# 'VT A Vl\.. 

## T£"Insurance 

# W .rt..J.. l.

**~** Group 

### Wayne • Washington • Marion

July 28, 2015

U.S

.Department ofTransportation Docket Management System 1200 NewJersey Ave., SE Washington, D.C. 20590 3873 Cleveland Road,Wooster, Ohio 44691 330-345-8100 X 322

. F: 888

-345-8775 David_ Tschantz@wayneinsgroup

.com

Re: 

### Exemption Request Pursuantto Section 333 

### oftheFMRA and Part 11 

### ofthe FederalAviation Regulations to Use Small Unmanned Aircraft System in the Property and Casualty InsuranceIndustry.

Dear Sir orMadam: Pursuant to Section 333 ofthe FAA Modernization and Reform Act of2012 (FMRA) and 14 CFRPart 11, Wayne Mutual Insurance Company hereby petitions for an exemption from the listed Federal Aviation Regulations ("FARs") and any otherrules necessary to allow operation ofsmall Unmanned Aircraft Systems ("sUAS") under the conditions set forth in this petition. FMRA Section 333 grants the FAA authority to allow operation ofcertain UAS within the national airspace. Wayne Mutual Insurance Companyrequests authorization to conduct sUAS operations related to its insurance business, including roofinspections, underwriting risk assessment, less inspection and evaluation, and risk control. As detailed below, the operations under the requested exemptions will be conducted with strict requirements and conditions to ensure safety for all involved.



### 1. 

### Description ofPetitioner Founded in 1910, Wayne Mutual Insurance Company has providedpremierproperty and casualty insurance to Ohio residents for more then a century. Wayne Mutual Insurance Company has earned a reputation for supplying superior coverage to home, farm, automobile and business owners in Ohio's communities. Wayne Mutual is headquartered in Wooster, Ohio, and has a network ofmore than 130 independent agency partners throughout the state. In 2009 it affiliated with Washington Mutual Insurance Association. This affiliation formed the Wayne Insurance Group. In 2012, Marion Mutual Insurance Association alsojoinedthis alliance. Wayne Mutual Insurance Company has continuously persevered with developing technologies in the insurance marketplace in orderto keep pace with the ever-changing needs ofourcustomers. The use of sUAS will allow Wayne Mutual Insurance Company to continue to provide excellent service toPage 2our customers, while eliminating risk ofinjuryto our claim professionals and incurring liability to others, all without posing a safety orprivacythreatto the general public. This petitionis being filed onbehalfofWayne Mutual Insurance Company and all ofits subsidiaries, affiliates, successors and assigns. The contact information for Wayne Mutual Insurance Company is: David Tschantz, Esq. Vice President ofClaims 3873 Cleveland Rd. Wooster, OH 44691



### 2. Types ofOperation A. Request to Use sUAS for Survey and Inspection ofDamage andLoss after Casualty Events. Wayne Mutual Insurance Companyhereby requests an exemption for the use ofsUAS to inspect, photograph, and assess the nature and extent ofdamage to ourpolicyholders' private property after a casualty event. Wayne Mutual Insurance Company will only conduct these inspections after obtaining consent from the property owner. Currently, Wayne Mutual Insurance Company's adjusters use conventional methods to conduct surveys and inspections ofdamage and loss after

# acasualty event. These methods require individuals to conduct physical inspections and evaluations ofclaims. Bytheir very nature, these methods are time consuming and expensive and carry substantial safety risks. In additionto improving Wayne Mutual Insurance Company's customer experience and claim effectiveness, granting this petitionwould improve safety ofour claimprofessionals by eliminating most oftheir ladder inspections. The risks associated with physical roofinspections include potential harm to the claims professional by falling or causing a ladderto fall, the potential harm to persons onthe ground impacted by a falling person orladder, and the potential property damage causedby a falling person orladder. 

