Insurance Crisis Compels Change in AMA Coverage
The liability-protection business is in turmoil. For the past year, and continuing at least into the near future, it has become increasingly difficult and very expensive to obtain insurance coverage. In fact, some businesses and professions have lately found it impossible to get coverage at any price.
For AMA, the result has been a large increase in cost for 1986 coverage while receiving less protection. Specifically:
- AMA is paying approximately $250,000 for a year's coverage that previously cost about one-third of that.
- The new policy provides $1,000,000 of coverage instead of the $2,000,000 provided in recent years.
- AMA's self-insured retention fund has been increased to $150,000 for claims, up from $100,000 previously.
- The new policy does not cover model boats or cars, and it omits some incidental coverages that were included before. The carrier wrote the policy as an aviation policy; some state insurance commissions require aviation policies to cover only aviation liability, which prevented broader coverage.
Fortunately, AMA was able to pay the higher costs for current coverage out of reserve funds accumulated over the years. However, continuing at these new rates beyond 1986 poses serious problems and makes it doubtful whether membership dues for 1987 and beyond can be maintained at the present level.
The AMA Executive Council carefully weighed the options. The cost to add a second million dollars of coverage was projected at about $100,000 — compared with roughly $3,000 for that same coverage last year. Historically the second million cost very little relative to the first, but that is no longer true; given the record of need (there has never been a year requiring even $500,000 since AMA began providing protection for model flying in 1942), the Executive Council concluded that the additional coverage could not be cost-justified for general issuance.
As a result:
- AMA is not able to provide individuals with $2,000,000 of coverage for 1986 under the standard policy.
- AMA is not able to provide coverage for model cars and boats in 1986 under the standard policy.
Special situations and clarifications
- Clubs that require $1,000,000 or more to satisfy a flying-site owner present a special problem. For a relatively small number of clubs (41 in 1985) for whom $1,000,000 is not sufficient, AMA is seeking special individual extensions of coverage at extra cost. These extensions will be provided as soon as cost information is available and clubs will be contacted individually.
- Theft, fire and vandalism claims: theft claims require a police report and evidence of forcible entry when a house or vehicle is involved. For example, a model stolen at a flying field is covered only if accompanied by forcible entry into a car, clubhouse, trailer, motor home, or camper.
- Bidding and market conditions: AMA solicits bids several months in advance of policy expiration. Usually two or three offers are received; for 1985 the market tightened severely — at least 26 companies working through six brokers declined to bid. AMA received only one offer to consider, a take-it-or-leave-it situation, which forced acceptance despite drastically higher cost and reduced coverage. This restriction in availability is unrelated to AMA’s favorable claims record; rather, the risk is now regarded as non-standard by many underwriters.
Member information
- Members should realize the insurance card provided with membership contains only a summary of insurance terms at the time it is distributed.
- Full insurance provisions and the detailed policy are on file at AMA Headquarters and are available for examination by any member.
- Copies of the full provisions are available for a $3.00 copying and postage fee.
- A detailed report from AMA’s insurance broker, explaining what has happened and why, is available on request from Headquarters.
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New Museum Program
The National Model Aviation Museum is attractive and interesting, but much work is required to realize its full benefits. Many models have fascinating histories (for example, the KG‑1 (Kovelski), the Maxwell Bassett Cardinal, the Tom Brett Piergee, the Walt Good MultiBug, the Frank Zaic Thermic 100, and others). To make the museum more than a nice place to visit requires staff support beyond routine building operation (lighting, heating, cooling, cleaning) — visitor guides, librarians, photocopying help, and computer operators are needed to make the library searchable and useful.
Until now the museum has relied on donations to the Lee Renaud Memorial Library Fund, general donations, and an apportionment of building operating funds. To expand the effort and accelerate progress, a new program is being initiated effective January 1, 1986.
AMA Museum Patrons' Program
Benefits: service, prestige, recognition.
Categories of Patrons (tax deductible):
- Regular: $10 per year donation provides:
- Special card with five-digit number
- Special pin, bumper sticker, patch
- Museum newsletter (Hall of Famers)
- Charter: $100 for first-year donation; $10 per year thereafter
- All services of Regular, except with a three-digit number and charter-member version of the pin
- Honor Wall listing
- Life: $1,000 one-time donation
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AMA News — Museum and Donations
Since the museum began soliciting merchandise donations for use as prizes, the volume of items has been tremendous. AMA sanctions between 1,500 and 2,000 events a year, so manufacturers supplying prizes may find the effort a significant strain on their stock. In general the industry supports the effort because it sustains event activity, but manufacturers often report they receive little follow-up or thanks after events. Clubs are urged to follow up solicitation with a short report: how many attended, how merchandise was displayed, who won what, and how the manufacturer’s contribution was publicized. Such follow-up makes future solicitations more welcome.
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From Professor Oberth
A recent letter from Hermann Oberth, one of the pioneers of rocketry and space research, related his activities following attendance at the Space Shuttle launch (Oct. 30). Excerpts of his remarks:
- He visited the Washington, D.C. area (Nov. 2–8), where he spoke to the National Commission on Space, met American space leaders, visited NASA-Goddard and the Smithsonian National Air and Space Museum, and met with President Reagan's Science Advisor, Dr. George Keyworth.
- He thanked Mr. Gary Olesen and Elisa Wynn of the L-5 Society, Mr. John Worth of the Academy of Model Aeronautics, and Everett Langworthy of the National Aeronautic Association for arranging the events. The L-5 Society helped make arrangements at Cape Canaveral, Houston, and Huntsville.
- He expressed appreciation to Lillian Worth for hosting his daughter, his Oberth Museum assistant, and himself in Fairfax, VA.
