From: Wei Dai (weidai@weidai.com)
Date: Mon Mar 24 2003 - 18:54:11 MST
On Mon, Mar 24, 2003 at 05:38:30PM -0600, Lee Daniel Crocker wrote:
> That doesn't make sense to me at all--that would be an incredibly
> stupid thing for insurance companies to do. If the agressive state
> announced its intent, then /demand/ for insurance would go up and
> people would be willing to pay more, and insurance companies would
> be stupid not to take the business.
The insurers would be stupid to not take the business only if the premiums
are high enough to cover both their expected military costs and the
indemnities they'll have to pay off if any insured properties are damaged.
If the targeted area is small enough, the people in it simply won't have
enough money to pay for the expected costs and damages, even if they give
all of their incomes to the insurance companies.
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