OFA Newsletter

An Organization of Flying Adjusters,




Summer 2000


President's Message

Coming off a successful annual conference that was OFA99 in Portland, Maine, it has begun to sink in what a monumental task we have before us to maintain the integrity and numbers in our membership. We're fortunate to have taken in new members in our organization at OFA99, and we were delighted to welcome Jim Gray (Alabama), Ken Harris (Arizona) and Dick Dieckhoff (Florida) to our ranks. And while we were glad to add to our ranks, the harsh reality is that we also lost several members for a host of reasons, perhaps the most common of which had to do with the recent changes in our industry and the related drop in business.

With one or more of the companies handling claims in-house, and with some part of the book of business shifting to companies with no history of outside claims assignments, a number of our members have simply elected to seek their fortunes elsewhere outside the insurance claims business. We've been able to retain a few as associate members when they've left the world of independent claims for the company ranks and that's a plus for OFA.

One wonders, however, with the changes fomented by ULM in Frederick and Dallas with the opening of branches in many areas of the country, if we have been individually guilty of putting all our eggs in the same basket. The changes wrought by ULM seems to have, in several instances, been the one occurrence which precipitated the departure from the business of several of our number. Having been in that position myself some years ago with reference to workers' compensation claims in Maine and New Hampshire, I can appreciate how quickly that can come about.

My second point has to do with communication between us, that is. We need to keep those lines of communication between us wide open as a means of avoiding being "blind-sided". That just means that we need to talk with one another, particularly if we have learned some fact that may affect our case load, one way or the other. Information sharing is always a task, but if we have some tidbit of information about our business world, we owe it to each other to share that information keeping the grapevine open and viable, as it were. If we know of new markets opening up, let's find a way to share it, if only a small blurb handed off to editor BillArnold for our newsletter.

My point to this is two-fold: we all need to have a look at our business mix and assess whether we're too locked in to one company, or, perhaps too locked in to one line of business, aviation. In spite of our dreams and desires "If I see another auto or WC case, it'll be too soon!" - few of us are now able to be exclusively aviation adjusters, and I've heard it said that if most of us were now seeking membership in OFA it's doubtful that we would qualify. Still, in the interest of self-preservation and eating, it may be necessary to supplement our work with non-aviation claims and we shouldn't be afraid to do that, unsavory as that decision might be.

Of course, it goes without saying that those "tidbits" should be with foundation though I hasten to say that sometimes pure rumors, taken with a large grain of salt, are useful, too. All this should be in an effort to see that thing or happenstance coming which would put any of us at risk. In short, let's talk with each other.

Our organization is a most useful tool for all of us;

it shouldn't be just a social organization it should work for us and we all share in making that happen. We're a unique group of aviation insurance professionals who have a common need. You know the old saw, "United we standetc., etc."

Finally, a word about the office to which you have elected me; I want to convey to the membership my gratitude and my most humble thanks for your confidence and trust in me. I'll endeavor to discharge my duties during my year in a way commensurate with the high expectations of OFA.



Page 2

Summer, 2000




Membership Committee:

James O. Cobb, Chairman

John Bensley

Ken Harris

Marty Clingwall

Monty Williams

BY-Laws Committee:

Bill Hall, Chairman

Harry Brooks

James Stiger

Allen J. Fielder

Executive Secretary/Historian:

Don Hendricks


Bill Arnold, Chairman

Bill Hall

Tim Miller

Advisory Committee

Mark Breitenbach, Chairman
AIG Aviation, Inc.

Nominating Committee

Bill Arnold, Chairman

Lew Valkenaar

Jimmie Rickerson

Annual Conference:

2000 Albuquerque - Oct. 11 - 14, 2000

Conference Chairman, Frank Bristol

Program Chairman, Bob Betts

2001 Las Vegas - Oct 11, 12, 13, 2001

Comference Chairman: Marv Rogge

Program Chairman: TBA

Site Committee for 2002 :

Bob Betts, Chairman

John Axe

Don Hendricks

AIA Liaison:

Marty Brown


Memorium Committee:

Al Plumley

Mary Rogge


Archer Crittenden, Chairman

Legal Advisor:

Tim Miller, Esq.

Mid Year SMU:

Don Hendricks

NTSB Liason Committee:

Henry Joe Kothe, Chairperson

Jimmy Rickerson

Mid - Year Meeting:

Inter-Continental Hotel

Feb. 22 - 23 - 2000

Dallas, Texas


OFA Officers

President .............................. Al Ryan

Treasurer .............................. Marv Rogge

Secretary .............................. Chad Coogan

Membership Chairman ......... James Cobb

Executive Secretary ............. Don Hendricks

Editor, OFA Newsletter ......... Jim Fair

Publisher...............................C.W.( Bill ) Arnold


The OFA Newsletter is published four times a year for the benefit of membership, the Aviation Insurance Industry and other related fields.

Opinions expressed by the Editor and contributors do not necessarily represent the position of the OFA.

Contributions and correspondence should be addressed to the Editor. Address changes should be sent to:

Charles W. (Bill) Arnold

2329 India Street

San Diego, CA 92101

E-mail: ofa104@arnoldoffice.com


  Summer, 2000 page 3
Come to Albuquerque

As I review the progress made by Frank Bristol and Bob Betts, along with the able assistance of Hap Arnold and others, as we march down to OFA2000 in ABQ, I've got to say that the committees have planned an outstanding program of educational interest to keep us informed; much of the educational program will deal with the world of the hot air balloon, an area which generates a claim or two from time-to-time for most of us. I dare say that we are probably not as well versed in the subject as we could be when someone drops a claim involving a hot air balloon on our desk, and Bob and Hap are working hard to overcome that.

