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| | Federal Reinsurance for Disasters |
 | | In part, that choice may reflect the government's regulation of insurance rates, differences between risks and premiums, the taxation of capital reserves, and restrictions on market entry by foreign insurers, all of which limit the coverage that is available. |
 | | When the massive Kobe quake hit, the earthquake endorsement covered roughly 30 percent to 50 percent of a property's replacement value; claims were limited to less than $100,000 (10 million yen) for property and an additional $50,000 (5 million yen) for contents. |
 | | The earthquake fund has more than $4 billion in assets, primarily in the form of nontradable government securities (the fund can invest up to 35 percent of its balances in global equities). |
| www.cbo.gov /showdoc.cfm?index=3787&sequence=7 (1718 words) |
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