Because they are considered high-risk and require high capital expenditure ( unlike Internet technologies which are very cheap and practically commoditized), banks are reluctant to finance them unless they are able to find government-secured financing.

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Further, when you remove the obligation that an insurance company be licensed in the state where they are selling, what you get are fly-by-night operations that sell very cheap policies that end up having very little in the way of benefits included in the policy.

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All these things have in common the fact that they don't weigh very much and are cheap to move, even over very long distances.

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