[dragonwriter]

> If the event 'has' to operate in this manner, how will the event organizer provide refunds should something happen and they have to cancel their event?

One method would be for one of the things purchased with the current payments being insurance.

[genericuser]

Did not know such a thing existed, thanks. However as a minor clarification on what you said, after reading over a few descriptions by various providers it is clear however that the insurance itself would have to be purchased by the event organizer and reimbursed through the current payments, as the event insurance cost itself is not covered by event insurance. At least not in any of the lists of nonrefundable reimbursements I am looking at, so it would represent a small amount of money risked by event organizer.

So as long as an event organizer has bought event insurance already, and proves that to Paypal, then yes they should release the money.