- From his visit he felt the future of space science in the U.S. was in good hands.
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District Report — New Jersey • New York (District II)
John Byrne District II Vice-President 36-29 213 Street, Bayside, NY 11361 (718) 225-6319
Associate Vice Presidents:
- Pete Bianchini, 260 S. Broadway, Yonkers, NY 10705
- Tom Brown, PO Box 861, APD NY 09123
- Frank Costello, 27 Kearney St., Dover, NJ 07801
- Frank Dresch, 9 Willow Ave., Piscataway, NJ 08854
- Ray Juszchuk, 7 Evergreen Ave., New Hyde Park, NY 11040
- Hank Likes, 46 Cory Dr., Toms River, NJ 08753
- Adam Satter, 41 Perry Ave., Latham, NY 12110
- Lon Sauter, 2062 Rabbit Lane, Phoenix, NY 13135
Frequency Coordinator:
- George Myers, 70 Froehlich Farm Rd., Hicksville, NY 11801
Second (District) Thoughts
Ballots are being counted to determine who will serve as District II Vice-President for the next three years. John Byrne thanks members for their acceptance of his efforts.
Notable events and news:
- Wally Rodriguez Memorial Model Airplane Meet: Held Sept. 22, 1985, at Sunken Meadow State Park on Long Island to honor a respected aeromodeler. The LIARS (Long Island Aero Radio Society) and many friends organized the event, which is planned to become annual.
- Long Island Drone Society (LIDS): Annual Pattern and Scale meet at Cedar Creek Field, Wantagh.
- Meroke RC Club LI Annual Championships: Sept. 21 event with many entrants; CD Mel Carver kept the contest running efficiently.
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AMA News — Club and Local Notes
Triathlon idea, events and general club news:
- Model Aviation Triathlon: A proposed triathlon combining Control Line Aerobatics, RC events, and other disciplines was suggested for summer 1986 to celebrate the AMA 50th anniversary. Suggestions include minimizing subjective judging.
- Flying sites: Clubs continue to deal with loss of flying fields. Examples:
- Seminole RC Club (Tallahassee, FL) lost a field but was offered temporary use of a private airstrip.
- Tropic Aeros RC Club (Miami, FL) highlights problems flying on public land and suggests seeking private property.
- Discussion on purchasing a national flying site: some support if it can be self-funding; others oppose.
- No-popov Spinners anecdote: spinner and prop failures noted; caution advised.
- GAMA and Moonporters: New or revived club newsletters (Georgia Aircraft Modelers Association; Moonport Modelers of Titusville, FL).
- Participation and accessibility: Recognition of club members (including those confined to wheelchairs) running for office; encouragement of women's participation.
- Team RACE: Club in Clinton, MS upgraded from roadside flying to a hilltop field and hosted a successful Pattern contest; outreach at Hinds Fest raised community awareness.
- Golden Valley Radio Control Association: Open house with 75 models flown and shown.
- School program: An RC club and summer course run by Clement Germainier at Glenbrook South High School (Glenview, IL) taught students to build and fly trainer aircraft; 10 students, three-week course; most completed planes and received 1/2 credit.
Council and museum notes:
- The council meeting addressed the permanent Nats site search (for a multi-use aviation parcel) and other matters; no funds spent to date for that project.
- The AMA museum will remain open Saturdays for visitors for roughly nine months of the year; exact schedule to be announced.
- A three-year membership program will be tested starting in 1987 as a saving for long-term hobbyists.
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District VII Report — Iowa • Michigan • Minnesota • Wisconsin
Peter Waters District VII Vice‑President 117 E. Main, Upper Level, Northville, MI 48167 CompuServe: 70047,2162
Associate Vice Presidents:
- Arthur A. Arno, 1014 Woodbridge Blvd., Ann Arbor, MI 48103
- Brad Bowlby, 84 Logwood Rd., Golden Valley, MN 55427
- Jack Finn, 366 Hampden Dr., NE, Cedar Rapids, IA 52402
- Russell Kneznik, 2825 E. Sherwood Blvd., Milwaukee, WI 53211
- Robert D. Lundberg, 4928 Tioga St., Duluth, MN 55804
- Carl Mons, 50424 Lake Mendota Dr., Madison, WI 53705
- William Foth, 3199 Wayland Rd., St. Joseph, MI 49085
- Ron Sears, R.R. 2, Box 5, Pontiac, MI 48054
Frequency Coordinator:
- Peter Waters, 117 E. Main, Upper Level, Northville, MI 48167
Phone: (313) 348-0085; Evening: (313) 437-4244
District notes and roundup:
- Weather: Early-season reports noted unseasonably mild, wet conditions and talk of floatplane operations.
- Battle Creek: Progress toward arrangements for 1987; Niagara Falls option dropped.
- Michigan Indoor Championships: Held at the Detroit Coliseum with about 40 entrants; site rental costs rising — plan to add a swap meet to offset costs.
- Frequency scanner recommendation: JIL SX200 (retail about $160); frequency coordinators are being issued scanners.
- Call for Frequency Coordinator: Seeking a volunteer from the western states for the district position.
- Davison Aviators' Vintners Night: A successful social event with club-themed humor and dioramas.
- Joe Hass: Hobby shop owner recovering from surgery; best wishes for a quick recovery.
- Permanent Nats site search: Communication issues noted; the search aims at government-available land usable for many aviation activities; to date no funds expended.
- District roundups: Club anecdotes (mosquitoes at Pontiac MAC), vandalism (porta-john burned), and local auction dates.
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If you would like a printable copy (PDF) of any of the full insurance provisions or the broker’s report, or want contact details for any listed AVP or club, request the specific item and HQ contact information will be included.
Transcribed from original scans by AI. Minor OCR errors may remain.
