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32 APPENDIX A Survey Questionnaire SURVEY OF AIRPORT INSURANCE BUYING PRACTICES I. INTRODUCTION The Transportation Research Board (TRB) Airport Cooperative Research Program (ACRP) has commissioned a study of airport practices regarding the arrangement of insurance coverage for airport operations. Ron Rakich & Associates, Inc., a risk management consulting firm, has been selected by the TRB as part of its ACRP, to perform research into airport risk management practices. The objective of this particular synthesis is to obtain information from airport decision makers regarding current industry practices and the myriad factors that influence insurance purchasing decisions at airports within each of the FAA's size classifications. More specifically, this synthesis seeks to identify, analyze, and compile these influential factors and, upon completion, aims to serve as a key resource assisting airport executives, risk managers, and other professionals tasked with the responsibility of purchasing coverage for their respective facility. The synthesis will achieve this goal by asking airport decision makers a series of questions in survey format to determine how each entity arrives at coverage decisions. This survey, which consists of 40 total questions, is broken into 8 categories: I. INTRODUCTION II. GENERAL INFORMATION ABOUT YOUR AIRPORT III. YOUR AIRPORT'S INSURANCE PROCUREMENT PRACTICES IV. THE RISK MANAGEMENT FUNCTION AT YOUR FACILITY V. CURRENT INSURANCE COVERAGE VI. YOUR LIMITS AND DEDUCTIBLES VII. YOUR FACILITY'S APPETITE FOR RISK RETENTION VIII. THANK YOU When completing this survey, please answer all questions in terms of current practice at your airport facility. Please note that many of the following survey questions may have more than one appropriate response, while others call for one singular answer. Specifications are listed in the body of each question. Although all responses to this survey will be collected, analyzed, and published, individual responses will be kept strictly confidential to preserve the anonymity of respondents. All survey respondents will be given a link to the overall survey results after it is published. Thank you in advance for taking the time to provide us with your candid responses. The synthesis will provide invaluable insight into the exposures faced by other airports and how these exposures shape the coverage needs and coverage selections of similarly classified commercial aviation facilities. PLEASE NOTE, at this time ACRP is preparing a similar but separate study focusing on Enterprise Risk Management (ERM). The ERM survey is expected to be distributed to industry contacts within the coming weeks. As an airport risk man- ager, your feedback may be sought for this subsequent survey. Although some of the questions may appear to be duplicative in subject matter, each survey stands alone.

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33 II. GENERAL INFORMATION ABOUT YOUR AIRPORT SURVEY OF AIRPORT INSURANCE BUYING PRACTICES 1. Type of entity: State or local government Federal Commission/authority Private Other (please specify): 2. Please identify your airport's classification under 14 CFR Part 139. I (scheduled and unscheduled large carrier aircraft, scheduled small carrier aircraft) II (unscheduled large carrier aircraft, scheduled small carrier aircraft) III (scheduled small carrier aircraft) IV (unscheduled large carrier aircraft) 3. Please identify your airport's classification according to 49 USC 47102 classification standards. Large Hub Medium Hub Small Hub Non Hub 4. Please indicate your airport's annual operating revenues for the most recent fiscal year. Include tenant, landing fees, parking, etc. Less than $100M $100M$250M $251M$400M $401M$600M Over $600M III. YOUR AIRPORT'S INSURANCE PROCUREMENT PRACTICES 5. How many property/casualty insurance brokers does your entity use? 0 1 2 3 or more 6. Do you have a written broker services agreement with your property/casualty insurance broker(s)? Yes No Uncertain

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34 7. How long has your primary insurance broker worked with your entity? 03 Years 35 Years 510 Years 10 Years or more N/A--Our facility does not use a broker 8. How often do you competitively procure your insurance broker services contract? Every year Every 2 years Every 3 years Every 4 years Every 5 years More than every 5 years 9. Why do you competitively procure your broker services contract? (Please check ALL that apply.) Contract expiration I continually assess service provided vs. price paid Required under our procurement guidelines Broker performance issues We do not competitively procure our broker services contract Other (please specify): 10. Which describes the method most often used by your airport in selecting an insurance broker? Open competitive RFP Pre-qualified pool through RFQ process, then distribute RFP Pre-qualified pool through RFQ process, then make selection Personal relationship Other (please specify): 11. To what extent does your entity rely on your insurance broker's recommendations regarding insurance purchases? Extensively Somewhat Limited We perform an independent analysis 12. What is the MOST IMPORTANT criterion for insurance purchasing decisions at your entity? Price Coverage Exposure

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35 Recommendation of insurance advisor Other (please specify): 13. Who assists with the insurance purchasing decision? (Please check ALL that apply.) Internal staff Outside risk management consultant Insurance broker Committee None of the above Other (please specify): 14. How often do you "shop" your property/casualty lines of insurance? Every year Every 2 years Every 3 years Every 4 years More than every 5 years Do not shop the insurance Depends upon the preliminary renewal pricing and terms 15. What is the MOST IMPORTANT factor that goes into your decision to purchase a NEW insurance product? Exposure increase Cost/benefit Newly identified exposure Emerging trends Statutory/legal/regulatory requirement(s) Do not buy new insurance products Other (please specify): IV. THE RISK MANAGEMENT FUNCTION AT YOUR FACILITY 16. Who in your organization is ULTIMATELY RESPONSIBLE for the risk management role including the insur- ance purchasing decision? Dedicated airport risk manager Municipal risk manager Legal Purchasing/procurement Human resources Committee Other (please specify):

