March 2008

Your copy of Aircraft Builders Council News has arrived!

Aircraft Builders Council News

ABC News
President's Message
David Johnson, ABC President

The ABC Board of Trustees would like to express its sincere gratitude to Eric Steidl for his years of service and dedication to the ABC. Eric regrettably had to recently step down from the Board due to an employment change; he will be greatly missed. Eric was most recently President of the Board of Trustees, and he oversaw and presided over the highly successful Fall Conference this past September in Scottsdale, AZ. We wish Eric all the best in his new endeavors.

ABC Brokers Committee News
ABC Brokers Committee

Despite a deterioration in the major airline loss record (including attritional losses), aviation insurance clients have continued in the main to enjoy lower premiums from the aviation insurance market through 2007 and, at the time of writing, into 2008.

Mendes Legal Update: Constitutional Limitations on Punitive Damages: How Much is Too Much?
Alice Chan, Mendes & Mount, LLP

Recently, the Supreme Court of the United States issued its latest decision regarding the constitutionality of punitive damages.This decision is the latest in a series of opinions by the Supreme Court limiting runaway punitive damages awards. These decisions provide guideposts that protect against awards resulting from passion or prejudice.

Save the Date! ABC 2008 Annual Conference Scheduled for September
Aircraft Builders Council

The 2008 Aircraft Builders Council Annual Conference will take place September 21-23 at The Fairmont San Francisco in San Francisco, CA. 

The Insurance Institute of London hosts lecture series
Aircraft Builders Council

The Insurance Institute of London is hosting a lecture series that may be of interest to you and your ABC colleagues. Visit IIL's website to register for the following lecture programs in March:

More Industry News
Products Liability in Mergers & Acquisitions
American Institute for CPCU and Insurance Institute of America
Susan Kearney, CPCU, ARM, AAI
Potential products liability issues continue to turn up in front page headlines of today’s news stories—from lead paint in toys and recall of child safety seats to E. coli bacteria in ground beef and harmful side effects of a prescription drug.

Preparing for and Responding to Megacatastrophes
Risk & Insurance
The difficult road to recovery for New Orleans in the wake of Hurricane Katrina points to the importance of proper business continuity planning if companies are to continue.

A New Insurance Derivative Arrives
National Underwriter Company
Daniel Hays
Throughout Florida, a series of 30-foot concrete poles are being erected with what look like wingless airplanes on top--the harbingers of a new form of insurance.

Airline insurance rates will not rise despite BA crash
Lloyd's of London
The incident at Heathrow on January 17 will not increase airline insurance rates despite low premium levels says a Lloyd’s underwriter. Passenger aircraft accidents are at their lowest levels since 1963 and there has been a 20% fall in aviation passenger fatalities.

According to the Aircraft Crashes Record Office’s annual report, there were 136 worldwide accidents in 2007, 28 lower than 2006 and the smallest number for 44 years*.

Waking up to the risks of terrorism liability
Lloyd's of London
A suicide bomber infiltrates a nightclub in an English city wearing explosives and detonates his device among 500 young clubbers.  Six people are killed instantly, ten are seriously injured, and in the stampede to escape the club, two more people die and four are seriously injured. Eleven other people suffer minor injuries, smoke inhalation and shock. The door staff didn’t detect the explosives, failing in their duty of care, and evacuation procedures were ineffective, so the club is ultimately found liable for £9.5 million to compensate for deaths, long-term medical care, minor injuries, the foregone salaries of the victims and legal costs.  

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