9 Conn. Ins. L.J. 371 (2002-2003)
Containing the Promise of Insurance: Adverse Selection and Risk Classification

handle is hein.journals/conilj9 and id is 377 raw text is: CONTAINING THE PROMISE OF
INSURANCE: ADVERSE SELECTION AND
RISK CLASSIFICATION
Tom Baker*
TABLE OF CONTENTS
IN TRO  D U CTION    .............................................................................. 371
PA R T  I  ............................................................................................... 375
A . ADVERSE   SELECTION  .............................................................. 375
B. INSURANCE RISK CLASSIFICATION ......................................... 376
C. RISK CLASSIFICATION CAN CREATE ADVERSE SELECTION. ..378
D. THE ALTERNATIVE: BINDING RISKS TO THE INSURANCE
PO OL  ....................................................................................... 379
PA R T  II .............................................................................................. 382
JUSTIFYING RISK CLASSIFICATION .............................................. 383
A. Age Rating in Fraternal Life and Sickness Insurance ....... 383
B. Experience Rating in Unemployment Insurance ................ 387
C. Prohibiting Discrimination Against Battered Women ....... 392
CON  CLU   SION   .................................................................................. 395
INTRODUCTION
Insurance, therefore, takes from all a contribution; from
those who will not need its aid, as well as from those who
will; for it is as certain that some will not, as that some will.
But as it is uncertain who will, and who will not, it demands
this tribute from all to the uncertainty of fate. And it is
precisely the moneys thus given away by some, and these
only, which supply the fund out of which the misfortune of
those whose bad luck it is that their moneys have not been
* Connecticut Mutual Professor and Director, Insurance Law Center, University of
Connecticut School of Law. Thank you to Timothy Alborn, Aaron Doyle, Brian Glenn,
Francis J. Mootz, David Moss, and Marianne Sadowski for helpful comments on an earlier
draft and to participants at the Risk and Morality Conference for stimulating discussion.
This essay will also appear as a chapter in Moral Risks (Richard Ericson & Aaron Doyle
eds., 2003). Thank you to the University of Toronto Press for permission to publish the
essay in the Connecticut Insurance Law Journal.

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