AVSC 2160 COURSE PREVIEW
Aviation Insurance/Risk Management
Explores the complexity of aviation risk management from flight operations and aircraft maintenance perspectives. Examines industry insurance practices and standards, including the development of risk management procedures to meet both government and insurance requirements. Analyzes basic underwriting procedures and requirements. Presents basic principles of hazardous materials handling in aviation.
Students will be able to use a foundational knowledge of aviation insurance terms and principles.
- Define key aviation insurance terms.
- Explain basic principles of insurance and risk management
Explain why knowing the history of the aviation insurance industry is useful to brokers working with underwriters and customers.
- Summarize the formation of the aviation insurance industry.
- Identify the key players in the aviation inusrance industry today.
- Describe how key historical events (such as group approach, senate hearings, and 9/11) have shaped current industry practices.
Outline the roles and responsibilities of underwriters, brokers, agencies, and the major insurance companies.
- Differentiate between stakeholders in the aviation insurance industry.
- Describe the basic structure of the aviation insurance industry.
Differentiate between the different types of insureds in the aviation industry.
- Explain the importance of degree of care and risk in determining insurance rates and coverage.
- Identify key insurance products by operation or use with respect to aviation (e.g. manufacturers, airlines, etc.)
Explain the conceptual framework of insurance.
- Distinguish between risk classifications
- Describe the relationship between risk and insurance.
- Define basic insurance terms.
- Explain the underlying princinples of insurance/providing insurance coverage.
- Describe the requirements for an insurable risk.
Apply risk management strategies to identify, measure, and manage risk.
- Identify specific risks associated with aviation operations.
- Perform formal and informal risk analyses.
- Describe methods for managing risks in the aviation environment.
- Use risk measurement to identify appropriate methods of risk management.
Explain how underwriting criteria is used to determine rates.
- Identify key differences between underwriting aviation and non-aviation exposures.
- Describe underwriting methods for pre-selection and post-selection.
- Outline the common criteria used to determine rates through the underwriting process.
Describe the relationship between laws and insurance.
- Explain how laws create a need for insurance coverage.
- Describe how negligence is determined.
- Explain how consideration for special damages is factored into determining liability limits.
Describe the basic elements of an insurance policy.
- Identify the location of information within a policy.
- Outline a typical policy layout.
- Recognize the characteristics of an insurance contract.
- Give examples of actions that may invalidate an insurance contract.
Summarize the basic information found within a hull and liability policy.
- Differentiate between the different types of hull coverage.
- Recognize common endorsements for an aircraft hull policy.
- Demonstrate familiarity with common exclusions in a hull policy.
- Given scenarios, identify endorsement/coverage requirements for aircraft use.
- Describe the steps that must be taken by the insured in the event of a loss.
Briefly describe common insurance needs other than hull, liability, and airport premises coverage.
- Communicate your activities to a broker to determine insurance needs.
- Evaluate the need of other aviation insurance coverage based on operations and use.
Summarize the basic information found within an airport premises policy.
- Recognize common endorsements for an airport premises policy.
- Demonstrate familiarity with common exclusions in an airport premises policy.
- Analyze differing sample airport premises policies.
- Explain how inspections, surveys, and audits are used in the process for obtaining and maintaining an airport premises policy.
- Identify the individuals, companies, or entities that need airport premises liability coverage.
Describe the appropriate use of business property insurance policies.
- Demonstrate familiarity with common exclusions in aviation business property policies and transportation insurance policies.
- Explain how loss of business income must be factored into determining limits of an aviation business property policy.
- Explain how coinsurance applies to payout after a loss.
Explain how airlines obtain and maintain insurance coverage.
- Describe the process of meeting an airline's insurance needs.
- Explain the role of quota sharing in providing high-risk insurance.
- Recognize the need for space insurance.
Compare and contrast insurance coverage types utilized as employee benefits.
- Describe the exposure to risk associated with maintaining employees and using automobiles in an aviation setting.
- Explain how workers compensation and automobile insurance can address these risks.
- Describe other insurance offerings (besides workers compensation) that may be made available as employee benefits.