Insurance companies exist in a moral free zone and they love to use small print to worm out of making payments. Many organised tourist trips included a pony ride, and local tour operators offer them in tourist areas, but few people would study the definition of extreme sports before jumping on a pony. In my mind 'extreme sports' is something like hang gliding, bungee jumping etc. Would they class a banana boat, surf board or a mountain bike as an extreme sport when trying to wriggle out of payments. Under advertising laws they should clearly state these limitations in their brochures, but if they were honest about what limited value they were providing, nobody would buy their product.
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