Canadian Accredited Insurance Broker (CAIB) Three Practice Exam

What is one exception regarding the unapproved pilot exclusion in aviation insurance?

1. Test flights conducted by unapproved pilots

2. Operations conducted by Transport Canada pilots

3. Private flights with approved pilots only

4. Flight lessons conducted by any pilot

The correct answer is: Operations conducted by Transport Canada pilots

The correct choice relates to the provision that allows an exception for operations conducted by Transport Canada pilots. In aviation insurance policies, the unapproved pilot exclusion typically stipulates that coverage may not apply when an unapproved pilot is operating the aircraft. However, pilots who are employed or recognized by Transport Canada have met stringent regulatory standards and training requirements. As a result, they are generally viewed as qualified to operate aircraft, and their operations are often considered a legitimate exception to the exclusion, ensuring that policies provide coverage even in such contexts. In contrast, test flights conducted by unapproved pilots and flight lessons with any pilot typically do not fall under this exception, as these situations involve risks associated with unapproved or unverified qualifications. Similarly, private flights with approved pilots specifically target those who meet certain insurance criteria. These cases do not grant the exception provided for Transport Canada pilots, highlighting the unique standing that these regulatory pilots have within the aviation industry regarding insurance coverage.