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Instead of keeping cash reserves to cover large prizes, the promoter pays a premium to an insurance company, which then reimburses the insured should a prize be given away.
Hole-in-one insurance
One of the earliest and most common forms of prize indemnity insurance is hole-in-one insurance, which began to gain prominence during the early 1980s.[1] Hole-in-one insurance, in
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golf, is prize indemnity insurance, often bought by a golf tournament host, to be paid if the tournament awards a prize to contestants who hit a hole-in-one during the tournament.
According to the magazine Golf Digest, the odds of an amateur golfer hitting a hole in
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one are about 1 in
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12,750.[2] These low odds allow golf tournaments to offer large prizes to contestants able to hit a hole-in-one during the tournament as part of a marketing promotion. A coating may be applied to hide the taste of the tablet's components, to make the tablet smoother and easier to swallow, and to make it more resistant to the environment, extending its shelf life.
Medicines to be taken orally are very often supplied in
tramadol hydrochloride acetaminophen tablets tablet form; indeed the word tablet without qualification would be taken to refer to a medicinal tablet. The cash function inherent in all life insurance says that if a person is to reach age 95 to 100 (the age varies depending on
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state and company), then the policy matures and endows the face value of the policy.
Actuarially, it is reasoned that out of a group of 1000 people, if even 10 of them live to age 95, then the mortality function alone will not be able to cover the cash function?
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