Automotive Insurance
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The threat presented by any given particular person is assumed collectively by the community who all bear the value of rebuilding lost property and supporting folks whose needs are all of a sudden higher after a lack of some sort. In supportive communities the place others may be trusted to observe group leaders, this tacit form of insurance can work. In this fashion the neighborhood may even out the intense differences in insurability that exist among its members. Some additional justification can also be provided by invoking the moral hazard of specific insurance contracts.
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