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Assigned Risk

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia.

define assigned risk insurance

What Is Assigned Risk?

Assigned risk is when an insurance company is required, by state insurance law, to provide coverage for risk that may not find coverage in the general insurance marketplace. In order to compensate insurers for the potential losses associated with such mandated coverage, insurers will often pool funds and share the assigned risk.

Common examples include mandating that all drivers obtain car insurance or requiring businesses to purchase workers' compensation insurance.

Key Takeaways

  • Assigned risk is when the law mandates that an insurance company offer certain coverages.
  • In such cases, regulators will require insurance companies to pool together and accept the assigned risk, even if the insurers individually don’t want to provide a commercial policy.
  • Assigned risk allows the state to protect drivers who are able to purchase commercial policies and who may be involved in an accident with a risky driver.

Understanding Assigned Risk

In most cases, insurance companies choose who they underwrite insurance policies for, and this choice to insure is based on the risk profile of the individual or business applying for coverage. These considerations include the likelihood that a claim that results in a loss for the insurance company. The insurer will thus price the cost of the policy it underwrites according to the potential severity of any losses. If a potential insured is deemed too risky, the insurer may not underwrite a new policy.

State insurance regulators recognize that insurers only want to underwrite policies that will be profitable, but also recognize that it is in the interest of the government that coverage is extended to groups that need protection but may not be able to obtain it in the general insurance market. To do this the regulator will require insurance companies that provide a particular line of insurance, such as workers’ compensation or automotive insurance, to participate in a state-sponsored plan that provides coverage.

Example: Motorist Coverage

For example, drivers are required to carry insurance with them in order to legally operate an automobile. This insurance is designed to cover claims made against the driver. In most cases, the driver’s record is in good shape, and insurers are likely to provide coverage.

Some drivers, however, have poor driving records and may not be able to obtain coverage because they present too much of a risk. Insurance regulators will require insurance companies to pool together and accept the assigned risk, even if the insurers don’t want to provide a commercial policy . This allows the state to protect drivers who are able to purchase commercial policies and who may be involved in an accident with a risky driver.

"In some cases, you can apply to an automobile insurance plan or assigned risk plan by directly contacting your state's Department of Insurance," according to the website DMV.org, a private, non-governmental website:

Some states require that you apply to several car insurance companies before you apply for the state's car insurance plan. If each provider has denied you car insurance coverage, you'll be accepted into the plan. Typically, your signature on the application is enough to acknowledge that you have fulfilled this requirement.

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Assigned risk is a method of providing certain types of insurance to those who otherwise would be denied coverage because they would be considered too high-risk. Individuals who have failed to gain coverage through the private market–also called voluntary market–can apply to receive insurance through their state’s assigned risk “pool.” The state will assign the person to an insurance company within the pool, who must accept and insure that person. 

Companies who sell vehicle and workers’ compensation insurance are required to participate in assigned risk programs in the states that have them. However, while assigned risk programs allow people to gain necessary coverage for those activities, the rates gained through these programs are much higher than policies purchased through the private market. Further, most assigned risk plans offer only limited coverage, guaranteeing only the minimum required by law. If a person has no option but to purchase an assigned risk plan, they can try to remedy whatever made them undesirable to insurance companies and apply for a plan on the private market at a later date.

In the context of automobile insurance, a driver might need an assigned risk plan for multiple reasons. Common reasons drivers might be denied on the private market are numerous vehicular infractions or incidents, such as traffic tickets, speeding tickets, or recent accidents. Forty-one states have driver’s license point systems , and in some of these states insurance companies will reject drivers that accumulate too many points. Other reasons might be the inexperience of the driver, poor insurance record or credit, or if the person lives in a high-crime area.

New or very small companies might struggle to purchase a workers’ compensation plan on the private market. More established companies with a history of losses might also be deemed undesirable to insurance companies. Insurers are also reluctant to cover companies whose operations are particularly hazardous. Not every state requires workers’ compensation insurance, but for ones that do, assigned risk plans might be available for such companies. 

[Last updated in June of 2021 by the Wex Definitions Team ] 

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Denied Car Insurance? Hope Floats in the Assigned-Risk Pool

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If your driving history is full of transgressions, finding a company that'll sell you a car insurance policy can be difficult.

A couple infractions could cause higher rates, but rack up too many serious convictions or tickets and insurers may prefer not to get involved with you at all. This creates big problems if you own a car and lack the insurance required in your state.

If your application for auto insurance is denied, entering the state assigned-risk pool may be the only way to get the coverage you need to drive legally.

Here’s a look at what car insurance assigned-risk pools are and how to know when it’s time to jump in.

See what you could save on car insurance

Easily compare personalized rates to see how much switching car insurance could save you.

What is an assigned-risk car insurance pool?

Drivers who are deemed too risky may be unable to buy car insurance on the private market. But they still need coverage by law if they own vehicles, so states assign them to insurance companies that operate in the state. This grouping is known as the “assigned-risk pool,” “residual market” or “shared market.” Sometimes it’s called the joint underwriting association.

What problems put drivers in the assigned-risk pool?

Each state has its own eligibility rules for the assigned-risk pool.

Typically, if you've tried to buy auto insurance in the past 60 days and were turned down, you can apply to your state’s assigned-risk pool. Some states may require that you be turned down more than once.

Reasons you may be denied car insurance include:

Major driving convictions (DUI or DWI, hit-and-run)

Multiple accidents, tickets or claims on your driving record

Having little or no driving experience

Insurance prices and coverage options for assigned-risk drivers

Expect your auto insurance premiums to be substantially higher in the assigned-risk pool. Your policy options also may be limited to the state minimum liability requirements. Some states may allow you to earn a discount on your assigned-risk pool insurance plan after a certain amount of time with no accidents or driving convictions.

How to find your state’s assigned-risk pool

Generally, any car insurance agent in your state can help you with an assigned-risk policy. You may be asked to prove, declare or certify that you have no other options for buying insurance, depending on the state.

» MORE: What does car insurance cover?

How to get out of the assigned-risk pool

States require insurers to renew assigned-risk pool policies for a set amount of time, generally three years. Assuming you pay your premiums and your driving record stays clean during your pool time, you'll likely qualify for a regular policy by then. If you don't, you can reapply to the assigned-risk pool.

You may be able to climb out of the pool faster if:

You find an insurance company that is willing to sell you a standard policy

Your assigned-risk pool insurer offers you a traditional policy

» MORE: Best car insurance companies for high-risk drivers

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assigned risk

Definition of assigned risk

Example sentences.

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'assigned risk.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

1940, in the meaning defined above

Dictionary Entries Near assigned risk

assignation

Cite this Entry

“Assigned risk.” Merriam-Webster.com Dictionary , Merriam-Webster, https://www.merriam-webster.com/dictionary/assigned%20risk. Accessed 30 Aug. 2023.

Legal Definition

Legal definition of assigned risk.

