# Recent content by Alcoholic Actuary

1. ### Why should RED-LINING be illegal?

Tornados to southeast US: "We're not in Kansas anymore." Welcome to Climate Change! Concrete domes in Kansas are also horrible structures for EQ and earth movement - which are much more likely perils in KS than tornados. aa
2. ### Why should RED-LINING be illegal?

Correct, but I think that Fannie Mae and Freddie Mac already tried to provide this kind of economic backstop to 'unviable land' (similar to the NFIP insurance backstop) but were met with less than stellar results. Perhaps not enough intrusion? aa
3. ### Why should RED-LINING be illegal?

I'm with you on that, but what about the 'new' redlining? I have data analytics that tell me how to circle the neighborhood now. Effective risk management tool or extension of racist/classist policies? aa
4. ### Why should RED-LINING be illegal?

I don't think that's exactly right. NFIP is a government program that takes the premium and pays the losses. There is still no insurance 'market' for flood except for gaps in what the government doesn't cover. The economic model you are describing is a government subsidy to develop land that...
5. ### Why should RED-LINING be illegal?

Crime Score and Credit Score are routinely used in insurance and lending underwriting standards and rating. The redlining occurs when those same criteria are used as a substitute or proxy for race. I've always been on the other side of that argument - I'd love to insure the drug lord's house...
6. ### Question for history nerds - American Civil War

This is a pretty good read: https://en.wikipedia.org/wiki/Diplomacy_of_the_American_Civil_War aa

9. ### Parents Of School Shooter Charged

Well, you're almost correct. Let's just say if you have the right skin tone and background, you are afforded a pass or two at 'zero-tolerance' and above reproach or even a cursory search at your personal effects. But if you are a brown kid making a clock out in the open?? Well, better safe...
10. ### The Central Limit Theorem

When attempting to use CLT in real life, you will spend the majority of your time attempting to establish that your independent random variables are in fact 1. Independent and 2. Random. aa
11. ### Please pay us back.

This one. It is most likely the insurance company who is asking for the merchant's help in subrogating the loss. The insurer also most likely paid for the ad. And finally, the insurer will most likely split any subrogation proportionally between the insured deductible and total amount of loss...