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.
based in Minneapolis, Minnesota, provides disability and absence management services, primarily directed at workers' compensation to: (i) employers insured through our wholly-owned insurance subsidiaries, American Compensation Insurance Company (ACIC) and Bloomington Compensation Insurance Company (BCIC); (ii) self-insured employers on a fee-for-service basis; (iii) state assigned risk plans on a percent of premium basis; (iv) other insurance companies; and (v) agents and employers on a consulting basis, charging hourly fees.
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.
Due to the soft insurance market, participants are being attracted to leave the Minnesota Assigned Risk Plan ("ARP") by standard market insurers resulting in a decline in ARP premiums and a resulting decline in service revenue to us.
We urge Insurance Commissioner Burnes to take swift action to eliminate this inequity by implementing the previously approved Assigned Risk Plan.
Premiums continued to decline in the Minnesota Assigned Risk Plan ("ARP") and as a result, service revenue from the ARP decreased 33% in the fourth quarter of 2005.
Our service revenue for the quarter also suffered from this soft insurance market as insurers aggressively targeted companies in the Minnesota Assigned Risk Plan ("ARP"), writing this business at rates lower than the ARP.
Commissioner of Insurance, ruling (on appeal from the Superior Court) that the Massachusetts Commissioner of Insurance has the authority to create an assigned risk plan to manage the allocation of high-risk drivers in the state.
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.