How Insurance Works

After Mrs. O'Toole's barn burned down, she called her insurance agent to file a claim.
She told the insurance man, "We had that barn insured for fifty thousand bucks, and we need that money immediately!"

"Just a minute there, Mrs. O'Toole," the agent replied. "Insurance doesn't work quite like that."

"What do you mean?!" she said.

"The policy here says $50,000!"

"That's a maximum," the insurance man said. "What we do is will ascertain the value of what was insured, and then provide you with a new one of comparable worth."

After a long pause, she replied "That's how insurance works?!"

"Absolutely," the agent said.

"Well then," she said, "I'd like to cancel the policy on my husband immediately!"