> its also inaccurate to assume that anyone who plays golf can afford $500+ in alcohol.

One would hope then that upon getting a hole in one they would not spend $500 that they cannot afford. It's not a requirement to buy anyone else a drink.

Its probably club policy - when you become a member you sign a contract agreeing to whatever it costs to be a member, plus either hole in one insurance or the promise to purchase drinks for everyone there that day.

That part of why the insurance is unusual - It's basically insurance against a specific kind of social embarrassment.