Assigned Risk

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Assigned Risk

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.

References in periodicals archive ?
Umialik was awarded a state contract to be one of the service providers for the Alaska Assigned Risk Pool beginning January 1, 2006.
Companion Property and Casualty is also the servicing carrier for the North and South Carolina workers' compensation assigned risk plans.
The presence of Travelers in the nonstandard market increases the availability of coverage for drivers at higher risk who might otherwise have to turn to the assigned risk plan," he said.
Kingsway" or the "Company") announced today that it has closed on the sale of its subsidiary, Assigned Risk Solutions Ltd.
They assigned risk based on ethnicity of the parents, as some groups are more prone to heart disease than others.
The bills would establish a new residual workers'-comp market and would give the state-insurance department the authority to set up an assigned risk plan, he said.
Those for the assigned risk plan have declined 13 times.
The Society said that as a result of these problems, there could be more firms requiring cover in the Assigned Risk Pool (ARP), which provides emergency PII for a maximum of two years in any five for firms unable to buy cover in the conventional market.
Last year, Kingsway acquired the assigned risk business of the Robert Plan Corp.
For each state in which the insurance company does business, there is a separate assigned risk fund, developmental fund, and commercial fund.
Burnes, however, has said she has seen no evidence to support claims that the assigned risk plans would grow that large.
Supporters argued that even limited insurance is better than no insurance at all, and the riders would prevent some customers from being classified in the assigned risk pool, thereby lowering their insurance cost.