Smooth policy????

Recently a thread was posted concerning a "smooth insurance policy"

What is a "smooth policy"

Thanks

Paul
N1431A

Tri-Pacer wrote:

Recently a thread was posted concerning a "smooth insurance policy"

What is a "smooth policy"

A liability policy that states "minimum bodily injury and property damage
per occurrence limit of $1,000,000 for coverage bodily injury and property
damage."

This is much higher coverage than the typical liability policy.

Here's some interesting reading:

http://www.avweb.com/news/columns/189307-1.html

--
Peter

What is a "smooth policy"


A liability policy that states "minimum bodily injury and property damage
per occurrence limit of $1,000,000 for coverage bodily injury and property
damage."

Minimum? That doesn't sound right. How about "maximum"?

Also, what makes it "smooth" is the absence of per-person limits, typically
$100K per person.

Dave Butler wrote:

Minimum? That doesn't sound right. How about "maximum"?

Yep, my mistake.

Also, what makes it "smooth" is the absence of per-person limits, typically
$100K per person.

But there is a maximum limit of $1,000,000 payout for all claims combined,
right? Wouldn't this result in a per person limit of sorts (at least as
far as the insurance company is concerned) if more than one passenger sued
the insurance company?



--
Peter

Also, what makes it "smooth" is the absence of per-person limits, typically
$100K per person.


But there is a maximum limit of $1,000,000 payout for all claims combined,
right?

Yes, if that's the smooth limit.

Wouldn't this result in a per person limit of sorts (at least as
far as the insurance company is concerned) if more than one passenger sued
the insurance company?

Effectively, yes, but there is no explicit per-person limit stated in the
policy. That's what makes it smooth, as I understand it.

It's what is generally called a "single limit" policy in
legal/insurance circles. You have a million bucks of insurance
available to pay the claims, whether one or a hndred. One claimant
might get $1, another $10.43, and the other $999,989.57; or whatever ,
so long as the total doesn't exceed $1mm. Your auto policy may be a
25/50 policy which is $50,000 of insurance but no more than $25,000 to
any one claimant. The aviation policies are sometimes quoted as
$1mm/$100m, which means that no one claim will get more than $100,000
from insurance. This type of coverage is a joke. If you crash with 3
people on board, and don't kill or injure anyone on the ground or
damage property, you only have up to $100,000 available for each
person, i.e. $300,000 of total insurance. You'd have to injure/kill 10
people to to get the $1mm of protection...highly unlikely.

Plus, in auto insurance a 25/50 policy may only have $5000 in
liability. If you hit two cars you may only have $5000 to cover teh
cars even though you have $50,000 coverage per accident.

-Robert

skym wrote:
The aviation policies are sometimes quoted as
$1mm/$100m, which means that no one claim will get more than $100,000
from insurance.


That should read "no one claim from a passenger." The full amount of
the insurance is available to anybody else.

You're right as to some; others are $100m per person, wherever situated
at the fated moment. I suppose if my engine stops just after a
straight out departure from 25 here, there will be a whole lot of
people on the ground to worry about. It's just that elsewhere here in
Big Sky Country, there's soooooo much vacant real estate.

You're right as to some; others are $100m per person, wherever situated
at the fated moment. I suppose if my engine stops just after a
straight out departure from 25 here, there will be a whole lot of
people on the ground to worry about. It's just that elsewhere here in
Big Sky Country, there's soooooo much vacant real estate.

People on the ground are not subject to the sublimit, just passengers.
People on the ground exercise your liability limit (usually $1
million).

-Robert