On Nov 4, 7:41*pm, Frank Whiteley wrote:
On Nov 4, 3:15*pm, Jim Beckman wrote:



At 20:10 04 November 2008, Frank Whiteley wrote:

I'm not sure about the other plans, but your flying (in-motion) hull
coverage is the equivalent of renter/non-owner insurance up to your
hull limits under Costello. *However, if you put it on winter lay-up
(ground only), you lose this protection during that period. * Some
clubs have high deductibles for operating club gliders and encourage
members to have renter/non-owner coverage.

I'm no expert on insurance, but this issue has been discussed
in our club, and I don't think it works the way you are describing.
The problem is, at least for clubs, that each individual member
is, in fact, an owner of the club gliders. *So renter insurance
isn't going to help you at all. *In the case where your own
glider and the club gliders are both insured by Costello, I
have no idea what rules would apply.

Anybody who understands the situation better, feel free
to correct me. *I wouldn't like people to assume coverage
and then find out when it's too late that it doesn't apply.

Jim Beckman

That's why I mentioned 'some' clubs. *There are about 134 flying SSA
chapter clubs, a few non-SSA chapter clubs, and perhaps 20 private
ownership 'clubs' dotted around the US. *These are subject to a state
statutes governing their incorporation and federal rules regarding
their tax status and their organizing documents. *The majority of the
clubs have had an IRS determination at some point. *A growing number
have received a 501c(3) determination, which means they can accept
charitable donations. *A fundamental tenant of charitable non-profit
organization is the avoidance of 'private inurement' on the part of
any member. *This means no one can derive any private benefit. *It
does not mean that members cannot be contracted for services, but
there are strict rules for accomplishing this. *A requirement for a
501c(3) is that upon dissolution, assets must be distributed to a like
organization. *It would be a stretch to hold a member as a partial
owner as there are no rights of to benefit from the sale or rights of
conveyance. *Of course, this really depends on the base organization.

Example 1: *Texas Soaring Association. Note: All members are
personally liable for the first $3,000 of damage to TSA equipment.http://www.texassoaring.org/Documents/tsf23.pdf*Damage responsibilityhttp://www.texassoaring.org/Documents/tsb6b_ops_manual.pdfSee page
64. *I've discussed this with officers of TSA and they said that non-
owner/rental insurance is encouraged. *TSA is a 501c(3) nonprofit
organization and no rights of ownership are conveyed in the governing
documents, in fact, they are denied. *In this case, non-owner/renter
coverage appears appropriate. *Of course, in exchange for cheaper cost
of entry and dues, they may be passing on extended costs to some
members.

Example 2: *Caesar Creek Soaring Club is an Ohio non-profit, with no
IRS determination. *The entity owns no assets. *Each 'Member' *agrees
to purchase 12 shares in the Soaring Society of Dayton, which owns the
gliderport and equipment and is an Ohio corporation. *4000 shares in
SSD have been issued. *Other membership types are not required to own
shares. *This clearly defines 'Members' as owners. *They also have a
system of differential dues and time purchase of the shares at a
monthly rate and an annual surcharge of 10% if less than 12 shares are
currently owned. *In this case, non-owner/rental coverage, by
definition, likely does not apply.

Of the 160-odd clubs that may be operating in the US, there are likely
165 business models, depending upon who is asked;^). *Insurance
exposure varies and definitive guidance should be sought from the
brokers and underwriters providing the services. *These are important
issues and organizations should fully understand how the boundaries we
operate within; insurance, FAA rules, state and federal statutes,
governing documents, and member considerations, are best leveraged.

As always YMMV,

Frank Whiteley

Re Example 1: Last time I checked, TSA did not carry hull insurance
on club gliders. Ditto this club http://www.flybasa.org/, a 501c(7)
with two member categories; sponsor and associate.

Frank