New York Attorney General Eliot Spitzer has added an additional issue to his investigation into the insurance industry -- an alternative risk financing technique known as a "finite risk insurance plan." The New York Times' Business Section article discusses this new component of his investigation (Note: Subscription Needed).
Among the insurance industry, finite risk insurance plans appear to be an accepted alternative to risk financing. A finite risk insurance plan transfers a limited amount of risk to the insurer and usually includes a profit-sharing arrangement between the insurer and insured.
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