On Mon, 20 Aug 2007 09:06:56 -0500, "Gig 601XL Builder"
wrDOTgiaconaATsuddenlink.net wrote:

It seems that pulling chutes on these planes is becoming the norm for any
out of the ordinary, potentially dangerous situation. If this keeps up it is
going to put Cirrus out of business because the cost of insurance will be
equal to the cost of the airplane.

I'm not sure what the break-even point would be. Let's assume the average net
loss is about $300,000 for every chute deployment (depreciated cost of aircraft
minus salvage value).

What's the average pay-out per *fatal* Cirrus accident? Remember, the typical
occupants aren't going to be convenience store clerks. They're going to be
people who can afford half-million-dollar airplanes. Let's say the total payout
is $5 million.

This means that if only one out of 15 chute deployments prevents a
wrongful-death lawsuit, the insurance companies come out on top.

Note that almost all CAPS deployments, so far, have prevented any serious injury
as well. So that $300K cost for each deployment is also offset by the reduced
need to pay medical bills and/or settle lawsuits in non-fatal accidents as well.

Sounds like a good bet to me.

Ron Wanttaja