PRS Permits are secured

[MMPerk]

Re: PRS Permits are secured

The Reno Tahoe Airport Authority holds the future of the event in its hands right now. The current license agreement between RARA and the RTAA expires in July. During the last meeting, everything seemed to be moving forward rather well. The legal counsel, while she pointed out a few things, agreed that they should continue to move forward. RARA President, Mike H, seemed pretty happy with current status of things. I got the distinct impression that the situation with the insurance is also moving along. Mike H. said that they were where he expected to be with the underwriters. I believe the next meeting was going to be scheduled after the 4 person Blue Ribbon Panel releases their findings.

LP

[Coyote Chris]

Re: PRS Permits are secured

Thanks LP.....there isnt one day that goes by that I dont say a little prayer things go ahead. Wish I could get a thousand fans to each pay $1,000 and become a sponsor to help pay for the insurance. It would be worth it to me. I have chosen not to comment further on the US legal system as far as litigation is concerned.....what would be the point? But I would be interested in how much we each pay every year out of our pockets to make sure no litigation attorney goes without a nice beachfront vacation house. One call, thats all.

[Skyracer]

Re: PRS Permits are secured

Keep in mind that insurance is insurance whether it is for your car, your home, or the air races. Rates are based initially on assumed risk and may be adjusted over time based on demonstrated risk. Just like your personal liability insurance, if you have a 47 year record of no claims then it is highly doubtful that you would be cancelled for one claim. And, just like your personal liability insurance, if you have many claims the insurance company will either raise your rate or refuse to renew your insurance. The biggest difference between your insurance and RARA's is where the decimal point is placed.

[Coyote Chris]

Re: PRS Permits are secured

I hope you are right.....on another note, while not the same sort of thing, here is an interesting article on what happened to aviation insurance after 911....

http://www.riskandinsurance.com/story.jsp?storyId=533345742

(In part)
Thorn and Innovation

He was also looking for a challenge and a challenge was what he got.

Within a year of Thorn becoming an aviation risk manager, terrorists would fly commercial jets into the World Trade Center and the Pentagon, and aviation insurance would be turned upside down.

At dawn on Sept. 11, 2001, the global aviation premium stood at just under $2 billion, Thorn said. Before the day was over, the reserves had shot up to $4.5 billion. War risk coverage, which for the most part had been thrown in for free as a policy endorsement, was cancelled immediately for all airlines, worldwide.

"That becomes very problematic because it's not coverage that you want to have it's coverage that you are required to have," Thorn said.

Thorn and his fellow aviation risk managers banded together and with the help of their general counsels, drafted language for war risk hull and liability coverage backed by the U.S. government. That coverage became part of the Air Transportation Safety and System Stabilization Act, which was passed by Congress before the end of September 2001.

Southwest's lead insurer at the time had attempted to reinstate a layer of war risk coverage that was priced at $1.25 per revenue passenger mile. Perhaps unintentionally, the formula penalized an airline like Southwest, which flies tens of millions of passengers relatively shorter distances. Average aircraft trip length is 658 miles, or 1 hour, 55 minutes, according to the airline.

"All it was was an allocation on all the airlines in the world to collect a large sum of cash quickly to pay these claims," Thorn said.

[tim]

Re: PRS Permits are secured

The biggest difference between your insurance and RARA's is where the decimal point is placed.

That's the biggest difference between me and Warren Buffett too.