Not Another Insurance Application or Pilot History Form!

by Phil Metz, Account Executive, AssuredPartners Aerospace

There probably aren’t too many things about insurance that elicit more groans than applications and pilot experience forms. We all do ‘em; we all hate ‘em.

When your agent requests an application or pilot experience form, it’s almost always because the underwriter has required it, or will require it after the coverage is bound. I can promise no agent enjoys collecting these forms, but it’s a necessary part of our job.

Here are some thoughts regarding these forms that might shine a new light on this task:

Changing insurance companies usually means a new application. The new company almost always wants a fresh application. If you are renewing with the same company, a new application is normally required every three years. Why, because the application asks pertinent questions such as if there is a lienholder on your aircraft. (Be sure to always keep your insurance agent up to date on changes to aircraft value, equipment installed or modifications and lienholders.)

Keep a file of your submitted applications. When completing a new one it is often helpful to have a prior application for reference. If you carry workers compensation coverage keeping that application for reference regarding payrolls, classification codes and claims, along with any workers comp audit results, can be very beneficial.

Perhaps more dreaded than applications are pilot experience forms. Most everyone detests completing one and they prove difficult for us agents to collect. Unlike applications, which the operator submits only periodically, at every aircraft policy renewal the underwriter wants an update on each pilot operating the aircraft. If you have regular pilots flying for you, pick a date, say January, when most aren’t flying and have all your pilots complete a new pilot experience form. You did save the one they submitted last year, didn’t you? Provide the pilot a copy of that along with the new form so they can simply add their last 12 months’ hours in the previous totals.

This is for the operator’s protection, too. You now have a signed pilot experience form attesting to your pilot’s hours, medical date, last flight review, accidents and violations, etc. If the pilot had an accident while flying for another operator, or even in a personal aircraft, during the past 12 months you need to know about that. A pilot withholding vital information from you and your underwriters could jeopardize your coverage following a loss. Do you use MS Outlook or some other program that allows for calendar reminders? Perhaps enter a reminder for all your pilots’ med and flight review dates with a 60 days reminder you can convey to them. This may prevent a pilot from violating policy provisions and a potential claim denial.

Again, keep a copy of all pilot forms that you and/or your company submits. Note: those pilot forms may include protected information such as social security number and/or personal medical information, so keep them stored in a secure area.

Applications and pilot forms are often one of the primary ways that underwriters view you, or your company. Sloppy, incomplete, incorrect, illegible forms may portray you, or your company, in a poor light to underwriters. If they can’t read it, they will have no choice but to request clarification, or maybe they just decline to offer coverage and move on to the next applicant in their busy day.

We often see pilot forms that show more hours in a specific aircraft or class of aircraft than total hours. Another similar mistake is submitting less hours than on a prior form. Inconsistencies from year to year will raise questions – which form is incorrect – last year’s or this year’s? Although flight hours are a relatively poor way of evaluating a pilot, unfortunately it’s all the underwriters have.

This is another reason why it is so important to keep those forms from year-to-year. Make sure what is attested to this year makes sense with what was submitted previously.

And do be sure that whatever you submit on a pilot form can be backed up in your logbook. Following a claim, the adjuster will most certainly ask for a copy of last few pages of the pilot’s logbook. There are numerous electronic flight logs that are either free, or have minimal cost, that can greatly simplify completing pilot experience forms. You can also build your own log using an Excel Spreadsheet.

In today’s insurance market, every applicant needs as much going in their favor as possible. Fully completed, accurate and legible applications and pilot form(s) will help to portray your operation in a positive light to underwriters.