Don't you guys think that would be a little 
stupid on the Post OFfice's part if they just did 
that? 

Say I pay an $4.00 to insure a package with a 
deck of cards in it and declare the value at 
$4,000.00.  Then the adressee  claim it was 
damaged, it is unlikely that they will give me 
4,000.00, for something I paid $2.00 for.

 If they would honor that claim hey there is a 
nice little money making scheme.