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Insurance: The Theory of Insurance Markets

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Uploaded by on Apr 2, 2010

Insurance is a method of mitigating risk. Not all risk is insurable through private insurance markets. For example, an insurance company would not insure a burning building because that does not represent risk; it is a disaster that has occurred. A person who has a chronic disease does not need insurance... they need someone to pay their medical bills.

This is a link to the State of New Mexico, PRC Insurance Division: http://www.nmprc.state.nm.us/id.htm This is a great website that you can use to compare insurance rates, learn about laws regulating insurance and see the latest warnings about fraudulent insurance practices in the state.

Use authoritative sources when you perform research!

Business English, Financial Literacy

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