Pauly MV (1974) Overinsurance
and public provision of insurance: the roles of Moral Hazard and adverse selection.
We agree with commentators who claim that market VSLs, if used in court to determine damage awards, would lead to overdeterrence and overinsurance
. (148) The arguments below concern the use of community VSLs as damages in wrongful death cases, which we endorse.
While premium scaling may serve fairness goals, it does almost nothing on its own to solve the problems of underinsurance and overinsurance
was defined as choosing a "Silver" or "Gold" plan but not being a "high-utilizer." We then tested for differences in health insurance comprehension across these groups.
It was the year with one of the worst fire loss experiences ever, and with a "large portion of this enormous waste due to incendiarism" caused by reckless overinsurance
of property and with arsonists escaping punishment.
Then they add administrative costs and heterogeneous preferences for risk to the model, resulting in the potential for overinsurance
from these public policies.
United States is "overinsurance
." (31) overinsurance
and repeat insurance of an asset would incur an extra cost but bring about no benefit to a company.
, which happens mainly because employer-provided insurance is tax-free to the employee, often causes people to face an artificially low price of health care and to overuse the system.
Under either interpretation, they would have run afoul of state laws prohibiting gambling or overinsurance
. Thus, it took a positive act of Congress to pass legislation in the Commodity Futures Modernization Act of2000 exempting CDS from those limitations.