AIG, the world's largest insurance company, in effect wrote insurance against sub-prime securities going bad, but without setting aside reserves against that risk.
It's only under those conditions that I envisage it to be an insurance premium, in effect, because we use insurance for low probability events and, in that regard, it would act positively.
This also goes for insurance; paying the premium on one's life insurance is, in effect, a bet that one will die within a specified time.
Stiglitz examined the flip side of this scenario: how an uninformed party such as an insurance company can elicit information through economic incentives--that is, by offering a variety of options, such as high premium/low deductible vs. low premium/high deductible auto insurance, which in effect differentiate between high- and low-risk insurance categories.
Although special interests like the insurance and pharmaceutical industries will vigorously oppose it, single-payer national health insurance -- in effect, Medicare for all -- would bring affordable health care to every American.
Under the insurance forms in effect at the time, he said, the nine companies should pay $1.1 billion per occurrence, or $2.2 billion.
The growing number of families without health insurance are, in effect, families who have been kicked off the country's health care rolls.
The federal government has responded in court filings that an individual decision to not purchase insurance is, in effect, a decision about how to pay for future medical care.
EXEMPT PLANS Insurance plans in effect before March 23, 2010, that have not undergone significant changes in cost-sharing and other design changes are considered grandfathered and do not have to comply with the new fully covered preventive care rules.
Even though the Affordable Care Act is known as a health-insurance law, in effect it could be paying for a large portion of employer contributions to pension plans.