And some fun activities have been planned for members and guests which promise to stay in our collective memories for years to come. For instance, I have trouble visualizing the beauty of the evening Balloon Glow because it defies imagination just from the description of it. And yet, I can't wait to see it in the sure knowledge that it will likely be overwhelming in its scope and beauty.

As this year's President of OFA, I urge all members and associates, and all friends of OFA to plan to attend the conference in ABQ in October. Invitations and announcements go out in May and, when received, I urge you to make your flight reservations and hotel arrangements without delay. This is a bit like going to Oshkosh for the sheer numbers attending the Balloon Fiesta and no one should be left out because we didn't act immediately.

I also note, with great pleasure, that for the second year in a row, we have reduced the cost of attendance. It seems that costs associated with attendance at our conferences have risen in past years to the point where it is a real test for many of our number, especially the single-person operators. And we are cognizant of the need to reduce costs, albeit slightly but steadily, so that our membership isn't priced out of its own conference. Last year, we were able to reduce costs of attendance in Portland and, thanks to Frank Bristol's hard work, we've done it again.

  It's difficult to strike a balance between the costs of holding conferences in pleasant surroundings where everyone looks forward to coming, and the corresponding need to keep everyone's wallet in mind when setting prices.

Please be assured the OFA leadership is wrestling with this thorny issue all the time. Because we cannot run conferences with attendance fees alone, we rely on sponsorships in addition to attendance fees. To that end, we are deeply indebted to those who sponsor the several activities, many of whom are OFA members and a large number who are not. We are indeed fortunate to have such Friends of OFA in our several sponsors from year to year, and I'd like each one to know how truly valuable you are to our organization, and how much we truly value your friendship and support.

Having said all that, I am delighted with the program planned for OFA2000 and am looking forward to seeing all of you there. There is much promise to this year's conference. I can't wait.

Al Ryan, OFA 108




  Page 4 Summer, 2000  
  Dateline: Albuquerque, New Mexico

Well here it is again, OFA Conference Time, that time of the year when we all get together and to enjoy one in others friendship and camaraderie. This year the Land Of Enchantment will be your destination, specifically Albuquerque New Mexico during the world famous "Kodak Albuquerque International Balloon Fiesta" October 7-15th. Our OFA Conference dates will be October 12-13-14th with early registration on Wednesday the 11th. Come Early and Stay Late enjoy the week long Balloon Fiesta activities and our South West Hospitality. We have planned a jam packed conference this year with several Balloon Fiesta activities out at Balloon Fiesta Park. This Millennium year the Fiesta Committee has set a goal of 1000 balloons in the air launched from Balloon Park, their phrase this year is "1000 in 2000" this will be a record number of balloons at any time in past history.


Please note that this conference is by invitation of the president. Be sure to look for your invitation in the mail soon.

Conference Site

Our Conference hotel this year will be the Wyndham Albuquerque Hotel located next to the Albuquerque International Airport and walking distance from the airport terminal or a short courtesy van ride by the hotel. We have tried this year to keep the cost down to attend our conference and we feel we have made inroads in this regard. Your hotel stay at the Wyndham will run $88.00 single & $99.00 double per night, that is a fantastic rate during the Balloon Fiesta and we have worked on this for two years. You will also find that your conference registration fee is down from past years. Your hotel room will be your responsibility to make reservations and payment, call them at (505)843-7000 and be sure to request the Organization Of Flying Adjusters, OFA room rates


Albuquerque is serviced by most major airlines with South West offering the most flights in and out of the Albuquerque Sun Port. Contact your travel agent for airline connections and don't wait to do this since we

  will have over a million people coming and going during the week of the fiesta and most airline seats are taken.We are also serviced by AMTRAK and GREYHOUNDBuses, if you should need to be picked up at the train station or bus terminal let us know in advance on times and places. For those who are flying their own aircraft, our host FBO this year will be Cutter Flying Service located on the general aviation side of the ABQ International Airport look for the "Red" awnings on the Southwest side of the field. ABQ International is very easy to get in and out and you should have NO trouble.


Be sure to bring a light jacket about the weight of our OFA jackets since the early mornings will be cool in ABQ at our mile high altitude. As the day goes on things will warm up into the 60's. Our off site get together this year will be a Western Bar-B-Q close to the Rio Grand River and you will need your jeans and western wear. The President's Reception on Thursday night the 12th will be the same as prior years, business attire or your fancy duds. The rest of the conference is strictly casual and wear what you have in past years. [amazing! You hang something in your closet for awhile and it shrinks two sizes]

Spouses Agenda

Anne has planned a very special trip for the ladies to Santa Fe NM, that will included a Lunch at the world famous La Fonda Hotel on the Santa Fe Plaza, a tour guide on the bus and a tour of the Santa Fe Art Museum, the Georgia O'Keef Museum, and the very famous church of the Sisters of Laredo with the staircase to the balcony that is unbelievable. You will have time to shop in the chic boutiques on the plaza and return in time to the hotel in ABQ for the President's Banquet. I read this article that said the typical symptoms of stress in women are: eating too much, impulse buying, and driving too fast. Are they kidding? That is my idea of a perfect day.


This year our golf tournament will be held on Friday afternoon and you will have the opportunity to play one of the 25 top public golf courses in the country at the University of New Mexico Championship Course


  Summer, 2000 Page 5  
  as rated by Golf Digest. Bill Hall our Golf Chairman has set up this tournament this year to include 18 holes of golf with cart, range balls, & lunch with awards to be presented at Saturdays afternoon luncheon, your complete cost will run $85.00. Tournament registration forms will be in your conference registration packet.


