I am sitting on that fence for the same reasons as Frank. I am considering sending in a check to USHPA for $99.00 (last years' dues), with a note saying I have started an insurance pool to collect the additional $51.00 and will send it when: 1) I have it 2) I am convinced that the RRG will be a benefit and NOT a liability 3) I am certain that the entire USHPA membership agrees with taking this route, not just the current situation where the "Board" makes our decisions for us, since insurance is too complex and convoluted for our simple brains. This can be by a simple ratification vote of the members in support of the "Board" and the club.
At the least, it is a good faith effort to maintain my 40th year of continuous membership without submitting to the club clowns over this latest load of Forbesian flim-flam!
My question about the USHPA insurance RRG is not how it works. My question is, "How could it possibly work?" Sure, the USHPA members could amass a pile of money through raised membership fees and call it an RRG, but how long would it last? Unfortunately, the answer is likely to be, "Not long." When the first award is paid out (including management, legal fees and court costs), a smaller pile of money will be left - if anything is left. Then what happens? The membership gets yet another letter informing them that the USHPA is in yet another emergency and that fees must be raised once again to keep the RRG liquid. This is a nose-down spiral dive.
To make an informed decision on whether or not to form an RRG, USHPA members need to know a few things. 1) What changes are being made to protect the RRG and 2) What liabilities are in the pipeline that threaten the RRG?
Obviously, there were some incidents and there are ongoing policies that caused insurers to abandon USHPA. What were those incidents and policies and what is being done to prevent them from reoccurring? Do you have a press release informing you of this? I'd like to see it. In its absence, I can make a few guesses.
1) The USHPA BOD has allowed FAR scofflaws into its ranks. Many of us saw a video of a man who became a USHPA Regional Director dropping a skydiver off his paragliding trike over Hawaii. How many others have engaged in commercial joyriding? Why doesn't the membership seem to mind? This is a red flag to insurers. 2) The USHPA BOD has allowed commercial joyriding under the guise of instruction. This is a red flag to insurers. 3) The USHPA BOD has allowed the type of flying it supports to gradually move from hang gliding to dangerous forms of parachuting, resulting in a ten-fold increase in injury-related incidents. The USHPA called the parachutes "gliders" and hoped nobody would notice the difference. This is a red flag to insurers. They know all about parachuting. You say "skydiving" to an actuary and the hairs stand up on the back of his neck. 4) The USHPA has associated itself with an expensive and frivolous court action against a member, and censured, punished and removed that member for legally assisting in a civil investigation and seeking to create a national hang gliding club. Were insurers dragged into that? OMG. Interneicine squabbles are a red flag to insurers.
So my point is the USHPA has committed suicide. The membership might have done a better job by electing better directors but they mostly just wanted to fly. I understand that. Now it's too late.
It's too late, not because of what will happen but because of what has already happened. What's in the pipeline? What bad legal actions are headed for USHPA? Where is that imaginary RRG pot of money headed?
Take a look at this recent court decision from South Africa. (There is very little difference between SA and the USA on this matter.) The professional tandem pilot and Diane were not long in the air when the wing collapsed leaving the paraglider uncontrollable resulting in a collision with a cliff face. Diane was left paralysed and stranded, whilst the pilot was able to scramble to the top of the cliff. Diane then had to wait several hours before being rescued by a helicopter. Diane spent three weeks in a Cape Town hospital after the accident and then had further treatment and rehabilitation at the James Cook Spinal Unit in Middlesbrough. Unfortunately for Diane she suffered serious fractures to her spine, right tibia and fibula and left ankle, leaving her paraplegic and needing the use of a wheelchair. http://www.irwinmitchell.com/newsandmedia/2015/march/woman-left-paraplegic-after-paragliding-accident-set-for-court-battle-for-justice
A US$1,582,891.70 award was levied -- 50% against the South African Hang gliding and Paragliding Association -- in 2013 after being tied up in court for ten years. That would take about half the kitty from a minimum RRG after legal fees. This incident is an example of the false argument that the inclusion of paragliding in a hang gliding association reduces cost of insurance. Now briefly consider the possibility of other lawsuits languishing in the pipeline that are due for their day in court.
