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The risk presented by any given particular person is assumed collectively by the group who all bear the worth of rebuilding misplaced property and supporting folks whose needs are all of a sudden larger after a loss of some type. In supportive communities the place others may be trusted to observe group leaders, this tacit type of insurance can work. In this manner the group may even out the acute differences in insurability that exist among its members. Some further justification can be supplied by invoking the moral hazard of specific insurance contracts.
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