Feb 19

A man with a wooden leg wanted to buy fire insurance for his leg.

The first actuary quoted an annual premium of $500, estimating that the leg would burn once in 20 years and the value of the leg is $10,000.

The second actuary quoted an annual premium of $50. When the second actuary was asked how he arrived at such a small figure, he replied, “I have this situation in the fire schedule rating table. The object is a wooden structure with an upper sprinkler, isn’t it?”

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Rating: 8.4/10 (16 votes cast)
Fire Insurance for a Wooden Leg, 8.4 out of 10 based on 16 ratings

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