NCAA LSDBi

Division I Proposal - 2014-12

AUTONOMY PROPOSAL -- AMATEURISM AND AWARDS, BENEFITS AND EXPENSES -- EXCEPTIONS TO AMATEURISM RULE -- BENEFITS, GIFTS AND SERVICES -- INSURANCE AGAINST LOSS OF VALUE

Status: Adopted Final

Intent: To specify that an individual may borrow against his or her future earnings potential from an established, accredited commercial lending institution for the purpose of purchasing loss-of-value insurance, provided a third party (including a representative of an institution's athletics interests) is not involved in arrangements for securing the loan.

A.    Bylaws: Amend 16.11.1.4, as follows:

16.11.1.4 Insurance Against Disabling-Injury Insurance or Illness, or Loss of Value. [A] A student-athlete may borrow against his or her future earnings potential from an established, accredited commercial lending institution, exclusively for the purpose of purchasing insurance (with no cash surrender value) against a disabling injury or illness that would prevent the individual from pursuing his or her chosen career or for the purpose of purchasing loss-of-value insurance, provided a third party (including a representative of an institution's athletics interests) is not involved in arrangements for securing the loan.  However, an institution's president or chancellor (or his or her designated representative from outside the athletics department) may designate an institutional staff member (or staff members) (e.g., professional sports counseling panel) to assist a student-athlete with arrangements for securing the loan and insurance.  The institution shall retain copies of all documents related to loan transactions and insurance policies, regardless of whether the institution is involved in the arrangements. [R] 

B.    Bylaws: Amend 12.1.2.4.4, as follows:

12.1.2.4.4 Exception for Insurance Against Disabling Injury or Illness, or Loss of Value. [A] An individual may borrow against his or her future earnings potential from an established, accredited commercial lending institution exclusively for the purpose of purchasing insurance (with no cash surrender value) against a disabling injury or illness that would prevent the individual from pursuing a chosen career or for the purpose of purchasing loss-of-value insurance, provided a third party (including a representative of an institution's athletics interests) is not involved in arrangements for securing the loan.  However, an institution's president or chancellor (or his or her designated representative from outside the department of athletics) may designate an institutional staff member (or staff members) (e.g., professional sports counseling panel) to assist a student-athlete with arrangements for securing the loan and insurance.  The institution shall retain copies of all documents related to loan transactions and insurance policies, regardless of whether the institution is involved in the arrangements.  

Source: Atlantic Coast Conference

Effective Date:Immediate

Proposal Category: Amendment

Topical Area: Amateurism

Rationale: Currently, a student-athlete is permitted to borrow against his or her future earnings to purchase disability insurance but may not do so for a loss-of-value insurance policy. It has become more common for loss-of-value insurance to be a desirable option for a student-athlete. Some institutions have chosen to purchase such policies using the NCAA Student Assistance Fund. Permitting a student-athlete to borrow against future earnings to pay for such a policy is a logical extension of a current practice to a recently developed product and supports student-athlete well-being. It may also preserve the Student Assistance Fund to be used more broadly for all student-athletes. Finally, permitting such a practice may encourage a student-athlete to remain in college and achieve, or get closer to achieving, the ultimate goal of obtaining a college degree.

Estimated Budget Impact: None.

Impact on Student-Athlete's Time (Academic and/or Athletics): None.

History

Dec 1, 2014: Submit; Submitted for consideration.
Dec 15, 2014: Comment Period; Start of Comment Period
Jan 12, 2015: Comment Period; End of Comment Period (Official Comment Totals: Support = 2, Oppose = 0, Abstain = 0)
Jan 17, 2015: Adopted; Adopted - Final

Legislative References

Division Number Title
I 12.1.2.4.4 Exception for Insurance Against Disabling Injury or Illness, or Loss of Value.
I 16.11.1.4 Insurance Against Disabling-Injury or Illness, or Loss of Value.
References