You could be left high and dry if you're hurt in a RISKY ACTIVITY.

HOLY GRAPPLING hook, Batman! A federal ruling stipulates that group health plans can reject claims associated with injuries sustained during a high-risk activity, and motorcyclists, scuba divers, horseback riders, skiers and other outdoor enthusiasts are up in arms.

The ruling clarifies laws that already exist, but it has disappointed sports enthusiasts who had hoped for a different interpretation. "It creates a loophole big enough to drive a truck through," says Edward

Moreland of the American Motorcyclists Association. Moreland and other sports advocates fear insurers will try to sell employers cheaper plans that exclude coverage for high-risk activities so broadly defined that they will encompass everything from softball to bungee jumping.

Life-insurance companies already inquire about an applicant's activities, and may charge premiums that are three times as expensive as a standard policy, write in exclusions or deny coverage outright. Some life insurers even set limits by specifying, for example, the maximum depth to which scuba divers are insured.

So far, health insurers say they have no plans to change their coverage. Despite the growing popularity of high-risk sports, accidental injuries aren't contributing that much to health care costs, says health-insurance actuary Timothy Ross. Still, Ross advises, "read your policy exclusions."

COPYRIGHT 2001 The Kiplinger Washington Editors, Inc.
COPYRIGHT 2001 Gale Group