONG AGO THE DAMAGE OCCURRED Just like the saying that “time heals all wounds,” time
usually cures aircraft diminution in value resulting from damage history. As a general rule, the more recent the damage the greater the effect on diminution. With the passage of time, a damage repair becomes “seasoned” and the damage’s effect on value is usually mitigated. The longer that time elapses after a damage repair, the less impact it may have on value. Eventually with the passage of enough time, certain types of damage history may no longer have a material effect on value.
EXISTENCE OF PREVIOUS DAMAGE The existence of previous damage history can affect the amount of diminution suffered by an aircraft in a subsequent damage event. Multiple damage events to the same aircraft are normally not 100% cumulative in diminution amount. For example, an aircraft with two major damages will not have a double major damage diminution in value. The diminution amount from the second damage event will typically be a smaller percentage than the first.
HOW THE DAMAGE REPAIR WAS RECORDED IN THE MAINTENANCE RECORDS The Federal Aviation Administration (FAA) regulates all matters related to civil aviation in the USA including mandating the requirements for recording the repair of aircraft damage. How damage repair was recorded in the maintenance records can have an effect on value diminution. A common example is the filing of a FAA 337 “Major Repair & Alteration Form.” An aircraft mechanic is required to submit a 337 Form to the FAA whenever a repair is performed on damage that meets the criteria of a Major Repair. Once submitted, the aircraft has a permanent public record of a Major Repair on file with the FAA. However, the appraiser must also be aware that lack of a 337 Form does not necessarily mean a particular aircraft never had a Major Repair. This is because the OEM and FAA Approved Repair Stations are not required to submit a 337 Form when performing a Major Repair per FAR 43 Appendix B (b). The OEM and the Repair Station must still record the repair in the
A “MAJOR REPAIR” AND THE FILING OF A 337 FORM DOES NOT NECESSARILY IMPLY A “MAJOR DAMAGE” DIMINUTION IN VALUE. APPRAISERS MUST USE THEIR EXPERIENCE, KNOWLEDGE, AND DISCRETION IN THESE CASES.
aircraft’s maintenance logbook, but as noted previously, these entries can be vague and may require the appraiser to seek additional information about the repair from Work Orders, receipts, 8130 Tags, the NTSB, and other sources. Note that the FAA does not define Major Damage or Minor Damage to an aircraft. However, the FAA does define a Major Repair in Federal Aviation Regulations (FAR) Part 43. The FAA repair definition is quite broad and is not what an appraiser would want to use as sole justification for a diminution opinion. For example, what is a primary structural member? This is not defined in FAR Part 1 and is open to interpretation. Furthermore, it must be reemphasized that the FAA is defining the repair and not the damage itself. This is a subtle but important difference. For example, light “hangar rash” might require a Major Repair if the damage occurred on a rib tip. Should a Major Repair of minor damage result in major damage diminution? In most cases it would not. This illustrates why aircraft appraisers should not solely rely on FAA repair requirements when analyzing damage for diminution in value. Remember, the FAA is in the airworthiness business, not the valuation business. Furthermore, the FAA considers an aircraft with damage that has been properly repaired in an acceptable manner to be equally airworthy to an aircraft fresh off the assembly line. Airworthiness in the eyes of the FAA is a black and white issue; an aircraft is either airworthy or it is unairworthy. There are no varying degrees of airworthiness. All aircraft (including repaired aircraft) must conform to their original TCDS (Type Certificate Data Sheet) from the day they receive their original Airworthiness Certificate until the day they are retired from service. Appraisers must use their experience, knowledge, and discretion in these situations.
SALES MARKET FOR THE AIRCRAFT TYPE THAT SUFFERED THE DAMAGE If the sales market for a particular aircraft type is strong and active, the effect of damage can be mitigated significantly; in fact, certain types of damage might be completely overlooked as they relate to value. Conversely, in a slow sales market where many aircraft of a particular type are available for purchase, that same damage can become a major negotiating point and have a larger negative effect on value. Additionally, for retrospective appraisals (what an aircraft was worth on a particular date in the past), the diminution analysis must be done in the context of the sales market as it existed in the past on the effective date of the appraisal. Lastly, the marketplace is almost always less accepting of damage on certain classes of aircraft. For example, the stigma of damage is far greater to a business jet than it is to a single-engine piston trainer aircraft.
ADDITIONAL AIRCRAFT DAMAGE CONCEPTS AND CONSIDERATIONS DAMAGE DIMINUTION AND HELICOPTERS Helicopters typically don’t suffer a net damage diminution in value like fixed-wing aircraft. Perhaps it is the more utilitarian nature of helicopters and their mission. Perhaps it is because helicopter owners and operators are a more pragmatic group when it comes to damage. Since in practice, post-damage repair helicopter values often increase as damaged components with usage limits on their service lives are normally replaced with new or overhauled components. Helicopters configured and operated exclusively for executive transportation are more likely to suffer post-damage diminution.
