By insuring enough people, insurance companies are relying on the fact that, on average, the payouts to the unexpectedly unhealthy policyholders will be offset by unnecessary premiums paid by the unexpectedly healthy.
Lloyd's, a group of affiliated insurers, made its reputation by insuring things that its competitors often avoided, like action-movie productions, exotic oil rigs and, way back when, Betty Grable's legs.
The insurer, 92percentt owned by the U.S. government, sued ICP Asset Management and Moore Capital in New York State Supreme Court, contending it suffered huge losses by insuring mortgage securities that one of the financial firms created.
The archdiocese avoids providing those services for 1,100 other ArchCare employees, for example, by insuring them through a special self-insurance plan that is exempt from the mandate.
Resorts benefit too, by insuring against volatile weather conditions, snow conditions and other events that may keep skiiers away from the slopes.
Some of the agency's critics want it to tamp down risk by insuring fewer loans; others think it should help the market by insuring even more.
The Federal Housing Administration option would facilitate the much-needed refinancings by insuring the new loans.
"Additionally, by insuring the majority of Americans, the legislation vastly reduces the cost of caring for the uninsured.
The mandate, by insuring more healthy people, would help offset these costs and fix the problem of uncompensated care.
The Federal Housing Administration, which has been supporting the market by insuring loans to first-time buyers, is modestly tightening its standards.
