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The danger offered by any given individual is assumed collectively by the group who all bear the price of rebuilding lost property and supporting individuals whose needs are suddenly higher after a lack of some sort. In supportive communities where others can be trusted to observe community leaders, this tacit type of insurance can work. In this way the neighborhood can even out the extreme variations in insurability that exist amongst its members. Some further justification can be offered by invoking the moral hazard of express insurance contracts.
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