# GREER, HERZ 

# & ADAMS, L.L.P.

A LIMITED LIABILITY PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS MARC D. YOUNG 409.797.3234 866.422.4270 fax myoung@greerherz.com ATTORNEYS AT LAW



### January 27, 2016 U.S. DepartmentofTransportation, DocketOperations WestBuilding Ground Floor, Room W12-140 1200NewJerseyAvenue, SE Washington, D.C. 20590 One Moody Plaza, 18"' Floor Galveston, Texas 77550 www.greerherz.com



### Re: AmericanNational Insurance Company'sPetitionfor an ExemptionPursuantto Section 3 3 3ofthe FAAModernization and ReformActof2012 Dear SirorMadam: Pursuantto Section 333 oftheFAA Modernization and Reform Actof2012 (the "Reform Act") and 14 C.P.R. Part 11, American National Insurance Company ("Petitioner" or "ANICO") hereby applies for an exemption from the Federal Aviation Regulations ("PARs") describedbelow and any otherexemptions necessaryto allow Petitionerto commercially operate small Unmanned Aircraft Systems ("UAS") under the conditions set forth in this petition. ANICO requests authorization to use small UASs for (1) research and development, and (2) aerial data collection in support ofcertain operations. As described below, operations under this requested exemption will be conducted under operating requirements and conditions materially similar to those previously approved by the FAA. 1 

### ANICO requests summary review ofthis petition. First chartered in 1905, American National Insurance Company and its family of affiliates strive to be a leading provider offinancial products and services for current and future generations. Today, the company and its subsidiaries provide personalized service to more than five million policyholders throughout all 50 states, the District ofColumbia, and Puerto Rico. Directly and through subsidiaries, the company offers a broad line ofinsurance products and services, including life insurance, annuities, health insurance, property and casualty, credit insurance, and pensionplan services. The integration ofunmanned aircraft into ANICO's operations will have an immediate and positive effect on ANICO policyholders, employees, contractors, and society-at-large. ANICO believes that UAS are a tool that can, among other benefits, (1) reduce risks to its employees and service providers, (2) enhance the accuracy and efficiency ofits operations, and

1 See Exemption Nos. 13251 to the Hartford (Docket No. FAA-2015-3240), 11857 to Liberty Mutual (Docket No. FAA--02015--0513), 11309 to United Services Automobile Association (Docket No. FAA-2014

- 0964), and 11062to Astraeus Aerial (DocketNo. FAA-2014--0642).
GALVESTON One Moody F1aza, 18th Floor

Galveston,Texas 77550 409.797.3200 348419.1 BAY AREA HOUSTON 2525 South Shore Blvd., Suite 203 League City, Texas 77573 281.480.5278 HOUSTON 700 Milam, Suite 1300 Houston,Texas 77002 713.655.1571 (By AppointmentOnly)U.S. DepartmentofTransportation January 27, 2016 Page 2
Re: AmericanNational Insurance Company'sPetitionfor an ExemptionPursuantto Section 333 oftheFAA Modernization and ReformAct of2012 (3) improve its responsiveness and effectiveness in meeting the needs of its customers and policyholders. Petitioner Contact Information The contact information for ANICO is: BernardS. Gerwel SVP, CorporateDigital Officer CorporateTechnology Services AmericanNational Insurance Company 1949E. Sunshine Springfield, MO 65899 Phone: 417.887.4990 x2228 E-mail: bernard.gerwel@americannational.com Proposed Operations

• Research and Development: ANICO will conduct research and development at private facilities owned by ANICO orathird party vendorto evaluate how bestto integrate UAS into insurance operations, to evaluate and develop additional uses for UAS technology by ANICO, and to develop insurance products related to UAS operations. ANICO proposes to conduct operations, subjectto the notice to and approval ofproper federal, state and local officials, over areas that have suffered a natural disaster, or are about to suffer a natural disaster, such as a hurricane, tornado, flood or wildfire. The purpose ofthese operations will be to develop practices and procedures that will improve the speed ofPetitioner's response and increase the amount and type of information Petitioner can provide policyholders, first responders, and appropriate industry experts in a timely manner. In connection with such operations, Petitioner will develop operating procedures that will integrateUAS into itsresponse strategyto ensurethe safetyofpersons andproperty.

