A little bit puzzled - what's right?

Under www.xprizenews.org there's an article saying that the XPRIZE Foundation never succeeded in raising the 10 Mio. Dollar Fund needed for the prize and that there only is an insurance ending at 12/31.

But the Foundation itself in the summer has reported a 10 Mio-Dollar donation by the ANSARI-Family. So I cannot imagin that the article is right concerning this point (that wasn't the central topic of that article).

What is right?



Dipl.-Volkswirt (bdvb) Augustin (Political Economist)

I am not able to see the article but both of the statements are correct. In the beginning the X-PRIZE Foundation was not able to raise the 10 million so an insurance policy covers the 10 million. But it expires at the end of this year. The ANSARI-Family donation 10 or so million (not sure on how much) this summer to go for next set of prizes. These will not have an expiration date like the 10-mill prize.
The insurance policy was an insurance equivalent if a bet. If all goes well the insurer is going to lose.

here's a link to the article directly.. the X Prize.. was also in debt by $1 Million!.. And the insurance deadline was deadline in 2003... lucky.. they where able to extend it..

http://www.xprizenews.org/index.php?p=505

Peter really took a lot of risks.. for "all of us"... without him and the few others in the organization.. we maybe needed to wait an other "30 to 50" years....

So true!

correction on my post.

ANSARI-Family donation covered the last of the premiums for the $10 mill X-prize and may have laid down some of the money for future prizes but not the $10 mill mentioned above.

Like any insurance scheme, the premium paid is not equalled to the insured amount. The insurer gets to keep the premiums if the event insured against does not occur.
(for example, you take up a $1 million dollar life insurance; if no accident occurs that kills you, the insurer collects them for 'free')

I just this morning read the article reporting the problems, their solutions and their history before calling the forums.

Thank you very much for the article and the answers here.



Dipl.-Volkswirt (bdvb) augustin (Political Economist)