The somatic marker hypothesis (e.g., Antoine Bechara and Antonio Damasio, 2005) is formalized in terms of a somatic states generation function (SSGF). An individual’s anticipatory emotion in the face of a lottery arises from the aggregation of amygdala activation and the “re-experience mechanism” due to ventromedial prefrontal cortex engagement, and she incorporates the emotion terms into utility assessment of lotteries. Results of this study replicate and estimate behavioral patterns such as loss aversion and regret. Applying the model to insurance behavior, we show that emotion mediated in an individual’s evaluation of an insurance policy by scaling the agent’s degree of risk aversion, and the strength of that mediation is critically relied on the loss probability.