• Aerial Data Collection: ANICO will use UAS for aerial data collection in support of insurance operations, including surveys and inspections, claim appraisals, risk assessments, risk management, loss prevention, underwriting, and catastrophe response, among other insurance related operations. For these purposes, UAS will be flown only over property or inside a structure where, to the extent practicable, permission has been obtained from the owner. The airspace will be (i) limited, (ii) predetermined, and (iii) controlled as to access. Undereach ofthese proposed areas ofoperation, the UAS will be operated inaccordance with the manufacturer's User Manual, strict safety measures, the Operating Parameters listed in Appendix A, and any additional requirements provided by the FAA. Unless otherwise specified orexempted, ANICO UAS operations will complywith all applicableparts of14 CFRincluding,

348419.1U.S. DepartmentofTransportation January 27, 2016 Page 3
Re: 

### AmericanNational Insurance Company's Petitionfor an Exemption Pursuantto Section 333 oftheFAAModernization and Reform Act of2012 but not limited to, parts 45, 47, 61, and 91. All operations will be conducted with a focus on minimizingriskto the national airspace system, andto persons andproperty onthe ground. The FAA has granted exemptions for requests similar in all material respects to ANICO's

. The FAA has granted numerous exemptions for aerial data collection, including: ExemptionNos. 11062to Astraeus Aerial; Ill09 to Clayco, Inc.; 11112 to VDOS Global, LLC; and 11213 to Aeryon Labs, Inc. In addition, the FAA has granted research and development and aerial data collection exemptions to operators in the insurance industry, including: Exemption Nos. 11367 to ADM Crop Risk Services; 11293 to Erie Insurance Group; 11188 and 11175 to State Farm; 11273 to AIG; and 11309 and 11274to USAA. In the above detailed grants, the FAA found that the enhanced safety achieved using a UAS carrying no passengers or crew, rather than a manned aircraft of significantly greater proportions carrying crew and flammable fuel, gave the FAA good cause to find that UAS operations were in the public interest. The FAA has good cause to make the same finding with respectto this petition. 

### UnmannedAircraftSystem ANICO proposes to conduct its UAS operations using the DJI Phantom 2 and 3 and the DJI Inspire 1 models detailed in this section. As stated previously, all UAS will be operated in accordance with the manufacturer's User Manual, strict safety measures, and the Operating Parameters listedin AppendixA. A. DJI Phantom 2I3 (Models) 

### The DJI Phantom 2 and 3 are lightweight multi-rotor helicopters that will be operated at a maximum speed ofless than 50 mph and aflight time ofno more than 25 minutes. The diagonal size ofthe UAS is 590mm. It

### weighs less than 5 pounds. It

### has a high level ofpre-programmed controls and various built-in technical capabilities (i.e., programming ofa geo-fence and height limitations) that prevent the operator from doing a mission outside ofthe operating limits. Ifits communications with the PIC is lost, the safety system will allow it to either hover in place and slowly descend or to return to a predetermined point. The FAA has previously granted an exemption to 14 CFR part 21, certification procedures for products and parts, Subpart H

### Airworthiness Certificates, and any associated noise certification and testingrequirements ofpart 36, forthe DJI Phantom 3 (and its predecessorDJI Phantom 2) UAS?

2 See, e.g., Altek Media Group (DJI Phantom 3-Exemption 12820), Montico, Inc (DJI Phantom 2- Exemption 11230), Erie Insurance (DJI Phantom 3- Exemption 11293A), NextEra Energy, Inc. (DJI Phantom 3- Exemption 11224A), and Travelers Companies, Inc. (DJI Phantom 3- Exemption 11494A).

