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Fri, Jun 13, 2003

USUA Issues Insurance Alert

We got some possibly really bad news from the US Ultralight Association yesterday, and we're sorry to pass it on; but it looks like there could be serious trouble afoot. Here's what the association wrote:

USUA has made an effort to keep members informed about the status and/or validity of the insurance policies they may have purchased from The Thomas Mahoney Insurance Agency. The saga continues--and the news is not good:

USUA has recently learned that in a sworn deposition taken by the attorney representing plaintiffs against the agency, Mr. Mahoney has admitted that the insurance certificates sold to ultralighters have no legitimate financial backing. In his statement Mr. Mahoney said that the insurance company he claimed to be affiliated with, Corporacion El Antifaz, in San Jose, Costa Rica, existed only on paper and that he did not have money to make payments against any claims that may arise.

USUA believes, based on Mr. Mahoney's sworn statement, that those USUA members who purchased ultralight liability or hull insurance through The Thomas Mahoney Insurance Agency do not have valid coverage. If you are considering purchasing ultralight insurance from that agency, we recommend you reconsider.

Any member with inquiries or claims should contact the Louisiana Department of Insurance Consumer Hotline at 1-800-259-5300 or 5301.

FMI: www.usua.org

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