# kaal:claim:3411897-030

**Claim.** Most legacy insurance companies will not consider underwriting a smart contract that is not subject to the traditional legal framework, which leaves sophisticated smart contracts without the insurance they require.

**Type.** failure  **Support.** asserted

**Holds when.**

- smart contracts operating outside the traditional legal framework

**Source quote.**

> Most sophisticated smart contracts will require a form of insurance/underwriting to offset the risks of possible failure. Most legacy insurance companies will not consider underwriting a smart contract that is not subject to the traditional legal framework.

**From.** Wulf A. Kaal, *Decentralization - Past, Present, and Future* (2019), Part 3 / Unleashing the Power of Decentralization, page 36

**Cite as.** Wulf A. Kaal, Decentralization - Past, Present, and Future (2019). SSRN: https://ssrn.com/abstract=3411897

**Verify.** sha256 of source PDF `82f0aea026b3e3a526ec51bc073b3b864dc06cd9083ff9c54c550037045edaa9` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202019%20-%20Decentralization%20-%20Past%2C%20Present%2C%20and%20Future.pdf

**Failure mode.** legacy-insurer-refusal  (family: legal-personality-and-liability-gap)

**Topics.** smart-contracts, law-and-legal-systems, defi

**Keywords.** insurance, smart-contracts, legal-framework, underwriting-gap

**Related claims.**

- restates: https://wulfkaal.github.io/claims/3406323-026

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.