View Full Version : contest insurance

JP Sauve
09-19-2000, 07:30 AM
I guess lotto sites that give away large $1 Million or more top
prizes don't really pay for the cash themselves. They just
pay for an insurance policy that covers them in case someone does

Does anyone have info on these insurance companies, as in who and
how much does it cost?

JP Sauve
Prize-O-Matic.com (http://www.prize-o-matic.com/affiliates.cfm) - Earn 25 cents per surfer from FREE contest sign ups.

09-19-2000, 10:55 AM
Recently here in B.C. a contest was being held that if any one could provide conclusive proof of the existence of the ogopogo $3,000,000 would be awarded to who ever provided the proof. The people who were holding the contest had a couple of private investors who were prepared to pay $3 million if the time should ever come. Of course, no one ever counts on having to pay the money.
So to answer your question, I have never heard of any isurance branches who fund these large prizes, but I am sure they do exist.
I know that post didn't help you at all, but I really got a kick out of seeing people trying to search for the ogopogo and thought I would share it with you guys http://geekvillage.com/ubb/smile.gif

JP Sauve
09-19-2000, 01:38 PM
that's a good idea.....

.... I just have to work on taking in that first million.

I know for a fact these sites use insurance companies, as do many
game shows. I remember seeing something on TV about it. I just
don't know with which insurance company, or how to go about finding

JP Sauve
Prize-O-Matic.com (http://www.prize-o-matic.com/affiliates.cfm) - Earn 25 cents per surfer from FREE contest sign ups.

09-19-2000, 05:13 PM
The big companies have a management company that handles everything for them from the contest itself to the administration. Most of the large advertising networks have people in place that can guide you in the right direction if not handle it themselves. This way you will have not only the insurance but your legal requirements will be taken care of as well.

Good luck!

09-19-2000, 05:27 PM
These game shows do use insurance companies. I heard on TV that the insurance company for "Who wants to be a millionaire?" were getting mad and thinking about terminating their contract since the show was giving out so much money.

They had some kind of clause that gave them the right to discontinue if they wanted or something!

Dedicated to making you profitable!
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09-19-2000, 11:46 PM
My favorite site(FreeLotto) requires you to guess 6 out of 54 numbers for the jackpot. The odds for matching X/6 based on 54 possible numbers is as follows.

(6) 1 in 25,827,165
(5) 1 in 89,678
(4) 1 in 1,526
(3) 1 in 75
(2) 1 in 9
(1) 1 in 3
(0) 1 in 2

So it takes over 25,000,000 plays to hit the jackpot. Their rules state it will be paid out as an annuity of $40,000.00 per year for 25 years. So they are really only giving away about $3333/month to the big winners. Not too much if you consider how much they make from those 25,000,000 plays it took to create a winner.

Take in $1,000,000, invest it wisely and you'll be able to pay off 2 $1,000,000 winners with just the interest because you're paying it off over such a long period of time.