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#1
posted to rec.boats.cruising,rec.boats
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"chartering" with guests
Hi,
I have a charter captain friend who told me once that there is a loophole around the conventional "6-pack" CG License chartering regulations. He said something to the effect that if you have a contract that specifies that the boat is being rented as a whole to the "guests", that they are able to pick whoever they'd like to be the captain of their "rented" vessel, whether that person is licensed or not. So, in essence, the boat "rental" provides the income, and the "captain" performs duties for free. With this method, he was able to charter his boat with more than 6 guests, and without a captain's license. Does anyone know the real story on this? Was he f.o.s.? Thanks, Mike. |
#2
posted to rec.boats.cruising,rec.boats
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"chartering" with guests
"beaufortnc" wrote in message
oups.com... Hi, I have a charter captain friend who told me once that there is a loophole around the conventional "6-pack" CG License chartering regulations. He said something to the effect that if you have a contract that specifies that the boat is being rented as a whole to the "guests", that they are able to pick whoever they'd like to be the captain of their "rented" vessel, whether that person is licensed or not. So, in essence, the boat "rental" provides the income, and the "captain" performs duties for free. With this method, he was able to charter his boat with more than 6 guests, and without a captain's license. Does anyone know the real story on this? Was he f.o.s.? Thanks, Mike. I haven't heard of anything like this. I think that if you're boarded and the CG asks if anyone has paid to be on the boat, you better have the right license. Of course, you can contest anything in court. Doesn't mean you'll win, however, and what a huge hassle. If you're being boarded for cause, they might impound the boat. A fast way of finding out would be to call the local CG office, speak to a chief and see what he or she says. -- "j" ganz @@ www.sailnow.com |
#3
posted to rec.boats.cruising,rec.boats
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"chartering" with guests
On 14 Jul 2006 13:35:09 -0700, "beaufortnc"
wrote: With this method, he was able to charter his boat with more than 6 guests, and without a captain's license. Does anyone know the real story on this? Was he f.o.s.? What about your insurance company, what do THEY think? That's where you are most likely to get in trouble first. Your co called friends will be calling lawyers very quickly if there is any kind of mishap onboard. It is unlikely in my opinion, that your insurance company will provide charter coverage without a licensed captain. |
#4
posted to rec.boats.cruising,rec.boats
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"chartering" with guests
"Wayne.B" wrote in message news On 14 Jul 2006 13:35:09 -0700, "beaufortnc" wrote: With this method, he was able to charter his boat with more than 6 guests, and without a captain's license. Does anyone know the real story on this? Was he f.o.s.? What about your insurance company, what do THEY think? That's where you are most likely to get in trouble first. Your co called friends will be calling lawyers very quickly if there is any kind of mishap onboard. It is unlikely in my opinion, that your insurance company will provide charter coverage without a licensed captain. That's a good point, and you'd better not trust what any insurance agent says unless he's ready to put it in writing. I'm not talking about reading the policy itself, which is obviously important, although they can also be vague. I'm talking about a plain-English letter from the agent which addresses specific questions you ask. I just went through this with my agent, who's a real pro with regard to home, car & life insurance. But, he was a bit weak when it came to providing coverage for musical equipment used professionally, and questions about what happens if a club burns down with my equipment in it. I kept giving him scenarios like that, and he finally said he wasn't 100% sure about all of them. We ended up doing a conference call to an underwriter at the actual insurance company. |
#5
posted to rec.boats.cruising,rec.boats
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"chartering" with guests
" That's a good point, and you'd better not trust what any insurance agent says unless he's ready to put it in writing. I'm not talking about reading the policy itself, which is obviously important, although they can also be vague. I'm talking about a plain-English letter from the agent which addresses specific questions you ask. I just went through this with my agent, who's a real pro with regard to home, car & life insurance. But, he was a bit weak when it came to providing coverage for musical equipment used professionally, and questions about what happens if a club burns down with my equipment in it. I kept giving him scenarios like that, and he finally said he wasn't 100% sure about all of them. We ended up doing a conference call to an underwriter at the actual insurance company. A letter signed by the agent is worth little more than the paper it's written on, since your contract of coverage is not with the agent. An agent can attest to anything, but if it is outside the coverage specified in the contract (policy), it may not be enforceable. The insurance company can always claim that the agent was acting outside the authority of his capacity as agent. A letter signed by an officer of the insurance company stipulating or clarifying coverage is another matter. I'd take that with me to court any day. |
#6
posted to rec.boats.cruising,rec.boats
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"chartering" with guests
"RG" wrote in message . .. " That's a good point, and you'd better not trust what any insurance agent says unless he's ready to put it in writing. I'm not talking about reading the policy itself, which is obviously important, although they can also be vague. I'm talking about a plain-English letter from the agent which addresses specific questions you ask. I just went through this with my agent, who's a real pro with regard to home, car & life insurance. But, he was a bit weak when it came to providing coverage for musical equipment used professionally, and questions about what happens if a club burns down with my equipment in it. I kept giving him scenarios like that, and he finally said he wasn't 100% sure about all of them. We ended up doing a conference call to an underwriter at the actual insurance company. A letter signed by the agent is worth little more than the paper it's written on, since your contract of coverage is not with the agent. An agent can attest to anything, but if it is outside the coverage specified in the contract (policy), it may not be enforceable. The insurance company can always claim that the agent was acting outside the authority of his capacity as agent. A letter signed by an officer of the insurance company stipulating or clarifying coverage is another matter. I'd take that with me to court any day. Per my lawyer, a letter from the agent is a reminder that he may be personally liable. Fear is good. |