### B. Request to Use UASs for RiskAssessment, RiskManagement, Loss Prevention and Underwriting Wayne Mutual Insurance Company also requests an exemption for the use ofsUAS to performrisk assessment, risk management, loss prevention and underwriting evaluations for its residential and commercial lines ofbusinesses. In particular, inspections and evaluations oflargerresidential structures, commercial structures, and instances where the roofsystem itselfis ofa steep pitch, provide unique challenges. Currently, most ofthese aforementioned structures require physical inspections that involve sending a person onto the roofsystemby way ofa ladder. These inspections are time consuming and carry the aforementioned risks, which can all be eliminated throughthe use ofa sUAS. Wayne Mutual Insurance CompanyPage 3 also insures a large book offarm business which includes farms with multistory barns. With barns ofthat size and magnitude, it is impossible to physically inspectthe roofstructure and the use ofa sUAS will insure that the appropriate property coverage is provided to the policyholder and any need for repairs identified.



### 3. Relevant StatutoryAuthority This petition for exemption is submittedpursuantto Section 333(a) through (c) ofthe FAA Modernization and Reform Act of2012. Congress has directed the FAA "to safely accelerate the integration ofcivil unmanned aircraft systems into the national airspace system." Pursuant to this section, the FAAAdministrator is permittedto allowunmanned aircraft system to operate in the National Air Space ("NAS") where it is safe to do so based onthe following criteria: Operations ofthe sUAS within the visual line ofsight ofthe operator; The sUAS's size, weight, speed and operational capability; and Operation ofthe sUAS in close proximityto airports and populated areas. Additionally, the FAAAdministrator has general authority to grant exemptions from the agency's safety regulations and minimum standards when the Administrator decides a requested exemption is inthe public interest. See 49 USC §1 06(f) (defining the authority ofthe Administrator); 49 USC§44701(f) (permitting exemptions from §§44701(a), (b) and §§44702- 44716, et seq.). A party requesting an exemption must explainthe reasons whythe exemption: (1) would be benefitto the public, and (2) would not adversely affect safety (orhowit would provide a level ofsafety at least equal to the existing rules.) See 14 CFR§ 11.81 (petitions for exemption).