Judge Rules against Tandem Paragliding Sunday Argus, Cape Town, South Africa Sunday, 22 September 2013 ...The room for “an exception from the provisions of the Air Services Act is extremely limited, and will only be considered if the applicant for exemption wishes to operate an air service “on a non- profit basis for purposes incidental to social welfare, or for purposes of salvage on humanitarian grounds, or where the granting of the exception will assist in saving life.” Tandem paragliding for reward, he said, clearly did not fall into those categories. He commented that the SAHPA and the CAA, “now know what they have to do, and how they need to conduct their affairs… I have little doubt that, as responsible bodies, they will ensure that no further harm is caused to unsuspecting commercial paragliding passengers, “ Judge Gamble said. He found the CAA and SAHPA liable for Berwick’s damages. ...Tzvi Brivik, for Berwick, said as things stood “tandem paragliding would be considered unlawful without a valid commercial pilots licence”. http://www.lyonsbriviklaw.com/cases_judge-rules/ http://www.x-rates.com/calculator/?from=ZAR&to=USD&amount=23000000
I previously mentioned a multi-million dollar award in South Korea. This was against a commercial joyride operator by a Canadian passenger who broke his back in a bad landing. He told the court he didn't understand the wavier he signed because it was in Korean - and the court agreed. In my opinion, it is insane for recreational hang glider pilots to share liability with joyriding parachutists or even with joyriding hang glider pilots. The fact that this is now established practice (under the guise of instruction) illustrates how far afield USHPA has drifted from the original founding goals of the United States Hang Gliding Association. Years ago, Rob McKenzie set a stellar example of responsibility by registering his tandem hang glider with N-numbers and using his commercial pilot's license to take paying customers on hang gliding flights. True hang gliding instruction would have prevailed under the FARs. But the USHPA established a trend of looking the other way when joyriding occurred - even when commercial operators began making upwards of $50,000 per year with little to show in terms of new pilots. Over 100 participants have died globally in hang gliding and paragliding tandem flights but the one that might exhaust the imaginary RRG and bring down the USHPA occurred at Jean Lake, Nevada this year.
I find the following article very interesting. Although Harrison held, as I understand it, a USHPA Master rating, the article probably got it wrong that the USHPA denies Harrison was a member. The article also illustrates how attractive an RRG can be to a certain group of people -- people who might be thrilled to learn Harrison actually was a member of the USHPA.
Hang Glider Accident Liability By Christopher Coble, Esq. on July 23, 2015 10:59 AM An instructor and an 11-year-old boy were killed in a hang gliding crash near Jean, Nevada last March. A subsequent investigation revealed that the instructor did not have the proper permits to be flying in that location, and his business wasn’t licensed in the counties in which it was operating. So who regulates hang gliding companies, and who is liable in a hang glider accident? Industry Self-Regulation Hang gliding is regulated by the U.S. Hang Gliding and Paragliding Association. Although USHPA encourages membership from “all those who wish to fly,” neither John Kelly Harrison, the instructor killed in the crash, nor his company, Las Vegas Hang Gliding, are listed as members. According to its website, USHPA also offers: A pilot rating program. A structured instructor certification program. A training structure for tandem flight and aero towing. Local club affiliation for the benefit of negotiated site insurance coverage. A national magazine for flying, product and safety information. Third party and participant liability insurance coverage for members. Accident Investigation Because Harrison and Arys Moorhead, an 11-year-old from Farmington, New Mexico, were flying over federal land, the fatal crash was investigated by the Bureau of Land Management. A BLM spokesperson said Harrison was not permitted to fly in the area, a dry lake bed 30 miles south of Las Vegas. The Moorheads were visiting the area and decided to try hang gliding. The tandem glider with Harrison and Moorhead was tethered to a truck to raise and steady it. The truck’s driver thought Harrison had released the glider when he made an abrupt turn, causing the accident. It’s unclear if Harrison or his company, Las Vegas Hang Gliding, carried commercial liability insurance, or if the Moorheads would pursue a wrongful death claim. Police have not charged the truck driver in the accident. Take Precautions Before Taking to the Skies Thrill-seekers looking to try hang gliding should make sure the instructor and company are properly permitted, licensed, and insured. If you’ve been injured in a hang gliding accident, you may want to consult with an experienced injury attorney today. http://blogs.findlaw.com/injured/2015/07/hang-glider-accident-liability.html
So what has the USHPA announced it is going to do in the face of this insurance emergency? What is going to change? Will it be enough? Does it matter?