#7
posted to rec.boats.cruising,rec.boats
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"chartering" with guests
Per my lawyer, a letter from the agent is a reminder that he may be personally liable. Fear is good. So, you're willing to have this particular area of coverage backed up by the solvency of your agent? The two of you deserve each other. And I suppose I might as well throw the lawyer in there too. |
#8
posted to rec.boats.cruising,rec.boats
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"chartering" with guests
beaufortnc wrote:
Hi, I have a charter captain friend who told me once that there is a loophole around the conventional "6-pack" CG License chartering regulations. He said something to the effect that if you have a contract that specifies that the boat is being rented as a whole to the "guests", that they are able to pick whoever they'd like to be the captain of their "rented" vessel, whether that person is licensed or not. So, in essence, the boat "rental" provides the income, and the "captain" performs duties for free. With this method, he was able to charter his boat with more than 6 guests, and without a captain's license. Does anyone know the real story on this? Was he f.o.s.? Probably, depending on the details. In addition to my comments below, I seem to remember that a "bare boat charter" must not include the owner or his representative. This sort of makes the described "contract" bogus. About 12 years ago the rules were eased up a little, allowing for guests to share some expenses, bring lunch, etc. However, anything that "smells" like making money is not allowed. The question that must be asked is "Would the captain take these guests out even if they were not contributing anything?" If the answer is "No," then they are probably passengers for hire. If the answer is "yes", then they are friendly guests who happen to be contributing a bit. If the contribution is less than a share of the fuel cost, it probably isn't a charter. If the Captain ends up with more money in his pocket then he started with, it is a charter. However, the CG has a lot of local discretion on a case by case basis. The following is taken from: http://www.uscg.mil/hq/g-m/nvic/7_94/n7-94.htm The important parts are "contributed as a condition" and "'Consideration' does not include a voluntary sharing of the actual expenses of a voyage." SEC. 506. PASSENGER FOR HIRE. Section 2101 of title 46, United States Code, is amended by inserting between paragraphs (21) and (22) a new paragraph (21a) to read as follows: "(21a) 'passenger for hire' means a passenger for whom consideration is contributed as a condition of carriage on the vessel, whether directly or indirectly flowing to the owner, charterer, operator, agent, or any other person having an interest in the vessel.". DESCRIPTION - The determination of what constitutes the carriage of a "passenger for hire" must be made on a case by case basis. This determination is dependent upon the actual operation of a vessel and the flow of consideration as determined by the facts of each case. In general, there needs to be some form of tangible consideration or promise of performance being passed for a "passenger for hire" situation to exist. SEC. 507. CONSIDERATION. Section 2101 of title 46, United States Code, is amended by inserting between paragraphs (5) and (6) a new paragraph (5a) to read as follows: "(5a) 'consideration' means an economic benefit, inducement, right, or profit including pecuniary payment accruing to an individual, person, or entity, but not including a voluntary sharing of the actual expenses of the voyage, by monetary contribution or donation of fuel, food, beverage, or other supplies.". DESCRIPTION - Section 507 amends 46 U.S.C. 2101 by adding a definition of the term "consideration." Although this term was used in the prior definition of a "passenger," it was not previously defined by statute. Generally, some tangible amount of worth exchanged for carriage on a vessel such as payment, exchange of goods or a promise of performance is required. "Consideration" does not include a voluntary sharing of the actual expenses of a voyage. Additionally, employees or business clients that have not contributed for their carriage, and are carried for morale or entertainment purposes is not included as exchange of consideration. |
#9
posted to rec.boats.cruising,rec.boats
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"chartering" with guests
"Jeff" wrote in message
. .. beaufortnc wrote: Hi, I have a charter captain friend who told me once that there is a loophole around the conventional "6-pack" CG License chartering regulations. He said something to the effect that if you have a contract that specifies that the boat is being rented as a whole to the "guests", that they are able to pick whoever they'd like to be the captain of their "rented" vessel, whether that person is licensed or not. So, in essence, the boat "rental" provides the income, and the "captain" performs duties for free. With this method, he was able to charter his boat with more than 6 guests, and without a captain's license. Does anyone know the real story on this? Was he f.o.s.? Probably, depending on the details. In addition to my comments below, I seem to remember that a "bare boat charter" must not include the owner or his representative. This sort of makes the described "contract" bogus. About 12 years ago the rules were eased up a little, allowing for guests to share some expenses, bring lunch, etc. However, anything that "smells" like making money is not allowed. The question that must be asked is "Would the captain take these guests out even if they were not contributing anything?" If the answer is "No," then they are probably passengers for hire. If the answer is "yes", then they are friendly guests who happen to be contributing a bit. If the contribution is less than a share of the fuel cost, it probably isn't a charter. If the Captain ends up with more money in his pocket then he started with, it is a charter. However, the CG has a lot of local discretion on a case by case basis. Sir, the beer, sandwiches, cooler and ice were in the boat when we came back from parking the car & trailer. Someone must've dropped them in the wrong boat by mistake. |
#10
posted to rec.boats.cruising,rec.boats
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"chartering" with guests
JoeSpareBedroom wrote:
"Jeff" wrote in message Sir, the beer, sandwiches, cooler and ice were in the boat when we came back from parking the car & trailer. Someone must've dropped them in the wrong boat by mistake. "Yes, but 200 kegs seems a bit excessive." |
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