Poker Dictionary
Wednesday, June 28, 2017
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Insurance

  1. Noun

    An arrangement among remaining players to end the hand and divide the pot based on an agreed-upon method, made when there are cards remaining to be dealt or revealed in a hand and at least one player is all-in.

    ADDITIONAL INFORMATION: The most common way to divide the pot is to determine the percentage chance in favor of each specified player's winning the hand and giving the players that percentage of the pot. This is a division based on pot equity. It is also common to have insurance agreements in which the underdog receives slightly less than pot equity, with the favorite provided the additional amount as an incentive to agree to the deal. Example: Player A has Kc-Kh in the pocket. Player B has 7s-6s in the pocket. Player A is a favorite to win, with approximately a 77% chance of winning compared to Player B's 23% chance. Player B is all-in and there is $2,000 in the pot. Player B may ask if Player A would take insurance, suggesting an 80/20 split with Player A taking $1,600 and Player B taking $400. If Player A agreed to the insurance, no additional cards would be dealt and the hand would be over.

    EXAMPLE: "I'll take insurance every time it is offered as long as my expected value is close to what it would have been if the hand were played out. I don't like to gamble."

    APPLIES TO: Online and Land-based Venues

    RELATED TERMS: Deal, Pot Equity, Scared Money

  2. Noun

    A proposition bet against oneself winning a particular hand, agreed upon with a person not in the hand when there are cards remaining to be dealt or revealed and at least one player is all-in.

    ADDITIONAL INFORMATION: In this version of insurance, the hand is played out and a winner is declared. The outcome of the hand remains relevant because not all remaining players are involved in the agreement.

    EXAMPLE: "I had a decent chance of winning, but there was so much in the pot it was worth it to me to take out insurance."

    APPLIES TO: Online and Land-based Venues

    RELATED TERMS: Pot Equity, Prop Bet, Proposition Bet, Proposition Hustler, Scared Money




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