I'm dubious about that claim. There are laws that require capital-cash requirements to cover claims. Maybe they put their premiums into "almost-cash" securiti

I'm dubious about that claim. There are laws that require capital-cash requirements to cover claims. Maybe they put their premiums into "almost-cash" securities, but I doubt they are gambling with the money. It's possible they are buying other derivatives to reduce their risk - or maybe other types of CDO's, etc... But if you're suggesting they are stock-picking with premiums - I find that very very hard to believe. ...and it's likely illegal.