Reality
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What do these policies cost?
A rule of thumb is about $10,000 for every $1 million in coverage. Previously, the NCAA helped secure a loan for the premium, which would be paid by the player's family, but a couple of years ago, that changed when it was discovered that schools were allowed to take out the policies themselves. Sources said that Clemson took out a policy for Watson through International Specialty Advisors, which has established itself as the leader in the space, especially when it comes to offering loss of value.
How often do players collect?
Not too often on total disability. It has happened only a handful of times in the past 15 years. Loss of value collection has occurred more often. Players who have collected over the years included Olomu and Jaylon Smith, who will collect a lump sum of $900,000 after slipping in this year's draft. In March 2015, USC wide receiver Marqise Lee sued his insurer, Lloyd's of London, when he slipped in the 2014 draft, claiming he was owed $4.5 million, but Lloyd's argued that at the time he signed his policy, Lee had an injury that he didn't disclose. The two sides agreed to settle the case for an undisclosed amount this May.
http://www.espn.com/college-footbal...l-insurance-policies-big-complicated-business
A rule of thumb is about $10,000 for every $1 million in coverage. Previously, the NCAA helped secure a loan for the premium, which would be paid by the player's family, but a couple of years ago, that changed when it was discovered that schools were allowed to take out the policies themselves. Sources said that Clemson took out a policy for Watson through International Specialty Advisors, which has established itself as the leader in the space, especially when it comes to offering loss of value.
How often do players collect?
Not too often on total disability. It has happened only a handful of times in the past 15 years. Loss of value collection has occurred more often. Players who have collected over the years included Olomu and Jaylon Smith, who will collect a lump sum of $900,000 after slipping in this year's draft. In March 2015, USC wide receiver Marqise Lee sued his insurer, Lloyd's of London, when he slipped in the 2014 draft, claiming he was owed $4.5 million, but Lloyd's argued that at the time he signed his policy, Lee had an injury that he didn't disclose. The two sides agreed to settle the case for an undisclosed amount this May.
http://www.espn.com/college-footbal...l-insurance-policies-big-complicated-business
There's a forum for stuff like this...... and its not here.
