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The risk offered by any given particular person is assumed collectively by the community who all bear the value of rebuilding misplaced property and supporting people whose wants are abruptly greater after a lack of some kind. In supportive communities the place others could be trusted to observe group leaders, this tacit form of insurance can work. In this fashion the community can even out the acute variations in insurability that exist amongst its members. Some further justification is also supplied by invoking the moral hazard of explicit insurance contracts.

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