Assigned Risk Plan


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Assigned Risk Plan

1. An insurance plan for drivers who otherwise would not be able to obtain automobile insurance. Each state in the U.S. requires insurers to offer automobile assigned risk insurance, at a higher premium than traditional insurance. States assign uninsurable drivers to insurance companies, which must provide coverage. This helps people who, by law, must obtain automobile insurance, but are unable to do so because of poor driving records or other reasons. Critics contend it drives up premiums for all policyholders.

2. In workers' compensation, an insurance plan for workers who perform labor considered so hazardous that an insurance company ordinarily would not insure the worker's place of employment. As with automobiles, states assign uninsurable workers to insurance companies, which must provide coverage, often at higher premiums.
References in periodicals archive ?
In 2011, 4,295 Arkansas employers participated in the assigned risk plan.
In contrast, insurers participating in an assigned risk plan pay claims with their own financial resources and consequently have no more incentive to be generous in the adjudication of claims than they are with their private market insureds.
As a result, the percentage of New York drivers in the assigned risk plan began to decline once again in 2004 to what the department believes will be a historically low level.
The state Insurance Department is trying to do something to correct the imbalance caused by the assigned risk plan.
Companion Property and Casualty is also the servicing carrier for the North and South Carolina workers' compensation assigned risk plans.
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 and Bloomington Compensation Insurance Company; (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.
Important notice to Pennsylvania policyholders: If you have your personal automobile insurance through The Assigned Risk Plan in Pennsylvania, there are now other opportunities for you to consider that will lower your automobile insurance premium.
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.
Even if the Assigned Risk Plan offered adequate insurance protection, the car rental company representatives stated that passing the cost of such insurance onto younger drivers as permitted by GBL 391-g would make the cost of such rentals prohibitive.
In compliance with an Insurance Department rule introduced in 1991, NCCI files final rate recommendations for only the assigned risk plan, which covers employers that are unable to find an insurance company willing to provide the coverage voluntarily.
The Minnesota Assigned Risk Plan provides workers' compensation coverage to more than 40,000 employers who are unable to obtain coverage from the voluntary market.
By an Insurance Department rule introduce only for the assigned risk plan, which covers employers that are unable to find an insurance company willing to provide the coverage voluntarily.