Examining Insurance Policies

Instructions

This assignment is formatted as a business letter.

Complete part three of this assignment by doing the following:
1.Review Mike’s scenario

Scenario:
Mike is so happy about being a newly-minted CFI that he goes out and buys an aircraft of his own so he can start instructing and renting his aircraft out right away. He had to borrow $50,000 from his dad to finance the aircraft. He rented a hangar at Provo Municipal Airport, where he will not only hangar his aircraft, but will also conduct classroom instruction and have a little lobby area, in case business takes off.

Being a UT native, he enjoys sharing his passion for UT so much that he also wants to conduct aerial tours with his new aircraft. Mike also enjoys taking pictures so he has a camera port installed, allowing him to have an aerial photography side-job. Not being one to turn down money, Mike wants to also be able to instruct potential students in their own aircraft as well as his aircraft.

2.Make note of any airport premises coverage Mike might need. Make sure you consider all of the ways in which he plans to use, maintain and store his aircraft (e.g. instruction, rental, aerial photography, etc.), as well as any plans Mike has to interact with other people.
3.Make a list of any special endorsements related to airport premises coverage Mike will need. You will need to research aviation insurance policies and endorsements on the Internet in order to account for all of Mike’s needs for airport premises coverage.
4.As you find resources online, make a note of the Web address and sources you obtain.
5.Make a list of common exclusions you find as you research coverage options for Mike.
6.Gather your lists from all three parts of this assignment.
7.Compose a brief business letter to Mike providing your insurance coverage recommendations. Assume the role of a broker who has just evaluated Mark’s insurance needs. Make sure your letter addresses the following: ◦Recommendations for hull, liability, airport premises, and other coverage.
◦Endorsements Mike will need to make sure he is fully covered. Explain why he needs these endorsements.
◦Exclusions Mike should watch out for.
◦A list of resources, such as Web sites, Mike can visit to verify your recommendations. Cite you resources using APA style.

8.Edit your letter to be sure it is free from spelling and grammatical error. Sources should be cited using APA style.
9.Submit your letter according to the submission instructions below.

Please note that you do not need to identify specific dollar amounts, only the types of coverage, endorsements, and exclusions of which Mike should be aware.

Grading

This assignment is worth 100 points and will be graded according to the following rubric:
• 10 Points – Formatting, Grammar, and Citations. Your assignment is formatted as a business letter. Online tutorials and templates are available if you are not familiar with composing a business letter. Simply search the Internet to find these resources. The letter is free from spelling and grammatical error. Sources are provided using APA style.
• 30 Points – Hull & Liability. You may receive up to 10 points each for your basic hull & liability recommendations, endorsement recommendations, and explanation of common exclusions. Points may be earned for your accurate explanations of why your recommendations are necessary, your accurate accounting of common exclusions, and your completeness in covering all of the endorsements Mike will need.
• 30 Points – Other Coverage. You may receive up to 10 points each for your basic other coverage recommendations, endorsement recommendations, and explanation of common exclusions. Points may be earned for your accurate explanations of why your recommendations are necessary, your accurate accounting of common exclusions, and your completeness in covering all of the endorsements Mike will need.
• 30 Points – Airport Premises. You may receive up to 10 points each for your basic airport premises recommendations, endorsement recommendations, and explanation of common exclusions. Points may be earned for your accurate explanations of why your recommendations are necessary, your accurate accounting of common exclusions, and your completeness in covering all of the endorsements Mike will need.

 

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