BS: who needs $50,000

Subject: BS: who needs $50,000
From: Donuel
Date: 15 Oct 08 - 07:09 PM

Let all mudcatters who read this post profit by doing exactly what Wall Street did.

1 It is legal
2 It pays out millions of dollars when 50 people play.
3 It costs about $20 a month to play.

What Wall St did was take out insurance on an investment bond's performance. If a bond went bad, the insurance would pay. A million dollar bond could be insured by anyone and not just the owner of the bond. There could be 100 million dollars in bets/insurance on one million dollar bond.

SO HOW DO WE PLAY

We take out a life insurance policy on one of us.
It is legal
It is profitable
and it is a bit ghoulish

The insurance company will pay you directly.
No one here would pool your money.
It is up to you whether you would want to give any charity back to mudcat maintenence and equipment.

All we need is a volunteer under the age of sixty to volunteer all the personal information (excluding SS#) required to buy a policy.

non smokers please.

BTW if you vounteer don't worry, you can hedge your bet in your own lifetime by buying insurance on another volunteer!

Subject: RE: BS: who needs $50,000
From: Uncle_DaveO
Date: 15 Oct 08 - 07:45 PM

Donuel, assuming this isn't a joke (in which case I don't "get it"), how would the "investing" Mudcatter show an insurable interest?   An insurance company won't sell me a policy on, say, John McCain's life, because I have no interest. How is this different?

Dave Oesterreich

Subject: RE: BS: who needs $50,000
From: Barry Finn
Date: 15 Oct 08 - 08:22 PM

How much interest can I get for John MaCain's life?
We/I have no interest there & he's got no interest in US/me either!

Barry

Subject: RE: BS: who needs $50,000
From: The Fooles Troupe
Date: 15 Oct 08 - 08:41 PM

"An insurance company won't sell me a policy on, say, John McCain's life, because I have no interest"

Well, if you are a US citizen - then an 'interest' would be that he live to serve out his 8 years...

Subject: RE: BS: who needs $50,000
From: Donuel
Date: 16 Oct 08 - 12:45 AM

Insurance policies are not limited to family members.

Subject: RE: BS: who needs $50,000
From: Uncle_DaveO
Date: 16 Oct 08 - 09:53 AM

No, insurance policies are not limited to family members, but they are limited to persons where there is an "insurable interest". McCain (or Obama) isn't an insurable interest to me, or you, whether he is president or not. Unless you are related to or have certain kinds of business relationship with him, or the like, where his death would cause a pecuniary loss to you. And it has to be a fairly close, direct loss. While the death of a president would presumably affect everyone in the country financially in some degree, it's not what an insurance company would classify as an insurable interest.

If a member of my family dies, I have an insurable interest if I might be called on for funeral expenses, or if I'll be deprived of future income because of the loss of the family member.

If I own a corporation,and there's a key person whose death would cause operational and therefore financial problems to the corporation (and me as the owner), I or the corporation would have an insurable interest. That's called key-man insurance, and is very common.

If I'm a partner in a firm, I have an insurable interest in the life of each of the partners, and it's normal to take out a life insurance policy on a partner's life so that on his death there's money to buy out his interest in the partnership upon his death.

But I have no direct financial stake in the life of either of the candidates, or the life of any Mudcatter. Nor do you, unless you have some pecuniary relationship with the insured. This is just basic insurance law.   

Donuel's scheme, if meant seriously, just won't work.

Dave Oesterreich

Subject: RE: BS: who needs $50,000
From: wysiwyg
Date: 16 Oct 08 - 09:56 AM

Here you have Collusion, already.

~S~

Subject: RE: BS: who needs $50,000
From: Stilly River Sage
Date: 16 Oct 08 - 10:14 AM

This has to do with how the insurance companies reassigned risk for the risky things they insured. AIG got caught in it.

SRS

Subject: RE: BS: who needs $50,000
From: Donuel
Date: 16 Oct 08 - 12:23 PM

Thanks, IT will still make for an interesting fictional short story.
Under a particular circumstance I am sure an insurable interest can be created.

Indeed there are more regulations for our insurance that there was for the entire Financial Corporate Frankenstein.