For those who couldn't attend...
Martin Palmaz and Paul Murdoch reiterated the information already available in mailings and on the Association website. Afterward, they addressed all members' questions about the RRG formation. My impression of both Martin and Paul is that they are dedicated to the RRG plan and are putting in a lot time and effort toward its completion. I spoke with Paul at length about regulatory affairs (he has to deal with the FDA and USDA in his business) and can say that he has great experience in navigating government agencies. He's now soaking up all the information needed to assist with the RRG. Martin is direct and affable and has accumulated a huge but ever expanding knowledge base for the formation of the RRG.
I think they both deserve our respect and support. (Yes, send money. You can ask for it back, if they fail.)
Highlights:
Only 17% of the USHPA members have made a donation to date. They believe that the impact of coverage loss has not quite sunk in yet. I think the average donation has been $100.
The RRG will be formed as a separate, for-profit corporation. USHPA will be a policy holder. Large investors such as schools can buy into ownership.
The corporation will conservatively invest and manage the initial $2M to increase the capital reserve.
The coverage provided by the RRG is for the first $250,000 of a claim against policy holders. Any amount above that will be covered by re-insurance policies. Essentially, it is believed that an insurer will be more amenable to providing coverage that does not included the outlay for smaller claims. This also protects the capital reserve of the RRG. There is no firm answer yet to what company might be a re-insurer.
All of this effort has taken place over just the last few months. Usually, an RRG would be set up over the course of a year or more.
Both Martin and Paul are optimistic that this effort will be successful.
However, unless there is an extension, insurance coverage will lapse in March. California alone requires 60 days notice to form the RRG. Application cannot begin until the reserve amount is funded. As a result, sites and schools will close until the reserve is met and the RRG meets regulatory requirements, policies issued. [Will this affect us in Sylmar? Anyone from the BOD?]
Accidents in HG and PG occur roughly in the same percentage as membership, about 40/60, respectively.
Cost of the policies to each organization (school, USHPA...) will be determined according to risk. It will be advantageous (cost saving) to more closely monitor the safety record of members and be more proactive in promoting safe flight.
USHPA is moving toward digitalization of all member interactions to retain and increase membership. Favorable exposure of the non-flying to hang gliding was discussed but, personally, I'm not clear on the details and I'd like to see more.
SUMMARY OF THE USHPA VISIT
Moderator: Chip