Originally posted by J_R
Bill,
If the same two people are involved, without compensation, AMA coverage is in force. What I do not understand is why the compensation makes any difference, relative ONLY to the insurance. The risk to the AMA would seem to be identical. The premiums have been paid. Where is the additional insurance risk? Where is the additional insurance cost? If the overall number of students remains the same in either case, what is the justification for negating the insurance?
Just for the record, I have taught a lot of folks to fly, but have never taken a penny.
JR
JR,
You are right, I did put a twist on it and I did leave your twist alone. That was done with intent and prior knowledge of Cain's post. I also have seen it and read it closely.
The real issue is commercial operations. That is what you described, that is what Carl Maroney described, and that is what I have been talking about. Check with your local city government and find out the hoops you have to jump through to have an office (registered with phone and yellow pages entry) in your home. Commercial operators have to have a different level of insurance since their tort liability is higher than yours or mine, as has already been defined by the courts. That means the things you and I settle after 15 minutes of discussion wind up in court and cost many times what you and I might have agreed to.
Insuring commercial operations costs many times what personal insurance costs due to the uncertainties of user, potential victim, and repetitive nature of the risky action. For a fast and valid sample of the difference in the approach, compare the insurance costs for a pick up truck to those of a 18 wheeler dump. The big truck even gets driven by an educated driver!! In modeling, we don't know who the 'employees' will be or how well trained they might be, or how dedicated to safety they might be. For the causal user (you and me) we can make those assumptions.
I am not sure, but I suspect that is why Carl Maroney answered Cain with all those negatives. I am not sure he is wrong.