Smooth policy????

Recently a thread was posted concerning a "smooth insurance policy"

What is a "smooth policy"

Thanks

Paul
N1431A

Tri-Pacer wrote:

Recently a thread was posted concerning a "smooth insurance policy"

What is a "smooth policy"

A liability policy that states "minimum bodily injury and property damage
per occurrence limit of $1,000,000 for coverage bodily injury and property
damage."

This is much higher coverage than the typical liability policy.

Here's some interesting reading:

http://www.avweb.com/news/columns/189307-1.html

--
Peter

What is a "smooth policy"


A liability policy that states "minimum bodily injury and property damage
per occurrence limit of $1,000,000 for coverage bodily injury and property
damage."

Minimum? That doesn't sound right. How about "maximum"?

Also, what makes it "smooth" is the absence of per-person limits, typically
$100K per person.

Dave Butler wrote:

Minimum? That doesn't sound right. How about "maximum"?

Yep, my mistake.

Also, what makes it "smooth" is the absence of per-person limits, typically
$100K per person.

But there is a maximum limit of $1,000,000 payout for all claims combined,
right? Wouldn't this result in a per person limit of sorts (at least as
far as the insurance company is concerned) if more than one passenger sued
the insurance company?



--
Peter

Also, what makes it "smooth" is the absence of per-person limits, typically
$100K per person.


But there is a maximum limit of $1,000,000 payout for all claims combined,
right?

Yes, if that's the smooth limit.

Wouldn't this result in a per person limit of sorts (at least as
far as the insurance company is concerned) if more than one passenger sued
the insurance company?

Effectively, yes, but there is no explicit per-person limit stated in the
policy. That's what makes it smooth, as I understand it.

Isn't it sad that insurance considerations impact
our flying to such an extent? Oh for the days of
being able to give a kid an airplane ride without
having to worry about people suing you.


"Robert M. Gary" wrote in message
ps.com...
Smooth just means there is no per-person limit (or in the case of
Avemco per-family limits as well). If you have a $1million "smooth"
policy, that entire $1 million is available to passengers (although the
totally cannot exceed $1million so they have to share).
Smooth limits are becoming a thing of the past. Some organizations
still require it (like Boy Scouts) but there are work arounds EAA will
"smooth" any existing policy for free if its for Young Eagles, which
Boy Scouts counts. It just means that when you turn in your BSA flight
permit you must include both your insurance policy and your EAA number
and the parents must fill out 1) BSA "high-risk" waver 2) BSA trip
permit 3) EAA Young Eagles registration. I usually appoint someone to
just hand out clip boards and collect paperwork.

-Robert

When my dad was a kid his High School English teacher gave him an
airplane ride. He later went on to a long and distinguished career as a
Navy pilot including several tours in Vietnam. Today a teacher would
certainly be fired for exposing the school to that liability. My
grandmother wasn't even there at the time and I'm sure she didn't sign
a waver.

-Robert

It's what is generally called a "single limit" policy in
legal/insurance circles. You have a million bucks of insurance
available to pay the claims, whether one or a hndred. One claimant
might get $1, another $10.43, and the other $999,989.57; or whatever ,
so long as the total doesn't exceed $1mm. Your auto policy may be a
25/50 policy which is $50,000 of insurance but no more than $25,000 to
any one claimant. The aviation policies are sometimes quoted as
$1mm/$100m, which means that no one claim will get more than $100,000
from insurance. This type of coverage is a joke. If you crash with 3
people on board, and don't kill or injure anyone on the ground or
damage property, you only have up to $100,000 available for each
person, i.e. $300,000 of total insurance. You'd have to injure/kill 10
people to to get the $1mm of protection...highly unlikely.

Plus, in auto insurance a 25/50 policy may only have $5000 in
liability. If you hit two cars you may only have $5000 to cover teh
cars even though you have $50,000 coverage per accident.

-Robert

I just got quotes for a turbo arrow with 85k hull, 100k/1m, I have about 250
hours with less than 100 in type, no instrument rating (yet).
Avemco just shy of $2700
AOPA/AIG: just over $1900
AOPA/Phoenix: $1775
I just thought I would share this info since it seems shocking the
differences in price between very similar policies.
Next year I will get a 5% for instrument ticket, and a few years from now,
5% for over 500 hours TT and 100 in type.

"Tri-Pacer" wrote in message
...
Recently a thread was posted concerning a "smooth insurance policy"

What is a "smooth policy"

Thanks

Paul
N1431A