Whoa, we?ve got a lot of different scenarios happening in this thread.
If you have a specific scenario you would like to discuss, please feel free to reach out to us or your current broker. It?s not possible for me to provide clarification on every scenario out there with a blanket statement in one post, because there are too many variables.
I am not an FAA/FAR expert (nor claim to be). You should ALWAYS be compliant with the FAA regulations. As Larry stated, coverage can be voided if you violate a FAR. Generally when I reply, I am only referring to how the insurance companies view a given situation.
I did not post anything regarding Basic Med because in general, the insurance companies feel if you are complying with the FAA regulations then you are fine. And if not, they spell it out in the policy.
Sometimes insurance companies are more strict than the FAA and require more than what the FAA does. That?s when you need to pay attention to your policy or ask your broker questions. A good example of this, is when insurance companies require a CFI to meet certain minimum requirements before approving them to provide instruction in the insured aircraft. The CFI may be perfectly qualified in the FAA?s eye but not meet the standards of your insurance policy and therefore void coverage.
Another example where you could be operating your aircraft in accordance with the FAA but not the insurance company, is by getting compensated for providing a service. Even if you have a LODA, and are able to get paid per the FAA, your personal use policy (most common policy) would be voided. These ?Pleasure and Business? policies are designed for personal use and prohibit compensation. If you are getting paid for a service for the use or instruction in your aircraft you likely need a different policy. Again, blanket statements here, and there are many different companies with different policy terms, so double check with your broker if you are considering getting compensated for the use of your aircraft.
There are too many examples of the insurance companies being more strict than the FAA to list them all. If in doubt, ask your broker.
Again, my best advice would be to ALWAYS comply with the FAA and then double check with your broker to make sure you are meeting the insurance requirements as well.