348419.1U.S. DepartmentofTransportation January 27, 2016 Page 4
Re: 

### AmericanNational Insurance Company'sPetition for an ExemptionPursuantto Section 333 oftheFAA Modernization and Reform Act of2012

B. DJI Inspire 1 (Models) 

### The DJI Inspire 1 weighs less than 7 pounds, has four motors, and has the ability to hover and move along a vertical and horizontal plane simultaneously. Its dimensions are 438mm x 451mm x 301mm. It has a high level ofpre-programmed controls and various built-in technical capabilities (i.e., programming ofa geo-fence and height limitations) that prevent the operator from doing a mission outside ofthe operating limits. The maximum speed is no more than 50 mph with a cruising speed of25 mph. Ifits communications with the PIC is lost, the safety system will allow it either to hover in place and slowly descend or to return to a predetermined point. The FAAhas previously granted an exemption to 14 CFRpart 21, certificationprocedures for products and parts, Subpart H-Airworthiness Certificates, and any associated noise certificationand testingrequirements ofpart 36, forthe DJI Inspire 1SeriesUAS.3 

### PublicInterest There are a number ofreasons why granting the Petitioner's request to operate the UAS for commercial aerial data collection and research and development related to insurance is in the public interest. The proposed UAS operations will improve the safety of its employees and contractors; enhance the efficiency and accuracy ofits property insurance operations; increase the speedwithwhichANICO canrespondto customerneeds; and expandits abilityto respondto larger catastrophic events and disasters. Further, it will better allow ANICO to evaluate the various liabilities created by the use of UAS and develop insurance products to meet this emergingneed. As an example of enhanced safety consider the risks incurred by claims adjusters evaluating roof damage. Currently claims adjusters must physically climb onto roofs for data collection. This is inherently dangerous and each year claim handlers are injured in falls. Claim handlers will be able to reduce their exposure to such hazards by using a UAS. Adjustors will also be able to more quickly obtainthe datanecessaryto make accurate assessments. The use ofUAS will enhance safety in other respects as well. UAS are now capable of safe interior flight; this allows adjusters and other claims representatives to access damaged structures that are otherwise unsafe or unstable-protecting employees while responding and providing informationto customers more quickly. Further, the use ofUAS to conduct aerial data collection over areas that have been impacted by a natural or other catastrophic disaster will allowaccess to these areas that are otherwise dangerous to reachbyfoot or othermeans.

3 See, e.g., The Hartford Financial Services Group (DJI Inspire !-Exemption 13251), Build Imagery, LLC (DJI Inspire !

- Exemption 11204), and CineDrones, LLC (DJI Inspire !-Exemption 11279).

348419.IU

.S. DepartmentofTransportation January27,2016 Page 5 Re: AmericanNational Insurance Company'sPetitionfor anExemptionPursuantto Section 333 oftheFAAModernizationandReformActof2012
Drug and AlcoholProgram ANICO has policies in place to ensure that no person may act as a PIC, observer, or sensoroperatoriftheyareunderthe influence ofalcohol ordrugs. Privacy All flights will be conducted in accordance with any federal, state, or local laws regarding pnvacy. Exemptions Requested 14 CFR §21, SubpartH(Airworthiness Certificates) 14 CFR §45.23(b) (Display ofMarks: General) (To provide for markings as large as practicable.) 14 CFR § 61.23(a) & (c) (Medical certificates: Requirement and Duration) 14 CFR § 61.101(e)(4) & (5) (Recreational PilotPrivileges andLimitations) 14 CFR §61.113(a) & (b) (PrivatePilotPrivileges and Limitations: Pilot in Command) 14 CFR §61.315(a) (SportPilotCertificatePrivileges and Limitations) 14 CFR §91.7(a) (Civil AircraftAirworthiness) 14 CFR § 91.119 (Minimum Safe Altitudes: General) 14 CFR §91.121 (Altimeter Settings) 14 CFR §91.151(a) (Fuel Requirements for Flight in VFR Conditions) 14 CFR §91.405(a) (Maintenance Required) 14 CFR §91.407(a)(1) (Operation aftermaintenance,preventive maintenance, rebuilding or alteration) 14 CFR §91.409(a)(l) & (2) (Inspections) 14 CFR §91.417(a) & (b) (Maintenance Records) Summary for the Federal Register ANICO believes that publication in the Federal Register is unnecessary under the FAA's criteria for summary approval. To the extent that the FAA determines that publication is necessary,the following summaryis provided:

