Ch. 11 - Aviation Flashcards
Why is aviation considered a special underwriting risk?
Because it involves an increased risk of accidental death, particularly for non-commercial or private aviation.
What are the three main categories of aviation underwriting risk?
Private pilots, military aviation, and commercial aviation.
Why is private pilot aviation riskier than commercial aviation?
Private pilots may have less experience, fly under riskier conditions, and have less oversight and regulation.
What key information do underwriters evaluate for private pilots?
Type of license, flight hours (total and annual), aircraft type, purpose of flying, recency of experience, and future plans.
What is the significance of total flight hours in aviation underwriting?
More flight hours generally indicate more experience and a lower risk of accident.
Why is the recency of flight experience important in underwriting?
It reflects current proficiency—long periods without flying can increase risk.
What are common aviation exclusions in life insurance policies?
Death from aviation activities may be excluded unless the insured is a fare-paying passenger on a commercial airline.
How do insurers handle aviation risks in most cases?
Through policy exclusions or flat extra premiums.
What is a flat extra premium?
An additional charge per $1,000 of coverage to compensate for higher risk, often used for aviation underwriting.
What aviation-related roles may still be considered for standard rates?
Commercial airline pilots with major carriers and consistent, regulated schedules
How is military aviation underwritten differently from civilian aviation?
It depends on the branch, aircraft type, and duties—combat or high-risk roles often lead to ratings or declines.
What does IFR stand for in aviation?
Instrument Flight Rules – refers to flying based on instruments rather than visual cues.
Why is an IFR-rated pilot often considered lower risk?
They are trained to fly safely in poor weather or low-visibility conditions, reducing the chance of accidents.
What is VFR in aviation?
Visual Flight Rules – flying based on visual reference to the ground and horizon.
What factors could increase aviation risk for underwriters?
Night flying, mountain flying, aerobatics, flying experimental aircraft, or flying for business/personal reasons rather than recreational.
Why are experimental aircraft viewed as higher risk?
They may lack regulatory oversight, be custom-built, or have untested performance characteristics.
What are common aviation ratings or decisions in underwriting?
Standard, flat extra, exclusion rider, or decline.
How might an underwriter treat a student pilot application?
Usually with caution—may apply flat extras or postpone until more experience is gained.
Can a life insurance policy be approved with an aviation exclusion?
Yes, especially if the applicant declines to pay a flat extra but is otherwise insurable.
What is the purpose of an aviation questionnaire?
To gather detailed information about an applicant’s aviation activity for underwriting evaluation.
The highest percentage of accidents in general aviation is attributed to:
1. weather
2. pilot error
3. alcohol
4. faulty equipment
- pilot error
All of the following statements regarding the scenarios in which an aviation exclusion rider (AER) can be used are correct EXCEPT:
1. the proposed insured has a significant history of depression
2. the contract is written in a state that restricts the exclusion
3. the policy is rated for reasons other than aviation
4. the extent of the aviation risk is unknown
- the contract is written in a state that restricts the exclusion
Which of the following statements regarding Canadian aviation medical certificates is/are correct?
A. The examining physician issues them
B. There are four classes
C. Denials may be appealed to the Civil Aviation Tribunal
B & C only are correct
In the U.S., which of the following is required for all pilot certifications:
1. practical test
2. aeronautical experience
3. knowledge test
4. ability to understand the English language
- ability to understand the English language
