Former USC player files lawsuit against Lloyd’s over insurance policy

football insurance policy

Marqise Lee had been a first round 2014 NFL draft prospect ahead of the college football season in 2013.

Marqise Lee, a former wide receiver from the University of Southern California (USC) is suing over an insurance policy after having been injured in the 2013 college football season, during which he had been considered to be a first round prospect for the 2014 National Football League (NFL) draft.

During that season, the player was held back by a knee injury and dropped to the 2014 draft’s second round.

Finally, the Jackson Jaguars selected him at the 39th pick. Ahead of the 2013 college football season, Lee purchased a loss of value insurance policy with Lloyd’s of London in order to protect his draft status. That insurer is now being sued as Lee claims that it owes him money due to the fact that his injury caused him to plummet in the draft. The policy that he purchased from the insurance company was meant to give him a guarantee of the difference between his rookie NFL contract and an established baseline of $9.6 million (up to a maximum of $5 million).

The lawsuit over the insurance policy has to do with the fact that his Jacksonville deal is for $5,175,016.

football insurance policyAt the time of the purchase of the loss of value insurance, Lee underwent a physical exam and completed a detailed medical questionnaire. Two weeks after the draft pick, he filed a claim for the $4.525 million difference that he had experienced when he was picked, including a proof of loss form as well as extensive medical data records that detailed the treatment of his knee throughout the 2013 USC Trojans football season.

That said, Lloyd’s of London refused to pay the amount because it claims that Lee had withheld medical information at the time of the purchase of the loss of value policy. It stated that this information would have caused the Lloyd’s of London insurance company to void the coverage and provide Lee with a refund of his $95,000 premium. Lee had taken out a loan against his future earnings in order to pay the premium, which is allowed under the regulations of the NCAA.

The reason that Lloyd’s claims that the insurance policy should have been voided was that early in the 2013 season, Lee sprained his medial collateral ligament (MCL), which is a part of the knee joint, and he sat out for three games.

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