On Thu, 06 May 2010 15:00:44 -0600, Chris Friesen
wrote:

Think about that for a second. The whole point of insurance is to pay
someone else to assume the risk on the behalf of the insured entity.
Generally it's done because the entity buying the insurance cannot or
doesn't want to incur all the risk themselves.

YOU think about it for a second. If they're self insured then they've
had to prove to the powers that be that they have the secure funds on
hand to pay for whatever amount they're insured for. This secure fund
is an insurance entity completely set aside from other day to day
operations. In other words, if they went bankrupt immediately for some
reason, the money would still be available to pay off their insurance
debt.

If all a company had to do to declare self insurance was to put up
their company, then everybody would be going into business for
themselves, take in millions or billions of investor money and then
declare bankruptcy at the first sign of a loss. Self assurance doesn't
work that way.