different types can insure existence. Not so here. If there is a continuous distribution of accident probabilities (but customers are otherwise identical), then equilibrium never exists. There is an intuitive explanation for this striking result. We argued above that, if accident probabilities were close together, then equilibrium would not exist. When there is a continuum of probabilities, there always are individuals with close proba- bilities with whom it pays to "pool." For a proof of this result, which is not elementary, see Riley (1976).