As we all know our sponsors are the life blood of our conference, without them we would not be able to put on a conference today at what is being charged by the hotels and outside events. Our sponsors support helps defray expenses for everyone who attends and it would be impossible to run a conference today without their support. As always, no sponsorship amount is to small, we plan on providing significant recognition to those who participate in sponsorship of the conference. As in past years, we have offered the following: $1.000 or greater sponsorship 1 Free registration and a Full page ad in the Conference program. $500.00 sponsorship 1 half page ad in the Conference program. $250.00 sponsorship 1 quarter page ad in the

Conference program. [send camera ready ad copy with your sponsorship fee] If you would rather sponsor one of the following functions, please so advise:

- Coffee Breaks (3)

- Reception Cocktails (Thursday Evening Banquet)

- Wine for the Banquet

- Tour Buses

- Hospitality Suite

All support will be recognized and appreciated by all who attend. We shall also provide tax receipts for all donations.

We look forward to seeing everyone this year in Albuquerque. If you have questions, call or email.

Frank Bristol

OFA 124

2000 Conference Chairman

(505) 842-4407 Telephone

e-mail fbaviation@aol.com

Details on the OFA Web Site


  The Albuquerque Program

We are holding our conference this year in an incredibly interesting area, Albuquerque, New Mexico. We will leave the cultural aspects of the area to that noted well cultured expert, Frank Bristol.

One of Albuquerque's real headliners is the Balloon Festival. We are taking advantage of local experts to provide an introduction to the Festival and classes the first day on Balloon Maintenance and Piloting Issues in claims. Balloon losses are something we don't all get to see, but we'd hate to miss an opportunity like this to learn about balloons from those who know.

Not everyone realizes Albuquerque is home not only to Albuquerque International Airport, KABQ, but to Kirtland AFB. The two share the same 13,400 foot long runways at located at 5,352 feet above sea level just west of the Sandia Mountains. Fairly recently, the US Air Force moved their safety organization, the USAF Safety Center from Southern California to Kirtland AFB. The Safety Center is recognized as the world leader in Operational Safety, as well as post-accident investigation. Their Human Factors division is almost unique in the world. We have made arrangements for a briefing from the Safety Center on their capabilities and facilities. After the briefing, we will have lunch with the Center's Commander, Major General Gideon in the Kirtland Officers' Club Daedalian Room. After lunch, we will be going over to the Air National Guard's 150th Fighter Wing at the other end of the field.

The Payne Stewart crash made many of our members aware they knew little of high altitude physiology. Many of us assumed high altitude physiology was something that was someone else's job. With the proximity of our conference to the 150th Fighter Wing, we have taken them up on an offer to provide a quick briefing on both high altitude and high "G" operations. While we aren't pulling 9 "G"'s in a Viper, we have seen loss of consciousness affecting pilots in incidents we have been involved in. On the high altitude physiology side, few people recognize the real dangers involved and the pitiful inadequacy of our equipment. This will be a once in a career opportunity for many of us.


On behalf of the entire OFA Family, we'd like to extend a very heartfelt thanks to Larry and Jeanette Larson for all their extraordinary efforts during Larry's tenure as Executive Secretary and Historian. If you haven't done the job, you have no idea how much we


  Page 6 Summer, 2000  
  People often ask why ABQ has a 13,400 foot long runway. Those asking are people who haven't yet taken off that not so long runway on a summer day when the density altitude can climb over 11,000 feet! Given the high altitude of Albuquerque and the surrounding area, we thought an overview of high density altitude operations and their impact on aircraft incidents would be in order. We have a couple of classes scheduled for Saturday on those subjects.

The increasing costs of operating piston driven warbirds and their ever diminishing numbers are driving them out of the general aviation world for the most part. The availability of relatively inexpensive first generation jet aircraft on the civilian market has greatly increased their numbers. While those aircraft and their rather unusual operating characteristics aren't familiar to most of us, we are likely to see them in incidents. Luckily, we have a couple of members with expertise in these aircraft and they have given in to pressure to share their hard earned expertise. This should be a very interesting knowledge building class.

Bob Betts

OFA 48

Program Chairman


Getting Started

As the "standby" president of OFA, I have been invited to provide an article for our newsletter. Well, "invite" may be a misstatement if you have ever had Bill Arnold (OFA 104) invite you to do anything. I do enjoy writing but wondered what would be interesting to you.

I am not sure if anyone is really interested in my personal aviation adjusting story but I remember a college speech class professor telling me that when in doubt tell them about yourself. So, here it goes.

  I did not think about aviation again until I was about to graduate from Oregon State University. Realizing I would be drafted upon graduation, I signed up for the Marine Corps aviation program having flown only once, as a passenger in a 182! I was determined to be a fighter pilot until one hot, humid summer day at OCS in Quantico, Virginia. While in the field pretending to be an infantry Marine, a helicopter landed near us and in ten minutes I was back at the base drinking a cold beer. Realizing how much that pilot, crew & machine were appreciated, I decided right then to be a helicopter pilot. I have never regretted it.

After initial fixed wing training (T-34, T-28), landing on the carrier (T-28) and helicopter training at Pensacola, Florida I was off to war, or so I thought. I was initially assigned to a CH-46 unit in Atsugi, Japan. But after receiving letters from my buddies about how much fun they were having in Vietnam, I put in a request to be transferred to the Marble Mountain Air Facility just south of Danang. (You can imagine how "happy" that made Pam.) When I got off the plane in Vietnam my buddies all told me that I was a complete fool. "Do you realize that you can get killed here!?!

It was while I was in Vietnam that I did my first aircraft accident investigation. After being assigned as the aviation safety officer without any training, I only had to report a series of DEA (due to enemy action) "accidents". Then one evening while I was eating dinner my roommate's CH-46 crashed into the surf between Marble Mountain and China Beach. I have a picture of solders from an adjacent Army base forming a human chain to keep the helicopter from being pulled into the sea while the crew was pulled from the wreckage. My roommate and two of the crewmembers did not survive.

