Assigned Risk Plan


Also found in: Financial, Acronyms.

Assigned Risk Plan

An insurance plan created and imposed by state statute under which persons who normally would be denied insurance coverage as bad risks are permitted to purchase insurance from a pool of insurers who must offer coverage to such individuals.

References in periodicals archive ?
The portion of the business that is not reinsured is carried by the insurer in the same way that insurers bear financial responsibility for policies written through an assigned risk plan.
In 2011, 4,295 Arkansas employers participated in the assigned risk plan.
In 2002, the department worked with the assigned risk plan Governing Committee to expand the Territorial Take-Out Program so that insurers would have more incentive to write assigned risk drivers in the voluntary market.
When claims exceed premiums for a given year, the state does not have to shoulder the losses from the assigned risk plan.
The companies must write at least 95 percent of their zone share by September to escape the sanction of getting assigned exposures in the assigned risk plan.
Noncompliance may lead to fines, a camp's inability to secure workers compensation insurance outside of assigned risk plans, which have higher rates and surcharges, and payment of damages for injuries to employees that come out of company assets or current camp income.