In Blackjack, if the dealer's initial draw reveals an Ace, players are allowed to "insure" against a dealer having a natural blackjack.
If the dealer turns out to have a natural blackjack, the player collects a 2:1 payout on the insurance - so that you don't wind up losing your bet!
Here's the specific scenario I'd like to understand: Imagine that you're a blackjack player who has $1,000 in chips:
- You bet $200 (so you have $800 left).
- Cards are dealt, dealer shows an Ace.
- You buy insurance (cost: $200; you now have $600 in-hand).
- You hit, and your hand busts: you've gone over 21.
- Dealer reveals their hand, it's a natural blackjack.
Which of the following outcomes would apply?
- Outcome A: You don't collect your insurance, because you busted. You have $600 in-hand.
- Outcome B: You collect insurance, even though they busted. You now have $1,000 in-hand.