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Glossary Of Insurance Terms And Definitions

Insurance can be complicated, but our comprehensive guide to common insurance terms will give you everything you should know about insurance policies, coverages, and basic terminology. Browsing the glossary of definitions below can give you the knowledge to better understand your policy and other important information about all types of insurance.

Looking for a specific insurance term? Enter it below to jump to the definition.

Accident Forgiveness

With Accident Forgiveness (not available in CA, CT, and MA) on your GEICO auto insurance policy, your insurance rate won't go up as a result of your first at-fault accident.

Actual Cash Value

The fair market value of property; technically, replacement cost less depreciation .

A statistician who computes insurance risks and premiums . Actuaries keep GEICO profitable and financially stable by setting prices, assessing trends, and determining how much to hold in reserve to pay claims.

See Claim Examiner or Auto Damage Adjuster .

Adverse Carrier

Term used to refer to the other party's insurance company.

After-Market Parts

See Competitive Auto Repair Parts .

An individual who acts as a representative for the company and sells insurance, usually on a commission basis. This individual could be an 'exclusive' or 'non-exclusive' agent.

Agreed Price

The price or cost of repairs agreed to by the AD (auto damage) adjuster or independent appraiser and the body shop representative.

A change to the basic policy contract. An amendment alters the policy; an endorsement adds to it.

Anti-lock Braking System (ABS)

A computer-controlled high pressure system that assists the vehicle's normal braking system. ABS allows all wheels to slow at the same rate, thereby preventing loss of control.

Anti-Theft Device

A device that deters auto theft. Autos equipped with these devices may entitle you to a discount on your insurance premiums .

Process that determines the value of property, or the extent of damage, usually performed by an impartial expert.

Arbitration

A process of settling a dispute through an impartial party. It is used as an alternative to litigation.

Assigned Risk (AIP)

A driver or vehicle owner who cannot qualify for insurance in the regular market. He or she must get coverage through a state assigned risk plan which specifies that each company must accept a proportionate share of these drivers/owners.

Means the same as an insured , policyholder , or someone who has an insurance policy .

The party that is legally liable for the damages in an accident.

Auto Damage (AD)

Division of the claims department that handles auto claims .

Auto Damage Adjuster

The auto damage adjuster is responsible for writing the repair estimate for your vehicle. This adjuster will also answer your questions about the repair process, your rental vehicle , or your total loss settlement .

Auto Insurance

Auto Insurance provides protection from losses resulting from owning and operating an auto. The insurance covers losses to the insured's property and losses for which the insured is liable as a result of owning or operating an auto.

Auto Repair Xpress ®

GEICO program that maximizes convenience. It allows you to complete your vehicle's repair process at one location. Shop Representatives are on site to facilitate the repair process. Rental vehicle arrangements are available on-site through Enterprise Rent-A-Car. All work is guaranteed for as long as you own the vehicle.

The theft of an auto is a type of loss that is covered under comprehensive coverage .

Berkshire Hathaway

The parent company of GEICO. Other companies in the Berkshire Hathaway group are listed at the Berkshire-Hathaway website .

A temporary agreement declaring that the policy is in effect. Used in certain cases to protect a policyholder when it is not possible to issue or endorse the policy immediately.

Bodily Injury

An injury sustained by a person.

Bodily Injury Liability Coverage

Pays damages for bodily injury or death resulting from an accident for which you are at fault and in most cases provides you with a legal defense. This coverage is subject to the terms, limits and conditions of your policy contract.

Cancellation

Termination of an insurance contract before the end of the policy period, by the insured or insurer.

The insurance company or insurer .

Catastrophe

A disaster affecting a specific geographic area. Catastrophes often cause injury or even death; most result in extensive property damage. Hurricanes, floods, tornadoes, and even large hailstorms are typical examples of catastrophes.

Certificate of Financial Responsibility (CFR)

Certificate of satisfaction.

A form signed by the insured when he or she takes delivery of the car from the repairer. It certifies that he or she is satisfied with the vehicle operations, appearance, and visible quality of the repairs.

Any request or demand for payment under the terms of the insurance policy.

Individual or entity presenting a claim .

Claim Examiner

A person responsible for investigating and settling a claim.

CLUE ® Report

Comprehensive Loss Underwriting Exchange (CLUE) report; provides claim history information.

Collision Coverage

Pays for damage to an insured vehicle when it hits or is hit by another car or object, or if the car overturns. This coverage is subject to the terms, limits and conditions of your policy contract.

Comparative Negligence

A doctrine of law that, in some states, may enable claimants to recover a portion of their damages even when they are partially at fault, or negligent. Each party's negligence is compared to the other's and a claimant's recovery can be reduced by the percentage of his or her own negligence.

Competitive Auto Repair Parts

Parts made by a company other than the manufacturer of the auto. All parts we authorize meet or exceed the quality of the manufacturer's parts, but cost less. GEICO guarantees these parts for as long as you own the car.

Competitive Estimate

A term used when an insurance company requests that you submit multiple repair estimates for consideration.

Comprehensive Physical Damage Coverage

Pays for damage to your car from theft, vandalism, flood, fire or other covered perils. This coverage is subject to the terms, limits and conditions of your policy contract.

The portion of the insurance contract which outlines the duties and responsibilities of both the insured and the insurance company.

Condo Insurance

A type of homeowners insurance that meets the special needs of condominium owners.

Contributory Negligence

A doctrine of law that, in some states, may prevent claimants from recovering any portion of their damages if they are even partially at fault, or negligent.

Protection and benefits provided in an insurance contract.

Customized Vehicle

A vehicle that has been altered or has equipment or accessories not typically found in a personal vehicle.

Loss or harm to a person or property.

Money that one party becomes legally obligated to pay to another party.

Declarations

The part of your policy that includes your name and address; the property that is being insured, its location and description; the policy period; the amount of insurance coverage and the applicable premiums .

The portion of a claim you pay out of pocket. Choosing a higher deductible will lower your insurance premiums .

Defensive Driver Discount

Certain drivers (usually over age 50) who have voluntarily taken a defensive driving course may qualify for this discount on their auto insurance premiums .

Depreciation

The decrease in value of any property due to wear, tear, and/or time. Generally, depreciation is not an insurable loss.

Direct Check

Direct Check is GEICO's electronic payment method that lets you pay your premium online with an electronic check.

See Electronic Funds Transfer.

A reduction in your premium if you or your car meet certain conditions that are likely to reduce the insurer's losses or expenses. For example, auto insurance discounts are given for cars with auto theft devices and for drivers and passengers who use seat belts.

A GEICO office staffed with GEICO employees where insureds and claimants bring their vehicles for damage inspections and estimates.

Driver Training Discount

A discount for people who have taken an approved driver training course. This discount is not available in all states or for all individuals.

Electronic Funds Transfer (EFT)

EFT is an electronic payment method that lets you pay your premiums with automatic deductions from your checking account.

