So does Ginn and Stewart get that insurance in case of injury?

[Tbonewannabe]

I am not sure how that insurance works but I know schools are able to take out insurance in case they get hurt and not drafted as high. I wonder if it is based on the actual offer they received from MLB or is it just on draft slot? Could Stewart get this insurance if he came to MSU since he has an injury?

[ShotgunDawg]

Yes, but I'm not sure Stewart's wrist could be covered since it's a pre-existing injury

[Really Clark?]

I am not sure how that insurance works but I know schools are able to take out insurance in case they get hurt and not drafted as high. I wonder if it is based on the actual offer they received from MLB or is it just on draft slot? Could Stewart get this insurance if he came to MSU since he has an injury?

They absolutely do not cover preexisting injuries. And if another injury happens as of a result of the preexisting injury, they will fight paying that, which I would as well. And I can’t recall a baseball player getting the insurance with diminished value? MLB draft is way too big, volatile and random to accurately build a risk assessment model

[Commercecomet24]

Yes on JT not sure on Stewart but as the others have said it won't cover pre existing

[TaleofTwoDogs]

The policy owner would probably be the parents not MSU. It is getting difficult to find an underwriter for sports policies and only a handful of insurance companies would take the risk. Very expense premiums would be involved as well.

[Tbonewannabe]

The policy owner would probably be the parents not MSU. It is getting difficult to find an underwriter for sports policies and only a handful of insurance companies would take the risk. Very expense premiums would be involved as well.

I think the way it works is the NCAA allows the school to pay the premium and the athlete is the policy owner. I know this has been done in football, I just wasn't sure if it was the same for baseball.

[Bully13]

They absolutely do not cover preexisting injuries. And if another injury happens as of a result of the preexisting injury, they will fight paying that, which I would as well. And I can’t recall a baseball player getting the insurance with diminished value? MLB draft is way too big, volatile and random to accurately build a risk assessment model

Not in the insurance industry per say but I've always read and been told that insurance actuaries are the best bean counters anywhere.

[Really Clark?]

Not in the insurance industry per say but I've always read and been told that insurance actuaries are the best bean counters anywhere.

Yes in general that’s true but they generate profits a multiple of ways. A lot of then expertly invest their monies as well. Heck Warren Buffet founded Berkshire Hathaway Ins Co just to have more investment capitol to use.

With this type of specialty insurance though it’s got be based on the premiums generated mostly though. I think most are around $10,000+ in premium per year per $1MIL in coverage for injuries and the loss of value coverage would be the same premium per coverage.

[msbulldog]

Yes in general that’s true but they generate profits a multiple of ways. A lot of then expertly invest their monies as well. Heck Warren Buffet founded Berkshire Hathaway Ins Co just to have more investment capitol to use.

With this type of specialty insurance though it’s got be based on the premiums generated mostly though. I think most are around $10,000+ in premium per year per $1MIL in coverage for injuries and the loss of value coverage would be the same premium per coverage.

Wow thats a lot of premium, so JT would be $20,000+/year to cover his slot value.

[Tbonewannabe]

Wow thats a lot of premium, so JT would be $20,000+/year to cover his slot value.

If it is like football, the school pays the premium. I have only found one instance where insurance was even paying out the policy. I can't remember the player but it is an inclusion in the policy which was he would be drafted in a comparable position in the 2nd round so it wasn't even for the exact amount. It was also football so it was the NFL estimation and not like MLB where it was the actually drafted position.

[Really Clark?]

Wow thats a lot of premium, so JT would be $20,000+/year to cover his slot value.

More than that, you can’t buy just a loss of value policy. An injury has to trigger both policy’s so you have to have an injury policy. Assuming $2MIL slot value you are looking at $40,000+ in premiums per year. But I don’t think I’ve ever heard of a baseball player getting a loss value policy.

[Really Clark?]

If it is like football, the school pays the premium. I have only found one instance where insurance was even paying out the policy. I can't remember the player but it is an inclusion in the policy which was he would be drafted in a comparable position in the 2nd round so it wasn't even for the exact amount. It was also football so it was the NFL estimation and not like MLB where it was the actually drafted position.

Not all schools do pay. They can or you can also take out a loan to spread out the premium amount and schools help set that up. But a lot of schools have paid that in the past but they are not going to start paying premiums for a ton of athletes across multiple sports or incoming freshman.

They have been several of those policies paid out. I think Jaylon Smith got a settlement but Miles Jack didn’t because he didn’t fall below the threshold. You can’t collect unles you fall below a predetermined draft spot. Jack had to fall past the 45th spot.

[Tbonewannabe]

Not all schools do pay. They can or you can also take out a loan to spread out the premium amount and schools help set that up. But a lot of schools have paid that in the past but they are not going to start paying premiums for a ton of athletes across multiple sports or incoming freshman.

They have been several of those policies paid out. I think Jaylon Smith got a settlement but Miles Jack didn’t because he didn’t fall below the threshold. You can’t collect unles you fall below a predetermined draft spot. Jack had to fall past the 45th spot.

I knew there was a predetermined threshold, I imagine you could get a cheaper policy by moving the threshold out farther. I thought it was Jaylon Smith but couldn't remember who exactly it was. I believe Love for Stanford has gotten a policy for coming back for his senior year but I am not 100% sure.

[Bully13]

Yes in general that’s true but they generate profits a multiple of ways. A lot of then expertly invest their monies as well. Heck Warren Buffet founded Berkshire Hathaway Ins Co just to have more investment capitol to use.

With this type of specialty insurance though it’s got be based on the premiums generated mostly though. I think most are around $10,000+ in premium per year per $1MIL in coverage for injuries and the loss of value coverage would be the same premium per coverage.

So the premiums are not invested by the institution taking on the risk? never heard of that before if that is what you are saying here. Those premiums seem awful high compared to the risk they are covering. I would like to see the stats on how much those carrying the risk have had to pay out when injuries occur. Being in the mortgage business, I've always thought title insurance premiums are extremely high because I've never seen where the huge risk to the lender actually was. I'm sure there are on occasion hidden liens that the title search missed but I'd be willing to bet it's not that common. who knows, I may be wrong. I do know for a fact though that the title companies play the role of the agent with these policies and that is where the bulk of their profits come from. They make a shit load of $ playing the role of the agents on this stuff.

[Really Clark?]

So the premiums are not invested by the institution taking on the risk? never heard of that before if that is what you are saying here. Those premiums seem awful high compared to the risk they are covering. I would like to see the stats on how much those carrying the risk have had to pay out when injuries occur. Being in the mortgage business, I've always thought title insurance premiums are extremely high because I've never seen where the huge risk to the lender actually was. I'm sure there are on occasion hidden liens that the title search missed but I'd be willing to bet it's not that common. who knows, I may be wrong. I do know for a fact though that the title companies play the role of the agent with these policies and that is where the bulk of their profits come from. They make a shit load of $ playing the role of the agents on this stuff.

Oh goodness, on title insurance you can have a mess even on a newly built home...it’s the land and land issues...have all of the land property owners been identified...has city zoning changed...good grief the number of incorrect surveys and improper documented land deeds...and the title insurance follows to your beneficiary after death so you talking a premium that may be over 50 years of coverage. What if you have estate tax lien after death? That covers that as well. Forced Removal of structure built after the insurance because of no or improper building permits. All kinds of issues but it’s mostly because of land and land ownership issues.