Caveat emptor. And one final question. Based on the ethical performance of the USHPA BOD, will a USHPA RRG survive scrutiny? It's not only the lack of funds that can cause an RRG to fail. "Specifically, potential conflicts of interest by board members that have ownership interest in affiliated companies were not reported in the conflict of interest statements.” http://www.captive.com/news/2015/09/25/risk-retention-group-for-taxicabs-placed-in-liquidation
You cannot go to the people who created a problem and expect them to solve it. They will probably only make it worse. It even looks to me that while the vultures are picking at the flesh, they're ordering take-out. So USHPA members may want to consider forming a new organization. Here at the US Hawks forum, a lot of thought is going into just what that new organization should look like. We are asking things like "What if our activities on public lands don't really need to be insured or regulated?" And "How can local clubs supplant the national org and keep the money?" And "If we are and always have been individually liable for our actions, what do we need national org insurance for?" And "Has the whole site liability issue morphed into a scam by the national org?" These questions are critical for the survival of hang gliding. But frankly, I am surprised at the lack of participation. While soaring parachutists could easily escape to the USPA, we need healthy alternatives to the USHPA for hang gliding pilots.
OK Dave, I just renewed USHPA and voted Ken Andrews for Region 3 Director because he is a hang glider pilot only but he also states that he agrees with the combination of HG & PG so he's not perfect in my eyes.
I usually donate $500 to the Foundation for Free Flight's "site preservation fund" and USHPA matches it. However, this year I didn't do that because they (FFFF) have pledged funds to the RRG insurance fund and I don't know how that's going to work out for the hang gliding community as a whole. If it is set up so that any pilot can buy into the insurance pool regardless of what orgs they belong to, then I would consider returning to donating next year for the FFFF site preservation fund and get the matching $500 from USHPA.
As a dues paying member you might ask whether the RRG will be completely independent or if it will be operating as a front for USHPA power. You can ask if they will provide site insurance for the clubs you support like the Friends of Dockweiler and the Torrey Hawks. You can even ask if the RRG will be open to members of the US Hawks. I think lots of us in the US Hawks would like to know those answers.
Thanks!!
Join a National Hang Gliding Organization:US Hawks at ushawks.org View my rating at:US Hang Gliding Rating System Every human at every point in history has an opportunity to choose courage over cowardice. Look around and you will find that opportunity in your own time.
1. All 51 states of the United States have now come forward with significant legal liability immunity statutes for premise managers/owners who do not charge and do not invite recreationists. 2. Optimizing a culture respecting "1." has yet to be developed. A habit within hang gliding opposing optimizing such need not be continued. 3. The best future for recreational hang gliding will come from positive robust focus on just recreational hang gliding. 4. Dilution of "3." by marriage with commercial hang gliding will reduce recreational hang gliding's best future. Let commerce stand on its own. 5. Dilution of "3." by marriage with PDMC-PG will result in a diminished recreational hang gliding future. 6. Avoid letting insurance companies "form" recreational hang gliding. Be watchful how the insurance industry ever wiggles its way into things. 7. If you want recreational hang gliding to thrive, then consider promoting, protecting, and serving recreational hang gliding.
Reinsurance provides no financial guarantee to you, the policyholder, if the RRG becomes insolvent.
