ANSWER: §_61.23(b)(5); Yes, in accordance with §_61.23(b)(5), a flight instructor who does not hold a medical certificate may give flight and ground training and be compensated for it. In the preamble of the parts_61 and 141 final rule that was published in the Federal Register on April_4, 1997 (62_FR_16220-16367) when the FAA revised the entire Part_61, the FAA stated the following in the Federal Register on page_16242 in response to whether a medical certificate is required for a flight instructor to give ground and flight training:
“ With respect to the holding of medical certificates by a flight instructor, the FAA has determined that the compensation a certificated flight instructor receives for flight instruction is not compensation for piloting the aircraft, but rather is compensation for the instruction. A certificated flight instructor who is acting as pilot in command or as a required flight crewmember and is receiving compensation for his or her flight instruction is only exercising the privileges of a private pilot. A certificated flight instructor who is acting as pilot in command or as a required flight crewmember and receiving compensation for his or her flight instruction is not carrying passengers or property for compensation or hire, nor is he or she, for compensation or hire, acting as pilot in command of an aircraft . . . . In this same regard, the FAA has determined that a certificated flight instructor on board an aircraft for the purpose of providing flight instruction, who does not act as pilot in command or function as a required flight crewmember, is not performing or exercising pilot privileges that would require him or her to possess a valid medical certificate under the FARs.”