economics of insurance(2)

What is true of fire insurance is equally true of life,accident,automobile,or any other kind of insurance Actually,at the famous Lloyd ’S of London,which is a place for insurance brokers to come together,you can arrange to insure a ball team or vacationer against rain,dancers against infantile paralysis,and a hotel keeper against a damage suit from the window of a man killed in a fight with another man who bought a drink in the hotel,s cocktail lounge;and you can get numerous other bizarre policies. But by the common law,Lloyd ,s may refuse to bet $10.000 with me that it will not snow on Christmas,since I do not have an "insurable interest"of that amount and the bet would be unenforceable in the courts.However,a ski-resort owner,who stands to lose that much if it dose not snow,would have such an insurable interest and could certainly buy such a policy. Economic theory shows that the difference between these two cases is that insuring the resort owner stabilizes income while insuring me destabilizes it.