Asked by Destiny

November 21, 2009, was the day of a tragic fire in the MGM Grand Hotel in Las Vegas. At the time of the fire, the hotel had only $30 million of liability insurance. One month after the fire, the hotel bought an extra $170 million of liability coverage for a premium of $37.5 million, retroactive to November 1, 2000 (before fire) Why would an insurance company be willing to issue insurance to MGM under these conditions.

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