insurance question

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A net worth statement or P&L is worth the paper it's written on 50% of the time. A creative book keeper, or just a plain crooked number manipulator can make them read however they want, much like the current "journalists" can adjust "facts" to meet realities.
Net worth is tied to so many intangibles (market rates, inflation rates, future performance of securities, actual worth of properties without current inspections, expected real estates markets and projected values, the direction of the wind, etc), that they are just about worth as much as the paper they are written on. Net worth can be established with some hard valued items such as stock price, IRA value, 401 cashout figures, chattel values, real property values, gold, and many more things that have tangible market values, so saying the establishment of net worth is difficult in painting all these situations with the same broad brush. It is incorrect.
But to say net worth can be determined by projected or estimated future income is a mix of EGO. LSD, mescaline, psylocibin mushrooms and angel's dust in the mind of the preparer. Either they are misinfomed, optimistic, or just not in the here and now.
People fall down every day and break things. People go in every day for CABG. People every day get run over by beer trucks, or are on the wrong bridge for he wrong ten seconds.
If one can predict who these people are, and when and where they are going to die, they need to contact the NSA immediately, and they will be offered a very lucrative contract for doing same.
MHO, YMMV.
Steve
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Thanks for sharing.
Your rant was completely irrelevant to the discussion, right?
Just checking.
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yes, we are all ins. agents in this group.
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If that were the case, Grasshoppah, then we would eliminate debt, bankruptcies, and other financial disasters, as everyone would project that they would make five million dollars a year (net to start) and go up from there.
No one could possibly go belly up.
Reality is nature's way of keeping things straight.
Steve
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It's late and I'm sure that's the reason I'm missing the cleverness of this post.
It's my fault for using the word liability incorrectly.
What you can actually pay towards a mandated liability cannot exceed your net worth, present and future. This seems a tautology to me: you cannot pay more than you can pay or will ever be able to pay. Obviously, the future component is an estimate, but we make these all the time without having "everyone" project they will make $5M/y.
So back to the OP's question: given the small but positive probability that your negligence may incur a liability in excess of your ability to pay, how do you determine how much insurance to buy?
And, Master, is it always unethical to consider your net worth in the calculation?
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Net worths can be right or wrong. Projections about what you can or will earn in your lifetime is the stuff of dreams.
You can only be sued for what you have. In some cases, where the liability grossly exceeds the assets, people have to pay for a long time. Some people successfully dodge collection for decades. Does the name OJ ring any bells?
Steve
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Thanks for clearing that up.

Is that ringing in your ears getting in your way? Yes, you can't pay more than you can pay; yes, they can make you pay out of future earnings for a long time; yes, you can find ways to dodge payment.
Now, about the question under discussion, ....

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Does this pregnant pause indicate you have nothing to add to the subject?
Steve
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Oh, like your post above?
Did the ADD kick in? Shall I remind you of the question under discussion?
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Your exposure is *MUCH* higher than that. You could crash into a biological weapons shipment and cripple the entire population of California for life. Or, you could hit a military communication link and accidentally start World War III. Or, you could be personally held liable for all of the damage done by Hurricane Katrina because *YOU* wished for someone to be struck down. Shouldn't you be capable of compensating people for the misery you caused? Of course, no insurance company can offer that much coverage.

That means infinite coverage.

What's the bill going to be if I destroy the entire state of California? Or worse, just cripple everyone?

That's not a worst-case accident. A worst-case accident is more like destroying an entire state. Or galaxy.

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My advice is discuss it with both insurance companies if different and shop around but get it. Extra cost is minimal. I have lawyer sons who advise this as they have seen a lot of greedy people out there who think you are rich and will go for everything you've got from the smallest accident. Insurance companies will defend you but settlements often go beyond your insurance.
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Jim Patterson wrote:

Better to look at a personal liability umbrella policy. They're pretty cheap (unless you regularly do dangerous stuff), and they provide an umbrella (hence the name) of coverage for pretty much anything (other than intentional acts) that isn't covered by your other policies. A million dollar limit policy may run a couple hundred dollars per year.
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wrote:

They also often insure you for libel and slander, which are somewhat intentinoal, and I was hoping they would have a practical manual to go with that so I could avoid committing libel.
I wanted to know exactly what the line was, because i, my mother really, was seriously mistreated by funeral home. They violated the law also, though that would be hard to prove. (That is, it's true but I can only prove it if the jury believes me. I was able to borrow 6000 dollars from a friend, over the phone, so I actually got my my mother's body back when I expected it, but the funeral home was refusing to release her body to the airport, until I paid the expenses in my city and the city she was to be buried in. Because I was able to borrow the money, there's no other proof of this now but my word and to a minimal extent, what i told my friend.)
So I wanted to get an umbrella policy so I could speak freely, but I wanted to know the law, in practice, because I don't want to cost the insurance company money.
What should I do?
<that isn't covered by your other policies. A

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mm wrote:

Here's a clue - keep your mouth shut, moron.
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wrote:

You God-damned jackass. Wait until they do this to your mother, you stupid piece of crap, and then you'll know what a dung-ball you are today and maybe everyday.

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mm wrote in

To be fair, they did it to you. Your mother was past caring.
I'm sorry for your loss even if Ultraman isn't. But his advice isn't necessarily wrong. If the funeral home violated the law or their licensing regulations, talk to the authorities; if they damaged you through their negligence, take them to court. Bad mouthing them in public might put you in a bad position. If the insurance company thought that your speech was deliberate slander, then their policy might not cover you.
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In the US, truth is an absolute defense against an action for defamation (libel or slander). If you confine yourself to facts, then as a matter of law you have not committed libel or slander.
A sufficiently pissed-off individual might sue you, but if you have stated only facts you will win.(*)
However ...
Even if you win a court case, getting sued is no fun. In the US, with rare exceptions each party pays its own lawyers. So it may be better not to attract the attention of some company with deep pockets and lawyers on staff, because you have more to lose from being sued if you win than they have to lose if they lose.
(*) Okay, there's the occasional horror story about a case that's decided wrongly. But those are notorious (like the McDonald's coffee case) because they're highly unusual. Ordinary folks don't need to worry about something like that, as a practical matter.
--
"The Internet is famously powered by the twin engines of
bitterness and contempt." -- Nathan Rabin, /The Onion/
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... and what recourse is there if the bringer of such a suit _does_ lose? I am being sued for stating my strong opinion that I wouldn't deal with a particular company in a discussion of this company in a usenet newsgroup.
--
VAXman- A Bored Certified VMS Kernel Mode Hacker VAXman(at)TMESIS(dot)COM

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On Sat, 28 Jul 2007 12:05:04 GMT, VAXman- @SendSpamHere.ORG wrote Re Re: Liben and slander (Re: insurance question):

Need more info. Can you state some facts of the case?
--
To email me directly, remove CLUTTER.

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Very little recourse. If the suit is clearly baseless, you might ask the judge for sanctions and payment of your attorney fees. But if there's *any* reasonable basis for suing, such an effort will fail.
Has your attorney advised you to settle?
--
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bitterness and contempt." -- Nathan Rabin, /The Onion/
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