5. Public Interest

Petitioners state that the proposed Interim Plan both assures the public protection mandated by the Commission and the flexibility necessary to ensure that responsible balloon companies can continue to operate. They state that the Interim Plan will only be available to balloon companies that adhere to high safety standards.

According to Petitioners, statistics show that California balloon operators have safety records better than national averages. According to FAA records, there have been only 37 ballooning accidents in California since 1983. Since January 1, 2000, the National Transportation Safety Board reported only three accidents in all of California. Under the proposed Interim Plan, Petitioners state, safety is likely to improve even more, since only the most responsible operators will be permitted to operate legally.

The Interim Plan requires that only insurance companies meeting specified criteria may provide the necessary liability protection. Petitioners state that insurance companies meeting these criteria do exist, and will provide insurance to Petitioners.

For example, Petitioners state that a New Zealand company, Contractor's Bonding Limited (CBL), through the Schantz Agency and National Program Management, currently provides balloon insurance to about 30% of the balloons operated in the United States and is willing to write liability policies for California balloonists at the same levels it offers in the rest of the country. Petitioners state that CBL is a financially secure company with $19 million in current assets and has a financial strength equivalent to highly rated U.S. insurance carriers. Petitioners state that IMC also has indicated that it will be interested in selling liability insurance to California balloonists if GO 120-C requirements are amended. IMC's current underwriter, Tudor, is a financially secure company rated A+ Best and with a Best financial size category of VII, meaning that Tudor has between $50 million and $100 million in capital, surplus, and conditional reserves.

Accordingly, Petitioners state, if the Interim Plan is approved there are likely at least two, and perhaps more, financially sound insurers that will be offering liability insurance to California commercial balloonists.