DAMAGE DIMINUTION AND TRANSPORT CATEGORY AIRCRAFT Transport category aircraft (e.g., manufacturers Boeing and Airbus) that are operated by the airlines are viewed strictly as income producing tools. These high-utilization aircraft can fly many legs per day, with short ground-time turnarounds, often while being serviced by inexperienced ramp personnel. Over decades of operation, it is normal for these aircraft to acquire many dents, dings, patches, doublers, stiffeners, re-skinned and rebuilt areas. Damage and repair events that would be negatively perceived by the general aviation market occur regularly to these aircraft without any associated diminution in value.
DAMAGE DIMINUTION ON NEW (UNSOLD) AIRCRAFT A brand-new aircraft that is damaged prior to its first sale will normally have a larger diminution in value than a similar preowned aircraft would suffer with the same damage history. Since the buyer of a new aircraft has
the ability to purchase the exact same aircraft from the manufacturer without damage, a larger discount (diminution) is necessary to entice the buyer to purchase the new aircraft with damage history. Even minor damage in these situations can result in a substantial seller discount (diminution). Aircraft appraisers are rarely involved in these types of cases.
AIRCRAFT DAMAGED at THE FACTORY The factory assembly line at an aircraft manufacturer’s facility is a busy, dynamic, working environment. Manufacturing errors do happen, and factory damage can occur to airframes as they are being assembled. When damage occurs, the affected components or structures are either scrapped or repaired on the assembly line. However, any damage that occurs prior to completion of the assembly line build process and issuance of the Airworthiness Certificate is not considered “aircraft damage.” Therefore, when the new aircraft is issued its Airworthiness Certificate, the airframe logbooks will have
no record of the assembly line damage repair. Although quite rare, assembly line damage can later be discovered or manifest itself operationally after the aircraft has been certificated and sold. When this occurs and is documented, the aircraft has damage history and a diminution in value can apply.
CONCLUSION I have given a broad overview of important factors that an aircraft appraiser must consider when involved in a damaged aircraft appraisal assignment. As a working appraiser I have always found these types of assignments to be both interesting and challenging. I hope the reader has benefited from the concepts and ideas presented.
FACTOR OUT UNDAMAGED HIGH-VALUE COMPONENTS High-value components on an aircraft can unrealistically skew damage diminution in value. For example, an aircraft that has suffered airframe damage should have the same diminution in value whether it has two brandnew engines or two engines requiring overhaul. In this example, the basic concept is for the appraiser to adjust the value of the engines down to their core value when formulating the basis for the damage diminution. There are additional factors to consider that are beyond the scope of this article, but the end result is a diminution value that more accurately reflects the damage to the airframe itself.
APPRAISER COMPETENCY… EXPANDING THE TEAM Damaged aircraft appraisal assignments require an appraiser to have specialized aircraft technical knowledge for analyzing the damage event plus specific appraisal experience and understanding of accepted diminution in value methods. Before engaging an appraiser for an assignment that involves a damaged aircraft, it is important for the client to perform sufficient due diligence to be certain the candidate appraiser has the experience, background, and education to competently perform the appraisal. This is not the time for on-the-job training. If necessary, the client should also consider “expanding the team” by engaging the consulting services of a licensed aircraft mechanic or a FAA Designated Engineering Representative (DER).
AIA member Keith Bransky, ASA, has been performing aircraft appraisals for the past 29 years and is accredited as a Senior Aircraft Appraiser by the American Society of Appraisers. He is president of Jet Appraisal Corporation based in Atlanta, Georgia (www.AircraftAppraisal.com), and specializes in the appraisal of business jets, turboprops, and damaged aircraft. Keith is also a FAA licensed aircraft mechanic and inspector (A&P IA) and an Airline Transport Pilot (ATP) with over 25,000 flight hours. He can be reached by phone at (404) 921-3767 or email at keith@aircraftappraisal. com.
