Difference between revisions of "Insurance Statistics"
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Revision as of 18:24, 19 June 2022
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The danger introduced by any given person is assumed collectively by the neighborhood who all bear the value of rebuilding misplaced property and supporting individuals whose wants are abruptly higher after a lack of some kind. In supportive communities where others may be trusted to comply with community leaders, this tacit form of insurance can work. In this way the group may even out the extreme variations in insurability that exist amongst its members. Some additional justification is also provided by invoking the moral hazard of explicit insurance contracts.
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