Press Releases - January 1, 2012

NAFI and Avemco® Announce New Flight Instructor Insurance Program

January 1, 2012 – The National Association of Flight Instructors (NAFI) and Avemco Insurance Company kicked off the New Year today with a joint announcement of a new non-owned insurance program for flight instructors.

The new NAFI CFI Insurance Program, underwritten by Avemco Insurance Company, features expanded professional liability coverage and liability limit options for type-specific aircraft including traditional single and multi-engine aircraft along with offerings for sea-plane, experimental and light sport airplanes. Automatically included is non-owned coverage for personal flying.

"We have been working hard over the last year to find improvements in non-owned aircraft insurance, including professional liability coverage, for our members. We believe that as of today, the new NAFI CFI Insurance Program, available exclusively to NAFI members, is a much improved plan" noted Jason Blair, Executive Director of NAFI.

"We worked closely with NAFI to develop this program with the knowledge that professional flight instructors need the right insurance when they're actively giving flight instruction to their students. This alliance is important to us because we recognize the professionalism in flight instruction that NAFI and all of its members bring to the flight training community," continued Jim Lauerman, President of Avemco®.

This Avemco policy is for NAFI CFIs who instruct in an aircraft they don't own and includes these enhanced policy features and benefits:*

• Professional liability that includes covered liability claims from past instruction as long as the NAFI member has a current policy in force at the time of the accident
• Option to save premium by only purchasing coverage for the select type aircraft in which the CFI instructs
• 19 limit options for Aircraft Damage Liability (ADL) coverage
• Up To 10% annual premium credit with the Avemco Safety Rewards Program
• Available for purchase online at your convenience

These are joined by standard coverages including:

• Liability coverage for flight instruction, flight reviews evaluation, flight check rides and flight examination
• Bodily injury sub limit option up to $200,000
• Options of up to $150,000 ADL limits
• Covers the aircraft owner's loss of use claim
• $1,000 No-Fault deductible coverage if ADL purchased
• Lower premiums offered for NAFI members holding a Master CFI certification
• Coverage available in Alaska (additional charges apply)

"We know this new program is one that flight instructors really need when they are instructing in someone else's aircraft and we're pleased to work with one of the leaders in aviation insurance -- Avemco" said NAFI Board of Directors Chairman Ken Hoffman.

The NAFI Flight Instructor Insurance plan is currently available exclusively to members. For complete information, quotes and purchases online visit the Avemco website at avemco.com or call Avemco directly at (888) 241 7888. For more information about this and other NAFI member benefits, visit www.nafinet.org.

The National Association of Flight Instructors' members work at flight schools, universities, FBO's, corporate flight departments, in the military, and as independent instructors. NAFI was founded in 1967 and its members, who now teach in 17 countries, are dedicated to raising and maintaining the professionalism of flight instruction. NAFI members influence active pilots daily; pilots training to advance their skills with new ratings or certificates and students working to become pilots. NAFI staff also works with industry and government and serves as a voice for flight instruction. NAFI shapes the direction of flight training.

Avemco Insurance Company, a leading pleasure and business general aviation insurer in the United States, has been insuring planes and pilots since 1961. Headquartered in Frederick, Maryland, Avemco is rated A+ (Superior) by A. M. Best Company. Avemco has also earned prestigious recognition in the Anniversary BestMark Program by the A.M. Best Company. The BestMark Program was created to distinguish insurance companies with at least a 25 year history of being rated A or higher. For the latest rating, visit www.ambest.com. Avemco is a wholly owned subsidiary of HCC Insurance Holdings, Inc. (NYSE: HCC) a leading international specialty insurance group.

*This new policy is not currently available in all states. In jurisdictions where the expanded CFI coverage is not yet available, NAFI members can contact Avemco for information on their standard CFI Non-Owned Aircraft Insurance Policy.

*Not all coverages or products may be available in all jurisdictions. The description of coverage herein is for information purposes only. Actual coverages will vary based on local law requirements and the terms and conditions of the policy issued. The information described herein does not amend, or otherwise affect, the terms and conditions of any insurance policy issued by Avemco. In the event that a policy is inconsistent with the information described herein, the language of the policy will take precedence.