ATTORNEYS DIVISION REPORT
Robert J. Williams - SCHNADER HARRISON SEGAL & LEWIS LLP
eminisce with me about those heady days of commercial air travel. Airports were filled with business and holiday travelers alike. We stood shoulder-to-shoulder, face-to-face, and mere inches apart in queues for security, a triple soy latte at the coffee stand, and the melee that is known as the boarding process. We knew whom to avoid by their facial scowl, who needed a helping hand by their look of frustration, and who would welcome a new friend by the smile on their face. Two documents were necessary to board the aircraft: government-issued identification and a boarding pass. Once aboard, we shared the cabin with Dexter the emotional support peacock. Those of us in steerage enjoyed a soda and 0.5 ounce bag of pretzels. You remember all of that, don’t you?
coaches and athletes, inter alia, because of increased verbal and non-verbal communication, breathability and cooling. An American Airlines gate agent reportedly denied boarding to a passenger wearing a Shema mask,
Just over a year later, things are different, both legally and practically. Passenger load factors for the world’s commercial airlines dipped from 82% pre-pandemic to 65.5% at the height of the pandemic. Thus far, they have rebounded to 72.7%. That means airports and cabins remain considerably less crowded. There’s still a line at the coffee stand, but that’s because locations in several terminals remain closed due to reduced demand, and we’re standing six feet apart while we wait in that line.
despite having a higher filtration rate than an N95 mask, because the Shema is “see-through and unacceptable for flying.” Incidents such as these are likely to foment frustration and claims in the coming months.
A third document may be necessary for aircraft boarding, depending upon the airline and your destination, i.e., proof of COVID vaccination or a “health passport.” New York State is testing a voluntary health passport called “Excelsior Pass,” while at least six states, including Arizona, Florida, and Texas, have banned them through gubernatorial executive orders. The legality and enforceability of those measures remain unclear and involve complicated issues of privacy, federalism and religious freedom. The rush to board the aircraft continues to be an irresistible compulsion for many. Now the fracas includes added discomfort caused by those who insist upon standing too close to others, but masks conceal that discomfort, except for the “Shema” mask. The Shema97 is a transparent mask made of special purpose nano fibers with a 97.1% fine dust filter rate. It is popular among
Many who make it to boarding will miss the pretzels and beverage service. Several airlines have suspended even the most basic cabin service to mitigate virus transmission caused by passengers removing masks to eat. Something else is missing from the cabins: Dexter, the emotional support peacock. The United States Department of Transportation recently issued a final rule amending the definition of “support animal” under the Air Carrier Access Act. Airlines now are required to allow in the cabin only dogs “individually trained to do work or perform tasks for the benefit of a person with a disability.” All other animals may be classified as pets and required to be transported in the cargo hold. One thing remains constant: the Aviation Insurance Association’s commitment to its members. Although we had a fantastic remote meeting last year, we’ve missed you. We are working on another informative remote CLE session this summer, followed by an abbreviated in-person meeting later this year. We look forward to seeing you at both! In the interim, be safe, be well, and please do not hesitate to reach out with any questions or needs.
the Future Supporting the Aviation Insurance Industry Through the Wattles Fellowship
Maggie Martinez - VP Real Estate Property Broker, NFP/ Board Member - NFP/ Walter C. Wattles Fellowship
he Wattles Fellowship was founded in 1969 with the original purpose of providing an opportunity for women to work in the prestigious London insurance industry, not otherwise available at that time. Through the years, the job description has changed from being mostly clerical to the only program of its kind offering a one-year, fully integrated position in the London insurance market. Following Liliana Archibald’s bold entrance, the Wattles Fellows were some of the first women on the floor of Lloyd’s in the early 1970s. Each year, three women graduates from Vanderbilt University (ranked in the top 20 US National Universities by US News and World Report) are selected to participate in the Wattles Fellowship. Highly qualified women apply annually and are required to submit a resume and thoughtful essay about why she should be selected as a Wattles Fellow. Former fellows and the fellowship board conduct two rounds of interviews and select the three finalists based on their academic performance, student leadership, internship experience, community service, essay content, and personal qualifications.
“Since 2002, more than 30 percent of Wattles Fellows remain in the aviation industry and over 60 percent of fellows remain in the industry across all specialties.”
For the past few years, the three women have been trained, respectively, as a Property Account Executive with Willis Towers Watson, an Aviation Underwriter at AXA XL, and an Aviation Account Manager at Arthur J. Gallagher & Co. Despite mergers and acquisitions and an ever-changing global economy, the fellowship has enjoyed a long history with its partners: almost 40 years with the AJG team, 15 years with AXA XL, and 14 years with WTW. The fellowship recently changed partnerships from AXA XL to Liberty Specialty Markets where former Wattles Fellow, Meghan Walker, currently serves as the Head of Aviation. Leadership at each of these companies has embraced the steady influx of pre-vetted talent from one of the top universities in the U.S. and the opportunity to support women in insurance, an industry that has been historically male dominated. The COVID-19 pandemic has posed a challenge to industries worldwide, particularly ones in which in-person interaction is as prevalent as in the London Insurance Market. Thankfully, the companies that
conduct business in Lloyd’s, like so many others, were able to quickly pivot virtually and continue their faceto-face business negotiations via video conferencing technology. Despite the various lockdowns in London, the 2020-21 fellows have had quite a rich work experience to date. The teams at AJG and AXA XL have done an extraordinary job engaging the current aviation fellows, Avery Hoelting and Alexa McKnight, since their arrival in September 2020. Both women have been learning a tremendous amount and they feel as though they are drinking from the proverbial “aviation insurance fire hose.” Equally as important, Avery and Alexa truly feel part of their respective teams. They were in the office with their colleagues for their first three and a half months, which has made a tremendous difference in their experience. Additionally, on the days spent working from the flat, they regularly meet colleagues for “worktalk-walks,” while adhering to all government COVID protocols.