The wreckage was recovered and a post-accident inspection revealed that an incomplete minor maintenance action was the cause of the accident. The discrepancy was not noticed by the quality assurance inspector. A poor preflight inspection by the crew chief and then by the pilots also did not discover a partially disconnected transmission oil line. There were also some habit patterns by these pilots that might have contributed to their failure to notice the imminent transmission failure.

  My first contact with aviation that I recall was a low, high speed pass by a jet over my house in Medford, Oregon. It literally buckled my knees. The thought of one actually attacking you is still frightening! Later in high school I washed a Cessna 182 to earn money to go to a Young Life camp. There is a lot of surface area on an airplane and I had never tried to wash the underside of anything! The owner took me flying afterward in spite of the fact I was soaking wet.  

  Summer, 2000 Page 7  

To start off, try to avoid blaming things on God! He does not like it and more often than not things are not that simple.

  The death of a good friend in a preventable accident motivated me become more involved in accident prevention and investigation. So during a three year tour in Hawaii (Don't throw me in that briar patch!) I attended the Aviation Safety course at the Naval Postgraduate School in Monterey, California. I served as a safety officer for most of my active duty and reserve military career.

In 1975 after leaving active duty and completing my MBA work, I worked for an insurance company selling life insurance and mutual funds. (Yes, I was one of those guys that call to interrupt your dinner.) I did learn about insurance and then in 1980 took a job with a local independent insurance adjusting company in Seattle. They gave me some books to read but mostly it was on the job training.

In the mid-eighties I decided to expand my aviation work. I contacted Arch Crittenden (OFA 93) who was then the claims director for the Aviation Insurance Association. Arch gave me some names and addresses. One of them was John Ballard. I wrote a letter and then called John at LMS in Frederick. He did not make any promises but gave me an opportunity. As I recall one of my first claims for LMS was with Martha Jones. I must have done a satisfactory job as LMS eventually became my largest single client and, more importantly, John Ballard has become a close friend.

After working for a couple of succeeding owner of the original company that I had joined, I took a job with Toplis & Harding. But before making the move I sought advice from, who else, John Ballard. While at T&H, I got to know another claims professional, Nick Beers at AIG in Los Angeles. Nick also gave me an opportunity and I have enjoyed working with him and his staff. Nick is another trusted friend.

I left T&H to form a partnership with Tracy Barrus (OFA 130) in 1994, but not before discussing the move with, you guessed it, John Ballard and Nick Beers. Tracy has now joined Phoenix Aviation Managers and I am on my own. I have wanted to have my own business since I was in college. Now it is a reality. My work takes me all over the Pacific Northwest; Washington, Oregon, Idaho, Montana and Alaska.

I believe that the future is bright and will be filled with opportunities to learn, to expand and to be successful. Being an active member in the OFA is essential for me and for all independent, as well as company, aviation adjusters. May God bless us all.

Jim Stiger, OFA 116

President elect

As background, there are two defenses to claims of negligence that get misapplied by adjusters, who
when they do misapply the concepts get eaten up by a lawyer later in the process. Those two defenses are "Unavoidable Accident" and "Act of God." Both are similar and assume the accident was no one's fault.

There are problems with both defenses. The common example of an unavoidable accident is a driver suddenly having a heart attack and causing a traffic accident with resultant damage and injury. The defense is that the heart attack was sudden and therefore the accident was unavoidable and not the driver's fault. However, if the driver had a heart condition, suffered from high blood pressure, or had other medical conditions that could lead to a heart attack, the defense does not work. The accident may have been avoidable if the driver was taking proper care of him or herself, or simply avoided driving knowing they had a heart problem.

As for an "Act of God" defense, such a defense assumes a force of nature that can not be foreseen or prevented by reasonable care. Using the example of wind blowing one plane into another, because wind can be foreseen (isn't that why we chock and tie planes down?), before using the act of god defense your investigation must determine if the plane was chocked and tied down properly. Was the wind strong enough to pull the plane from the tie-down or break the rope or chain? If so, was the rope or chain in good working condition?

In other words, how did a properly secured airplane get blown into another plane? If the wind was strong enough to tear a line loose, then you may have an act of god defense. However, if the line broke because it was worn out, or a hook pulled straight because it was underrated for the use, there is likely fault on somebody's part.

Associate Members News:

Congratulations to Associate Member Richard Boeschen. He was named President and CEO of HCC Insurance Holdings, Inc. of Houston, Texas


  The membership of OFA is dedicated to the highest standard of professional ethics in handling aviation insurance claims, investigating causes of aircraft accidents objectively and promoting every aspect of air safety.


Donald E. Kehaya & Company

P.O. Box 7601

Macon. Georgia 31209-7601

(912) 474-3332 - 24 hour Fax. (912) 474-3332


Panarello Aviation Adjusters

5900 N. Granite Reef Road, Suite 104

Scottsdale, Arizona 85250

P.O. Box 1111

Scottsdale, Arizona 85251-1111

Bus. (480) 424-3800 Toll Free 1-888-922-8383

Fax. (480) 424-7733 Fax. 1-800-798-8377


AXE Adjusters

2503 Manana

Austin, Texas 78730

Bus. (512) 346-3094

Fax. (512) 346-1245

E Mail: jax5555@aol.com


Wright Adjustors

P.O. Box 688

Vacaville. California 95696

Bus. (707) 446-0099 Res. (707) 446-2945

Fax: 707-451-0428


American Aviation Adjusters

Div. of American Claims Service. Inc.

