How do insurance companies profit?
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You’re making a bet with the insurance company that something will go wrong and they’ll have to pay you or that nothing will go wrong and the company will collect and keep the money from you for the duration of the agreement.
As a business that wants to remain solvent they want to know exactly what they’re betting on and that you aren’t concealing anything hinky. They will also abide only by the contract conditions of the bet so as to avoid paying out for anything that does go wrong and isn’t specifically covered by the contract.
Document everything. Get all communication in writing and know the terms of the bet.
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