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The risk presented by any given individual is assumed collectively by the community who all bear the value of rebuilding misplaced property and supporting individuals whose wants are suddenly greater after a lack of some kind. In supportive communities where others may be trusted to follow neighborhood leaders, this tacit type of insurance can work. In this fashion the neighborhood can even out the extreme variations in insurability that exist amongst its members. Some further justification can additionally be offered by invoking the ethical hazard of specific insurance contracts.

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