Advertisement

Former USC receiver Marqise Lee suing over insurance policy

Marqise Lee was considered a first round prospect in the 2014 NFL draft before the 2013 college football season.

However, the former USC wide receiver was hampered by a left knee injury throughout the season and fell to the second round of the 2014 draft. He was selected by the Jacksonville Jaguars with the 39th pick.

Before the season, he took out a loss-of-value insurance policy on his draft status with Lloyd's of London. And now he's suing the insurance company, saying it owes him money after his fall in the draft.

From the Orange County Register:

The policy guaranteed him the difference between his rookie NFL contract and a $9.6 million baseline – up to $5 million. Lee’s four-year deal with Jacksonville is worth $5,175,016.

Lee submitted a detailed medical questionnaire and physical exam when he procured the policy. When he sought to collect on the claim for the $4.525 million difference, two weeks after draft day, he filed a proof of loss form, including more than two dozen pages of medical data that show his knee was treated throughout the Trojans’ 2013 season.

Lloyd's counters that Lee withheld medical information that would have voided the policy and that it's refunded him the nearly $95,000 premium he paid for it. The premium was paid for by a loan Lee took out against his future earnings. Yes, that's permissible under NCAA regulations.

Lee sprained his MCL early in the 2013 season and missed three games. And when he came back, he wasn't entirely healthy. He finished the season with 57 catches for 791 yards and six touchdowns. In 2012, he had 118 catches for 1,721 yards and 14 scores.

According to the OC Register, another former USC player, Morgan Breslin, is also suing about his $1 million policy.

Before he tore his ACL during the 2014 season, Georgia upped the insurance policy taken out for RB Todd Gurley. His $10 million policy had $5 million for total disability and included a $5 million loss-of-value clause. While Gurley's injury is different – it caused him to miss the rest of the season and he will likely make a full recovery before he returns to a football field – Lee should be a good example of why Gurley may never collect, at least fully, on the clause if he drops out of the first round in the 2015 NFL draft.

And if Lee doesn't ultimately collect on the policy after the lawsuit, we could see fewer players start taking out loss-of-value policies. If a player has an incredibly hard time collecting on the policy, is it even worth it?

- - - - - - -

Nick Bromberg is the assistant editor of Dr. Saturday on Yahoo Sports. Have a tip? Email him at nickbromberg@yahoo.com or follow him on Twitter!