### 4. WayneMutualInsurance Company's proposed UAS operations meet the requirements of Section 333 ofthe Reform Act. Wayne Mutual Insurance Company's operations proposed inthis petition qualify for exemption and expedited approval per Section 333 oftheReform Act as each ofthe criteria and relevant factors are fulfilled as follows: 1. Operations will utilize the DJI Phantom 2 Vision and the Phantom 3, which are less then 10lbs, including payload. These sUAS has a proventrack record ofutilization in such inspections and are being used by other companies whichhave already received FAA exemptions. 2. The sUAS DJI Phantom 2 Vision and Phantom 3 will have a maximum speed of 15 knots. 3. The sUAS will not fly higherthen 200 AGL.Page4 4. Operations will only fly onprivate property and only afterreceiving priorpermission from the property owner. The sUAS will not be flown overpublic roadways. 5. Wayne Mutual's sUAS will not carry pilots, passengers, explosive materials or flammable liquids. 6. All operations will be conducted during daylight hours under visual meteorological conditions (VMC). No operations will be conducted at night. 7. The UASs will always be operated within the visual line ofsight (VLOS) ofthe Pilot in command (PIC). The PIC will be unaided by any other device except corrective lenses. 8. All operation will use a Visual Observer (VO). The sUAS will be operated at all times withinthe VLOS ofPIC and VO. The VO and PIC will be able to communicate verbally at all times ofoperation. The PIC will have control ofthe sUAS at all times throughout the duration ofthe flight, and will not transfer control ofthe sUAS to any other person. 9. All documents pertaining to the above discussed operation and exemption will be available and accessible during sUAS operations and will be available to the Administrator uponrequest. 10. Priorto each flight, the PIC will be required to conduct a preflight examination ofthe UAS. The sUAS will be examinedbased onmanufacturing guidelines and by the Applicant's Operations Manual. Ifthe preflight inspectionreveals an issue that will affect the safe operation ofthe sUAS, the aircraft will not be flown. 11. A preflight surveillance ofthe property will be conducted to identify any hazards such as power lines, powerpoles, vehicles, etc. A take offand landing zone will be designated atthe same time. Ifat any time the inspection identifies anundue hazard, the operation will be terminated. 12. The sUAS will not be flown near any other aircraft. 13. All flight operations will be conducted at least 500 feet away from all nonparticipating persons, vessels, vehicles, and structures, unless: (a) Barriers or structures are present that sufficiently protect the non-participating persons from the sUAS and/or debris in the even ofan accident. The PIC will ensure that all non-participating persons remain under suchprotection. Ifa situation arises where non-participating persons leave this protection and come within 500 feet ofthe sUAS, all flight operations will be terminated immediately; (b) The owner/controller ofsuch vessels, vehicles or structures has granted permission for the operation closerto those objects and the PIC has made a safetyPage 5 assessment ofthe risk ofoperating closerto those objects and determined that it does not present an undue hazard. 14. A geo-fence will be enabled onthe sUAS that will limitthe aircraft from leaving the airspace above the propertyto be inspected. Ifat any time the sUAS loses communications or its GPS signal, the Return to Home feature ofthe sUAS will immediatelybe activated. 15. All sUAS that have undergone repairs or alterations ofany kind will be required to undergo a functional test flight priorto use in any further operations. The function test will be conducted bythe PIC away from any person orproperty to eliminate any undue hazard. 16. The Applicant will follow the sUAS manufacturer's aircraft/component, maintenance, overhaul, replacement, inspection, and life limit requirements. Applicant will ensure its sUAS are in a condition ofsafe operation at all times. 17. TheApplicant will comply with all manufacturer Safety Bulletins. 18. The maintenance, inspection, and alteration ofeach sUAS will be recorded inits respective logbook and made available uponrequest. All flight hours and each operation will be recorded inthe logbook as well. 19. All PIC will obtain a private, recreational orequivalent certification. Applicant will also implement a training program designed by a licensed FAApilot as well as a trainer who will have completed an FAA-compliant UAV ground school and who will have obtained a UAV pilot certificationthrough Unmanned Vehicle University, or a similartraining institute. All PIC will also possess a valid US driver's license. As part ofthe training, and priorto any operations, the PIC will be required to have at least 10 hours oftotal time piloting a sUAS. Ofthis time, at least 5 hours will be the piloting ofthe make and model ofthe sUAS to be used inactual operations. 20. Ifoperation needs to occurwithin 5 miles ofan airport, that operattion will only occur ifpermission is obtained from that airport's management priorto inspection. 21. The radio frequency spectrum used for operation and control ofthe sUAS will comply withthe FCC or other appropriate government oversight agency requirements. 22. All flights will be terminated after 15 minutes, orwhen the battery has dropped to 25%power capacity, whichever occurs first. 23. The sUAS will not be operated from any moving device or vehicle.Page6 24. All sUAS will have the Applicant's name and contact information, along with the exemption information, permanently attached to it withmarkings as large as practicable. 25. Any incident, accident, orflight operationthattransgresses the boundaries ofthe operating area as defined by the applicable COA will be reported to the FAA's sUAS Integration Office within 24 hours. Accidents will be reported to the National Transportation Safety Board in accordance with federal regulations.



### 5. WayneMutualInsurance Company requests exemption from the following sections: 14 CFRPart 21, Subpart H- Airworthiness Certificates 14 CFR §45.23(b),- §45.27- Markings 14 CFR §§61.113 (a) and (b);- Private pilot privileges and limitations 14 CFR §91.7(a);- Civil Aircraft Worthiness 14 CFR §91.9 (b) (2);- Civil Aircraft Flight Manual 14 CFR §91.103 (b) (2);

- Preflight action 14 CFR §91.109;- Flight Instruction 14 CFR §91.119(b) and (c);- Minimum safe altitudes 14 CFR §91.121;

- Altimeter settings 14 CFR §91.151(a);- Fuel requirements for flight 14 CFR §91.405(a);- Maintenance required 14 CFR §91.407(a) 1;- Operations after Maintenance, preventative maintenance, rebuilding or alteration. 14 CFR §§91.409(a) (1) and (2);- Inspections 14 CFR §§91.417(a) and (b);- Maintenance Records And any otherreliefas the FAA deems appropriate to enable the requested operations

.



