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Assigned Risk

   Also found in: Dictionary/thesaurus, Financial, Wikipedia 0.01 sec.

A danger or hazard of loss or injury that an insurer will not normally accept for coverage under a policy issued by the insurer, but that the insurance company is required by state law to offer protection against by participating in a pool of insurers who are also compelled to provide coverage.


assigned risk n. a person whose official driving record (accidents and tickets) is so poor that he/she cannot purchase commercial auto insurance, and must be assigned to a state operated or designated insurance program at high rates.



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Last year, Kingsway acquired the assigned risk business of the Robert Plan Corp.
and then use these claims to raise your premium or even worse, cancel your car insurance policy making you assigned risk with a substantial premium increase.
Other states that have gone to less regulated markets have seen their assigned risk plans shrink.
 
 
 
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