Emergency Road Service Coverage

  • being locked out of your car
  • towing not related to an accident
  • having a dead battery re-charged
  • inflating a flat tire
  • filling an empty gas tank.

Endorsement

An addition to the basic policy contract. An endorsement adds to the policy contract; an amendment alters it.

An assessment of the cost to repair your damaged property.

Restriction in your insurance policy that limits and may exclude coverage for certain perils, persons, property, or locations.

Expiration Date

This date, found on your declarations page, indicates when your policy coverage runs out. Your renewal policy will start on this date.

Field Adjuster

An insurance adjuster who works primarily outside of an office and often meets personally with the public. Field adjusters can conduct face-to-face meetings, negotiations with claimants, scene investigations , and damage inspections.

Financed Car

A vehicle financed by a loan. The lender retains a lien on the auto until it has been paid off.

First Party

Term used to refer to an insured .

First Party Claims

A claim for damage, loss or injury made by an insured.

Two types of forms are important in insurance: 1. pre-printed contracts that comprise your insurance policy, 2. questionnaires or coverage selection forms that a policyholder is required to fill out.

Gap Insurance

An automobile insurance option that comes into play when your vehicle is stolen or totaled . Gap insurance covers the "gap" or difference, if any, between your car's actual cash value and what you still owe on it. GEICO does NOT currently offer gap insurance. You may want to check with your financing company to see if you have gap insurance or if it is available to you.

GEICO ®

Government Employees Insurance Company and its affiliates market collectively under the trademark GEICO.

GEICO Insurance Agency

A GEICO company that sells primarily property insurance coverages written through affiliated and non-affiliated insurance companies.

GEICO Overseas

A program provided through GEICO Financial Services, GmbH that sells automobile and property insurance outside the United States .

Good Student Discount

May be awarded to full-time students who maintain a grade average of "B" or better.

Anything that increases the chance of an accident occurring.

Homeowners Insurance

Protects homeowners from losses to their homes, personal property, and some types of damage or injury to others for which the homeowner is liable. Homeowners insurance is subject to the terms, limits and conditions of your policy contract.

Indemnification

The act of providing compensation for a loss with the intent to restore an individual or entity to the approximate financial position prior to the loss.

Compensation for a loss intended to restore an individual or entity to the approximate financial position prior to the loss.

Independent Adjuster

An individual who estimates losses on behalf of an insurance company, but is not an employee of that company.

Verification of a vehicle's physical condition.

Insurable Interest

Exists when an individual would suffer an economic loss as the result of damage to property or bodily injury .

Insurance is a system in which groups of people who have similar chances of suffering a loss transfer their risk of loss to an insurer who pools the risk of many people together. In exchange for payment of premium , the insurer promises to reimburse the person for their covered losses.

Insurance Card

See Insurance ID Card .

Insurance Fraud

The act of falsifying or exaggerating the facts of an accident to an insurance company to obtain payment that would not otherwise be made. Common types of insurance fraud are staged accidents, exaggerated injuries, and inflated medical bills.

Insurance ID Card

Also known as an Insurance Card, this card is issued by your insurer and contains basic information about your insurance policy . Some states require you to keep an insurance ID card in your vehicle.

Insurance Score

Used in the underwriting process in some states. An individual's insurance score is frequently based, in part, on a person's credit history.

A person or organization covered by an insurance policy.

An organization that provides insurance.

International Insurance Underwriters, Inc.

A GEICO-owned subsidiary that provides insurance through American International Underwriters.

Leased Vehicle

A vehicle rented under a long-term contract (lease). The leasing company retains ownership of the vehicle and must be shown on your insurance policy as an insured.

Legal Liability

Liability imposed by law, as opposed to liability arising from an agreement or contract.

Any legally enforceable obligation or responsibility for the injury or damage suffered by another person.

Liability Examiner

The liability examiner handles the investigation of the accident. These examiners' responsibilities can include collision payments, property damage payments, and bodily injury settlements. In some states, these examiners may also handle the medical portion of your claim.

Liability Insurance

Insurance that provides protection from claims arising from injuries or damage to other people or property.

Liability Investigation

The process of gathering information to determine the cause of an accident.

A claim , charge, or encumbrance on property as a security for the payment of a debt.

A person or organization with a financial interest in property up to the amount of money borrowed or still owed on the property.

The maximum amount of protection purchased by the insured for a specific coverage.

Limits of Liability

The amount specified in your policy up to which the insurance company will protect you.

Any measurable dollar cost of damage and/or injury suffered by a person.

Loss of Use

Compensation to a third-party claimant for financial consequences resulting from the inability to use property as the result of accident-related damage.

Malicious Mischief

Intentional damage of personal property with malice of forethought.

Material Damage

All property-related damage losses covered by the policy. This includes the following: property damage (PD), comprehensive damage (COMP), collision damage (COLL), Fire/Theft Combined Additional Coverage (FTCA), rental reimbursement (RR), or uninsured motorist property damage (UMPD).

Mechanical Breakdown Insurance

Covers repairs to all mechanical parts of the car, protecting you from expensive repair bills.

Medical Claim Examiner

The medical claim examiner is responsible for reviewing all medical bills, replacement/essential services, and lost wages submitted to the company for injuries sustained by you and/or the passengers in your vehicle (depending upon the state in which you live and the coverage on your policy).

Medical Payments Coverage

Pays medical expenses related to an automobile accident. This coverage is subject to the terms, limits and conditions of your policy contract.

Misrepresentation

To make written or verbal statements that are untrue or misleading.

Motorcycle Insurance

GEICO ® Motorcycle Insurance provides protection from losses resulting from owning and operating motorcycles.

Motorcycle Safety Foundation (MSF)

An international non-profit organization dedicated to motorcycle safety training, research and awareness. Some applicants who complete MSF courses qualify for motorcycle insurance discounts on GEICO ® Motorcycle Insurance.

Motor Vehicle Report (MVR)

A report from the agency that issues your driver's license, listing accidents and violations that appear on your driving record. This report is used to verify information provided by insurance applicants and policyholders .

Multi-Car Discount

Available to policyholders who insure more than one vehicle at the same location.

Named Insured

The person or entity listed on the policy declarations page.

National Insurance Crime Bureau (NICB)

A not-for-profit organization that partners with insurers and law enforcement agencies to facilitate the identification, detection, and prosecution of insurance criminals. The NICB receives support from over 1,000 property/casualty insurance companies.

The failure to exercise the care that is expected of a reasonable person in similar circumstances.

No-fault Insurance

May pay for your medical treatment, lost wages, or other accident-related expenses regardless of who caused the accident. This coverage is subject to the terms, limits and conditions of your policy contract and is not available in all states.

Non-Renewal

When an insurer decides not to renew a policy at the end of its policy period.

An event, or repeated exposure to conditions, which unexpectedly causes injury or damage during the policy period.

Original Equipment Manufacturer Parts

Auto parts obtained from the original manufacturer of the car or the supplier of the original part.

