Exceptional Student-Athlete Disability Insurance Program

In October 1990, a disability insurance program was initiated for exceptional student-athletes at National
Collegiate Athletic Association (NCAA) institutions in the sports of football and men’s basketball. In April
1991, the program was expanded to include exceptional student- athletes in the sport of baseball. In June
1993, exceptional student-athletes in men’s ice hockey became eligible for the program. Coverage
became available for exceptional student-athletes in the sport of women’s basketball in August 1998.

The program enables qualifying student-athletes, as approved by the program administrator, to purchase
a disability insurance contract with pre-approved financing, if necessary. This program will provide the
student-athlete with the opportunity to protect against future loss of earnings as a professional athlete
due to a disabling injury or sickness that may occur during the collegiate career.
Eligible student-athletes

Student-athletes with remaining athletics eligibility at NCAA institutions in the sports of intercollegiate
football, men’s or women’s basketball, baseball, or men’s ice hockey, who have demonstrated they have
professional potential to be selected in the first two rounds of the upcoming National Football League or
National Hockey League draft or the first round of the upcoming draft of the National Basketball
Association, Major League Baseball or Women’s National Basketball Association, are eligible for this
program.
Application process

Only inquiries received directly from student-athletes, parents or legal guardians of student-athletes, or
institutional representatives will be processed by the administrator under this program.

To obtain a quote, an Application Form must be completed in full and returned to the administrator. If
approved, a premium quote will be prepared and returned, along with financing information and
additional health-related questionnaire forms. In order to accept a quote and for coverage to become
effective: (1) the application and health forms must be fully completed accurately and truthfully and
returned to the administrator, and (2) the promissory note must be signed and returned to the bank. For
further information, please contact the program administrator, Tokio Marine HCC – Specialty Group, 401
Edgewater Place, Suite 400, Wakefield, Massachusetts 01880; telephone: 800/927-6306; fax: 781/994-
6001.
Premium financing

Student-athletes approved for this program are automatically eligible for a loan, if necessary, through U.S.
Bank, N.A., Sports Division, in Nashville, TN. The interest rate is very competitive and a co-signer is not
required. The student-athlete is obligated to repay the loan in full when any of the following occurs: (1)
the student-athlete signs a professional contract, (2) the disability benefits becomes available due to a
covered injury or sickness or (3) the coverage is no longer in effect and the loan note matures.
Available coverage

The Exceptional Student-Athlete Disability Program offers a permanent total disability (PTD) policy. A 24-
month maximum policy term is available for any underclassman 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.
Permanent Total Disability (PTD) form
The PTD policy would provide a lump sum payment after the elimination period has expired. The
elimination period for the PTD option is 12 (twelve) consecutive months from the date total disability has
been determined. To be eligible for benefits, it must be medically determined, at the end of the
elimination period and before the benefit is paid, that the insured student-athlete will never be able to
participate in his or her sporting activity, at the professional level.
Elimination period

An elimination period is an interval of time during which no benefits are payable to the insured student-
athlete in order to determine the nature of the disability. The elimination period commences from the
date the injury or sickness resulted in total disability.
Presumptive disability benefit

The PTD policy includes presumptive disability coverage. Presumptive disability means that the insured
student-athlete’s disability has been medically determined to be the result of (a) entire and irrecoverable
loss of sight of both eyes or hearing in both ears, or (b) total and irrecoverable loss of use of one hand or
one foot, or (c) quadriplegia, or (d) paraplegia; thus preventing him or her from ever participating in his
or her sporting activity at the professional level.

After the expiration of a 90 consecutive calendar day elimination period (from the first day of total
disability), at the option of the insured student-athlete and with the approval of the Company,
outstanding benefits may be commuted to present value lump sum at a rate agreed upon by the Company
and the insured student-athlete.
Maximum coverage limits and premiums

The program administrator determines the amount of coverage available for each student-athlete based
upon his or her prospective status in the upcoming draft. Rates per thousand dollars of coverage will be
based on the market at the time individual applications are reviewed by the program administrator.
Applicants will receive notification of the amount of coverage offered with a statement of prevailing rates
for sport and position, and calculations of maximum annual premium. Maximum coverages available
under the program are:

Men’s Basketball $10 million

Football $10 million

Baseball $5 million

Men’s Ice Hockey $3 million

Women’s Basketball $250,000

*Exceptional Student-Athletes in other sports not listed above, who have demonstrated a strong
likelihood of a professional career in their sport, may be eligible for coverage under the ESDI Program,
and can be reviewed on a case by case basis.
In addition, an accidental death (AD) only benefit is included with the PTD coverage. The AD benefit will
match the amount of the premium on the coverage. Additional accidental death (AD) coverage is available
up to the maximum PTD amount, for an additional premium.
Definition of disability

The condition of disability can be determined when the following criteria have been met:

The student-athlete’s disability results from an injury or sickness,

The student-athlete’s injury or sickness occurs while the policy is in force,
The student-athlete is under the regular care of a qualified physician,
The student-athlete is unable to engage in sporting activity at the professional level,
The applicable elimination period has elapsed, and
The student-athlete’s total disability prevents him or her from signing any employment contract with
any professional team as a professional athlete in his or her sporting activity.

Eligibility of benefits

If an insured student-athlete is disabled due to injury or sickness or suffers accidental loss of life, written
notice of the claim should be submitted to the program administrator within 90 days of the occurrence of
the injury, sickness or accidental loss of life. Under the policy, a student-athlete’s disability cannot be
determined until the elimination period has elapsed. Once the elimination period has been satisfied, and
a qualified physician has determined that the condition of continuous total disability exists; then, benefits
are payable in accordance with the policy provisions.
Policy

A master policy has been filed and approved by the appropriate insurance departments. All student-
athletes enrolled and accepted under the program will be issued a certificate of insurance outlining the
coverage and conditions. Specimen certificates are available through the program administrator by calling
800/927-6306.
Insurance company

Three subsidiaries of Tokio Marine HCC are the insurers of this program and are responsible for the
investigation and settlement of claims. HCC Life Insurance Company, U.S. Specialty Insurance Company or
Avemco Insurance Company will underwrite coverage, depending upon the state of issue. All companies
have a rating of A+ (Superior) by A.M. Best for financial strength and operating performance. Additional
company profile and financial strength can be found at www.hcc.com/about.
Program administrator

Tokio Marine HCC – Specialty Group, specializing in the development and management of sports-related
disability insurance programs, serves as the program administrator.

The descriptions above are general summaries of the benefits provided by the Exceptional Student-
Athlete Disability Insurance Program. They are not meant to be a complete explanation of all the
provisions of the policy or the specific benefits. No coverage is extended and no representations are made
except by the policy.

If you have questions regarding either of these programs please contact Juanita Sheely, Director of Travel
and Insurance at 317-917-6222, or by e-mail at jsheely@ncaa.org.