348419

.1 Petitioner: AmericanNational Insurance Company Sections of 

### 14 C.F.R. Affected: 

### §§ 21, Subpart H, 61.23(a) & (c), 45.23(b),61.101(e)(4) & (5), 61.113(a) & (b),61.315(a), 91.7(a), 91.119(c) 91.121, 91.151(a)(l) & (b), 91.405(a), 91.407(a)(l), 91.409(a)(1) & (2), and 91.417(a) & (b).U.S. DepartmentofTransportation January27,2016 Page 6
Re: AmericanNational Insurance Company'sPetitionfor an ExemptionPursuantto Section 333 oftheFAAModernization and ReformActof2012


### Description of Relief Sought: Petitioner seeks exemption from the requirements of 14 C.P.R. §§ 21, Subpart H, 61.23(a) & (c), 61.101(e)(4) & (5), 61.113(a) & (b), 61.315(a), 91.7(a), 91.119(c) 91.121, 91.151(a)(1) & (b), 91.405(a), 91.407(a)(1), 91.409(a)(l) & (a)(2), and 91.417(a) & (b) to operate small unmanned aircraft systems to conduct (1) research and development, and (2) aerial data collection in support of certain insurance operations, including claim appraisals, risk assessment, risk management, loss prevention, underwriting and catastrophe response. In each case, Petitioner will meet or exceed conditionsthattheFAArequires for similaroperations. Based on the information provided, ANICO submits that this request should receive summary approval. Theproposed operations are notnew ornovel and the UAS models proposed for use have already been approved based ontheir size, weight, speed and operational capability. Moreover, ANICO agrees to follow operating parameters that are materially similar to those containedinrecentFAAgrants ofexemption. 

### Conclusion ANICO's Petition for Exemption satisfies the criteria articulated in Section 333 ofthe Reform Act of2012 including weight, speed, operating capabilities, proximity to airports and populated areas, operations within the line ofsight, and national security issues. We respectfully requestyourconsiderationand approval ofthis Petitionfor Exemption. Please do not hesitate to contact Petitioner's outside counsel with any questions or requests for additional informationregardingthis filing.

Enclosure AppendixA

348419.1 Veryrespectfully,

Counsel for PetitionerAPPENDIX A ANICO OPERATING PARAMETERS
1. The UAS will be limited to ANICO's Petition for Exemption or any subsequent amendments. Specifically, the DJI Phantom 2/3 and the DJI Inspire 1. The UAS will weigh less than 55 pounds including payload. 2. The UAS will be limited to an indicated airspeed not to exceed 87 knots (100 mph). The UAS will not be operated at airspeeds greaterthan the maximum UA operating speed recommended by the UAS manufacturer. 3. Flights will be operated at an altitude of no more than 400 feet above ground level ("AGL"), and as indicated by the procedures specified in the operating manual, unless a special request is made and approved by AirTraffic Control.1 4. Flights will be operated within visual line of sight ("VLOS") ofthe pilot-in-command ("PIC") at all times. PIC will maintain VLOS with human vision unaided by any device other than corrective lens, as specified on the PIC's FAA-issued Airmen Medical Certificate or U.S. driver's license

. 5. Flight operations will utilize a visual observer ("VO"). The VO may be used to satisfy the VLOS requirement as long as the PIC always maintains VLOS capability. The VO and PIC will be able to communicate verbally during flight operations. Texting or electronic messaging is not permitted during flight operations. The PIC will be designated before the flight and cannot transfer his or her designation for the duration of the flight. The PIC must ensure that the VO can perform the duties required ofthe VO. 6. The manufacturer's manual and these Operating Parameters will be accessible during UAS operations and made available to the Federal Aviation Administrator or his delegate (the "Administrator") upon request. 7. Prior to each flight the PIC will inspect the UAS to ensure that it is in a condition for safe flight. If the inspection reveals a condition that affects the safe operation of the UAS, the aircraft will be prohibited from operating until the necessary maintenance has been performed and the UAS is found to be in a condition for safe flight. 8. The UAS will operate in accordance with the UAS manufacturer's aircraft/component, maintenance, overhaul, replacement, inspection and life limit requirements. Each UAS operated will adhere to all manufacturers' safety bulletins. 9