Walter Wattles I had the pleasure of working with Walter Wattles twice: first, in the late 1970s as a brand new broker at Frank B. Hall & Company of Georgia, and again in the early 1990s at Sedgwick. Upon our first meeting, it quickly became apparent how much he enjoyed mentoring young people and, as the father of three girls, how important it was to help young women establish themselves in the insurance industry. At that time even the brightest, most educated women were expected to begin their insurance careers at the clerical level. Aviation insurance was even more male-dominated, with relatively few women in broking or underwriting roles. Walter’s idea to establish a fellowship in 1969 has provided well over a hundred young women with the opportunity to begin their insurance experience working in London. Many of these women continued in the insurance industry after returning to the United States, landing positions as brokers, underwriters, and risk managers. Walter was a remarkable but humble man with many outstanding accomplishments throughout his career. He always had a smile on his face and was eager to assist in any way he could. Even though I wasn’t a Wattles Fellowship recipient, Walter took a genuine interest in me and my career as a fledgling broker. We had many enjoyable conversations over the years, and I truly appreciated his advice and guidance. Although Walter passed away in 2009, his legacy lives on through the Walter C. Wattles Fellowship as it continues to promote women in the insurance industry.
AIA Past President and current member of the Education Committee
When the most recent lockdown went into place in the U.K., all three fellows were given the option by their employers to return to the U.S. until things improved. They decided to go home for a brief period and spend the holidays with their families, but all returned to the U.K. quickly thereafter, saying they much preferred working in London even if it meant from the flat for the time being. These women have taken a difficult situation and made the absolute best of it; they are exploring London on foot (and by bike!), forming relationships with their colleagues, and learning a great deal about the aviation insurance marketplace. Historically, AIA has generously supported the fellowship with two $2,500 grants for the aviation-specific fellows, which supports their costs of relocating to and living in London for a year. While the 2020-21 Wattles Fellowship year differs from those preceding it, AIA’s support has helped sustain the longevity of its remarkable 53-year legacy,
giving three women the opportunity to start their career in the dynamic Lloyd’s of London environment. Since 2002, more than 30 percent of Wattles Fellows remain in the aviation industry and over 60 percent of fellows remain in the industry across all specialties. This is a testament to the value of the fellowship experience in providing a lasting career springboard for its participants. The Wattles Board keeps close track of the fellowship’s alumnae, who serve as a rich network for women seeking employment immediately after their time in London and beyond. The fellowship’s PR efforts, recruitment, interview process, financial and administrative responsibilities are all handled by former fellows who are devoted to ensuring the future of the Wattles experience and the continuation of the lifelong impact that it has had on the lives of 133 women and counting.
The AIA Education Foundation was established in 2008 on behalf of the Aviation Insurance Association to raise funds for educational programs, grants and scholarships (awarded by the AIA Board of Directors), to aid, assist and encourage students or individuals to continue their interest in pursuing aviation insurance as a career. The Foundation is a 501c3 organization and needs your support to continue its work. Donations may be made via the AIA website at aiaweb.org.
