JohnL Posted November 10, 2014 Report Posted November 10, 2014 Our partnership has a fully paid, $250 deductible insurance policy with two listed pilots. We have a prospective partner desiring to join, with 150hr PIC and no RG time. The current policy will not cover him, but a new policy with $2500 deductible will. We don't want to give up the $250 deductible policy, so we can't get him on the existing insurance. However, the new partner is willing to pay for a whole new policy to cover just him (with $2500 deductible). Is it OK to have two policies on the plane, one for us existing partners, and one for the new partner? What other solutions are out there to solve this problem?
cbarry Posted November 10, 2014 Report Posted November 10, 2014 I wonder how much total time (retract complex time) the new prospective partner would need to get to be at the level of deductible the same as yours? Whatever that is, that's when I would consider the deal to be an equitable deal.
N601RX Posted November 10, 2014 Report Posted November 10, 2014 You could ask him to deposit $2250 into the account to cover any potential copay for a claim until such time that he had enough time that you are able to get another policy with a $250 deductible. At that point his money could be refunded. 3
Parker_Woodruff Posted November 10, 2014 Report Posted November 10, 2014 You do not want double insurance. Depending on which insurance company this is, the deductible could be negotiated. 2
midlifeflyer Posted November 10, 2014 Report Posted November 10, 2014 I "liked" Parker's response. With the right company, this should be negotiable. For the purpose it is better to work with an independent insurance broker/agent than with a company directly. The problem I see with depositing the deductible is that the high deductible applies to everyone. IOW, if the new partner causes a hull claim, fine, but if one of the others does, the high deductible still applies. It's not fair to the others to be stuck with that and it's certainly not fair for the newer pilot to pay the deductible for someone else's accident. On thing I have seen done in situations like this is is the same deductible but with a higher premium, with the low-timer paying the premium differential. I was that guy in a group ownership a few years ago and felt it to be quite fair.
PTK Posted November 10, 2014 Report Posted November 10, 2014 Our partnership has a fully paid, $250 deductible insurance policy with two listed pilots. We have a prospective partner desiring to join, with 150hr PIC and no RG time. The current policy will not cover him, but a new policy with $2500 deductible will. We don't want to give up the $250 deductible policy, so we can't get him on the existing insurance. However, the new partner is willing to pay for a whole new policy to cover just him (with $2500 deductible). Is it OK to have two policies on the plane, one for us existing partners, and one for the new partner? What other solutions are out there to solve this problem? I wonder at what premium they're willing to insure him. Also keep in mind this new premium will apply to the policy and everyone in the group as it's based on the most inexperienced pilot. This is not a very fair arrangement and puts all partners in jeopardy. The best answer may be to encourage him to go get some hours and conform with the rest of the partners.
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