Overseas Insurance

Auto and Property Insurance for those living abroad is available from American International Underwriters through GEICO's subsidiary, International Insurance Underwriters.

Paperless Billing

An electronic version of your bill that you can review online. Everyone who has registered to use GEICO's Policyholder Service Center can choose to receive a Paperless Bill .

Paperless Policy

GEICO's electronic system that allows you to review your policy documents online .

Passive Restraint System

A passenger safety system, such as an air-bag, that activates automatically in the event of an accident.

Payment Plans

Your auto insurance premium can be paid using one of our installment payment plans ; you make several smaller payments but incur a service fee.

Payment Recovery

If your car is damaged because of another driver's negligence and you ask GEICO to settle the claim for damage to your vehicle, we will seek to recover your deductible and our payments from the other party. This process of payment recovery is also called subrogation.

Payment Recovery Examiner

The Payment Recovery Examiner is responsible for recovering your deductible from the other party's insurance company.

A danger or hazard that can cause a loss, for example, a car collision with an object, or a fire.

Personal Injury Protection

Personal property.

Property that is not land or connected to land (real estate), such as furniture or jewelry.

Physical Damage

Damage to property.

A contract between you and the insurance company.

Policy Change

Any change made to your insurance policy during the period that the policy is in force.

Policyholder

Policyholder service center.

Refers to GEICO's online center for managing your car or motorcycle insurance policy. Accessible at ecams.geico.com .

Pre-accident Condition

The state of the vehicle before the accident, including damage not related to the accident, mileage, options, and other factors.

The price of the insurance policy that the insured pays in exchange for insurance coverage.

Primary Insurance

Insurance that must be maintained as a condition of the GEICO Personal Umbrella Policy (GPUP). Primary insurance acts as the first layer of coverage on common types of losses. This usually includes auto, motorcycle and homeowner insurance, but may also include boat insurance or some other policy. Please check your insurance policy documents for more detailed information.

Proof of Loss

A statement made regarding the extent of the claim; it may be requested in accordance with the conditions of the policy.

Property Damage Liability Coverage

Pays for damage to someone else's property resulting from an accident for which you are at fault and in most cases provides you with a legal defense. This coverage is subject to the terms, limits and conditions of your policy contract.

Proximate Cause

An act or omission initiating an unbroken sequence of events resulting in injury to a person or damage to property.

A statement of the premium that will be charged for insurance coverages based on specific information provided by the person requesting the quote including drivers, vehicles, and driving record.

Often used as a synonym for premium but actually refers to the base rating units that are used to determine the final premium .

Rating Plan

The rules that determine the cost of your insurance premium . These rules modify the base rates by applying discounts and surcharges based on your personal characteristics, for example, using your seat belt, insuring more than one car.

Reinspection

A review of an estimate or appraisal done by an adjuster during or after repairs to a vehicle. This is done to guarantee the accuracy of staff or independent auto damage personnel, and to guarantee that the work required in an estimate or appraisal is being completed by the body shop.

Legally binding contract stating that all obligations past, present or future arising from a particular accident or occurrence have been fulfilled.

Renewal Date

The date that your insurance policy expires and the date that your renewed policy will begin.

Rental Reimbursement

Optional coverage that helps pay rental vehicle costs when your insured vehicle is disabled as the result of a covered accident or loss. Available to most policyholders for an additional premium . In Virginia, the term Rental Reimbursement is known as "Transportation Expense."

Renters Insurance

Property Insurance providing coverage to an individual living in an apartment, condominium or single family home owned by someone else.

Replacement Parts

Several types of parts may be used when your vehicle is repaired: new parts, both original equipment manufacturer and after-market ; and recycled parts. New or after-market parts will be used if we can't find like-kind and quality recycled parts. A 5-year-old car, for instance, would be repaired with parts at least as good as the parts that had been in the car. We guarantee the after-market parts used for these repairs for as long as you own the car.

Resident Adjuster

Staff adjuster who handles claims in remote areas of a region.

Retained Limit

In umbrella insurance , retained limit is similar to a deductible in other types of insurance. The retained limit is the amount of damages for which the policyholder is responsible before the umbrella coverage begins to cover a loss.

In motorcycle insurance , a rider is someone who will operate the insured motorcycle. In life and health insurance, the term 'rider' is often used to refer to an endorsement to an insurance policy.

The chance of suffering a loss.

Damaged property which is taken over by the insurance company after payment of a claim .

Select Repair Shop

Body shops chosen by GEICO that are authorized to handle the repair of insured vehicles without the need for an inspection by a staff adjuster. Vehicle owners always have the right to choose the body shop of their choice.

Special Investigation Units

GEICO helps fight fraud through its special investigation unit , staffed with experts in fraud detection and investigation.

SR-22, Certificate of Financial Responsibility (CFR)

An SR-22 (CFR) is a certificate mandated by the state to verify that an individual is maintaining auto insurance liability coverage. If a person needs an SR-22 (CFR), they will usually be notified by their state's Motor Vehicle Department.

Staff Adjuster

Individual who is employed by GEICO to handle claims.

Subrogation

If your car is damaged because of another driver's negligence and you ask GEICO to settle the claim for damage to your car, we will seek payment recovery (including your deductible) from the other party. This process of payment recovery is called subrogation.

Supplement/Supplemental Estimate

Used to cover damage not included in the original estimate .

The unlawful taking of another's property with the intent to permanently deprive the owner of its use or possession.

Third Party

Person or entity not party to an agreement but with an interest in the agreement.

Third Party Claim

Claims for injury or damage to property of a third party alleged to have been caused by the insured .

A private or civil wrong or injury, other than breach of contract, which violates a person's legally protected right(s), and for which the law may permit a remedy in the form of money damages.

One who commits a tort (see above).

Property that has sustained damage so extensive that repairing it is not reasonable. A vehicle is considered a total loss if it cannot be repaired safely, if repairing the vehicle is not economically practical, or if state regulations require us to consider it a total loss .

Towing and Labor Coverage

Provides insurance if your auto needs to be towed or requires roadside assistance .

Umbrella Insurance

Provides high limits of additional liability coverage above the limits of your homeowners and auto policy. In addition, it provides coverage that may be excluded by other liability policies.

Underwriting

The process an insurer goes through to determine whether or not it will provide coverage for an applicant.

Uninsured Motorist Coverage

In some circumstances, may pay for your injuries or property damage caused by an uninsured motorist or, in some states, an unidentified driver. In some cases it also includes coverage for underinsured motorists and at-fault drivers with insufficient insurance to pay your claim. This coverage is subject to the terms, limits and conditions of your policy contract.

Destruction or defacement of property.

Vehicle Identification Number (VIN)

A 17-digit number assigned to each vehicle manufactured in the United States after 1980. This number is used for identification purposes and is visible on the dashboard when viewed from the outside of the vehicle.

A written guarantee of the integrity of a product and of the manufacturer's responsibility for the repair or replacement of defective parts.