TOP PRIORITY??? Michael Chevrette, Division President AVIATION Great American Insurance Group
oday is Friday, March 5, 2021. It is day number 352 of my basement sequester. Before logging on this morning, I drove to my local Dunkin for a coffee and donut. Now, here I sit…computer fired up… ready to bite into my glazed ring and tackle the world of aviation insurance. I actually smeared a bit of truffle butter on it (the donut, not the world). You should try it some time. As I sit here in my social distance-compliant basement, it dawned on me that while I have not physically met with any insureds in over a year, I’ve been lucky enough to have meaningful meetings with many of them. I’ve probably had 150 meetings via Zoom, Teams, or some other platform. It’s actually a very efficient way to hold meetings—they’re are easy to schedule, free to attend,
and I am not required to wear pants. But I digress. I am not writing about on-line meetings. I would venture to guess that readers really have no interest in learning about my on-line habits. Well, some of you might. I was on such a call yesterday afternoon. The insured was a pretty big company. They have lots of airplanes. They fly everywhere. They even have a company logo. I was thoroughly impressed. After exchanging pleasantries, the company president came right out of the gate and stated that “safety is our top priority.” In and of itself, this is an interesting comment. SAFETY. IS. OUR. TOP. PRIORITY. It tells me that these folks are serious about safety. Or, at least they want me to think they are. Admittedly, it is a great statement. As an underwriter,
I have been trained to love hearing those endearing words. They are comforting. They are warm. They bring me back to a pleasant place and time. But here is my dilemma: of the 150+ meetings that I have attended during the past year, each one of the insureds opened with that very line, or some variant of it. Well…thank goodness! If something other than safety was the top priority, I cannot even begin to fathom the number of broken airplanes and dead bodies we would be dealing with!!! However, as much as I love hearing those words, they have become lost on me. The phrase reminds me of a great song that eventually becomes a bad song because the radio stations have grossly over-played it. Does anyone really like hearing “Old Time Rock and Roll” anymore? At this point, the safety statement carries about as much meaning to me as saying “hello” at the beginning of a conversation. The statement is also a lie. Yes. You heard me correctly. IT. IS. A. LIE. Please, don’t get me wrong. I am certainly not trying to imply that any of our insureds or brokers are dishonest. What I am saying is that the only possible way for an aviator to back up that claim would be to lock the aircraft in a hangar and never fly it. If safety is indeed the top priority, the only possible way to ensure the ultimate success of the claim is to completely eliminate the risk of crashing an airplane. Ergo, no more flying. More realistically, the top priority of an aviation business, or any other business for that matter, is to make money. Stop kidding yourself. It’s true! You know it’s true! The top priority of any for-profit organization is to make money so that we can all provide for our families. We should stop trying to fool ourselves otherwise. Sadly, alas, the aviator that locks an airplane in a hangar and never flies it is not likely to make any money from said airplane. The professional aviator needs to find a way to make money with the airplane, or he/she will need to find a new line of work.
Now that we have established our top priority, let us move on, shall we? Where exactly does safety fit into the equation? We have long been assuming that safety is the answer to the equation…1 + 1 = 3, right? Is it, really? Are we doing the math correctly? Is safety the “answer” we are looking for? I say that it is definitely not the answer. I would argue that safety is not the result of the equation. Rather, it is part of the equation. In business terms, the equation is not: profitability + sound management + motivated employees = safety More accurately, the equation should look something like: safety + sound management + motivated employees = profit At this point, the reader is probably wondering what the point of my erratic rambling is. OK, here it comes… As underwriters, we know that safety is important. We very much want to hear the story. We want to know why company ABC thinks they run a safer operation than company DEF. We are interested in knowing what protocols have been implemented. We love hearing about pilot training. But to say that safety is the top priority is about as true as if I were to tell Jim Gardner that I like his goatee. The point is this…we know that your clients want to be safe. We know that they are all trying extremely hard to be safe. We know that they have no desire to break airplanes and kill people. However, we also know that safety cannot possibly be “numero uno” on the list. I would like to issue a challenge to the aviation insurance brokers of the world. The next time you host a client meeting, try not to let your client tell the underwriters that safety is the top priority. Instead, tell us that profitability is the top priority, and that safety is an important component to reach that goal. Then tell us the how and why. Tell us why safety is a key cog in the equation to attain the ultimate goal of profitability. Trust me, that statement will carry far, far more credibility.
Turning a Spotlight on the Industry’s Young Professionals Luke Uithoven, AIA Treasurer VICE PRESIDENT Kimmel Aviation Insurance Agency, Inc.
n the spring of 2019, we were excited about hosting our first Young Professionals Social at the AIA conference in Asheville. Now two years later, we faced another spring without the AIA conference, leaving us unable to make new friends or raise a glass to our old friends. It goes without saying because we all know this year, like the last, has been anything but normal. Not only are we still dealing with the pandemic and global fallout in so many facets of our life, but we are still neckdeep in the “hard” market.
Ideally, most of us have many years ahead in this field. Not only are we dealing with current market conditions, but we are also most likely in the throes of budding adult lives, juggling young families and ever-growing responsibilities. We are striving to be fully present at both work and home, which is giving many of us the feeling of being stretched thin. We have learned how to be successful in the face of adversity on every front and maybe, just maybe, we will be able to have a full night’s sleep before a full workday.
