I don't know if he explains it later, but I'm not sure how he can say that 'contract insurance' premiums would be low for law abiding citizens.  There's more risk for the poor to commit crime, which means that the poor would ultimately end up having higher premiums -- just because they're poor.  Which means they'd be unable to find jobs, or engage in many transactions.


It's a system that ultimately only benefits those who are wealthy.  


You have enough money to kill someone?  By all means, go ahead and do it!  You just have to pay Y million dollars. 


Imagine your child gets kidnapped, but you can't afford a private detective to investigate their kidnapper.  That kidnapper doesn't have to worry about his premiums going up.  After all, if he doesn't get caught (and targeting people who are too poor to hire private detectives is a good way to go about that) his premiums won't go up.  

---