spendiQuote:Anybody who doesn't know that insurance companies are a part of the betting industry has lost his bearings goodstyle.
We oftenThink of an insurance company as the HOUSE. Even a casino always wins, it makes its money on the certain , but imperceptably small edge that it enjoys. Insurance companies, and engineering companies, builders, stock brokers etc are, therefore all part of the BETTING industry. They feel that they can make money because their total delivered product , be it a house or an insurance settlement, can be delivered for less than the money taken in. The residual , they call profit.
Nothing thats even an argument here. Do you know how Lloyds began? a very interesting tale awaits you
However, many insurance companies are now in dire straits and the "betting industry parallel" may not hold anymore thanks to massive pollution cases, the cigarrette settlements , 9/11. occasional disasters etc.
As far as who pays out in Dover---That, my friend is a very intelligent question. The insurance company have, as a motto of practise somethhing like
"We insurance companies would love to take your money and never give it back"
Yes , the insurance company, with policy limitations, stipulations, deductibles, and anything else its actuarial types can gin up may be in the bag for the case. Unless, of course, a policy clause has been breached.
I do work in settlements of large mining damage claims all over the world. These claims can involve hundreds of millions of dollars whenever a mining company has caused environmnetal pollution resulting from its past operations. The mining companies had bought insurance products that were "pollution damage " or "Environmental Impairment Liability"(EIL) policies. Back in the 50s and 60s every insurance company wrote these . 30 years later, weve created instruments that can detect mining wastes in ground water to the part per billion level. So now we have laws forbidding damages by chemicals and the mining company sues its carrier to help clean up.The insurance companies atre now squirming to get out of their responsibility and the terms of their policies. There are thousands of attorneys out there running cases to protect insurance companies from payout claims. So far the insurance comapnies have been losing and in the 80s some states put limits of coverages into law, and also limits of "triggers" of coverage. So the cases are getting fewer but larger
NOW, whats that to do with Dover. The policies were written by company X for the district and the D&O policy .Im sure that the insurance company will want to review and possibly deny coverage because the board acted "outside their charge", (but, as far as I know, there werent any ID clauses or such) The same thing is happening in some of the Catholic diocese claims in the sexual harrassment cases being brought against the various diocese The insurance industry has been taking it and not to argue your "betting industry comment" A whole lot of insurance comapnies have gone out of business . Here in Pa a biggy named Reliance went belly up because of pollution cases and some other larger claims ( they insured lots of risky stuff)
.