### 6. Specific Response for Exemption A. 14 CFRPart21 SubpartH Subpart H, entitled Airworthiness Certificates, establishes the procedural requirements for the issuance ofairworthiness certificates. Give the size and limited operating area associated with the aircraftto be utilized, an exemption from Part 21, Subpart H, meets the requirements ofan equivalent level ofsafety under Part 11 and Section 333 ofthe Reform Act. The Federal AviationAct and Section 3 3 3 ofthe FMRA both authorize the FAA to exempt aircraft from the requirement for an airworthiness certificate upon consideration ofthe size, weight, speed, operational capability, andthe proximity to airports and populated areas ofthe particularUASs. In all cases, an analysis ofthese criteria demonstrates thatthe sUAS operated without an airworthiness certificate, such as in the proposed environments and underthe conditions set forth inthis exemptionrequest, will be at least as safe, or safer, than conventional aircraft (fixed wingPage 7orrotorcraft) operating with an**airw~rthiness** certificate withoutthe restrictions and conditions proposed. B. 14 CFR §45.23(b)- Display ofmarks; general; 14 CFR §45.27- Location ofmarks This regulation requires markings, in letters no less then 2 inches ormore then 6 inches high, words such as "limited," "restricted", and "experimental," as applicable. Section 45.27 requires that each operator ofa rotorcraft must display onthat rotorcraft horizontally onboth surfaces of the cabin, fuselage, boom, ortail the marks required by section 45.23. Due to the size ofthe sUAS, the 2 inch letterrequired will not be feasible. Furthermore, the sUAS does not have a cabin, cockpit, orpilot station on which to mark any words orphrase. An equivalent level ofsafety will be achieved by having all required words displayed onthe aircraft, as applicable, in letters oflegible size, so that anyone may read the markings. C. 14 CFR §§61.113(a) & (b)- Private Pilot Privileges and Limitations: Sections 61.113(a) and (b) limitprivate pilots to non-commercial operations. Because the sUAS will not carry a pilot orpassengers, the proposed operations can achieve the equivalent level of safety ofcurrent operations byrequiring the PIC operating the aircraftto have aprivate pilot's license, ratherthen a commercial pilot's license, to operate the proposed sUAS. Unlike a conventional aircraft that carries a pilot and passengers, the sUAS is remotely controlled withno living thing onboard. The area ofoperation is controlled and restricted, and all flights will be planned and coordinated in advance. The risks associated withthe operations of the sUAS are so diminished from the level ofrisk associated with commercial operations contemplatedby Part 61 that allowing operations ofthe sUAS as requested with a private pilot, or equivalent, exceeds the present level ofsafety achieved by 14 CFR §§61.113(a) and (b). D. 14 CFR §91.7(a)- Civil Aircraft Worthiness: This regulation requires that a civil aircraft be in airworthy condition to be operated. The FAA has stated that no exemption is required to the extent that the requirement ofPart 21 are waived or found inapplicable. Accordingly, Applicant request that the requirements for Section 91.7 be treated accordingly. E. 14 CFR §91.9(b) (2)- CivilAircraft Flight Manual: This regulation requires that no U.S.-registered civil aircraft operate unless there is available in the aircraft a current and approved airplane orRotorcraft Flight Manual, approved manual material, markings, and placard, or any combination thereof. The sUAS, given its size and configuration, has no ability orplace aboard to carry such a flight manual, not onlybecause there is no pilot onboard, butbecause there is no room or capacity toPage 8carry such an item. The equivalent level ofsafety will be maintained bykeeping the flight manual at the location ofthe PIC to provide for immediate access to it. 

