Pauly MV (1974) Overinsurance
and public provision of insurance: the roles of Moral Hazard and adverse selection.
We exclude the possibility of overinsurance
and taking a short position; that is, we assume 0 [less than or equal to] I [greater than or equal to] L.
We agree with commentators who claim that market VSLs, if used in court to determine damage awards, would lead to overdeterrence and overinsurance
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.
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.
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
In other words, if the insured follows the policy requirements, the endorsement provides complete and automatic coverage, avoidance of the dangers of both underinsurance and overinsurance
on the property, and no necessity of increasing and decreasing amounts of insurance as values move up and down.
In the treatments with voluntary provision and acquisition of insurance, there were some instances of underinsurance and overinsurance
by the workers.