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Such insurance is normally very limited in the scope of problems that are covered by the policy.
Retrospectively Rated Insurance is a method of establishing a premium on extra toilet paper holder stand large commercial accounts. Further, as the accounting profession formally recognizes in financial accounting standards (See FAS 113 for example), the premium cannot be so large that there is not a reasonable chance of a significant loss to the insurer. So the rates offered must reflect this, and be worse than if a healthy or otherwise insurable person were to purchase coverage on their own.
In addition, there is an even more controversial practice (called single premium credit insurance), usually associated with the sub prime lending industry, of charging the premium only one time at the beginning of the loan
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