### F. 14 CFR §91.103- PreflightAction: This regulation requires a pilotto become familiar with specific informationbefore each flight, including information contained inthe FAA-approvedFlight Manual onboard the aircraft. While the PIC will be familiar with all informationnecessary to safely conductthe flight, an exemption is requested to the extent that an FAA-approved FlightManual is required. The PIC will take all actions including reviewing weather, battery status, landing and takeoffdistances and aircraft performance databefore initiation offlight. 

### G. 14 CFR §91.109- Flight Instruction: This regulationprovides that no personmayoperate a civil aircraft (except a manned free balloon) that is being used for flight instruction unless that aircraft has fully functioning dual controls. sUAS and remotelypiloted aircraft, bytheir design, do not have fully functioning dual controls. Flight control is accomplished through the use ofa control box orradio transmitter. An equivalent level ofsafe training can still be performed without dual controls because no pilot or passengers are aboard the sUAS, and all persons will be a safe distance away in an eventthat the sUAS experiences difficulties during flight instruction. 

### H. 14 CFR §91.119(b) and (c)- Minimum safe altitudes: This regulation requires safe altitudes ofcivil aircraft over areas otherthan congested areas. An equivalent level ofsafety will be achieved giventhe size, weight, and speed ofthe sUAS, as well as the location where it is operated. In orderto avoid any risk, flight operations will be restricted to 200 AGL or less. The sUAS will be operated in a restricted area, away from persons or structures not involved inthe operation and will only occur withpre-obtained consent. 

### I. 14 CFR §91.121- Altimeter settings: Thisregulation requires a person operating an aircraft to maintain cruising altitude or flight level is reference to an altimeterthat is setto the elevation ofthe departure airport orbarometric pressure. An exemption is requiredto the extent that sUASs do not have a barometric altimeter, butrather a GPS altitude read out. An equivalent level ofsafety will be achieved bythe PIC, who will be operating under 200 AGL, withinthe VLOS, in addition to the GPS-based altitude information relayed inreal time to the PIC.Page 9J. 14 CFR §91.151(a)- Fuel requirements for flight in VFR conditions: This regulationprohibits an individual from beginning a flight in an airplane under VFR conditions unless (considering wind and forecast weather conditions) there is enough fuel to fly to the first point ofintended landing, and assuming normal cruising speed. The batterypowering the sUAS provides approximately 25 minutes ofpowered flight. Applicant believes that an equivalent level ofsafety is achieved by limiting flights to 15 minutes orless, or 25% ofbattery power, whichever happens first. This restriction would be more than adequate to return the sUAS to its planned landing zone from anywhere withinthe limited operating area. K. 14 CFR §91.405(a) Maintenance required; 14 CFR §91.407(a)1 Operations after Maintenance, preventative maintenance, rebuilding or alteration; 14 CFR §§91.409(a)(1) and (2) Inspections; 14 CFR §§91.417(a) and (b) Maintenance Records: These regulations require that an aircraft operator or owner "shall have that aircraft inspected as prescribed in subpart E ofthis part and shall, betweenrequired inspections, except as provided in paragraph (c) ofthis section, have discrepancies repaired as prescribed inpart 43 ofthis chapter

..." and others shall inspect ormaintain the aircraft in compliance withpart 43. Given thatthese sections and Part43 apply onlyto aircraft with an airworthiness certificate, these sections will not apply to the petitioner. An equivalent level ofsafety will be achieved because maintenance and inspections will be performed in accordance with the sUAS Manufacturer's Manual, and will be required in Applicant's Operations Manual. The sUAS are very limited in size and will carry a very small payload and will operate only in a restricted area for a limited time. Ifmechanical issues arise, the sUAS can land immediately as they will be operated from no higherthen 200 AGL. As provided inthe Operations Manual, the PIC will ensure that the sUAS is in working orderprior to initiating flight, will perform required maintenance, and will keep a log ofany maintenance performed. L. Such other reliefas the FAA deems appropriate to enable the requested operations Petitioner also requests exemption from such other FARs as the FAA deems appropriate to enable the requested operations.

