NCAA-SPONSORED GROUP BASIC ACCIDENT MEDICAL PROGRAM

The NCAA is establishing a Group Basic Accident Medical Program for the 2006-07 school year. The purpose of this insurance program will be to initiate a long term, stable athletic insurance program that will insure and manage accident medical expenses from athletic-related injures within the deductible of the NCAA Catastrophic Injury Insurance program.

About the NCAA-Sponsored Group Basic Accident Medical Program

The NCAA-sponsored program will initially include approximately 25 to 30 member institutions. The benefits of this group approach will be:

Ø Developing best practice risk management and claims management protocols to reduce costs over time.

Ø Reducing program expenses on a group basis.

Ø Mitigating the effect of medical inflation.

Ø Creating a stable, long-term solution to financing medical expenses within the catastrophic deductible.

Ø Commitment by the NCAA of financial resources to facilitate program development.

The roll-out of the program will include three phases: Phase I - Establish Initial Group of Member Institutions, Phase II - Program Acceptance and Phase III - Program Implementation.

NOTE: The initial group will be limited to 25 to 30 member institutions. It is important to start with a small, dedicated group to properly manage innovative approaches to controlling costs. The NCAA reserves the right to select those participants that it deems the best fit for the initial group. However, we are committed to selecting a representative sample of the membership from all three divisions. The group will be expanded to other member institutions who would agree to comply with the program protocols, in subsequent years.

To be considered for inclusion in the initial group, the member institution must meet the following qualifications:

1. Have a 4-year history of purchasing fully insured basic accident medical insurance for student-athletes;
2. Be able to provide 4 years of credible, detailed loss information;
3. Be able to provide detailed coverage and limit information for the last 4 years' policies (preferably the policies themselves);
4. Be able to provide detailed information on sports sponsorship and participation;
5. Be willing to participate in risk management programs and initiatives designed to better control claims costs, protect insurability and stabilize premium over the long-term; and
6. Authorize the NCAA's insurance advisor to serve as your exclusive insurance administrator with respect to your participation in the group.

Note: Indicating your interest to participate in the initial group does not in any way preclude you from seeking individual renewal insurance proposals from your broker or insurer. Seeking other proposals will provide you with an alternative in the event the group program is not implemented for 2006-07.