For us young professionals, this is the first hard market that we have experienced in our career. Navigating premium increases, coverage limit restrictions, and pilots claiming age discrimination would be difficult enough during normal conditions. On top of that, throw in school/daycare closings, dining room table offices, and forgotten items on grocery store apps, and it seems like the world is crashing down on us whether at work or home.
In the upcoming editions of The BINDER, we are going to start including a young professional’s “Spotlight” article. We have a lot of young professionals in our industry who are hungry to participate and make a name for themselves in the aviation insurance industry. We will feature YP’s from each division of the AIA and give them the opportunity to write about their experiences in their young (relatively speaking) careers.
And while it is frustrating at times, it has been interesting to watch the world, and our industry, adapt and find ways to overcome new and existing obstacles, especially when it feels as though the pace of our workday seems to be ever accelerating. For us YP’s, I am convinced that this is going to shape our work habits and make us more adaptable, and in turn, successful in our aviation insurance careers.
Exposure is key for success in this industry and we aim to give this segment of our membership the opportunity and platform to start creating that exposure. If you would like an opportunity to contribute in this YP Spotlight or know somebody that would, please feel free to reach out to either the AIA staff or myself and we will be glad to facilitate. In the meantime, don’t give up, keep your head above water, stay focused, and one day we will be the better for it.
Greg Sterling, Vice President, AIA Senior Vice President Aerospace American International Group, Inc.
hope this finds everyone well and safe during these challenging times.
Last summer I wrote about how the strength of any organization comes from the talents and focus of its individual members. Their common interest and collective support form the underpinnings of the association. In the case of the AIA, this was never more clearly illustrated than by how the association came together following the unfortunate but necessary shift of our 2020 annual conference to an online format. Unfortunately, the continuing conditions of the pandemic again required us to re-shuffle things for spring 2021. Through the hard work of AIA staff and leadership, we were successful in re-scheduling our planned New Orleans conference to 2024 without financial penalty and are currently evaluating the viability of having a limited fall 2021 event. Stay tuned for more news on this shortly. Despite the challenges presented by the pandemic, the association has moved forward with valuable CIE and CLE offerings. The recent CAIP event was a great success. Pre-registration sold out quickly; an additional event is in the works to satisfy membership demand.
In addition to education, your AIA continues to be the “voice of the industry” with key players and stakeholders outside aviation insurance. AIA leadership continues to work with aviation companies and associations to assist our industry and ensure that our interests are heard loud and clear. As we continue to work within the cautious constraints of reduced meetings and business travel, AIA provides members with ongoing networking and connection value. The Members Contact List on the website and virtual social gatherings enable members to establish and maintain those vital connections that form the basis of all business relationships. The AIA website’s “members only” section provides links to past presentations, online aviation-specific CE, and much more. AIA also recently developed an Aircraft Training Provider database. Available in the member portal of the AIA site, this database provides important information on where pilots and operators can access the training needed to keep them safe and compliant. Any discussion on the value of membership should include the important initiatives AIA has in place to engage the next generation of aviation insurance professionals. Our Young Professionals group offers
ONLINE MEMBERSHIP DIRECTORY opportunities for mentoring and networking with established industry leaders, a forum for information sharing among peers, and inspiring and sharing the vision and energy of the group. The AIA Women’s Initiative provides the opportunity for women to share experience and knowledge in a forum to support and promote their engagement and development in the industry. With a membership totaling over 500 members, the AIA is the recognized voice of our industry. But we need your help and support in growing that figure to more than 1,000 members in the next few years. You can help first by maintaining your current membership. You can also help by encouraging your co-workers and colleagues to join AIA. Finally, those of you in leadership positions can make a solid investment in your organizations by encouraging and supporting your respective staffs’ AIA membership. And by telling your company’s story via advertising in the only specialized quarterly aviation-insurance magazine: The BINDER. Ultimately the work of the AIA on many fronts will continue to provide our members with constant value, not just at conference time but throughout the year. In this endeavor we deeply appreciate your consistent support through your ongoing and sustaining membership. Please join or renew today!
Add your Photo
Help put a face to a name by adding your photo to the AIA membership directory located in the members’ only section of the AIA web site. Uploading is easy through your profile page – however, if you need assistance or would prefer that AIA Headquarters upload your photo for you, we are happy to do so! If you would like AIA to assist you, please e-mail your picture directly to AIA at firstname.lastname@example.org.
R E I M E R P A I A S R E B MEM The Aviation Insurance Association would like to recognize the Premier Members of the organization. Thank you for your support of the AIA!
