President's Perspective

Presidents PERSPECTIVE couple columns back wrote about possibilities two-tiered membership system has created firestorm Internet E-mail Most respondents misunderstood origins column assumed some such system about enacted case respondents took proposal way AMA hide dues increase spite columns revenue-neutral statement numbers reflected guess increase premium mentioned oaly starting point discussion Ed MeCollough right suggested remove numbers however convinced him starting point members would have no idea what systems effect would system involving different dues rates different liability risks has suggested times Nearly time AMA dues brought up someone flies small slow low risk models suggests dues should less fly big fast high risk models often put rich guys fly . attitude becomes fervent time dues increase discussed No no no being considered now Nearly time AMA tries put restrictions big fast models other end spectrum allowed get someone end suggests some type additional insurance charge alternative restrictions also commonly suggested group tries expand limits AIvIA rules AMA Special Interest Group advocating increasing weight limit 55 pounds 77 pounds another suggesting increasing maximum turbine size 22 35 pounds thrust advocates make point AMA its charter dedicated advancement art science model airplanes present limits limiting advancement Therefore AMA must increase limits fulfill its charter Modelers fly typical models say dont allow bigger faster models will increase risks cause increase dues pro bigger/faster will say modelers have experience makes safer beginners small models antibigger/faster group will counter . get point attempting present such system could structured after having explain hundreds times such system couldnt done Based mail respondents agree members need see claims history before support changes want statistical proof type model creates claims another Its simple too model types too few claims involving derive meaningful data regarding relative safety should thankful enough claims involving model airplanes able statistically separate type weight size speed etc activity would have shut down long ago last 20 years recall six fatalities involving AMA members clubs Three didnt involve model airplane two involved cables installed across entrance roads runways ATV snowmobile other involved flagpole fell victim fatalities involving model airplanes included flying lawnmower airshow Aeromaster biplane being sportflown model flown warbird pylon race biggest property damage claim Free Flight model dethermalized onto power lines started fire burned large area biggest personal injury/liability damn involved Control Line Speed model crashed hit AMA member Someone will has pointed out giant models trying prove models safer someone will has pointed out warbird race wasnt real pylon race activity safer . get idea Specialty insurance same insuring regular things like cars homes lives numbers large enough derive statistically meaningful data Specialty insurance involves guesswork gut feeling case think typical take data insurance broker shops around find insurance carrier willing cover liability insurance companies look history claims decide want take risk quote price Sometimes give few options usually involving some different Self Insured Retention SIR effectively deductible Once insurance policy selected insurance company monltors claims against insurance company usually too concerned about claims paid out within SIR unless total large amount money and/or show trend indicates increased possibility larger claims would exceed deductible Insurance compmies watch overall financial activity closely dont get too involved insured activity regulated dont really care watch closely regulate activity regulation effective maintainlng acceptable level claims have large claim insurance company might decline business future have good track record might just increase rates have company long time might pay claim say nothing no claims might reduce premium order keep business Insurance companies dont want situation no risk because would no reason insurance want predictable risk predictability dependent upon massive amounts statistical data actuaries assess detennine probabilities occunence severity dont have luxury vulnerable insurance industry cycles dont think tiered membership has much chance making proposal stage much less being passed think will continue come up alternative restrictions model size/performance perhaps future membership will give serious consideration Ive learned membership voices desire open discussion ideas respond way conveys anything discussion majority didnt read whole article make effort understand before firing off E-mail responses contained threats suggestions suggest shove as Thanks voiced opposition positive manner particularly enjoyed response started out sure have kicked over hornets nest went say club seemed see merit concept problem agreeing dividing point should beamen AMA has purchased IMS show Bill Anita Northrop intends operate same way has run hope improve seminar/symposium aspects show will profit-making exercise AMA help reduce dues dependence membership associations have conventions/trade shows profit center now have such opportunity will report later column absolutely no connection between acquisition tiered membership idea Brown AMA President dbrown@dbproductscom September 1998 7