This material is intended for general information only. It does not expand coverage beyond the policy contract. Please refer to your policy contract for any specific information or questions on applicability of coverage.

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Workers Compensation Assigned Risk Plans

Assigned Risk Plans Are the Market of Last Resort

What Is an Assigned Risk Plan?

  • Why Workers Comp May Be Hard to Get
  • Who Administers the Plan?

How Can You Get Coverage?

Pros and cons of assigned risk plans.

Suppose you try to purchase a workers compensation policy  in the standard market but no insurer will sell you a policy. This will create a dilemma since most states require employers to purchase workers compensation insurance. Fortunately, you'll have an alternative: You can secure coverage from your state's assigned risk plan .

Assigned risk plans are established by the states as a safety net for employers that are unable to obtain workers compensation coverage from "regular" insurers. They are the market of last resort for employers that would otherwise have no source of coverage. All states except monopolistic states have established a plan.   The law in each state determines how the plan is administered and financed. Assigned risk plans are also called the residual market.

The monopolistic states don't need assigned risk plans because all employers in those states are required to secure workers comp insurance from a government-operated fund.

States have created assigned risk plans so that all employers can obtain workers compensation insurance. The ultimate goal is to ensure that employees who are injured on the job will receive the benefits entitled to them by law.

Why Might Workers Comp Coverage be Hard to Obtain?

Here are some reasons why an employer may have difficulty obtaining workers compensation insurance from a standard insurer:

  • Poor loss history : If a business has sustained many small losses or a few large ones, underwriters may assume its management doesn't care about safety.
  • New business : A new company is difficult for an underwriter to assess because it has no track record.
  • Very small business : A very small company may not generate enough premium to compensate for the risk of claims.
  • Hazardous occupation : Many insurers are unwilling to provide workers compensation coverage to employers in risky occupations like logging, trucking, and roofing.

Who Administers the Assigned Risk Plan?

All states have designated an administrator that operates the plan and oversees the issuance of policies. In most states, the administrator is one of the following:  

  • The National Council on Compensation Insurance (NCCI)
  • The state competitive insurance fund
  • The state rating organization or another third party

The NCCI administers plans on behalf of 22 jurisdictions.   Each of these states requires all workers compensation insurers that operate within its borders to participate in the assigned risk plan. Insurers may either join a multi-state reinsurance pool or serve as a "direct assignment" carrier. When an insurer participates in a pooling arrangement, it may act as a servicing carrier (issuing policies and paying claims) or provide reinsurance to servicing carriers. If an insurer chooses the direct assignment option, it must agree to accept and retain all risks assigned by the NCCI. The direct assignment insurer pays all losses incurred by the assigned employers and is not reimbursed by reinsurance.

In 14 states, the assigned risk plan is administered by the state competitive fund. Examples are California, New York, and Montana. Most of the remaining states have designated their rating organization or an insurer as their plan administrator.  

If you or your insurance agent is unable to secure workers compensation coverage for your business in the standard market, you or your agent may submit an application to your state's assigned risk plan administrator. The application procedure varies by state. If the plan in your state is administered by the NCCI, you can apply online 24 hours a day or mail your application to the NCCI via the U.S. Postal Service.

If the plan in your state is administered by a state fund or rating organization, check the administrator's website for application instructions.

To obtain coverage in the residual market, you must have applied for coverage and been rejected by one or more insurers. The number of required rejections varies by state. For instance, employers in West Virginia can apply for coverage in the assigned risk plan only if they provide evidence of rejection by two insurers.  

The primary advantage of an assigned risk plan is that it provides coverage to employers that can't obtain insurance in the standard market. One major disadvantage is cost. Employers insured in the residual market generally pay higher rates than those insured in the voluntary market. Those whose experience modifier is greater than 1.0 may also be subject to a surcharge.   In addition, some states have eliminated the premium discount on assigned risk policies. An example is Massachusetts.   A premium discount is a credit applied when the premium exceeds a certain threshold.

Another drawback of assigned risk plans is that employers can't choose their insurer. Their policy is issued and managed by the plan administrator or servicing carrier. A third disadvantage is limited coverage. Policies issued in the residual market may not be as broad as those purchased from standard insurers. For instance, many policies afford no coverage for operations the employer undertakes in states other than the one where the policy was issued.  

Key Takeaways

  • Assigned risk plans serve employers that can't find workers comp coverage in the standard market.
  • Most plans are administered by the NCCI, a state insurance fund, or a state rating agency.
  • Policies purchased from an assigned risk plan are generally more expensive and provide less coverage than policies obtained in the standard market.

IRMI. " Assigned Risk Plans ." Accessed July 30, 2020.

IRMI. " Workers Compensation Residual Market ." Accessed July 29, 2020.

NCCI. " Insuring the Uninsurable. Workers Compensation Residual Market ." Accessed July 29, 2020.

NCCI. " Options for Submitting Assigned Risk Applications Online ." Accessed July 29, 2020.

State of West Virginia, Offices of the Insurance Commissioner. " Workers’ Compensation Assigned Risk Plan ," Page 2. Accessed July 29, 2020.

NCCI. " Assigned Risk Adjustment Program ." Accessed July 30, 2020.

The Workers Compensation Rating and Inspection Bureau of Massachusetts. " Premium Discount ." Accessed July 31, 2020.

NCCI. " Producers' Guide to Understanding NCCI's Residual Market Limited Other States Insurance Endorsement ." Accessed July 30, 2020.

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Assigned Risk - Explained

What is assigned risk.

define assigned risk insurance

Written by Jason Gordon

Updated at April 8th, 2023

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Back To : INSURANCE & RISK MANAGEMENT

An assigned risk refers to a poor risk, that is, a risk that is difficult to insure but an insurance company is required to provide coverage for in accordance with the state law. For instance, if a person such as an accident-prone driver is denied coverage because of their previous records but are required to be covered under the states' assigned risk plan, this is an example of Assigned Risk. Usually, assigned risks do not have coverage in the general marketplace but are assigned to be covered by insurers according to the state law.

How Does Assigned Risk Work?

The common definition of an assigned risk is a risk that insurance companies would not cover under normal circumstances but are forced to provide coverage for as stated by the law. Generally, when providing coverage for a party, the risk profile is evaluated in order to determine the cost of the policy. Given that assigned risks have greater risks, they are more expensive than other policies. In certain cases, an assigned risk is covered by insurance companies who charge more money given the degree of the underlying risk. In other cases, insurance companies merge to provide coverage for assigned risks.

Insurance regulators in different states realized that insurance companies are after clients or policyholders that will guarantee profit for the company. This is not the case with assigned risks because they entail greater risks and reduce the chances of profits. Given that insurance companies avoid providing coverage when an insured is deemed too risky, the state regulators require that companies must provide coverage for assigned risks. Assigned risks refer to a group of people who are not naturally catered for by insurance companies because of their high-risk tendencies, an accident-prone motorist or driver is a good example. State insurance regulators as part of ways to extend coverage to groups that would otherwise be rejected created the concept of assigned risk.

