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Play the hold ’em insurance game? It’s your money!


Note: Not at the old Poker1 site. A version of this entry was originally published (1993) in Card Player magazine under the title: “Can you play the insurance game? It’s your money!”


Once upon a time “insurance” was popular in hold’em. When someone ran out of money during a hand and there was no longer any possibility of more betting, the players would expose their cards. Observers not involved in the hand would offer protection, usually to the favorite.

For instance, suppose your only opponent is a 4-to-1 underdog. It’s a big pot in a no-limit game, and you don’t want to risk losing. An observer offers you 3-to- 1, and so you bet $1,000. This means if your hand holds up, you take the pot and pay the observer $1,000 out of it, but if you get drawn out on, you collect $3,000 from the observer. That isn’t the only way insurance works, but you get the idea. Using a better method, if the pot is $10,000, the observer might offer $7,000 to take over the favorite’s hand, or he might offer just $1,500 for the underdog’s hand.

The challenge. Pretend each pot is $10,000. You get only one minute per problem to estimate how much Judy’s hand is worth. Write it down. Go.

#1- Flop A♣ 4♣ 2♣

Judy – A♦ 3♦
Jack – 7♠ 7♣

Now, estimate the value of Judy’s next hand, shown at bottom left. And remember, you only have one minute to make your guess.

#2- Flop 8♦ 7♦ 5♠

Judy – 9 ♦ 5 ♦
Jack – 6♣ 6♥

Finally, look at Judy’s third hand.

#3- Flop 7♣ 8♥ 10♦

Judy – K♠ K♥
Jack – 7♥ 6♥

Your score. Start with $5,000. For each problem, subtract the difference between your estimate and the actual value of Judy’s hand. Here are those values: Judy’s first hand is worth $5,742; second, $4,722; and third, $6,348. If you ended up with $3,000 or more, you passed today’s challenge. But no matter what, don’t sulk. — MC

“The Mad Genius” gives his shortest poker answers
Hold 'em, Other games, POKER, Strategy
A game that will energize your cardroom
Cardrooms, Gambling, Other games
A seven-card stud secret from my old note
Manipulation, Other games, POKER, Psychology, Strategy
A very important poker secret
Hold 'em, Other games, POKER, Strategy
Another seminar + let’s play Three-card Brag
ALL (newest first), Other games, POKER
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Odds, Other games, POKER, Strategy
Brunson: A state of mind
Entries by others, Motivation, Other games
Brunson: Dangerous side bets at the poker table
Entries by others, Manipulation, Other games
Brunson: Don’t talk yourself out of the pot
Entries by others, Manipulation, Other games
Brunson: Keep betting until they fold
Entries by others, General, Manipulation, Other games
Brunson: Let the dog die
Entries by others, Ethics, Manipulation, Other games
Brunson: Obeying poker speed limits
Entries by others, General, Other games, POKER
Brunson: Participating in the party
Entries by others, Other games, Psychology
Brunson: Proving your poker prowess takes time
Entries by others, Image, Manipulation, Other games
Brunson: Staying in action
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Games you can beat + experts destroying bankrolls
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Gambling, General, Other games, POKER1 EXTRA, Strategy, Tips
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ALL (newest first), General, Other games, POKER, Strategy
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Published by

Mike Caro

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Known as the “Mad Genius of Poker,” Mike Caro is generally regarded as today's foremost authority on poker strategy, psychology, and statistics. He is the founder of Mike Caro University of Poker, Gaming, and Life Strategy (MCU). See full bio → HERE.

2 thoughts on “Play the hold ’em insurance game? It’s your money!”

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  1. Based on an insurance chart of 24 outs, and I’m a 6-1 favorite with a pot of $725. I have the best hand and the other player is all-in. He requests insurance and I accept. The river does not improve his hand and I win the hand. I win $600 and he wins $100. Who gets the $25?

    1. Ideally, it should be broken down to the nearest dollar or cent. But since that isn’t always practical, you’ll have to decide in advance who gets the odd chip or how it is awarded. I don’t know what the most common procedures are that cover this. They vary.

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