Prize indemnity insurance is indemnification insurance for a promotion in which the participants are offered the chance to win prizes. Instead of keeping cash reserves to cover large prizes, the promoter pays a premium to an insurance company, which then reimburses the insured should a prize be given away.
One of the earliest and most common forms of prize indemnity insurance is hole-in-one insurance. Hole-in-one insurance, often purchased by a golf tournament host or sponsor, reimburses tournament organizers for the cost of awarding a hole-in-one prize in the event a tournament participant successfully hits a hole-in-one during the tournament.
According to the newspaper USA Today , the odds of an amateur golfer hitting a hole in one on an arbitrary par 3 hole are about 1 in 12,500. [1] These low odds allow golf tournaments to offer expensive prizes to golfers able to hit a hole-in-one during tournament play. In order to be able to afford such expensive prizes, tournament hosts can purchase prize indemnity coverage to protect themselves from having to pay for the prize from their own funds.
Companies that provide hole-in-one insurance may provide signs or other accessories to help the tournament host promote the hole-in-one prize. The insurance contract between the golf tournament and insurance company will detail rules such as: which holes on the course the prize will be insured on, how to verify the hole-in-one was achieved legitimately, and what to do if a contestant hits a hole-in-one on a hole other than the insured hole. Variables that affect the cost of the hole-in-one insurance include: the number of participants in the tournament, the skill of the participants (amateur vs. professional golfers), the length of the insured hole, and the value of the prize being offered.
In addition to hole-in-one insurance for golf events, prize indemnity insurance companies typically offer coverages for other types of contests as well. For example, contest coverage can frequently be purchased for contests such as half-court shots in basketball, field-goal kicks in football, home runs in baseball, blue-line goals in hockey, and even retail and casino-based promotions as well.
For example, in the 2005 Super Bowl, prizes were set to be awarded for several events, including a return of the opening kickoff for a touchdown, a safety, and a fourth-quarter field goal of 50 yards or more. Prize indemnity insurance was purchased to cover all these events. However, none of the events occurred in the game.
Most television game shows pay for prize indemnity insurance for million-dollar prizes. One example came from April 2008, when such an insurance provider demanded RTL Group and CBS toughen million dollar win provisions after The Price Is Right $1,000,000 Spectacular produced three millionaires in the six episodes produced that season under the new rules imposed for the season. To win the $1,000,000 prize, the contestants had to give a winning bid within $1,000 of the final showcase's retail price. The insurance company demanded that this threshold be reduced to $500, and that one of the million-dollar pricing games be removed. After the four episodes aired with the new rules, RTL and CBS have not produced any further "million dollar" episodes in years since, possibly due to the insurance concerns. Since 2013, "Big Money Week" with $100,000 or greater prizes has aired in daytime close to the television sweeps [2] and prime-time episodes have aired sporadically since then, but using the daytime budget. The most common Big Money Week million-dollar game is Plinko, by simply replacing the $10,000 slot with a $100,000 or $200,000 slot, as a half or one million dollar game. Plinko has never been won (all five chips in the center slot) in the 42 years it has been played.
A game show is a genre of broadcast viewing entertainment where contestants compete in a game for rewards. The shows are typically directed by a host, who explains the rules of the program as well as commentating and narrating where necessary. The history of the game shows dates back to the late 1930s when both radio and television game shows were broadcast. The genre became popular in the United States in the 1950s, becoming a regular feature of daytime television.
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to protect against the risk of a contingent or uncertain loss.
The Price Is Right is an American television game show where contestants compete by guessing the prices of merchandise to win cash and prizes. A 1972 revival by Mark Goodson and Bill Todman of their 1956–1965 show of the same name, the new version added many distinctive gameplay elements. Contestants are selected from the studio audience. When the announcer calls their name, they use the show's famous catchphrase, "Come on down!"
Life insurance is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of an insured person. Depending on the contract, other events such as terminal illness or critical illness can also trigger payment. The policyholder typically pays a premium, either regularly or as one lump sum. The benefits may include other expenses, such as funeral expenses.
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Term life insurance or term assurance is life insurance that provides coverage at a fixed rate of payments for a limited period of time, the relevant term. After that period expires, coverage at the previous rate of premiums is no longer guaranteed and the client must either forgo coverage or potentially obtain further coverage with different payments or conditions. If the life insured dies during the term, the death benefit will be paid to the beneficiary. Term insurance is typically the least expensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis over a specific period of time.
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The Nedbank Golf Challenge, previously known as the Million Dollar Challenge, is an annual men's professional golf tournament played at the Gary Player Country Club in Sun City, North West province, South Africa. It was first played in 1981 and takes place towards the end of the year, in November or December.
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The New Price Is Right was a syndicated edition of the American game show The Price Is Right which premiered on September 12, 1994, and ran until January 27, 1995. This was the third thirty-minute syndicated edition, following a weekly series that ran from 1972 until 1980 and a daily series that ran for one season between 1985 and 1986.
The Price Is Right is a television game show franchise created by Bob Stewart, originally produced by Mark Goodson and Bill Todman; currently it is produced and owned by Fremantle. The franchise centers on television game shows, but also includes merchandise such as video games, printed media, and board games. The franchise began in 1956 as a television game show hosted by Bill Cullen and was revamped in 1972, initially as "The New Price Is Right". This version was originally hosted by Bob Barker. Drew Carey has hosted the program since 2007.
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A game show is a type of radio, television, or internet program in which contestants, television personalities or celebrities, sometimes as part of a team, play a game which involves answering trivia questions or solving puzzles, usually for prizes. Game shows are usually distinguishable from reality television competition shows, in which the competition consumes an entire season of episodes; in a game show, prizes can typically be won in a single match. Beginning with the first five-figure and six-figure game show jackpots in the mid-1950s, a succession of contestants on various quiz shows of the era each set records. Teddy Nadler of The $64,000 Challenge, the highest-scoring contestant of the 1950s era, was not surpassed until 1980, when Thom McKee won $312,700 on Tic-Tac-Dough. Between 1999 and 2001, during a brief boom in high-stakes game shows, the record was broken six times. Both the 1955–1958 and 1999–2001 eras of rapidly set and broken records were driven primarily by one-upmanship between the networks each trying to secure bragging rights and ratings by inflating their prize offerings, rather than the merits of the contestants themselves. American daytime television has historically had smaller prize budgets for game shows that air in that daypart.
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The Wall is an American television game show airing on NBC, which premiered on December 19, 2016. The show is hosted by Chris Hardwick, who also serves as executive producer on the show along with LeBron James, Maverick Carter, and Andrew Glassman.
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