Injury to college athlete can eliminate hope of pro career (excerpt)

Promising pro sports careers can be abruptly ended by catastrophic injury--and no organization is more aware of the problem than the National Collegiate Athletic Association (NCAA). Addressing the problems associated with a career-ending injury, the NCAA offers two insurance programs designed to protect the student-athlete in the event of crippling injury. "The first," says Juanita L. Sheely, NCAA travel and insurance coordinator, "is the Exceptional Student-Athlete Disability Insurance (ESDI) Program. The second, the Catastrophic Injury Insurance Program, has been in place in its current form since the early 1990s. Eligibility in the ESDI program is limited to those athletes who have demonstrated they have professional potential and are projected to be selected in the [earliest rounds of NFL, NHL, NBA, WNBA or MLB) drafts.

"Once the review process is complete," Thompson explains, "applicants will receive notification of the amount of coverage offered with a statement of prevailing rates for sport and position." The maximum coverages available under the ESDI program are: men's basketball, $4.4 million; football, $3.0 million; baseball, $1.5 million; men's ice hockey, $1.2 million; and $250,000 for women's basketball.

Protecting future earnings

Participation in the program enables qualifying student-athletes, as approved by the program administrator, to purchase disability insurance contracts with preapproved financing, if necessary. It thus gives the participant the opportunity to protect against future loss of earnings as a professional athlete, due to a disabling injury or sickness that may take place during his or her collegiate career. ESDI offers a permanent total disability (PTD) policy. A 24-month maximum policy term is available for any underclassman/woman eligible for the program. The policy provides 24-hour accident and sickness coverage, which includes playing and practicing in the student-athlete's respective sport.

While the student-athlete with professional potential is covered under the ESDI program, what about the 360,000 student-athletes who participate in intercollegiate sports and will never make it to the pros? "For these student-athletes at active member institutions, they are automatically covered under the Catastrophic Injury Insurance Program," says Sheely. "This program provides coverage for the student-athlete who is catastrophically injured while participating in a covered intercollegiate athlete activity. This includes all NCAA-regulated sports." The policy has a $65,000 deductible and provides benefits in excess of any other valid and collectible insurance.

"Claims are submitted to our program administrator, ASU, which subsequently informs the underwriter, Mutual of Omaha," Sheely says. "In the next step a nurse case manager is assigned to the claim by Mutual of Omaha. The case manager will work with the family, school and any other stakeholder to ensure the student-athlete is receiving everything he or she needs."