... insurance for full value is perfectly legal, regardless of how much was paid for the item, so you have it pretty much right, Terry.

Postal insurance presents a special problem, in that an eBay seller is probably not going to insure for more than was paid for the item (subject to the insurance value limits).

However, it would be perfectly legitimate for a person who has bought an item for (say $20) to insure it for its true value (say $100) when sending it in the mail. And it would not be fraudulent to collect on the full value if the item is lost.

On the other hand ...

>> Otherwise we could sent 1000 boxes of sawdust
>> and insure each for a cool million and the Post
>> office would surely lose ONE then we're rich!

... wouldn't work because to try to collect more than the actual value of an insured item, regardless of how much insurance was purchased, would be fraudulent. Well, actually, it might "work", but it wouldn't be legal because to collect you'd have to sign a false declaration as to the value of the lost property.

That's my opinion based on practicing criminal law for more than 20 years (though I am not an insurance expert).

Hi Andy!! ----- jim o\-S