> Sam wrote:
> I'm lost. You're justifying paying for an theory? How much insurance
> are you willing to pay against the space invasion?
>

This has nothing to do with me; it's us - you, me, and every home
owner in America that's not self-insured.  Here's how *your* home
owner's insurance rate is figured:

Actuaries will take a look at claims history in your area and combine
that with some factor for risks to changes in that history.

>From this they derive the risk that they'll have to pay $X to you over
Y years.  Then they figure out what dollar amount you need to pay them
such that they make $X over Y years.  They make profit in 2 ways:

(1.) They bet that (based on their calculations) odds show you'll give
them more money than they'll give you, and

(2.) Since they get to keep your money, they can invest it and make a profit.


BOTTOM LINE: Sam pays more to insure his house due to the risk of
global warming.

Does that help clarify it?

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