TO: Pete Eshelman

FROM: David Martin

DATE: May 6, 2004

RE: NCAA Catastrophic Injury Insurance Policy Renewal

This is confirmation that Mutual of Omaha and the NCAA have agreed to a two-year renewal on the NCAA catastrophic policy with the terms below. The deductible for the 2005-06 school year will be determined as soon as possible but no later than August 1, 2004.

Coverage Enhancement

We agree to expand the ?Covered Event? definition in the catastrophic policy, effective August 1, 2004, to allow for conditioning and practices that are authorized, organized, or supervised (including authorized off-campus activities that take place at an approved location). Specifically, the language ?authorized, organized, and supervised? in the Covered Event definition will be updated to ?authorized, organized, or supervised? as requested by the NCAA, with the exception of cheerleading. For cheerleading, this provision will be updated to ?authorized and supervised?.

Coverage Clarification

We also agree to cover student-athletes who have graduated from high school and signed an irrevocable commitment to participate in an intercollegiate sport at a participating school, subject to all other requirements in the policy. We consider this a coverage clarification and not an enhancement. However, we will make a policy change to clarify our responsibility for these types of claims.

Renewal Options

We are pleased that the NCAA has agreed to a two-year renewal with an effective date of August 1, 2004, and including adjustments to the policy terms and conditions noted above in the coverage enhancement and coverage clarification sections and below in the table:

? Mutual of Omaha reserves the right to re-price the 2005-06 school year if there are six or more true catastrophic claims incurred between 12:01am on May 1, 2004 and 12:01am on May 1, 2005. True catastrophic claims will be defined as those receiving disability (full or partial) under the NCAA policy at any time plus those who are amputees because of a covered injury.

? As noted in the table, a cancellation fee will be due if the NCAA cancels coverage on this two-year contract. The cancellation fee will be waived if there are six or more true catastrophic claims incurred between 12:01am on May 1, 2004 and 12:01am on May 1, 2005 because the re-pricing provision would apply in that case.

? All other policy terms and conditions are the same as under the current program.

Recommendation of Executive Committee Finance Committee:

Option 2

ATTACHMENT