Liability

The answer is to be judgment proof. ie. Broke. That's me, I'll take anyone for a ride, once I get my ticket that is.


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Henning said:
And the $2MM umbrella?:dunno: That's "over insured".
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Why do you say that?

Kill a father of two that earns $250k a year, with 20 years of work ahead, and any law clerk could argue successfully for millions. Kill multiple passengers plus people on the ground and watch out. Splitting one million multiple ways isn't really interesting to anyone.

IMO the only way an aircraft is ever over insured for liability is if you have no real assets to go after.
 
Alexb2000 said:
Why do you say that?

Kill a father of two that earns $250k a year, with 20 years of work ahead, and any law clerk could argue successfully for millions. Kill multiple passengers plus people on the ground and watch out. Splitting one million multiple ways isn't really interesting to anyone.

IMO the only way an aircraft is ever over insured for liability is if you have no real assets to go after.
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Trick is,,,,,,,,,, don't kill anyone.

Or if some one does die, don't let it be your fault.
 
denverpilot said:
Unless the damages exceed the limits of the first policy.
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That's my understanding that the umbrella picks up when the others are exhausted.

It's fairly cheap considering, so the odds must be way in favor of the underwriters.
 
txflyer said:
That's my understanding that the umbrella picks up when the others are exhausted.

It's fairly cheap considering, so the odds must be way in favor of the underwriters.
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It's cheap because the risk to the underwriting carrier is relatively low. Since they're the overlying layer, they have strict underlying limit requirements (which allows them to gauge at exactly what point their policy will need to respond) and they will typically collect premium without claim payout for the life of the policy.

Also, for what it's worth, when a death is involved, a claim payout of multiple millions is not difficult to breach. The largest that I have personal experience with involved a gentleman's son reaching down for a cell phone, running off the road, and striking a mother who was walking with her two children. The mother did not make it, and both the underlying auto insurance policy (250/500 limits) and the umbrella ($2MM limit) paid policy limits in short order.
 
Wrongful death is generally cheap. You want expensive? Maim someone.
 
You can spend 1 million in a heartbeat in ICU at a hospital. That is before any continued care. It's not that hard to create a million dollars of property damage either.
 
denverpilot said:
Plays better to the jury.
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Also, at least in my state, wrongful death is a statutory claim, with specifically permitted elements of recovery. No pain and suffering is permitted. That being said, the Supreme Court has mucked up their rulings and have now held that attorneys fees are recoverable. So that has increased the value of a wrongful death claim.

But still, burn someone badly, crush them, paralyze them, traumatically injure their brain, remove limbs, or anything else you can think of that results in significant long term care and disability and you can wrack up some serious coinage quickly.
 
Henning said:
And your insurance will settle it with an annuity that will be inside the $1MM.
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Only if that is all the money there is, or the economic losses are very low, i.e. children or the elderly. The major aviation insurers will typically put $3M average or more on reserve per fatality, or the policy limits if that is lower.
 
Kristin said:
Only if that is all the money there is, or the economic losses are very low, i.e. children or the elderly. The major aviation insurers will typically put $3M average or more on reserve per fatality, or the policy limits if that is lower.
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$3MM paid on a 20 year annuity that costs the insurance under $1MM to fund.
 
mrkbbd said:
Not be a d**k but there is no benefit to insurance unless there is an issue...he may need the coverage. I'm not sure what state he is in, but certain states allow for stacking, others don't. If he is in a stacking state, that may be the only way to get above the $1mm smooth limit.
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What's the easiest way to determine if I live in a stacking state?
 
Henning said:
$3MM paid on a 20 year annuity that costs the insurance under $1MM to fund.
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There is only one category of damages that are susceptible to a structured settlement, if which an annuity is one such, and that is lost future wages. Medical, pain and suffering, lost wages from the time of the accident until the settlement, are not. Future medical expenses is usually just a figure arrived at by the jury or judge, perhaps with some reduction for present value of a future expense.

There is an endless number of permutations possible, but it is wrong to believe that you are getting $3M of coverage when you policy limit is $1M. Even the most favorable case when you kill a high value wage earner quickly -- thus limiting pain and suffering and medical expenses -- you are still looking at the claims of the family for loss of society, comfort, and support, and that the attorney is going to get 1/3 and the court is not going to make the attorney take a third of a monthly annuity check for 30 years. That is the most favorable scenario. If it is not a clean kill, the medical expenses and pain and suffering will blow through the $1M in days.
 
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