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?
http://tankinlian.com/admin/file.aspx?id=695&IID=699

1 comment:

  1. 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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