5368 Flowering Peach Dr.

Memphis. Tennessee 38115

Bus. (901) 366-4400 - 24 hours

Res. (901) 867-9339 Fax. (901) 366-9632

E Mail hjoko@aol.com


Daniel S. Klein & Associates

233 Harvard Street, P.O. Box 355

Brookline, Massachusetts 02146

Bus. (617) 734-4848 Res. (617) 965-3876

Fax. (617) 734-1440


Betts & Associates, Inc.

116 W. Castellano Drive

El Paso, Texas 79912

Bus. (915) 544-8285 Res. (915) 581 -5011

Fax. (915) 544-3005

betts @elpn.com


H. Paul Golding & Co.

John Wayne Airport

PO Box 16444

Irvine, CA 92626-6444

Bus. (949) 362-3646 Toll Free 1-800-780-4540

Fax. (949) 362-3290

E Mail: h.p.golding@juno.com


Howe Associates, Inc.

655 Caddy

Wichita, Kansas 67212

Bus. (316) 722-7821 Res. (316) 722-5217

Fax. (316) 722-5940


John R. Ashford & Associates, Inc.

421 N. Sam Rayburn Freeway

Sherman, Texas 75090

Bus. (903) 868-0888 1-800-848-0807

Res. (903) 786-2287 Fax. (903) 868-0889


Rogge Insurance Services Aviation

2810 Perimeter Road, Suite 203

North Las Vegas, Nevada 89030

Bus. (702) 361-9900 Res. (702) 655-9005

Fax. (702) 631-9466 Cell: (702) 376-2262


AIRCO Accident Investigation & Research Company

425 Edinger Rd.

P.O. Box 628

Wentzville, Missouri 63385-0628

Bus. (314) 332-9406 Res. (314) 561-3153

Fax. (314) 327-3063 1-800-441-5302


Tech Avis Insurance Adjusters Ltd.

110 Northshore Boulevard

West Burlington. Ontario. L7T 4G4 Canada

Bus. (416) 494-0639

Res. (416) 498-4205

Fax. (416) 494-6046


Paul R. White & Company

P.O. Box 42348

Houston, Texas 77242

Bus. (713) 780-3200

Res. (713) 946-0109


Don Hendricks & Associates

1501 Bluff Drive

Round Rock, Texas, 78681

Bus. (512) 255-2740 Res. (512) 246-1066

E mail: phhj@msn.com


Inflite Aviation International Adjusters, Inc.

19809 B North Cave Rd. Suite 268

Cornellus, NC, 28031

Bus. (704) 483-6167

Res. (704) 483-6167

Fax. (704) 483-6305


Scibal Aviation Adjusters

Scibal Adjustment Bureau

225 E. Devonshire Ave.

Linwood. New Jersey 08221

Bus. (609) 653-2081 Res. (609) 927-2040

Fax. (609) 926-0604 1-800-926-0400


White & Associates

P.O. Box 42683

Hanger 4-28, Wiley Post Airport

Oklahoma City, Oklahoma 73123

Bus. (405) 787-9050 Res. (405) 373-2459

Fax. (405) 787-9050


Carson-Brooks, Inc.

P.O. Box 888525

2300 Peachford Rd. Ste. 3235 30338

Atlanta, Georgia 30356

Bus. (404) 458-6171 - 24 hours

Res. (404) 446-3730 Fax. (404) 458-7132


Florida Air-Marine Adjusters

6202 Brandon Circle

Riverview, Florida 33569

Bus. (813) 628-0388 Fax. (813) 628-0388



Aviation & Marine Claims

PO Box 9364

Albuquerque, New Mexico 87119-9364

Bus. (505) 842-4407

Res. (505) 299-3090

Fax. (505) 842-4407


Brouwer Claims Canada & Co. Ltd.

1200 West Pander Street, Ste. 306

Vancouver, B.C. V6E 2S9 Canada

Bus. (604) 681-2381


Howe Associates

655 Caddy

Wichita, Kansas 67212

Bus. (316) 722-7821

Fax. (316) 722-5940


Williams Claims & Investigations

PO Box 974

Sherman, Texas 75091-0974

Bus. (903) 482-6209

Fax. (903) 482-515?


Northwest Aviation Claims

9127 S.W. Monterey Place

Portland, Oregon

Bus. (503) 291-1569

Fax. (503) 291-1350

Mobile: (503) 563-4458


A.G. Plumley Inc.

1190 Erie Court

Crown Point, Indiana 45307

Bus. (219) 663 7468

Fax. (219) 663 8701

Res. (219) 663 0869


A.J. Fiedler & Associates

PO Box 761

Imperial, Pennsylvania 15126

Bus. (724) 695-2685


AIRCO Accident Investigation &

Research Co.

PO Box 628 Wentzville,

Missouri 63385-0628

Bus. (314) 332-9406

Fax. (314) 327-3063

Res. (314) 327-3063

OFA 134. Kenneth S. Harris

Arnold & Arnold Inc.

6801 N. Glen Harbor #202

Glendale, Az 85307

Bus. (623) 872-4930

Fax. (623) 872-4934

OFA 135. James A. "Jim" Gray

Inflite Associates

138 Holiday Estates Drived

Cropwell, AL 35054

Bus/Fax. (205) 338-1366

Pager/Voice (205) 906-3491

OFA 136. Richard H. Dieckhoff

Richard A Dieckhoff, LLC

20 Grayvik Drive

Key Largo, Fl 33037

Bus. (305) 367-2737

Res. (305) 367-4790


Valkenaar Enterprises Inc. DBA

Frontier Aviation Adjusters

740 N. Neufeld Ln.

Post Falls, Idaho 83854-8869

Bus. (208) 773-3828

Res. (208) 773-0710


Howe Associates, Inc.

2200 West Port Plaza Drive. Suite 203

St. Louis, Missouri 63146

Bus. (314) 275-7077

Fax. (314) 275-7976


Aeronautic Investigations, Inc.

