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View Diary: BP Junk Shot LiveBlog - Diary 9 (353 comments)

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  •  Transocean got $400M from insurance (2+ / 0-)
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    khowell, Onomastic

    They got their money so it's time for them to liquidate.

    I'm no Nate Silver, TomTech, or VoteforAmerica ("WineRev" Eeman, Recounting Minnesota)

    by Tomtech on Fri May 28, 2010 at 08:27:19 AM PDT

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    •  I thought they were self-insured (2+ / 0-)
      Recommended by:
      khowell, Onomastic

      whatever that means.  I remember reading it somewhere although it makes no sense to me.  Insurance, to my understanding, is making smaller payments to a different company who agrees to cover losses in the unexpected event of an accident.  Self-insured sounds to me like saying not insured.  

      Additionally, I would be surprised that an insurance payout would be handed before an investigation was ever completed.  I'm willing to bet anyone who would insure an oil drilling platform would have some clauses in there that nullify coverage in the event of criminal negligence leading to a claim being filed.  Otherwise insurance companies would simply be taken advantage of.  How could an insurance company pay out already when it hasn't even been established that BP or Transocean were not negligent?

      It sounds to me like an auto insurer handing someone a check for his totaled car before the tow truck has picked up the wreck and before a breathalyzer has been switched on.

      "All this marching up and down and cheering and waving flags is simply sex gone sour." -Julia, 1984

      by pullbackthecurtain on Fri May 28, 2010 at 09:37:53 AM PDT

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      •  I may've misunderstood (1+ / 0-)
        Recommended by:
        pullbackthecurtain

        But I thought they were insured by a subsidiary.  I can't find the diary where I read that, though.

        "If this isn't nice, I don't know what is." Vonnegut

        by khowell on Fri May 28, 2010 at 09:43:15 AM PDT

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        •  BP owns their insurance company. (0+ / 0-)

          Transocean was insured through Lloyds.

          Self insurance is basically saying that you have enough money to pay any amount of damages out of pocket, can sell off assets, or can borrow the money.

          With BP's profits of $5B last quarter, they certainly believed they could cover any damages.

          I'm no Nate Silver, TomTech, or VoteforAmerica ("WineRev" Eeman, Recounting Minnesota)

          by Tomtech on Fri May 28, 2010 at 10:17:19 AM PDT

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