CDR: Re: why should it be trusted?

[Steve Furlong]

Steve Furlong wrote:

Something seems to have gone wrong in transmission. The paragraph near
the end which starts:

> coverage for a given malady times the expected likelihood of that

should read:

coverage for a given malady times the expected likelihood of that
malady) had better be lower than the sum of the premiums paid, or they
won't stay in business long. Forcing an insurer to accept an
expected-high-cost customer at an "affordable" premium either drives up
the premiums for everyone, causes a reduction in services for everyone
(or a particular subgroup, but that would probably cause more trouble in
the long run), or eats into insurer's bottom line. One
expected-high-cost customer wouldn't break the insurer, but there's
never just one.

-- 
Steve Furlong, Computer Condottiere     Have GNU, will travel
   518-374-4720     sfurlong at acmenet.net