1450 Rivershyer Parkway

Lawrenceville. Georgia 30243

Bus. (404) 513-1405 - 24 hours Fax. (404) 513-1590


Ryan Insurance Services, Inc.

P.O. Box 1348

Scarborough, Maine 04070-1348

Bus. (207) 284-2200 Res. (207) 283-0277

Fax. (207) 282-8362


Ryan Insurance Services, Inc.

P.O. Box 1348

Scarborough. Maine 04070-1348

Bus. (207) 883-8600 Res. (207) 839-6650


Aviation Adjusting Associates

2 E. Vine St.

Mt. Vernon. Ohio 43050

Bus. (740) 397-3000 Fax. (740) 397-5026


PAC Northwest, Inc.

4402 228th Ave, NW, Suite J

Redmond, WA 98053-8331

Bus. (425) 898-8500 Fax. (425) 898-8501


GAB Robins

100 N. Mullen Rd.

Spokane, Washington 99213

Bus. (509) 924-0430 Fax. (509) 924-9426


Cook & Cook, Inc.

P.O. Box 15633

Baton Rouge. Louisiana 70816

Bus. (504) 291-2970 Res. (504) 924-7072

Fax. (504) 291-2959


Kevin M. Olsen & Associates. Inc.

9728 3rd Ave., Ste 545

Brooklyn, New York 11209

Bus. (718) 748-0560 Res. (718) 748-0355

Fax. (718) 748-0563


Crittenden Adjustment Company

PO Box 5500

1871 Hendersonville Road #320

Ashville, North Carolina 28813

Ofc. (704) 258-0309

Res. (704) 687-0696

Fax. (704) 258-2009


Crittenden Adjustment Company

5257 Challedon Dr.

Beach, Virginia 23462

Bus. (804) 490-2323 Res. (804) 479-1163

Fax. (804) 490-7691


L. J. Shaw and Company

1100 S. Main Street

Lombard. Illinois 60148-3971

Bus. (630) 932-0707 Res. (630) 420-0733

(Chicago Area)

Fax. (630) 932-1392

E-mail: wlhall@ljshaw.com


American Aviation Adjusters

Div. of American Claims Service, Inc.

5638 Flowering Peach Dr.

Memphis. Tennessee 38115

Bus. (901) 366-4400

Fax. (901) 366-9632


Arnold & Arnold, Inc.

2329 India St.

San Diego, California 92101

Res. (619) 659-3608

Bus. (619) 233-1096

Fax. (619) 233-1607


  Page 10 Summer, 2000  

A few years back I had the occasion to investigate the theft of a 1978 Cessna 182. It had multiple registered owners. It was stolen from the Carson City Airport on April Fools Day. One of the owners had flown it there for the weekend and at first he thought it was a practical joke. That did not turn out to be the case, the aircraft was in fact stolen. As the investigation progressed, interviewing each of the registered owners, we concluded initially that they were valid victims of a theft. All the proper authorities were notified and the claim was processed in its usual manner at the end of 30 days with the client being paid the policy limits $25,000.00. Several months passed until one of the owners got an anonymous phone call from a female party in the great State of Oregon advising that she knew where the airplane was located and she gave the name of the party who had taken it. It turned out to be one of the co-owners. Our investigation took us to his employer, there we learned that he had left their employment about 45 days after the theft. His current whereabouts was unknown. His W-2 forms were mailed to his last known address in Las Vegas. The informant told us that the aircraft was currently parked in a barn on the north end of town. We immediately called the Sheriff in that city and he told me personally there were no barns located within the city limits. Further, he had no idea what the informant would be referring to. It occurred to me that possibly the postmaster could be of assistance; so I placed the call. Much to my surprise the postmaster knew exactly where the barn was at, the name of the street and the address of the residence. He in fact lived only a couple blocks from there. He also informed me that the airplane was a real aggravation to him because it kept coming and going at night which he considered very unsafe. He also suggested that he had filed complaints with the Sheriff's Department, but it fell on deaf ears.

The informant also told our insured that the airplane was being used for drugs and that the pilot's girlfriend was always armed and should be considered very dangerous. With this additional information, I recontacted the Sheriff only to be advised that they had no evidence that it was a theft and without a search warrant they wouldn't approach the property. I then called the District Attorney who informed me basically of the same problem.

  I then went back to Carson City, the origin of the theft and talked to the investigating officer who told me that he would apply the appropriate pressure. Within a couple days I received a phone call from the Sheriff in Oregon telling me they did issue a Search Warrant, they had gone to the house and found the airplane was not in the barn. They admitted that the suspects were probably tipped off because there was warm food still sitting on the kitchen table and the television was on. Also coffee in the coffee pot had just been freshly made. We presumed our airplane had gotten away.

Six months later we received another anonymous phone call, probably from the same party. The airplane was back in the barn and the house was occupied. Meeting with the insured's one of which was an attorney, he came up with the bright idea of serving a Summons and Complaint on the ex-coowner suspect. This would be done outside of the Sheriff's Department and eliminate what we suspected to be an informed tip-off. The effort was accomplished, the Complaint was served without injury. The idea worked, the suspect was shook up about being served and within the 20 days he contacted the policyholder attorney. The attorney told him that he'd have to answer the Complaint unless he returned the airplane plus $6,000.00 cash which he owed in back payments. After a couple more conversations, the suspect agreed to do just that. Arrangements were made for the date of delivery. The insurance company agreed not to prosecute if in fact the aircraft was returned with the $6,000.00 cash. I sat at the airport that morning waiting for the Cessna 182 to arrive. After waiting for about 1 t/: hours with a no show I decided the suspect was standing us up. However, as I drove out the driveway I saw another Cessna 182 in the pattern and I decided to wait. Sure enough that was our airplane, I parked my car at the perimeter fence and watched the pilot taxi up and tie down the airplane, less than 100' in front of me. After securing the aircraft and removing the battery ( I guess he thought somebody else would steal it) he walked within 20' of my car and was picked up by a taxicab. I went to the airplane, opened the door, found $6,000.00 cash and our aircraft in good repair.


