To break this down further, lets say you make 5 insurance bets 130 times; based on the 9:4 odds, youd win your bet 40 times for 400 in total winnings (10 total earnings X 40 bets).
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The insurance is in case the dealer receives a blackjack, and you put out half of your original bet as the insurance.
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After the dealer has dealt two cards to the player and himself, the player has to decide if he wishes to stand, hit, split or double.