7. Privacy The petitionraises no privacy issues as all flights will occur overprivate or controlled access property withthe property owner'spriorknowledge and consent.Page 10 

### 8. PublicInterest The public interest will be served by granting Wayne Mutual Insurance Company's Petition for Exemption. Congress has established a national policy that favors early integration ofsUAS into the NAS in controlled, safe working environments such as those outlined inthis petition. In addition, the public also has an interest in reducing the hazards associated with alternate methods ofconducting similar inspections. Currently inspections are conducted using inspection teams physically climbing onto structures using ladders. Byusing sUAS, an inspector will be able to reduce his or her exposure to physical hazards by conducting the inspection while remaining safely onthe ground. This will also allowthe inspectorto rapidly obtain an accurate assessment ofroofdamage which will result in a faster claims service, as well as facilitating a quicker paymentto the policyholder who can then promptlybegin necessary repairs. Additionally, Wayne Mutual Insurance Company's intended uses for the sUAS have identifiable benefits for its policyholders and the communities it serves. The sUAS work will also aid Wayne Mutual Insurance Company's risk assessment, risk management, loss prevention and underwriting programs. These programs prevent accidents and injuries, and identify needed repairs, and there is a strong public interest in making these programs more effective throughthe use ofsUAS.



### 9. National Security No national security issue is presentedby granting this exemption. Given that the sUAS are exceedingly small and lightweight, have lost-link and geo-fencing capability, will operate at very low speeds, have extremely lowpayload capacity and will carry no flammable, explosive, or otherwise dangerous materials, their operationposes no threat to national security.



### 10. Summary to be published in theFederalRegister Petitioner: Wayne Mutual Insurance Company Sections of 14 CFR that Wayne Mutual Insurance seekan exemption: 14 CFRPart 21, Subpart H- Airworthiness Certificates 14 CFR §45.23(b);- §45.27- Markings 14 CFR §§61.113(a) and (b);- Private pilotprivileges and limitations 14 CFR §91.7(a);- Civil Aircraft Worthiness 14 CFR §91.9(b);- Civil aircraft light manual, marking andplacard requirements 14 CFR §91.103(b) (2);- Preflight action 14 CFR §91.109;- Flight Instruction 14 CFR §91.119(b) and (c);- Minimum safe altitudes 14 CFR §91.121;- Altimeter settings 14 CFR §91.151(a);- Fuel requirements for flight 14 CFR §91.405(a);- Maintenance requiredPage 11 14 CFR §91.407(a) 1;- Operations after Maintenance, preventative maintenance, rebuilding or alteration. 14 CFR §§91.409(a) (1) and (2);- Inspections 14 CFR §§91.417(a) and (b);- Maintenance Records Description of Relief sought: Applicant seeks relieffrom the requirements ofthe above-listed sections so it may conduct small unmanned aircraft systems (sUAS) roofinspections subject to the operating procedures that meet or exceed those that the FAArequires for similaroperations.



### 11. Attachments -Phantom 3 User Manual.

- Phantom 2 Vision+ Manual

- Phantom Pilot Training Guide



### 12. Conclusion Wayne Mutual Insurance Company's Petition for Exemption satisfies the criteria set forth in Section 333 ofthe Reform Act of2012 including the weight, speed, operating capabilities, proximity to airports and populated areas, operation within visual line ofsight and national security. Additionally, the Petition provides more than adequatejustification for the grant ofthe requested exemption to permit Wayne Mutual Insurance Company to operate the selected sUAS for the operations specified herein. Granting the exemptionwill benefit the public interest as a whole in several ways, including (1) significantly improving safety and reducing the risk by alleviating human exposure to danger, and (2) improving the quality ofservices as well as decreasing operating costs. Respectfully,

Wayne Mutual Insurance Company