Berkshire Hathaway has been taking insurance policies that noone else would for years. Primary owner of Berkshire Hathaway Warren Buffet he could put $100M on his credit card as it is less than 1% of his net worth...
http://www.forbes.com/finance/lists/...atatype=Person
Point is Insurance companies have HUGE assets check out AIG with $48 billion of cash on their balance sheet.
Insurance companies can come up with $100M and the other poster is right, most of those "$1 million dollar shots/passes" are covered by a one time fee of $20K or something like that.