Insurance or Legalized Gambling?

Jordan's Furniture Giveaway!

from JoeUser Forums
Before the 2007 baseball season, Jordan's Furniture did two things - one, they ran a promotion on certain items, saying that if the Boston Red Sox won the World Series, any of the (certain) furniture bought would be free. Second, they took out a little insurance policy to cover it in case of a win.

I don't know the odds here, but someone must have to underwrite it. Also, why couldn't the guys just go off to Vegas and put enough money down on that bet to cover it? It's the same principle here, a certain person is given an amount of money in order to secure a greater repayment only if a specific event occurs. This is the same thing as medical, car, liability, or other insurances. However, I don't understand why the insurance company is allowed to make a bet like that while the average person would be arrested for such a thing. Do we really just need an insurance license and a license from the MLB to run a gambling operation? I really don't think that would cut it, so why is it okay for a major company to do it?
1,521 views 3 replies
Reply #1 from JoeUser Forums Top

I always laugh when I see people take analogies a step further and see them as reality.  Yes, insurance is like gambling, but it isn't gambling.  When I buy car insurance, I'm not putting my money on the "Do Not Pass" line of a craps table.  What I am doing is buying a service from the agent.  The service rendered by insurance is, to cover the agreed upon part of a bill if it is needed.

From insurance to fire extinguishers, spare tires and defense weapons; there are many things we pay for, hoping we never have to use them.

 

Reply #2 from JoeUser Forums Top
I understand that that kind of insurance is one thing, but insurance based on the outcome of a professional sports game?
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Reply #3 from JoeUser Forums Top
what city official do you not mind paying as long as he doesn't have to do his job.