Assigned Risk

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Assigned Risk

1. A driver of an automobile who is uninsurable (usually because of a poor driving record), but is required, by law, to have automobile insurance. States assign their uninsurable drivers to insurance companies, which must provide coverage (known as automobile assigned risk insurance), though the companies charge higher premiums.

2. In workers' compensation, a worker who performs labor considered so hazardous that an insurance company will not insure his place of employment. For example, a miner or an oil rig worker may be an assigned risk. As with automobiles, states assign their uninsurable workers to insurance companies, which must provide coverage, often at higher premiums.
References in periodicals archive ?
RPC provides underwriting and claims administration services to insurance companies in the United States who seek to transfer their assigned risk obligations to a specialist for a fee.
Company Will Begin Writing Assigned Risk Policies in New States in January
AutoOne has successfully secured agreements with many new clients, and retained all existing clients in handling their Assigned Risk assignments for personal and/or commercial policies starting in January 2005.
The new competition in these states has also caused the rates that companies pay for Assigned Risk services to fall.