New York-based insurance company
AIG has announced that it has stopped insuring NFL players against head injuries,
New York Post reported.
A few years ago, the company had stopped its head injury coverage for Pop Warner, the country’s largest youth football league. K&K Insurance has since stepped in to replace AIG as Pop Warner’s insurer.
Despite discontinuing its insurance policy with the NFL, AIG remains an ardent supporter of USA Football—a nonprofit created by the NFL to dampen the fears of concussions among young football players. AIG is one of the major sponsors of USA Football’s 2016 Protection Tour. The tour is aimed at players aged 7 to 14, to teach them tackling techniques and proper helmet fit, among other safety measures.
AIG’s support for USA Football despite its refusal to cover for head injuries has been labeled contradictory by critics.
“My initial thought is that this is very misleading. It’s false advertising,” said risk management expert Kimberly Archie. “You are putting your name on something you will not insure.”
The insurer’s discontinuation of its head injury coverage follows its legal action against the NFL. AIG joined other insurers in opposing the sport league’s $1 billion concussion settlement.
The settlement came before a court could be determined if the NFL committed fraud by hiding the dangers of repeated head injuries from its players. Insurers, including AIG, asserted that they are not obligated to pay for the settlement if it was found that the league violated the law.
The insurers, suing in New York State Supreme Court, reasoned that they should not be held liable for paying for the settlement as the NFL covered up the dangers of concussions even from them.
AIG continues to issue policies to the NFL that cover non-brain-related injuries.
RELATED STORIES:
Insurance companies fight back against NFL’s $1B concussion settlement
