Hole-In-One Insurance Funds Million-Dollar Prizes

Insurance companies sell hole-in-one policies that allow golf tournaments to offer $1 million prizes without carrying the entire financial risk. Through prize indemnification, the insurer backs the award and pays when a qualifying contestant scores an ace. Actuaries estimate the odds at 12,500 to 1 for an average golfer and 2,500 to 1 for a professional, while some contests offer prizes worth as much as $4 million.

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