BRETT GODFREY GODFREY JOHNSON, P.C. ROBERT ZAVAGLIA, JR. TREECE ALFREY MUSAT P.C. CONNECTICUT JOHN DARER 4STRUCTURES.COM, LLC FLORIDA MARLENE ADKINSON SKY AVIATION INSURANCE SERVICES, LLC FRANK ANTON AVIATION ASSURANCE, INC. RIC CABRERA CHARLES TAYLOR ADJUSTING JOHN CUNNINGHAM, CAIP BEACON AVIATION INSURANCE SERVICES SEAN EMMETT CHARLES TAYLOR ADJUSTING - AVIATION
BEN MARTIN NORTON WHITE LAWYERS
SCOTT LANGEVIN, CAIP AVION INSURANCE AGENCY, INC.
DOUG DAVIDSON DAVIDSON SOLID ROCK INSURANCE
JOHN MURRAY MURRAY, MORIN & HERMAN, P.A.
KATHERINE AYRE BORDEN LADNER GERVAIS LLP
ALEXANDER MUSZYNSKI III MEIER, BONNER, MUSZYNSKI, O’DELL & HARVEY P.A.
LEON BEUKMAN BORDEN LADNER GERVAIS LLP MICHAEL DERY ALEXANDER HOLBURN BEAUDIN + LANG LLP GAVIN MCMAHON GLOBAL AEROSPACE
SWITZERLAND CHRISTINA LEITNER, CAIP SOMPO INTERNATIONAL
UNITED KINGDOM MIKE HANSEN CONVEX UK ANTHONY JOHNSTON, CAIP GUY CARPENTER
PATRICK COSTELLO COSTELLO INSURANCE ASSOCIATES, INC. CALIFORNIA CHARLES ARNOLD ARNOLD AND ARNOLD, INC. DEBI FLEISCHER, CAIP AVQUEST INSURANCE SERVICE ANDREW JOHNSON CONDON & FORSYTH LLP MINDY MCFARLAND ADVANCED AVIATION INSURANCE SERVICES BEN PETERSON SUNSET AVIATION INSURANCE PETER ROTA AVIATORS INSURANCE AGENCY, INC.
PAUL SMITH JLTRE
LESLY THATCHER THATCHER AVIATION RISK SERVICES & INSURANCE SOLUTIONS, LLC
IAN WRIGGLESWORTH GUY CARPENTER & COMPANY LTD
DEAN WEST CFM AVIATION INSURANCE BROKERS, INC.
MICHAEL J. SCHOFIELD CLARK PARTINGTON NICHOLAS SIRIANNI INSURANCE AVIATION LLC PETE TORELL, CAIP TORELL AVIATION INSURANCE AGENCY, INC. ROBERTO A. TORRICELLA, JR. TORRICELLA LAW, PLLC JUAN TREVILLA CHARLES TAYLOR ADJUSTING - AVIATION GEORGIA MARK BREITENBACH AXA XL, A DIVISION OF AXA TERRY BRITT, CAIP EBCO AVIATION INSURANCE, LLC JIM GARDNER THE JAMES A. GARDNER COMPANY INC. DAVID GRAY QBE NORTH AMERICA
ROBERT O’NEIL PREFERRED AVIATION UNDERWRITERS
ED UNDERWOOD AVSURANCE CORPORATION
J. DENNY SHUPE SCHNADER HARRISON SEGAL & LEWIS LLP
THOMAS STRUEBER WEINBERG WHEELER HUDGINS GUNN & DIAL, LLC
LAWRENCE WRIGHT WRIGHT & O’DONNELL, P.C.
JOE WILLIAMS MARSH & MCLENNAN AGENCY, LLC
KEVIN GRUYS AIRCRAFT & MARINE INSURANCE AGENCY, INC.
JONATHAN ZISS GOLDBERG SEGALLA LLP
MICHAEL C. LINDBERG COUNSINEAU, VAN BERGEN, MCNEE & MALONE, P.A.
ROBERT BRAUN KMA ZUCKERT LLC
DONALD CHANCE MARK, JR. FAFINSKI MARK & JOHNSON, P.A.
DAVID FEIGELSON PETKOFF AND FEIGELSON, PLLC
ALAN FARKAS SMITHAMUNDSEN AEROSPACE
SEAN KERR CS&A INSURANCE
LAWRENCE GALIZI AVIATION RISK MANAGEMENT ASSOCIATES, INC. MICHAEL STASZEL MCLARENS AVIATION LORRETTA STEFFETER ALL ACCESS AVIATION MARKETS, INC. ANN TAYLOR LOCKE LORD LLP INDIANA JAMES ROE ARLINGTON/ROE & COMPANY, INC.
