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The risk offered by any given particular person is assumed collectively by the neighborhood who all bear the value of rebuilding misplaced property and supporting folks whose wants are suddenly larger after a loss of some sort. In supportive communities the place others could be trusted to observe neighborhood leaders, sanddtier.wiki this tacit type of insurance can work. In this way the community can even out the extreme variations in insurability that exist among its members. Some further justification can be supplied by invoking the moral hazard of express insurance contracts.
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