How does this system work in situations where the cost of mistaken identity can lead to a terrorist attack i.e. a consequence of extraordinarily high or, even worse, philosophically measured cost? (You have to calculate the cost of human life.) I’m thinking of a situation in which matching a person’s identity correctly could prevent the attack. Let’s imagine someone is applying for a job at the Ashokan Reservoir, which supplies a significant portion of the water in New York City.
Here’s how I’m envisioning the model working:
The Ashokan HR Dept is the decision maker. They publish criteria saying “Because this is an extraordinarily high risk situation, you must have the following claims and the insurance on those claims must be an extraordinarily low amount. If any claim costs more than 1 penny, you are not qualified for this high-risk position.”
My thinking here is that if the claims cost very little then the insuring parties have a ton of confidence that the claims are fact (like 6 nines), which assures the Ashokan people that they can trust the claims, which is the most important thing because no amount of money can make up for a mistake in which they hire a terrorist who poisons the water of New York City.
Is this how the model would work?