JOHN TRAVERS TRAVERS AVIATION FRANK KIMMEL, III KIMMEL AVIATION INSURANCE AGENCY, INC. NEW JERSEY WILLIAM BERNENS ARCH REINSURANCE JEFFREY S. BRUNO, CAIP GOLD GLOBAL AEROSPACE MICHAEL CHEVRETTE, CAIP GREAT AMERICAN INSURANCE COMPANY
DAVID CHIPPERSON GREAT AMERICAN INSURANCE GROUP
TIMOTHY BONNELL JR. , CAIP GOLD AERIS INSURANCE SOLUTIONS
DAVID HARRINGTON CONDON & FORSYTH LLP
LORRI SHUEY NASON ASSOCIATES, INC.
JENNIFER HEINS WINGS AGENCY
COVE GEARY JONES WALKER LLP
FREDERICK ALIMONTI ALIMONTI LAW OFFICES, P.C.
LOUIS R. MARTINEZ MARTINEZ & RITORTO, PC
JON R. HARDEN AVIATION INSURANCE RESOURCES
JENNIFER ZAK SHANNON & LUCHS INSURANCE AGENCY, INC.
CANDACE EICHENBERGER AVINSURE AGENCY, INC.
BRIAN SULLIVAN DINSMORE & SHOHL
GREG GAYLOR, CAIP GOLD NATIONAL AVIATION & MARINE UNDERWRITERS, LLC
DAVID S. MCCREDIE MCCREDIE INSURANCE AGENCY, INC.
JOHN BLOOMSTINE INSURANCE MANAGEMENT COMPANY
RICK TURNER AEROSPACE RISK MANAGEMENT GROUP
J. BRUCE MCKISSOCK MARSHALL DENNEHEY WARNER COLEMAN & GOGGIN
CHRISTOPHER TURNBULL CS&A INSURANCE TEXAS THOMAS BRADSHAW, CAIP HALTON HALL & ASSOCIATES/MENGER UNDERWRITING SERVICES, LLC BARRY DOWLEN FALCON INSURANCE AGENCY, INC. LADD GARDNER LADD GARDNER AVIATION INSURANCE AGENCY, INC. PAM LIPSEY LOCKTON COMPANIES DAVID NORTON SHACKELFORD BOWEN MCKINLEY & NORTON, LLP NICK VINE WILLIS TOWERS WATSON WASHINGTON JEFFREY SUTTON LONDON AVIATION UNDERWRITERS, INC. WASHINGTON, D.C. LISA J. SAVITT THE AXELROD FIRM, P.C. WISCONSIN RUSSELL A. KLINGAMAN HINSHAW & CULBERTSON RANDY PETERSON, CAIP TRICOR INSURANCE INC
PRESIDENT JIM GARDNER The James A. Gardner Company, Inc. Jim.Gardner@jagardner.com
VICE PRESIDENT GREG STERLING AIG AEROSPACE email@example.com
SECRETARY CHRISTOPHER MORIN Murray, Morin & Herman firstname.lastname@example.org
TREASURER LUKE UITHOVEN Kimmel Aviation Insurance Agency, Inc email@example.com
DIRECTOR, AGENTS/BROKER DIVISION DAVID HAMPSON Schrager Hampson Aviation Insurance Agency LLC firstname.lastname@example.org
DIRECTOR, ATTORNEYS DIVISION ROBERT J. WILLIAMS Schnader Harrison Segal & Lewis LLP email@example.com
DIRECTOR-ELECT, ATTORNEYS DIVISION MICHAEL MCGRORY SmithAmundsen LLC MMcGrory@salawus.com
DIRECTOR, CLAIMS DIVISION ERIC WEIDNER McLarens General Aviation firstname.lastname@example.org
DIRECTOR OF REINSURANCE DIVISION WALTER VOIGTS-VONFORSTER Munich Re WVoigts-vonForster@munichre.com
DIRECTOR, UNDERWRITERS DIVISION JEFFREY TIPPINS Starr Aviation email@example.com
DIRECTOR-ELECT, UNDERWRITERS DIVISION WES COLLIER Old Republic Aerospace firstname.lastname@example.org
DIRECTOR, INTERNATIONAL DIVISION IAN WRIGGLESWORTH Guy Carpenter email@example.com
DIRECTOR-AT-LARGE NICOLE WOLFE STOUT Strawinski & Stout, P.C. firstname.lastname@example.org
DIRECTOR-AT-LARGE CHRISTOPHER ARNOLD Sutton James, Inc. email@example.com
INTERNATIONAL DIRECTOR-AT-LARGE BELINDA BRYCE The Magnes Group firstname.lastname@example.org
AIA EXECUTIVE DIRECTOR MARY GRATZER Aviation Insurance Association email@example.com
AIA BOARD COUNSEL RAY MARIANI Leader, Berkon, Colao and Silverstein LLP firstname.lastname@example.org