Thursday, November 08, 2012

Over-insurance and moral hazard

What is an appropriate amount for a person to insure him or herself? Why does a life insurance company refuse to accept an application for insurance for an amount that they consider to be excessive? How does the insurance company decide on what is this limit?

1 comment:

yujuan said...

Does it mean we are governed by a dumb Govt, and we are being punished all these decades. No wonder LKY said we are daft citizens.

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