Insurance provides financial protection against unforeseen events, such as injury or loss of income. In blackjack, the insurance function is to guarantee the dealer a set amount of money (the insurance policy) in the event that the player either loses or goes bankrupt.
The insurance policy guarantees the dealer a set amount of money. If the player either loses or goes bankrupt, the insurance company will pay out the guaranteed money to the dealer.
This is an important function of insurance in blackjack because it prevents dealers from becoming financially vulnerable in high-stakes games. Without insurance, dealers could be forced to quit the game if they lost too much money, which would disrupt the game and disadvantage players who were still playing.
In most cases, insurance pays out only if the player goes bankrupt. This is because bankruptcy is often considered a serious event and is likely to lead to financial ruin. However, in some cases, insurance may also pay out if the player loses even if he or she does not go bankrupt.
This is because it can be difficult to determine whether a loss was due to bad luck or poor playing skills. In these cases, an insurance payout would help both the player and the dealer recover their losses.
