Principals who accept collateral or other security on futures transactions trust that the collateral will retain its value and will be collectible in the case of foreclosure, expectations that are not always satisfied (Sandler and Hertzberg 1985; Ingersoll 1985). Both trustees who buy insurance policies and principals who have been reassured by the ancillary insurance protection trust that the insurance company is properly capitalized and takes reasonable risks. Moreover, they presume that premiums are invested properly, free of the specter of misappropriation or self-dealing. There is no reason to be more trustful of fidelity-like insurance than of other insurance or, indeed, of any-other futures transaction.

Shapiro, Susan P., The Social Control of Imper…, loc. 125