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Assigned Risk

What does assigned risk mean.

An assigned risk is a risk that a state government assigns to a group of insurance companies. These are typically risks that the insurance providers would not take on voluntarily.

Insuranceopedia Explains Assigned Risk

To better understand assigned risks, imagine a group of drivers with horrible driving records. Most insurers would refuse them auto insurance coverage due to the high risks and the likelihood of them filing claims. If the state, however, deems it necessary for these drivers to have insurance, it may force auto insurers to take on insuring this risk. Since it is imposed by state law, this would be an assigned risk.

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define assigned risk insurance

Assigned Risk Insurance

Consumer Services And Help

Assigned Risk Insurance consumer help find coverage

Having a hard time finding insurance you may need assigned risk insurance. get help here when others have stopped trying for you..

Assigned Risk Insurance Services helps you find coverage even if it is in the surplus or excess markets. Several personal and commercial risk policies are available. From high risk auto insurance to homeowners insurance to   assigned risk big rig trucking operations coverage should be available.

What is the definition of Assigned Risk?

An assigned risk is either a personal insurance risk or a commercial insurance risk that does not meet the underwriting criteria of a standard lines insurance company. That is it plain and simple.

Many websites offer the definition as it pertains to their offered insurance services or products such as Workers Compensation, personal auto, commercial auto, homeowners etc. The term does not apply to any specific type of policy, but to the risk type characteristics. Most states have state mandated plans , which are not state sponsored plans as you may see online in various places, to satisfy various policies that residents or companies domiciled in that state may need.

Our personal lines and commercial or business customer service personnel (CSR’S) and licensed insurance agents are non standard, assigned risk and high risk programs specialists with defined and managed authorities.

We have helped tens of thousands find coverage where other insurance companies, brokers or agents may not have a market for a risk that is just too hard to insure.

Our Assigned Risk Insurance Specialists will help you find the Assigned Risk Insurance that you need.

We will work with specific assigned risk insurance carriers that may issue a policy themselves or grant underwriting authority to a program administrator, A.K.A. a recognized expert in a niche class of non standard business in order to offer policies for personal or business types of customers with consistent characteristics or needs.

Assigned Risk polices and coverage’s:

We will be able to help you locate competitive sources for your personal insurance needs or for hundreds of classes of business commercial lines and programs. Some of the most requested insurance products that consumers need help with include but are not limited to:

  • Personal assigned risk insurance consumer quotes (469) 546-0021 – Personal Auto or Car insurance , HO-3 Coastal homes, coastal homes flood insurance, Mobile Homes , Recreational Vehicles (Boats, Jet Skis, ATVs), Vacant Properties , Inner City Dwellings, Personal Umbrella Policies and many more.
  • Commercial assigned risk insurance consumer quotes (833) 604-1348 – General Contractors , Vacant Commercial/Industrial Properties, Habitational, Professional Liability, Liquor Liability, Bars/Restaurants, Commercial Property , Local Big Rig Trucking, Busing, Intermediate Trucking, Long Haul Trucking , Taxis & Transportation, Roofing-Roofer, Excess Liability, Errors & Omissions, Medical Malpractice and many more.
  • Transportation including Busing – charter & fleet, Public Livery, School Buses, Hazardous Material Haulers, and Local, Intermediate and long haul trucking
  • Coastal high risk properties – commercial property, hospitals, social clubs, personal homes or condos
  • Other program coverage’s are available and are too many to list them all here

An assigned risk policy can mean many things to those in the insurance industry. We define it as an insurance policy for a person or business that otherwise cannot find insurance coverage nor a competitive offer of insurance for a defined market risk.

If you need regular or non assigned risk type commercial insurance visit commercialinsurancenearme.com.

Get hard to place commercial property and liability Assigned Risk Insurance help right now.

It all starts with some basic information needed to make sure that we have the right Assigned Risk type Insurance agents helping you.

What is the cost for a personal assigned risk auto insurance .

Most requested Commercial Assigned Risk Insurance Classes include, but not limited too;

TRANSPORTATION – trucking and busing always lead the pack due to stringent federal and state laws.

Hospitality Bars and Taverns Restaurants Nightclubs One Day Events and any more!

Commercial Assigned Risk Insurance: Real Estate Apartments Hotels and Motels Lessors Risk Vacant Buildings Builders Risk Coastal Property Condominiums Warehouses

Commercial Assigned Risk Insurance: Contractors Artisans Commercial General Contractors Roofers Homebuilders Welders Alarm Contactors Tree Removal Machinery Equipment- Sales, Service and Repair Swimming Pools- Sales, Service and Repair Demolition Contractors

Assigned risk insurance (ARI) is a type of insurance offered in many states, primarily on the individual and commercial level, where an insurer is assigned to provide coverage to individuals or businesses who are unable to obtain it in the standard insurance market. Insurance companies must participate in state-run programs that facilitate the distribution of high-risk policies. These programs are often referred to as “assigned risk pools” or “shared markets.”

In the United States, most states have their own assigned risk plans. These plans are overseen by individual state governments or organizations like the National Association of Insurance Commissioners (NAIC). Assigned risk plans are designed to spread out the cost of insurance coverage by allocating the burden of insuring high-risk customers across multiple insurance companies.

In general, an assigned risk plan works by allowing an insurer to purchase a certain number of high-risk policies at a predetermined rate from a pool of insurers. Insurers who choose to participate in these plans must agree to accept policyholders who may have been rejected elsewhere, including individuals or businesses with prior losses, poor driving records, or those who may not meet the requirements of their previous insurance company.

How Does Assigned Risk Insurance Work?

When an insurer is assigned to an assigned risk pool, they agree to issue insurance policies to customers that may not qualify for standard policies. The insurer then submits the applicant’s information and history to a committee of underwriters, who determine if the applicant deserves coverage. If they do not meet the requirements of the pool, they will be rejected.

Once an applicant is approved, they are then assigned a policy based on their risks and needs. Each policyholder pays a predetermined rate, regardless of their risk profile. This predetermined rate is known as the policy’s risk-based premium and is usually more expensive than traditional coverage.

Once a policyholder has been assigned a policy, they are also subject to additional requirements and restrictions which may be imposed by their assigned risk insurance plan. These could include higher deductibles, additional fees, and maximum policy limits set by the pool.

Who Qualifies for Assigned Risk Insurance?

Applicants for assigned risk insurance typically have multiple “red flags” that make them uninsurable in the standard market. This can include those who have a history of financial losses from previous accidents or those who have been charged with driving violations like reckless driving or speeding tickets.

It can also include those who are considered high-risk due to their age (teenagers), occupation (delivery drivers or taxi drivers), or geographic area (rural areas with limited access to medical services). Additionally, some states allow employers to purchase group assigned risk policies on behalf of their employees.

