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Saturday, August 09, 2014
 
Loss of Value Insurance: 3 Questions

Following the news that Florida State paid for the premium for Jameis Winston's loss of value insurance policy, and the wonderful law review article titled "Insurance Coverage for Elite Student-Athletes" by Jill Weiber Lens and Josh Lens (Baylor University) a few questions to ponder:
  1. Will the NCAA restriction on allowing college athletes to borrow off their future earnings to cover the premiums for loss of value policies change in light of the O'Bannon case and recent NCAA autonomy vote?
  2. If schools are allowed to cover the premiums of loss of value insurance policies via the Student Assistance Fund (SAF), doesn't that lead to potential problems down the road? For example, conferences manage their own SAFs and authorize expenditures by its members. Thus, the ACC granted Florida State permission to help Winston. The problem is that the ACC's SAF is a limited fund--let's say $350,000 and these premiums are approximately $60,000. How many ACC athletes should get protection.....and who decides?
  3. Has anyone mentioned Florida State's payment of Winston's premium to the IRS? Doesn't a $60,000 payment trigger taxable income?





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