If an aircraft insurance company learns that a non-licensed individual is performing maintenance on the aircraft, what is the likely action they will take?

• A. Increase the premium
• B. Investigate and potentially cancel the policy
• C. Provide a warning
• D. Upgrade coverage

Answer: (B)

If an aircraft insurance company discovers that a non-licensed individual is performing maintenance on an aircraft, it is likely that they will investigate the situation and may potentially cancel the policy. This is primarily due to the significant safety risks associated with unqualified maintenance, which could lead to accidents and increased liability.

Insurance companies operate under strict guidelines and compliance with regulations; an unlicensed individual performing maintenance contravenes those standards. This violation can be seen as a breach of the conditions of the insurance policy, which typically necessitates that all maintenance must be performed in accordance with Federal Aviation Administration (FAA) regulations and by licensed individuals.

Since the use of unqualified personnel can lead to a higher probability of accidents or events that would trigger insurance claims, the insurer must protect its interests by ensuring that all parties involved in aircraft maintenance are appropriately credentialed. Failing to do so could result in significant financial exposure for the insurer, hence prompting them to take decisive action, including possibly canceling the policy after a thorough investigation.