Benefits and Drawbacks of Assigned Risk Insurance

Assigned risk insurance has several advantages for both insurers and consumers. For insurers, they can increase their customer base while still minimizing the risk associated with providing coverage. Additionally, it could potentially bring in extra income due to higher premium rates than those offered in the standard market.

On the other hand, there are some potential drawbacks as well. Assigned risk policies may come with higher premiums and more restrictions than standard policies, resulting in a less comprehensive coverage for policyholders. Additionally, coverage limits may be lower due to the cost associated with covering a high-risk customer base, which may affect claimants’ ability to receive fair compensation from their insurers in cases of accidents or damages.

Finally, some states have passed laws regarding assigned risk pools that can impact insurers’ participation in shared oversight programs. For example, certain states have implemented legislated market equitable rules that require insurers to spread out their losses among all participants in an assigned risk pool as opposed to charging higher rates only for those that incurred losses due to risky customers or events.

Overall, while assigned risk insurance offers an alternative option for high-risk customers who otherwise would be unable to obtain coverage in the standard market, they may still incur higher rates and more restrictions than traditionally insured customers. Therefore, it is important for individuals and business owners alike to carefully consider their needs and understand all options available before buying any type of coverage.

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Simple English definitions for legal terms

assigned risk

Read a random definition: liberty of the globe

A quick definition of assigned risk:

Assigned risk is a way for people who are considered too risky to get insurance to still be able to get coverage. If someone can't get insurance on their own, they can apply to their state's assigned risk "pool" and be assigned to an insurance company that has to accept them. This is usually for car or workers' compensation insurance. However, the rates for assigned risk plans are much higher than regular insurance, and they usually only cover the minimum required by law. People should try to fix whatever made them too risky for insurance companies and get regular insurance later. Reasons someone might need assigned risk insurance for their car include having too many traffic tickets or accidents, being inexperienced, having a poor insurance record or credit, or living in a high-crime area. Companies might need assigned risk insurance for workers' compensation if they are new, have a history of losses, or have hazardous operations.

A more thorough explanation:

Assigned risk is a way for people who are considered too high-risk to get insurance coverage. If someone can't get insurance through the normal way, they can apply to their state's assigned risk "pool." The state will then assign them to an insurance company within the pool, who must accept and insure them.

For example, if someone has a lot of traffic tickets or has been in multiple accidents, they might be denied car insurance through the normal way. They could then apply for assigned risk car insurance through their state's pool.

However, assigned risk insurance is usually more expensive than normal insurance and only offers limited coverage. It's important for people to try to improve their driving record or other factors that made them high-risk so they can eventually get insurance through the normal way.

Assigned risk is commonly used for car insurance and workers' compensation insurance. New or small companies might struggle to get workers' compensation insurance through the normal way, so they could apply for assigned risk insurance through their state's pool.

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Definitions.net

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What does Assigned risk mean?

Definitions for assigned risk as·signed risk, this dictionary definitions page includes all the possible meanings, example usage and translations of the word assigned risk ., did you actually mean asymmetric or acentric , wikipedia rate this definition: 0.0 / 0 votes.

  • Assigned risk

Assigned risk is a government-required method of providing insurance coverage to an individual by compelling insurance companies to service them when such companies would ordinarily not do so due to perceive risk of insuring the individual as a customer.

Freebase Rate this definition: 0.0 / 0 votes

Assigned risk means a driver of a motor vehicle, or a class of such drivers, who would be denied insurance coverage by insurance companies, but are required to be covered under U.S. state law. The term assigned risk is also used in Workers' compensation law.

How to pronounce Assigned risk?

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How to say Assigned risk in sign language?

Chaldean Numerology

The numerical value of Assigned risk in Chaldean Numerology is: 6

Pythagorean Numerology

The numerical value of Assigned risk in Pythagorean Numerology is: 9

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define assigned risk insurance

What is a BRICS currency and is the U.S. dollar in trouble?

BRICS Summit in Johannesburg

Delegates walk past the logos of the BRICS summit during the 2023 BRICS Summit at the Sandton Convention Centre in Johannesburg, South Africa on August 23, 2023. GIANLUIGI GUERCIA/Pool via REUTERS Acquire Licensing Rights

JOHANNESBURG, Aug 23 (Reuters) - Brazil's President called on Wednesday for the BRICS nations to create a common currency for trade and investment between each other, as a means of reducing their vulnerability to dollar exchange rate fluctuations.

Luiz Inacio Lula da Silva made the proposal at a BRICS summit in Johannesburg.

Officials and economists have pointed out the difficulties involved in such a project, given the economic, political and geographic disparities between Brazil, Russia, India, China and South Africa.

WHY DOES LULA WANT A BRICS CURRENCY?

Brazil's president doesn't believe nations that don't use the dollar should be forced to trade in the currency, and he has also advocated for a common currency in the Mercosur bloc of South American countries.

A BRICS currency "increases our payment options and reduces our vulnerabilities," he told the summit's opening plenary session.

WHAT DO OTHER BRICS LEADERS THINK?

South African officials had said a BRICS currency was not on the agenda for the summit.

In July, India's foreign minister said, "there is no idea of a BRICS currency". Its foreign secretary said before departing for the summit that boosting trade in national currencies would be discussed.

Russian President Vladimir Putin said the gathering, which ha attended via videolink, would discuss switching trade between member countries away from the dollar to national currencies.

China has not commented on the idea. President Xi Jinping spoke at the summit of promoting "the reform of the international financial and monetary system".

WHAT ARE THE CHALLENGES OF SETTING UP A BRICS CURRENCY?

Building a BRICS currency would be a "political project", South African central bank governor Lesetja Kganyago told a radio station in July.

"If you want it, you'll have to get a banking union, you'll have to get a fiscal union, you've got to get macroeconomic convergence," Kganyago said.

"Importantly, you need a disciplining mechanism for the countries that fall out of line with it... Plus they will need a common central bank... where does it get located?"

Trade imbalances are also a problem, Herbert Poenisch, a senior fellow at Zhejiang University, wrote in a blog for think-tank OMFIF.

"All BRICS member countries have China as their main trading partner and little trade with each other."

IS THE U.S. DOLLAR IN TROUBLE?

BRICS leaders have said they want to use their national currencies more instead of the dollar, which strengthened sharply last year as the Federal Reserve raised interest rates and Russia invaded Ukraine, making dollar debt and many imports more expensive.

Russia's sanctions-imposed exile from global financial systems last year also fuelled speculation that non-western allies would shift away from the dollar.

"The objective, irreversible process of de-dollarisation of our economic ties is gaining momentum," Putin told the summit on Tuesday.

The greenback's share of official FX reserves fell to a 20-year low of 58% in the final quarter of 2022, and 47% when adjusted for exchange rate changes, according to International Monetary Fund data.

However, the dollar still dominates global trade. It is on one side of almost 90% of global forex transactions, according to Bank of International Settlements Data.

