Drone Technology, Utilization and Risks
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1 Drone Technology, Utilization and Risks 2015 FALL CONFERENCE & TRAINING SEMINAR Proprietary Notice and Disclosure Proprietary Notice The material contained in this presentation has been prepared solely for informational purposes by Genesis Management and Insurance Services Corporation. The material is based on sources believed to be reliable and/or from proprietary data developed by Genesis, but Genesis does not represent as to its accuracy or its completeness. The content of this presentation is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. Disclosure Genesis Insurance Company is licensed in the District of Columbia, Puerto Rico and all states. Genesis Insurance Company has its principal place of business in Stamford, CT and operates under NAIC Number
2 Overview Drone/UAS Basics Legal Framework for UASs Utilization & Risks UAS Basics What are Drones? Unmanned Aerial Vehicles (UAV) Unmanned Aerial Systems (UAS) Remote Piloted Aircraft Systems (RPAS) Student Unmanned Aerial Systems (SUAS) Model Aircraft Unmanned Surface Vehicles 2
3 UAS Basics The ABCs of UAS Sliding Scale of Sophistication and Cost Military Commercial/Public Entity Hobbyist UAS Basics Different Kinds of UASs Military Large, Expensive Highly Sophisticated Weaponized 3
4 UAS Basics Different Kinds of UASs Public Entity Sophisticated Wide Range of Cost and Utility UAS Basics Different Kinds of UASs Hobbyist Small, Inexpensive Relatively Simple Limited Utility 4
5 Three Spheres of Regulation Federal State Local Federal Regulation FAA Federal Aviation Administration (FAA) is Responsible for Setting and Enforcing Safety Standards in National Airspace (NAS) Since 2008, FAA has been trying to Fashion Comprehensive Regulations to Govern the Use of UASs (FAR) 5
6 Federal Regulation The FAA Still No Final Set of Rules: Technology Outpacing Governmental Rule Making Deadline was Set for September 2015, but Final Rules not Expected Until 2016 or 2017 Testing and Researching the Use of Drones at Six Test Sites Nationwide Federal Regulation Scope of FAA Authority FAA Does Not Regulate Recreational Use of Airspace Below 400 feet and Within Sight of the Operator FAA Regulates All Other Operations Beyond Those Limits Non-Recreational Use Regulated at All Levels 6
7 Federal Regulation Scope of FAA Authority Operational Limitations Operator Certification & Responsibilities Aircraft Requirements Prohibition of Model Aircraft in NAS Federal Regulation Scope of FAA Authority General rule: the FAA Does Not Want UASs to Operate in the National Airspace Governmental Agencies Must Apply for a Certificate of Authorization (COA) or an Exemption (Section 333) If it Does Not Have a COA, a Public Entity Should Not be Operating a UAS 7
8 Federal Certification Application for a COA Online Application Complicated, Technical and Comprehensive Review Process May Take Several Months Public Entity Must Identify Specific Purpose of the UAS and Area Use Federal Certification Application for a COA Operation of UAV Pilot Certification Crew Certification Training Medical Certification Airworthiness of UAV 8
9 Federal Certification Additional FAA Requirements UAS Must Be Registered and Marked within 45 Days of Approval Trained Pilot; Sometimes an FAA Pilot Certificate Specific Purposes of Use Specific Geographic Area Specific Time Periods Coordination with Air Traffic Control Facilities Line of Sight Federal Certification COAs Permitted Section COAs for Commercial Use out of more than 300 Applications Over 1,400 Submitted in 2015 Over 1000 COAs for Public Entities 1,111 Granted 310 rejected 9
10 Federal Certification COAs 10% Colleges & Universities 45% Military & Federal Government 45% State & Local Government Legal Framework for UAVs State Regulation State Regulation Varies 20 States have Enacted Laws Addressing UAVs Some Allow UAVs, Some Do Not In 2015, 45 States have considered 154 bills related to Drones 10
