2 ms·

Correct me if i'm wrong, but wasn't "insurance" a criminal activity a mere century ago? If so, why is it bad for it to disappear again? Can't read the full ar

by Artlav 10y ago

Correct me if i'm wrong, but wasn't "insurance" a criminal activity a mere century ago? If so, why is it bad for it to disappear again? Can't read the full article, since wsj have a competently implemented "To Read the Full Story, Subscribe or Sign In" shield.

hughes 10y ago
Is that accurate? Was insurance illegal in the early 20th century? Illegal to buy or sell?
cloudjacker 10y ago
There are many forms of gambling that were prohibited until they were renamed in a way that appeased influential religious communities. Off the top of my head I can think of insurance products and the futures market. But if you can find citations that will be very helpful for me!
- sliverstorm 10y ago
  Insurance is used for a fundamentally different purpose, to socialize risk. A good quote I found: insurance transfers risks that already existed; gambling creates risk for entertainment.
  - cloudjacker 10y ago
    A rationalization for Evangelicals. Once you realize the distinctions are all rationalizations to appease people that require cultural distinctions, you'll stop trying to rationalize a difference between financial chances. Think "why am I more comfortable with gambling because my state mandates I pay it" and think about what circumstances led to that, and then think about what prompted you to care at all.
potatolicious 10y ago
Eh? "Insurance" has never been illegal as far as I'm aware... You're probably thinking about racketeering, but unless you actually believe your home insurer will set fire to your house if you don't buy fire insurance, the comparison probably isn't apt.
jandrese 10y ago
Insurance is generally only criminal when you are talking about protection rackets[1]. If the thing you are buying insurance against is the person selling the insurance, then it is illegal. There have been a handful of religious communities, like the Mennonites, that don't believe in commercial insurance, but they instead have a community that will step in and help when something happens to one of its members. So it's still a form of insurance, they just don't use money. [1] https://en.wikipedia.org/wiki/Protection_racket https://en.wikipedia.org/wiki/Protection_racket
oldmanjay 10y ago
ignoring the merits of insurance for a moment, are you really longing for society to be like it was a century ago? I assure you, we have it way better now.
deleted 10y ago
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tomjen3 10y ago
Insurance markets are almost twice the age of the US. You can't have a huge merchant fleet without insurance, since it would be too risky to sail. What you may have refered to is a particular ruling that insurance contracts are not commercial contracts, but that has been overturned.

by Artlav 10y ago

hughes 10y ago

Is that accurate? Was insurance illegal in the early 20th century? Illegal to buy or sell?

cloudjacker 10y ago

There are many forms of gambling that were prohibited until they were renamed in a way that appeased influential religious communities. Off the top of my head I can think of insurance products and the futures market. But if you can find citations that will be very helpful for me!

sliverstorm 10y ago
Insurance is used for a fundamentally different purpose, to socialize risk. A good quote I found: insurance transfers risks that already existed; gambling creates risk for entertainment.
- cloudjacker 10y ago
  A rationalization for Evangelicals. Once you realize the distinctions are all rationalizations to appease people that require cultural distinctions, you'll stop trying to rationalize a difference between financial chances. Think "why am I more comfortable with gambling because my state mandates I pay it" and think about what circumstances led to that, and then think about what prompted you to care at all.

potatolicious 10y ago

Eh? "Insurance" has never been illegal as far as I'm aware... You're probably thinking about racketeering, but unless you actually believe your home insurer will set fire to your house if you don't buy fire insurance, the comparison probably isn't apt.

jandrese 10y ago

Insurance is generally only criminal when you are talking about protection rackets[1]. If the thing you are buying insurance against is the person selling the insurance, then it is illegal. There have been a handful of religious communities, like the Mennonites, that don't believe in commercial insurance, but they instead have a community that will step in and help when something happens to one of its members. So it's still a form of insurance, they just don't use money. [1] https://en.wikipedia.org/wiki/Protection_racket https://en.wikipedia.org/wiki/Protection_racket

oldmanjay 10y ago

ignoring the merits of insurance for a moment, are you really longing for society to be like it was a century ago? I assure you, we have it way better now.

deleted 10y ago

[deleted]

tomjen3 10y ago

Insurance markets are almost twice the age of the US. You can't have a huge merchant fleet without insurance, since it would be too risky to sail. What you may have refered to is a particular ruling that insurance contracts are not commercial contracts, but that has been overturned.