Comprehensive Auto Insurance

[Gary]

All insurance is is a legal bet with somebody over an outcome, the insurance company is the house and the insurance commission is the gambling commission. The commission sets the bets available and then negotiates the the odds with the insurance company allowing for 200% gross profits basically. It's a gambling syndicate pure and simple and they have some of the most brilliant oddsmakers I have ever met.

Very true! It is legalized gambling. However, there are instances where the "house" loses. (see attached)

I figure, based on past and future premiums, the insurance company will be made whole sometime around 2050 or so.

Gary

 

[Chip Sylverne]

All insurance is is a legal bet with somebody over an outcome, the insurance company is the house and the insurance commission is the gambling commission. The commission sets the bets available and then negotiates the the odds with the insurance company allowing for 200% gross profits basically. It's a gambling syndicate pure and simple and they have some of the most brilliant oddsmakers I have ever met.

And just in case of the outlier there's reinsurance...'course money sent to London never comes back.

 

[Henning]

Very true! It is legalized gambling. However, there are instances where the "house" loses. (see attached)

I figure, based on past and future premiums, the insurance company will be made whole sometime around 2050 or so.

Gary

There are always instances where the house loses, that's why people keep playing. The odds though are stacked in the houses favor. Those big old casinos aren't built on losses.

 

[denverpilot]

There are always instances where the house loses, that's why people keep playing. The odds though are stacked in the houses favor. Those big old casinos aren't built on losses.

They do have a list of people they won't let gamble anymore, and so do the insurance companies.

 

[Geico266]

I agree. That is why I said I was just trying to be funny. In the SZ, it is expected that you will spin things in any direction you want.
Conservatives tend to spin things RIGHT.
Liberals tend to spin things . . .



. . . WRONG.

I'm always right.

 

[Henning]

They do have a list of people they won't let gamble anymore, and so do the insurance companies.

True, but unless they are cheats, that is on a company by company, bet by bet basis. As long as the issue is one of luck, someone is gonna cover the bet for the right odds.

When the day comes three insurance companies tell you 'no', it's time to surrender your certificate lol.

 

[denverpilot]

True, but unless they are cheats, that is on a company by company, bet by bet basis. As long as the issue is one of luck, someone is gonna cover the bet for the right odds.

When the day comes three insurance companies tell you 'no', it's time to surrender your certificate lol.

Apparently you're not aware of the shared databases for insurability between underwriters these days? And the "Have you ever been denied insurance or had your insurance cancelled?" question on almost all insurance application forms today?

The Actuaries plugged the company-jumping loophole long ago.