# TSC)DIRECT Tri-State Consumer Insurance Company February 19, 2016

U.S. Department ofTransportation DocketManagement System 1200NewJersey Ave. SE Washington, DC 20590 Re: Petition for Section 333 Exemption to the FAAModernization and Reform Act of2012 Ladies and Gentlemen: Pursuant to Section 333 ofthe FAAModernization andReformAct of2012, Tri-State Consumer Insurance (hereinafter ''Tri-State") herebyrequests an exemption for authority to operate unmanned aircraftin theNational Airspace System (NAS) and from thebelow referenced Federal Aviation Regulations. Specifically, Tri-State seeks authority to operate a DJI Phantom3 UAS to perform aerial roofinspections and aerial photography for insurancepurposes ofproperties thathave allegedly incurred damage and on which an insurance 

### claimhas been made. The FAAhas granted atleast one exemption to a company intending to use UAS toperform such aerial inspections for, among other things, insurance companies.' Similarly, the FAAhas granted numerous exemptions to companies intending to useUAS for aerial photography in connection with commercial real estate listings? Suchoperations, involving the operation ofsmall UAS over homes for purposes ofperforming aerial photography (and related inspection and analytics) are indistinguishable from Tri-State's intended operations. I. Introduction The Company was incorporated under the laws ofthe State ofNew York on November 30, 1982. Itbecame licensed on October 28, 1985 and commencedbusiness onMarch 9, 1986. The Company is a wholly owned subsidiary ofThe Tri-State Consumer, Inc., a New York Corporation. The Company's office is located at 100 Jericho Quadrangle, Suite 124, Jericho, NY 11753. The main telephone number is (516) 681-9400 and fax numberis (516) 390-2671. II. Description ofthe Proposed UAS Operation and Safeguards Tri-State intends to employ a DJIPhantom 3 for its UAS operations.3 The DJIPhantom 3 is incredibly small, weighing only 1,280 grams (less than three pounds), well below the 55pound limit set forth in the draftrule for small UAS. As such, it presents little threatto the safe and efficientoperationof aircraft in the NAS. Further, itis a mere 55mmin diagonal size, has a maximum speed of 16 meters per second (rnls), a maximum ascent speed ofonly 5 rn!s, and a maximumdecent of3 rn!s. Flight speed will not exceed 31 knots. While the DJI Phantom 3 is capable ofoperating 6,000 meters (approximately 19,685 feet) above sea level, Tri-State willnotoperate the UAS more than 500feet above ground level. All flights will be conducted in Class G airspace during daylighthours. No flights will be conducted within five (5) nautical miles ofan airport or heliport without a letterofagreementfrom the airport's or heliport's management orunless the operation is otherwise permitted by a properly-issued COA.

1 See Exemption No. 13126, Regulatory Docket No. FAA-2015-3012. 2 See e.g., Exemption No. 13105, Regulatory Docket No. FAA-2015-2916 3 Numerous exemptions have been granted for DJI Phantoms, including Phantom 3s. 100 Jericho Quadrangle, Suite 124, Jericho, NY 11753-2702 •Phone: (516) 681-9400 • (718) 895-0036 •www.800joinnow.com Fax Numbers •Auto • (516) 827-4696 •Home • (516) 802-5859 • Claims • (516) 681-9766To further ensure the safety ofthe UAS operations, Tri-State will perform eachflight within the visual line ofsightofthe PIC and visual observer. The PIC and visual observer will be able to communicate verbally at all times. The PIC will perform a pre-flight inspection ofthe UAS in accordance with the DJI-provided operation manual. Such an operation, conducted by a license PIC with the assistance ofa visual observer, is significantly safer than a traditional manned aircraft operation. Not only is the aircraft significantly smaller than a manned aircraft, it will not carry crew orflammable fuel. As perthe DJI Phantom 3 user manual, the operating frequency is 2.400 GHz-2.483 GHz and the camera sensoris a Sony EXMOR 1/2.3", effective pixels: 12.4 M (total pixels: 12.76 M). The DJI Phantom 3 complies with part 15 ofthe FCC Rules. Operation is subject to the following two conditions: 

### 1. This device may not cause harmful interference 2. This device must accept any interference received, including interference that may cause undesired operation. III. The PIC Tri-State intends to employ Bryan M. Vaughan, who holds a Recreational Pilot's License and a valid U.S. driver license, to perform the UAS operations. Moreover, Mr. Vaughan received his associate degree in applied science, AirTraffic Control, and is well-qualified to understand the importance of safely operating UAS in the NAS. However, in the eventMr. Vaughanis not capable or available to perform an operationfor any reason, Tri-State may employ another duly licensed pilot to act a PIC. Before the PIC performs any operation, Tri-State will ensure that s/he has atleastfive (5) hours offlight time on the DJI Phantom 3 in a secure area outside NAS. At all times, the PIC will be assistedby a visual observer, who will provide support and situational awareness as needed. IV. UAS Operations Tri-State will use the DJI Phantom 3 to conduct aerial inspections and photography ofproperties that allegedly have been damaged. Thepurpose will be to ascertain the extent ofthe damage, ifany, and to performrelated analytics. The operations will berestricted to the discrete area above and immediately surrounding the owner's property and will only be conducted with the owner's permission. Before any operation is conducted, the PIC will inspect the area to ensure thatthere are no obstructions that could threaten the safe operation ofthe UAS. Given the extremely small size ofthe DJI Phantom 3, the restrictions on the operations ofthe UAS detailed in Section III above, and the limited area in which any given UAS operation will be conducted, Tri-State's proposed operations presentlittle, ifany, threatto the operation ofmanned aircraft in the NAS. There can be no doubt that the operations are at least as safe, ifnot substantially safer, than the operation oftraditional manned aircraft. Further, using UAS to performtheroofinspections ensures that an inspector does nothave to physically climb onto a roofto survey the extent ofany damage, an inherently dangerous activity.V. Specific Regulations for Which Exemption is Sought Tri-State seeks an exemption from each ofthe following regulations:

o 14 CFR Part 21, Subpart H (Certification procedures for products and parts, Airworthiness Certificates) o 14 CFR § 61.3 (Requirementfor certificates, ratings and authorizations) o 14 CFR § 91.103(b)(2) (Preflight action) o 14 CFR § 91.105 (Flight crewmembers at stations) o 14 CFR § 91.109 (Flight instruction; simulated instrumentflight and certain test flights) o 14 CFR § 91.119 (Minimum safe altitudes: General) o 14 CFR § 91.121 (Altimeter settings) o 14 CFR § 91.151 (Fuel requirements for flight in VFR conditions) o 14 CFR § 91.405 (Maintenancerequired) o 14 CFR § 91.407 (Operation after maintenance, preventative maintenance, rebuilding, or alteration) o 14 CFR § 91.409 (Inspections) o 14 CFR § 91.417 (Maintenance records)

VI. Conclusion

Penny Fern Hart, President Tri-State Insurance