If you are insured by an RRG, particularly one that has no Best’s rating, we strongly suggest you request that a cut-through endorsement be added to your policy. If either the RRG or the RRG’s reinsurer is unwilling to provide this endorsement, you should have serious reservations about continuing your coverage with an RRG.
No Guaranty Fund Coverage
As indicated previously, because RRGs are regulated on the federal rather than the state level, some issues can have a negative impact on RRG policyholders. One of them relates to state guaranty fund coverage. Every state has a guaranty fund to protect policyholders if their insurance company goes bankrupt. Unfortunately, this only applies to companies regulated by the states. Since RRGs were formed as a result of federal legislation that exempted state regulation, CRNAs with an insurance policy from an RRG would receive no protection from their state guaranty fund if the RRG fails. The Declaration Page of an RRG policy will often contain the following statement: “State insurance insolvency guaranty funds are not available for your risk retention group.”2
Without access to your state’s guaranty fund, you will have no safety net if you are insured by an RRG. The odds that your claim will not be covered get even greater if you are insured by an RRG that has no Best’s rating.
The lack of accessibility to state guaranty funds is not the only area of concern for this federally developed form of insurance company. Regulation is another.
Lack of State Regulation
The primary difference between RRGs and other insurance companies is how they are regulated. According to the LRRA, an RRG needs to be licensed in only one state, but it can operate in all other states. Federal laws exempt RRGs from state regulation of policy forms (the coverage provided by the RRG), the premiums it charges, and numerous other state insurance laws and rules. Being licensed in one state allows the RRG to operate in all other states without the need to meet the same standards required of other types of liability insurers in those states. Lacking oversight in all but one of the states in which it does business, an RRG can change its policy terms and premiums at any time—without knowledge of the policyholder—without any regulatory approval or oversight.
Potential Assessment
Unlike standard insurance companies, RRGs can be “assessable,” meaning that if it needs additional capital to survive, the RRG can charge, or assess, the policyholder additional monies over and above the premiums already paid. These assessments can come at any time—while your policy is in force, or after you are no longer a policyholder, or even after the RRG is bankrupt.
Eventually, the RRG that sets its premiums too low won’t have enough money to pay its claims. If the RRG becomes insolvent or is unable to pay its claims, your state guaranty fund will afford no protection, and your personal assets will be exposed to any claims made against you.
• Does the insurance company only insure one class of business? This question applies far more to a company without a Best’s rating than to a financially sound company with a “Secure” Best’s rating For RRGs, the answer of course is “yes.” The federal law that allowed the formation of RRGs (the LRRA) requires that all of the policyholders of the RRG be of a similar nature. That means an RRG insures only one type of liability coverage, e.g., malpractice for healthcare providers.
Insurance is all about spread of risk. You don’t want an insurance company that has all of its eggs in one basket.
Unlike standard insurance companies, RRGs can be “assessable,” meaning that if it needs additional capital to survive, the RRG can charge, or assess, the policyholder additional monies over and above the premiums already paid. These assessments can come at any time—while your policy is in force, or after you are no longer a policyholder, or even after the RRG is bankrupt.
Join a National Hang Gliding Organization:US Hawks at ushawks.org View my rating at:US Hang Gliding Rating System Every human at every point in history has an opportunity to choose courage over cowardice. Look around and you will find that opportunity in your own time.
RickMasters wrote: I find the following article very interesting. Although Harrison held, as I understand it, a USHPA Master rating, the article probably got it wrong that the USHPA denies Harrison was a member.
The records are quickly removed from the USHPA membership directory.
RickMasters wrote: I find the following article very interesting. Although Harrison held, as I understand it, a USHPA Master rating, the article probably got it wrong that the USHPA denies Harrison was a member.
The records are quickly removed from the USHPA membership directory.
You mean quickly, as in, soon after the deaths?
Southwest Texas Hang Gliders US Hawks Hang Gliding Assn. Chapter #4
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but he also states that he agrees with the combination of HG & PG 
so he's not perfect in my eyes.
