Introducing The Concept of Grading Insurance

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Posted By: bruce dorskind

Let's look another way to solve the problem of "altered cards"


Suppose we went to a major errors and ommissions liabilty insurance
company (they work with Wall Street and our hedge fund friends all
the time) and asked for their assistance.

Let's ask them to write an insurance policy which guaranted the following

If someone purchases a graded card either directly from the dealer
and/or via auction and within a three year time period it is discovered
that the card had been altered (not a difference of opinion between
PSA and SGC etc), then the buyer is entitled to a full refund.

The price of the insurance would depend on the card. The policy could
be written so all the authorized dealers and auction houses could earn
a signficiant commission for selling the insurance.

Furthermore only those dealers and auctioneers who passed a certain
test and/or assigned a letter of agreement with both the insurance
company and the grading company could sell the insurance.

If we create a large enough pool and if the percentage of altered cards
is less than 2% (which is something 200,000 cards- albeit probaly
higher amongst cards valued at over $5000) then it would appear
that this would be a viable idea.

Comments from Board Members who have worked in a profession
which requires errors and ommission insurance would be welcomed.

We'd also like to hear what PSA, SGC, Mastro, Lelands, Mile High, Sloate
Memory Lane and Goodwin etc have to say on the subject.

Look forward to your comments.


Bruce Dorskind
America's Toughest Want List