  Summer, 2000 Page 11  
  Now for the rest of the story. The policyholders wanted to buy their airplane back, it had been insured for $25,000.00. The insurance company agreed and the policyholders paid the insurance company the $25,000.00. They turned around and re-insured the aircraft with the same insurance company for $56,000.00. That'll give you some idea how long ago this occurred and how the value of airplanes increased during that period of time. The airplane still flies today off North Las Vegas Airport and sold recently for $75,000.00. Oh yea, the girl turned out to be the Sheriff's daughter. I can only presume that she and our former insured are still in business, maybe out of the same barn with someone else's airplane.

Marvin Rogge




LONDONAviation insurers are calling for rate hikes after being hit in 1998 by a record amount of insured hull losses on Western-built aircraft.

Insured hull losses totaled $985 million last year, according to the Aviation Insurers Offices' Assn.

Although 1999 was a relatively safe year in terms of passenger fatalitieswith only 512 deaths recorded on commercial flightsthe rising value and complexity of aircraft made 1999 a very costly one for aviation hull insurers, said Keith Selby, the outgoing chairman of the London-based AIOA at its annual committee meeting in London.

"Whilst the number of fatalities from (commercial airline) flights was mercifully low in 1999, an extremely high level of hull losses can be attributed to an increased complexity of aircraft design and consequent increase in airline value," said Graham Nichols, chief executive/underwriter at Westminster Aviation Insurance Group and the new chairman of the AIOA.

In 1999, 58 Western-built jets and turboprops were total losses, while 75 Eastern-built jets and turboprops were total losses. There were 76 major partial losses to Western-built jets and turboprops, and two major partial losses to Eastern-built jets and turboprops.

  The vast majority of insured active aircraft are Western-built hulls.

One of the most expensive losses in 1999 was a Korean Airlines accident on April 15, when an MD-11 aircraft crashed shortly after taking off from Shanghai, china. the hull of the aircraft was insured for $80 million. In addition, a China Airlines MD-11 that flipped over after landing in a severe rainstorm in Hong Kong on Aug. 22 also cost hull insurers $80 million.

Mr. Nichols said the loss of a Qantas Boeing 747-400 that overshot the runway after landing at Bangkok in a heavy rainstorm on Sept. 23 illustrated the increases cost of aircraft. Although the Qantas plane was declared only a partial loss, the damage to the plane totaled $74 million.

In fourth-quarter 1999, tow major losses hit the aviation insurance industry. On Oct. 17, a Federal Express Corp. MD-11 aircraft overshot a runway in the Philippines and ended up in Subic Bay, costing hull insurers slightly more than $90 million.

The worst accident in that period, in terms of passenger fatalities, occurred Oct. 21, when an EgyptAir Boeing 747 en route to Cairo plunged into the Atlantic Ocean 30 minutes after takeoff from New York's John F Kennedy airport. All 202 passengers and 15 crew members perished.

In addition to losses to aircraft while in operation, hull insurance losses were also hit by damage done to several aircraft at Sydney Kingsford Smith Airport when a freak hailstorm struck Sydney, Australia, on April 14. Related repair costs are estimated at $80 million.

Hull losses for the first quarter of 2000 have been estimated at $220 million, according to Dave Matcham, secretary to the AIOA. he said the association estimated that, in addition to this figure, there would be about 450 million in additional hull lossessignificant partial lossessome of which have not yet been declared. The AIOA bases its estimates for additional hull losses on previous statistics, said Mr. Matcham.

Of 20 estimated total or partial losses for the year to date, 11 were Western-built jets, he noted.

"This is probably one of the least-encouraging first quarters we have ever had," said Mr. Nichols.

At its annual meeting in London, the AIOA committee said that the aviation market remained soft, despite consolidation among insurers, such as ACE Ltd.'s &3.5 billion acquisition of CIGNA Corp.'s property/casualty operations in 1999.

"In spite of the widely perceived serious inadequacy of premium income from airline insurance, the


  Page 12 Summer, 2000  
market was unable to achieve the necessary corrective action during the fourth-quarter renewal season," Mr. Selby said.

"In reality, the market remained overcapacitated and severely depressed throughout the year," he said. "The longer the corrective action is delayed, of course, the greater the need for it becomes, as the aggregation of exposure to underwriters marches ever onward."

Mr. Selby said he hoped that rates would increase by year end, after underwriters feel the effects of a withdrawal of retro-essential capacity and the increased cost of catastrophic reinsurance.

"In the meantime, though, it is to be hoped that the hull loss experience in 1999, coupled w/the airline loss experience in the first quarter of 2000 to date, will serve to strengthen underwriters' resolve to set out on the long path to recovery before being forced to do so by the exigencies of constructing a realistic business plan for 2001," he said.

There is a lot of effort being put in London to get back to a realistic level of premium," Mr. Nichols said. "It is an area of great concern, and we continue to have robust discussions with our clients. "

He stressed, however, that time was of the essence.

"Clients will require higher limits and broader coverage for the new generation of aircraft in the future, and we must meet their needs from a healthy market position. I believe that 2000 will be a make-or-break year for the structure of the market. The time has arrived for change," Mr. Nicholas said.

meanwhile, there has been a withdrawal of capacity in the space insurance market, according to Janet Saddler, who is senior vp of Chubb Corp. unit Federal Insurance Co., and an AIOA committee member.

