From the July 7, 1993 issue of the NC$$ News:
"The nations top collegiate men's ice hockey players now can insure themselves
through the Exceptional Student-Athlete Disability Insurance Program against
an injury that would limit their future professional earnings.
Under the program, student-athletes at NC$$ member institutions who are
projected to be chosen in the first round of the National Hockey League draft
may be eligible for up to $750,000 in disability coverage.
The program will continue to provide coverage to eligible student-athletes
projected to be selected in the first round of the National Basketball
Association draft (up to $2.7 million), the first two rounds of the National
Football League draft (up to $1.8 million) or the first round of the Major
League Baseball draft (up to $900,000).
Currently, the program covers 45 student-athletes -- 20 in basketball, three
in baseball, and 22 in football.
Depending on the type of coverage selected, athletes would receive benefits if
an injury or sickness temporarily or permanently prevents participation in the
normal activities of their sport. They may apply for one of two types of
coverage: permanent total disability (PTD) and temporary total disability
(TTD). A qualified student-athlete will be eligible for only one type of
coverage.
The PTD coverage, which was added this summer, provides up to five equal
installment benefit payments over a 30-month period to a student-athlete who
will not be able to participate in his sport for at least three consecutive
years. Benefit payments would start six months after the athlete was injured.
Under the TTD coverage, monthly payments would begin one year after the injury
occurred and continue for up to 36 months, as long as the athlete remained
disabled. To be eligible, a student-athlete must be unable to participate in
his stated sport as a professional at that time, not forever.
Both policies provide 24-hour accident and sickness coverage, including
injuries while playing or practicing in the respective sport, and a $10,000
accidental-death benefit.
Maximum premiums vary from approximately $5,000 to nearly $25,000, depending
on the sport, position played and type of coverage (PTD or TTD) selected.
Through an agreement between the NC$$ and United Missouri Bank of Kansas City,
student-athletes approved for coverage automatically qualify for a loan --
without a co-signer -- to pay the premium. The loan, which will be issued at a
competitive and set rate, is repaid when the athlete signs a professional
contract or when he receives benefits under the policy due to a disabling
injury.
Many collegiate athletes attempt to purchase similar coverage on their own but
find it difficult to afford, and local banks are reluctant to lend them money
without cosigners. By providing this coverage with automatic loan approval,
the NC$$ is hoping to help athletes avoid unscrupulous agents who lure top
draft choices by promising to pay for disability insurance.
The Federal Insurance Company, a member of the Chubb Group of Insurance
Companies, is the insurer of the program and is ultimately responsible for
determining who qualifies for coverage. The program is administered by
American Speicialty Underwriters, which will receive and process
student-athletes' application for coverage.
Brochures describing the program will be mailed this summer to Division I
athletics directors and head football, basketball, baseball, and ice hockey
coaches. Chairs of career counseling panels and conference comissioners also
will receive copies of the brochure.
Initial inquiries about the program and requests for information should be
directed to Michael S. McNeely, NC$$ director of operations, at 913-339-1906,
extension 7738.
<<End of quoted material>>
Craig Cheslog
Bowdoin College Sports Information Intern
Home of the 1993 ECAC East Champions
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