De-dollarising would need countless exporters and importers, as well as borrowers, lenders and currency traders across the world, to independently decide to use other currencies.

Reporting by Rachel Savage, Additional reporting by Ethan Wang in Beijing, Marcela Ayres in Brasilia, Gabriel Stargardter in Rio de Janeiro, and Naomi Rovnick, Libby George and Marc Jones in London, Editing by John Stonestreet

Our Standards: The Thomson Reuters Trust Principles.

define assigned risk insurance

Thomson Reuters

Rachel Savage is Africa Senior Markets Correspondent at Reuters, where she covers finance and economics across Sub-Saharan Africa, from sovereign debt crises and IMF programs to foreign exchange markets and cryptocurrencies. Previously she was LGBT+ Correspondent at the Thomson Reuters Foundation for just over three years and was awarded Journalist of the Year in 2021 by the NLJGA: The Association of LGBTQ Journalists, a U.S. group. Before that, Rachel was based in Nairobi and then Lagos as an East and West Africa Correspondent for The Economist, after starting her career a decade ago as a business journalist in London.

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COMMENTS

  1. Assigned Risk Definition

    Assigned risk is when an insurance company is required, by state insurance law, to provide coverage for risk that may not find coverage in the general insurance marketplace. In order to...

  2. What Is an Assigned Risk Plan?

    Assigned risk plans provide auto insurance for drivers whom most insurers consider too high-risk to cover. Established by state governments, assigned risk plans offer coverage through ordinary carriers, but cost more than regular car insurance. Assigned risk plans aren't for every car owner who's been rejected for coverage, though.

  3. assigned risk

    Assigned risk is a method of providing certain types of insurance to those who otherwise would be denied coverage because they would be considered too high-risk. Individuals who have failed to gain coverage through the private market-also called voluntary market-can apply to receive insurance through their state's assigned risk "pool.".

  4. How State-Assigned Car Insurance Works

    What is an assigned-risk car insurance pool? Drivers who are deemed too risky may be unable to buy car insurance on the private market. But they still need coverage by law if they own...

  5. What is an Assigned Risk Insurance Plan?

    An assigned risk insurance plan is one that you obtain by being added to the assigned-risk insurance pool, a state-directed program designed to help people that might not otherwise be able to get car insurance get insured.

  6. assigned risk plan (AR)

    An assigned risk (AR) plan is a method of providing insurance, especially those required by state statutes, for those risks that are uninsurable in the normal insurance market. All insurers that write that coverage in the state will be "assigned" a share of applicants from the AR plan. On This Page Additional Information

  7. Assigned risk Definition & Meaning

    noun : a poor risk (such as an accident-prone motorist) that insurance companies would normally reject but are forced to insure by state law Example Sentences Recent Examples on the Web In the end, experts assigned risk estimates to different experiments, applying safety guidelines accordingly. Michelle Cheng, Quartz, 3 May 2023

  8. What Is Assigned Risk Pool For Auto Insurance?

    What Are Auto Insurance Assigned Risk Pools? The traditional method for buying car insurance is through the voluntary market. You submit an application for a policy and the insurance...

  9. Assigned risk

    Assigned risk is a government-required method of providing insurance coverage to an individual by compelling insurance companies to service them when such companies would ordinarily not do ... usually the Department of Motor Vehicles, assigns the risky motorists to automobile insurance companies. High risk drivers are often undesirable to ...

  10. What is an Assigned Risk Plan?

    An assigned risk plan is a type of insurance that is available to people who cannot purchase a standard insurance policy due to factors like high-risk employment or having a record of remarkable insurance losses. It is also known as the pool. Advertisement Insuranceopedia Explains Assigned Risk Plan

  11. Glossary Of Insurance Terms And Definitions

    Assigned Risk (AIP) A driver or vehicle owner who cannot qualify for insurance in the regular market. He or she must get coverage through a state assigned risk plan which specifies that each company must accept a proportionate share of these drivers/owners. Assured. Means the same as an insured, policyholder, or someone who has an insurance policy.

  12. Workers Compensation Assigned Risk Plans

    Assigned risk plans are established by the states as a safety net for employers that are unable to obtain workers compensation coverage from "regular" insurers. They are the market of last resort for employers that would otherwise have no source of coverage. All states except monopolistic states have established a plan.

  13. ASSIGNED RISK definition

    assigned risk insurance/plan State insurance regulations require property and casualty insurers to participate in assigned risk plans to provide high-risk cases with basic insurance coverage. Preparing for your Cambridge English exam? Get ready with Test&Train, the online practice tool from Cambridge.

  14. Assigned Risk legal definition of Assigned Risk

    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. West's Encyclopedia of American Law, edition ...

  15. Assigned Risk

    The common definition of an assigned risk is a risk that insurance companies would not cover under normal circumstances but are forced to provide coverage for as stated by the law. Generally, when providing coverage for a party, the risk profile is evaluated in order to determine the cost of the policy.

  16. What is an Automobile Assigned Risk Insurance Plan?

    Automobile assigned risk insurance plans generally come with higher premiums. This is because the insurer has a greater chance of having to pay out a claim. So, it can be costly to have a bad driving record. These plans are alternatives to standards auto plans or to preferred auto plans. Standard auto plans are given to drivers with an average ...

  17. What is Assigned Risk?

    An assigned risk is a risk that a state government assigns to a group of insurance companies. These are typically risks that the insurance providers would not take on voluntarily. Insuranceopedia Explains Assigned Risk To better understand assigned risks, imagine a group of drivers with horrible driving records.

  18. Assigned Risk Law and Legal Definition

    Assigned risk is defined as "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 ...

  19. Assigned Risk Insurance Help For Consumers Free Assistance

    An assigned risk is either a personal insurance risk or a commercial insurance risk that does not meet the underwriting criteria of a standard lines insurance company. That is it plain and simple.

  20. assigned risk definition · LSData

    Assigned risk is a way for people who are considered too high-risk to get insurance coverage. If someone can't get insurance through the normal way, they can apply to their state's assigned risk "pool." The state will then assign them to an insurance company within the pool, who must accept and insure them.

  21. What does Assigned risk mean?

    Definition of Assigned risk in the Definitions.net dictionary. Meaning of Assigned risk. What does Assigned risk mean? ... Assigned risk is a government-required method of providing insurance coverage to an individual by compelling insurance companies to service them when such companies would ordinarily not do so due to perceive risk of ...

  22. What is a BRICS currency and is the U.S. dollar in trouble?

    Brazil's President called on Wednesday for the BRICS nations to create a common currency for trade and investment between each other, as a means of reducing their vulnerability to dollar exchange ...

  23. ASSIGNED RISK

    assigned risk insurance/plan State insurance regulations require property and casualty insurers to participate in assigned risk plans to provide high-risk cases with basic insurance coverage. (Definition of assigned risk from the Cambridge Business English Dictionary © Cambridge University Press) Examples of assigned risk assigned risk