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36 17. Is the risk management function in your organization Full Time OR Part Time? Full time (Skip to Question #19) Part time 18. If part time, what is the primary responsibility of the person responsible for risk management? Finance Purchasing Legal Human resources Administration Other (please specify): 19. Does your airport perform specific risk analysis (identification of exposures that may need insurance coverage) to validate an insurance purchasing decision? Always Usually Sometimes Depends upon the line of insurance No, we do not perform risk assessments (Skip to Question#22) 20. Which of the following methods does your facility use to conduct this risk analysis? (Please check ALL that apply.) Risk Assessment Questionnaires Evaluating Contracts, Records, and Documents Personal Inspections Benchmarking and Statistical Analysis Evaluating and Analyzing Loss Histories Other (please specify): 21. Who performs risk analysis for your airport facility? (Please check ALL that apply.) Risk manager within your organization Safety officer(s) within your organization Independent risk consultant Insurance broker(s) Departmental personnel Other (please specify): 22. Does your organization self-administer claims? Yes (Please indicate which type below) No Type (Worker's Compensation, General Liability, etc.):

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37 23. How often do you perform a cost/benefit analysis relating to self-administration of claims? Every year Every 2 years Every 3 years More than every 3 years When we re-bid the insurance package Never 24. To what extent has the risk management function become important to your airport in the last 5 years? More important Same Less important 25. Which THREE loss exposures are you MOST concerned about today? General Liability Auto Liability Business Interruption Construction Environmental Professional Liability War/Terrorism Cyber Risk Brand Identity Intellectual Property V. YOUR CURRENT COVERAGE 26. Please indicate the lines of coverage your entity purchases. (Please check ALL that apply.) General Property Crime Law Enforcement E & O Builder's Risk Fiduciary Liability Pollution Business Interruption Professional Liability Cyber Commercial General Liability Public Officials Errors & Omissions

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38 Other (Please specify below): Workers' Compensation Director & Officers Liability Commercial Auto Liability Employment Practices Liability Other (please specify): 27. Does your entity purchase war and terrorism coverage for any of the following lines of insurance? If so, check ALL that apply. General Property Pollution Builder's Risk Other (Please specify below): Commercial General Liability Other (please specify): Do not purchase war and terrorism coverage 28. Does your entity purchase construction insurance coverage? If so, check ALL that apply. Owner controlled insurance (OCIP) Builder's Risk Project Errors &Omissions OPPI Other (please specify): Contractor's Pollution Liability Other (Please specify below): Do not purchase construction coverage VI. CURRENT LIMITS AND DEDUCTIBLES 29. How often do you change the deductibles on your insurance program? Annual, at review When market conditions yield premium savings Deductibles have remained the same for many years (Skip to Question #31) Do not change (Skip to Question #31) Other (please specify): 30. If you have INCREASED your deductibles within the past 13 years, what are the reasons for that change? (Please check ALL that apply.) Loss exposure supports a higher retention Cost of insurance requires us to retain higher deductibles Market forces-no other options

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39 We HAVE increased deductibles, but NOT within the past 1 - 3 years. Other (please specify): 31. How often do you change the liability limits on your insurance program? Annual, at review When market conditions change Liability limits have remained the same for many years (Skip to Question #33) Do not change (Skip to Question #33) Other (please specify): 32. If you have INCREASED your liability limits within the past 1-3 years, what are the reasons for that change? (Please check ALL that apply.) Greater loss exposure Broker recommendation Increased liability limits were affordable We HAVE increased our liability limits, but NOT within the past 13 years Other (please specify): 33. What factors go into your decision to select the liability limits in your insurance program? (Please check ALL that apply.) Cost Exposure Broker recommendation Consultant recommendation We purchase the same liability limits each year Other (please specify): VII. YOUR FACILITY'S APPETITE FOR RISK RETENTION 34. Is your facility self-insured for any primary levels of insurance, i.e., with a large self- insured retention for excess or catastrophe lines of insurance? Yes No (Skip to Question #37) 35. Which lines are self-insured? (Please check ALL that apply.) Property Liability Workers' Compensation Other (please specify): 36. What factors went into your decision to self-insure? (Please check ALL that apply.) Affordability of the insurance product

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40 Availability of the insurance product Cost/benefit analysis Strong appetite to retain risk Other (please specify): 37. How often do you perform a cost/benefit analysis to assess the viability of self- insurance? Every year Depends upon the line of insurance When the market hardens for specific lines of insurance Never 38. Is your entity "bare" (without any insurance or self-insurance program) for any lines of coverage? If so, please check ALL lines neither INSURED nor SELF-INSURED by your facility from the list below. General Property Crime Law Enforcement E & O Builder's Risk Fiduciary Liability Pollution Business Interruption Professional Liability Cyber Commercial General Liability Public Officials Errors & Omissions Workers' Compensation Directors and Officers Errors & Omissions Commercial Auto Liability Employment Practices Liability Other (Please specify below): 39. What is the deductible for each line of insurance? Property Liability Workers' Compensation $0$100,000 $100,000$250,001 $250,000$500,000 $500,001$750,001 $750,000$1,000,000 Excess of $1,000,000

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41 VIII. THANK YOU! 40. Your participation in this survey is greatly appreciated and will aid in the development of a significant resource for profes- sionals in the airport and risk management industries. Please recall that you may receive a separate but similar survey in the coming weeks. As a risk management professional with unique perspective on the industry and its practices, ACRP welcomes and encourages your response to each. Thank you for providing us with your comments or sharing additional information about your insurance purchasing and risk management practices in the comment section below.