Livermore Unit of the National Association of Rocketry       May/June 2000

New NAR Insurance

Mark Bundick, NAR President

I'm pleased to announce the NAR Executive Committee has approved a new insurance policy for NAR members and sections. My thanks to Bob Blomster, our agent at J. A. Price Agency, who put a tremendous amount of effort into finding and structuring a policy for NAR members in a very short period of time. Thanks also to NAR Treasurer Stew McNabb, NAR Trustee George Gassaway and NAR HQ manager Marie Stumpe, who all contributed key data and administrative support to the insurance application effort.

The policy was obtained through the J. A. Price Agency in Eden Prairie, MN and is underwritten by Lloyds; a company rated A- by Best. Coverage will apply to the NAR itself, all NAR members, sections and site owners as registered and in good standing. The commercial liability coverage we obtained has the limits, deductible and exclusions in this table.

I ask for your patience as we set up this new administrative structure; it will take us 30-45 days to restructure NAR HQ operations to obtain all the forms and procedures necessary to support the new insurance program. However I can pass along the following information that should help you understand the basics of our new policy.

1. Our coverage will be effective Wednesday, April 5, 2000. This means there will be no gap in NAR insurance coverage for members or sections.

2. We intend to publish a new "Proof of Insurance" coupon in the next issue of the Model Rocketeer (June 2000) to provide members needing to show such proof some physical evidence of your coverage.

3. We'll also publish that coupon as part of the NAR Website's filing cabinet for members who cannot wait for the Rocketeer. We hope to have that coupon available sometime in the next two weeks.

4. Our second member packets in the future will obtain details of the coverage for member review.

5. Sometime in the next 30 days, a new version of the NAR Insurance Frequently Asked Questions (FAQ) will be available at the NAR Website. That FAQ will outline key provisions of the coverage and we hope, will answer most of your questions about coverage as applies to particular circumstances.

6. We'll also provide claims form information, and contact information at J. A. Price for landowners who have questions about the policy particulars.

1. NAR sections who applied for their charters and site owner coverage under our previous policy need take no action to obtain insurance. Your section and site owners are covered automatically under the terms of our policy with no additional paperwork required from you.

2. NAR sections may schedule and fly launches at any time, and no notice need to given to our insurer. Your coverage remains in effect at all times with no advance notice required.

3. NAR members and sections are covered for all sport rocket activities as defined in the NAR Model Rocket and High Power Safety Codes.

4. Non-NAR members continue to be welcome at NAR ranges without respect to any insurance coverage they may or may not have. NAR insurance coverage will remain in effect for members and sections regardless of other parties use of your field.

5. Section and site information is being forwarded to J. A. Price who will create and distribute new insurance coverage certificates for sections and their site owners. Insurance certificates will be mailed out sometime in the next seven business days.

6. If a site owner's mailing address was not on file at NAR HQ, the site owner's certificate will be forwarded to the section contact, either president or advisor, per the section's records at NAR HQ.

Unfortunately, since our new coverage could not remain optional, all NAR members will have to share the financial burdens of a new premium payment. Effective immediately, NAR dues will now be:

Juniors $25.00

Leaders $25.00

Seniors $47.00

NAR members who purchased our previously optional insurance coverage may redeem a coupon to be printed in the June 2000 issue of the Model Rocketeer. This coupon can be used to obtain either an extension to your membership or a check for the difference between the new and old cost of insurance. Given the new dues structure and the cost of the first three months of insurance for 2000, the value of this coupon is as follows:

Juniors/Leaders: extend membership 6 months or $14.25 cash value

Seniors: extend membership 2 months or $9.00 cash value

In either case, you must redeem your coupon not later than August 15, 2000. Coupons received with postmarks beyond that date cannot be accepted.

I realize that the past month with the uncertainty regarding NAR insurance coverage have been difficult, particularly with sections planning launches for the 2000 flying season. My apologies for the difficulties we've caused, and my thanks for your understanding and patience during this transition period. With a new solid insurance program in place, I believe the NAR is poised to have an excellent, safe and successful flying season.

Pay forward. Aim high.

Bunny

Limits of Liability

General Aggregate Limit                         $2,000,000

(Other than Products and Completed

Operations)

Products and Completed Operations    Included

Personal and Advertising Injury           $1,000,000

Each Occurrence                                      $1,000,000

Fire Damage - any one fire                      $100,000

Medical Expense - any one person       $5,000

Deductibles:

Per Bodily Injury & Property Damage Claim $250

Exclusions:

Commercial Use

Nuclear Accidents

Year 2000

Safety Codes

Assault & Battery Exclusion

Sexual Abuse Exclusion

Liquor Liability Exclusion

The first four exclusions are the same as our previous policy; the last three are new, but should not present an issue for NAR members and sections.

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