11 Legal Framework for UAVs State Regulation State Regulation Varies Most Deal with How Law Enforcement can Use UAVs Other Issues include: Hunting, Traffic Enforcement, Data Retention, Privacy and Disclosure of Information to 3 rd Parties Likely to Find Conflicts with FAA Regulations Legal Framework for UAVs State Regulation Example: Virginia In 2013, First State to Enact UAS Legislation Established a Moratorium on all UAS by any State or Local Law Enforcement Agency Exceptions include Amber Alerts or Specified Search/Rescue Operations Does not Prohibit UAS Use Solely for Research and Development Purposes by Higher Education Institutions Requires Development of Protocols for Community Engagement, System Requirements and Operation Procedures 11
12 Legal Framework for UAVs State Regulation Tennessee Tennessee HB 153 prohibits using a drone to capture an image over certain open-air events and fireworks displays. It also prohibits the use of UAS over the grounds of a correctional facility. 23 Presentation for [client/prospect], [date] Proprietary and Confidential Genesis Underwriting Management Company Legal Framework for UAVs State Regulation Tennessee Tennessee SB 796 (2013) allows law enforcement to to use drones only with a proper search warrant with the exception of countering high risk terrorist attacks or if swift action is needed to prevent imminent danger to life Tennessee SB 1777 (2014) Using a drone-captured video footage of a hunter or angler without their consent, is a Class C misdemeanor. 24 Presentation for [client/prospect], [date] Proprietary and Confidential Genesis Underwriting Management Company 12
13 Legal Framework for UAVs State Regulation Tennessee Tennessee SB 1892 (2014) also brands as a Class C misdemeanor the use of a drone to intentionally conduct surveillance of an individual or their property and the possession or distribution of images captured in such a manner. 25 Presentation for [client/prospect], [date] Proprietary and Confidential Genesis Underwriting Management Company Legal Framework for UAVs Local Regulation Local Regulation Also Varies Multiple Municipalities have Passed Resolutions Banning Use of Drones Charlottesville, Va.; Evanston, Ill.; Northampton, Mass.; and Syracuse, NY 13
14 Some Key UAS Features Live-Feed Camera Infrared Camera Radar Weaponization? UAS Usage Department of Homeland Security Patrolling Borders NASA/U.S. Forest Service Real-Time Imaging and Mapping of Forest Fires 14
15 UAS Usage Police Photographing Accident Sites; Assists in Reconstructing Accident Sites; Bird's Eye View of Emergency Situations Michigan State Police Seeking State-Wide COA UAS Usage Police Tracking Criminals + Missing People North Dakota Tracked Down Three Fugitives in a Cornfield, at Night Medina, Ohio Tracked Down a Missing Alzheimer's Patient 15
16 UAS Usage Fire Eye in the Sky Connecticut Saw How Close a Fire had Come to a Cache of Explosives UAS Usage Search and Rescue Barricaded Suspects Fugitive Apprehension Detection of Drug Growth Operations on Public Lands 16
17 UAS Usage Sports Utility Inspection Infrastructure Inspection Environmental Scanning Weather Review Disaster Analysis Safety Issues of Concern Collisions with People Collisions with Objects/Buildings Collision with Other Aircraft Drones Impeded Firefighting Efforts in California 17
18 Privacy Issues of Concern Public Backlash ACLU Worried About Invasion of Privacy Cameras Tracking Individuals Without a Warrant Entrepreneurial Litigation Insurance Possible Types of Exposure Property Damage Bodily Injury Invasion of Privacy Cyber-Attack Operators & Public Officials 18
19 Insurance Underwriting Considerations Aircraft Owners Liability Non-Owners Liability Contact Information Regina B. Pettus Richard A. Spiers, CPCU, ARM, ARe 15 Piedmont Center Suite N. Wacker Dr. Suite Piedmont Road, NE Chicago, Illinois Atlanta, Georgia Direct (312) Direct: (404) richard.spiers@gumc.com regina.beer.pettus@gumc.com 19
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