"The space market is also a market that is overcapacitated, but because it is more casualty-based than liability-based, there has been a withdrawal of capacity," she said. "The trend for the first quarter of 2000 is that there seems to be more discipline, and bad risks are becoming harder for brokers to place."

Ms. Sadler said that the space market is concerned about the level of losses.

"We had an awful lot of losses last year, probably about $750 million. In 1998 and 1999 combined, space losses totaled about $2.25 billion," she said. "From an insurance perspective, there is a great deal more discrimination now. But it is, and always will be, a very high-risk industry."

"Those people involved in the Sea Launch project were devastated," she said. "it is now believed

  to have been caused by a software error."

The AIOA was formed in 1948 to represent the interests of aviation insurers in the London market. The association, which has 14 members, recently created a membership category for former members who have put their aviation book into runoff. In 1999, the AIOA became an affiliate member of the London-based International Underwriting Association and functions as an IUA technical committee.

M.R. (Marty) Brown


Marty was born in the hills of West Virginia; however, he spent most of his formative years in Pennsylvania. He had a short 18-month adventure in the United States Navy Reserves where he soon found out they had not yet made a ship large enough for him to be comfortable on. He truly got tired of running in circles when General Quarters was sounded. He therefore, at the convenience of the Government, obtained a discharge from the Navy and in 1954 entered the United States Air Force with great promises that he would maintain his Navy Crow rank and not be required to experience

  Summer, 2000 Page 13  
  another boot camp session. Of course, this did not happen and Marty found himself at Sampson Air Force Base in New York coming up through the ranks again. Due to the military longevity system, it took him approximately four months to get paid as the Air Force thought he was the highest paid Airman Apprentice to ever come through that facility.

Marty concluded his Air Force career at McConnell Air Force Base in Wichita, Kansas on the B47 as a Multi-engine Jet Aircraft Maintenance Technician on flight status. However, not before meeting his beautiful wife Dee Dee, a Kansas wheat farmer's daughter who had come to the big city of Wichita, Kansas and fulfilled her dream of becoming a Registered Nurse. Marty and Dee Dee have four sons and seven grandchildren located in South Carolina, Arizona, Colorado and Kansas.

Following his tour with the Air Force, Marty was employed as a Line Service Manager for Aircraftco Services located at the Wichita Municipal Airport. He was responsible for the training and the supervision of employees in the art of single point refueling and other line service requirements for the Vickers Vicount, Lockheed Electra, Fairchild F27, and Boeing 707's. In addition, Marty had vast experience in the service requirements of the TWA Super G Constellations, Douglas DC-3, 4, 6, & 7's, C-46, B-17 Water Bombers, A-26 Evaders, Lockheed Load Star, Lear Stars, H-19 and 47G helicopters as well as other numerous heavy aircraft and attack fighters utilized in World War II and associated with the War Bird Associations. During this period, Marty attended the Wichita State University Industrial Education Program under the GI Bill.

Marty left Aircraftco and went to work for Martin, Marietta Corporation in June of 1961 as a team member for the Intercontinental Ballistic Missile Titan II's. Marty has logged over 300 hours in Self-Contained Atmospheric Personnel Equipment (SCAPE) suits utilized in numerous toxic environments.

In April 1963, Marty joined the engineering department of Beech Aircraft Corporation accomplishing cost analysis of detailed parts, assemblies for aircraft construction in production and numerous military contracts and subcontracts for outside vendors. He had extensive involvement in the research and development of Beech Aircraft model 65 to 88 series, Musketeer Model 23, development of U-21, Model 99 airliner, King Air Series, Model 60 Duke A-36 Bonanza and Bell 206 heli

  copter. In 1969 Marty started his adjusting career

with A.K. Duncan Company, as a multi-line aviation adjuster and became an associated principle of A.K. Duncan Associates, Inc., a firm specializing in aircraft hull and liability adjusting. Due to an aviation slump, A.K. Duncan left the Wichita area in 1972. Marty opened his own firm known as M.R. Brown Associates, Inc. specializing in the adjusting of aircraft hull and liability accidents for numerous domestic and foreign Underwriters.

In 1973 Al Duncan of A.K. Duncan Associates, Inc. experienced a medical problem and came to Marty. Under a joint agreement they formed the Corporation of Brown-Duncan Limited of Wichita, Kansas. Marty became the primary principle continuing in the specialized investigation of aircraft accidents, jet engine damage, aerial chemical application and product liability claims for both domestic and foreign Underwriter's.

In September 1987 the aviation industry once again took a downward slump. Marty closed Brown-Duncan Limited and went to work for Professional Insurance Management, Inc. as an agent specializing in aircraft insurance and brokerage for both domestic and foreign insurers. Although Marty recognized that the agency's side of the business seemed to drive bigger cars and live in better houses than the claims people. He did not find the agency's side as personally satisfying.

In March of 1988 Leo Howe of Howe Associates, Inc. was in Wichita, Kansas surveying a claim that Brown-Duncan Limited had been previously involved with. Marty went to work for Howe Associates, Inc. as a Branch Manager opening up a branch office for Howe Associates, Inc. in Wichita. For the last twelve years Marty has maintained the position of Vice President of Howe Associates, Inc. managing the Wichita office which consists of 5 employees, including Marty, who continues to specialize in aviation related losses and claims for respective Underwriter's both here and abroad.

Marty informs that he has experienced the best of times being exposed to the '50's music, Midwest friendliness and airplanes which Dee Dee says is one of the largest loves of his life.

Marty's motto is said to be "stay healthy, keep a'lovin and happiness is guaranteed" no better medicine to fall


  Page 14 Summer, 2000  
  Mid Year meeting in Dallas, Texas  

  Summer, 2000 Page 15  
  Mid Year meeting in Dallas, Texas  


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