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Insurance markets in everything
CIA counterterrorism officers have signed up in growing numbers for a government-reimbursed, private insurance plan that would pay their civil judgments and legal expenses if they are sued or charged with criminal wrongdoing, according to current and former intelligence officials and others with knowledge of the program.
The new enrollments reflect heightened anxiety at the CIA that officers may be vulnerable to accusations they were involved in abuse, torture, human rights violations and other misconduct, including wrongdoing related to the Sept. 11, 2001, attacks. They worry that they will not have Justice Department representation in court or congressional inquiries, the officials said.
Here is more. Thanks to an anonymous reader for the pointer.
Posted by Tyler Cowen on September 13, 2006 at 06:42 AM in Economics | Permalink
Comments
This brings a whole new dimension to the term, moral hazard.
Posted by: Cyrus at Sep 13, 2006 9:02:59 AM
So, will the premiums on those insurance policies vary with the probability of a Democratic president or congress?
Posted by: albatross at Sep 13, 2006 9:26:01 AM
What do economists think, I wonder, of the related question of insurability of punitive damages?
It's difficult to square the intent of punitives with the ability to insure against them, but most states allow such insurance.
Posted by: Anderson at Sep 13, 2006 10:02:57 AM
"So, will the premiums on those insurance policies vary with the probability of a Democratic president or congress?"
Thats a good question. I don't think it really matters, as the most likely risk parameter would be the consequences of a civil suit. Its unlikely that any US govt. would prosecute somebody just following orders, which at this point it is pretty clear they were doing just that.
Posted by: mickslam at Sep 13, 2006 1:13:19 PM
This was also discussed on The Volokh Conspiracy. You should check out that blog sometime, Tyler. It seems right up your alley ;-)
Posted by: Ken Hirsch at Sep 13, 2006 4:18:39 PM
The fact that the government is paying for private insurance incase one of its agents is sued for violiating someones rights is highly distrubing for two reasons. First the government is asking its employees to due things that they won't defend theirselves. But second and most perturbing is the fact that the insurance company that they are buying policies from was created by ex FBI agents. Is this just another way for the government to create a product for something that is not needed.
Why waste tax money on additional insurance policies when the dept. of justice has their back? Or maybe the gov. knows that they are asking agents to break laws and when they are caught, they want private litigators to defend them so the gov. is not implicated. The whole concept of the gov. reimbursing private insurance to protect unethical behavior is beyond wrong, it is a gross misuse of tax dollars.
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