.The PIC must possess at least an airline transport, commercial, private, recreational, or sport pilot certificate. The PIC must also hold a current FAA Airmen Medical Certificate or a valid U.S. driver's license. The PIC will meet the flight review requirements specified in 14 CFR § 61.56 in an aircraft in which the PIC is rated on his or her pilot certificate.

1 Petitioner notes that the FAA has a policy of issuing a Certificate of Waiver or Authorization ("COA") to Section 333 exemption holders for flights at or below 200 feet

. Ifthis petition is granted, Petitioner will operate below 200 feet in accordance with the terms of this "blanket" exemption

. Petitioner may later file for a separate COA to operate over 200 feet.

3494 13.1 As of27 January 201610. UAS operations will not be conducted during night, as defined in 14 CFR § 1.1. All operations will be conducted under visual meteorological conditions ("VMC"). Special Visual Flight Rule (SVFR) flights will not be made. Ifflight at night is required, a special request will first be made at the FAA office closest to the proposed area ofoperations. 11. The UAS will not operate within 5 nautical miles of an airport reference point (ARP) as denoted in the current FAA Airport/Facility Directory (AFD) or for airports not denoted with an ARP, the center of the airport symbol as denoted on the current FAA-published aeronautical chart, unless a letter of agreement with that airport's management is obtained or otherwise permitted by a GOA issued to the exemption holder. The letterofagreement with the airport management will be made available to the Administrator or any law enforcement official upon request. 25. The UA will remain clear and give wayto all manned aviation operations and activities at all times. 12. The UAS will not be operated less than 500 feet below or less than 2,000 feet horizontally from a cloud orwhen visibility is less than 3 statute miles from the PIC. 13. Ifthe UAS loses communications or loses its GPS signal, it will have the capability to return to a pre-determined location. 14. The PIC will abortthe flight in the event of unpredicted obstacles or emergencies. 15. The PIC is prohibited from beginning aflight unless there is enough available powerforthe UAS to conduct the intended operation and to operate after that for at least five minutes or with the reserve power recommended by the manufacturer, if greater. The PIC will take into account wind and weather conditions in his or herestimate. 16. All operations will be conducted over private or controlled-access property. To the extent practicable, permission from the land owner/controller or authorized representative will be obtained for each flight to be conducted. 17. Any incident, accident or flight operation that transgresses the lateral or vertical boundaries of the operational area as defined by the applicable Certificate of Waiver or Authorization will be reported to the FAA's UAS Integration Office (AFS-80) within 24 hours. Accidents will also be reported to the National Transportation Safety Board (NTSB) per instructions detailed on the NTSB Web site: www.ntsb.gov. 18. The UAS will not be operated by the PIC from any moving device orvehicle. 19. The PIC will demonstrate to the operator their ability to safely operate the UAS in a manner consistent with how the UAS will be operated under this exemption; including evasive and emergency maneuvers and maintaining appropriate distances from person, vessels, vehicles, and structures. PIC flight hours and currency will be logged in a manner consistent with 14 CFR § 61.51(b). 20. All operations shall be conducted in accordance with an ATO-issued COA. The exemption holder may apply for a new or amended COA if it intends to conduct operations that cannot be conducted under the terms of the attached COA. Documents used by the operator to ensure the safe operation and flight ofthe UAS and any documents required under 14 CFR §§ 91.9 and 91.203 will be available to the PIC at the Ground Control Station of the UAS any time the aircraft is operating. These documents must be made available to the Administrator or any law enforcement official upon request.

349413.1 As of27 January 2016