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 ?
Consider, for example, if the assigned risk fund has $2 million in premiums and $3 million in indemnities.
As it is, the benefits flow mainly to policyholders, and only indirectly to businesses in the Assigned Risk Pool and to the state as a whole.
Blue Cod Technologies offers customers the ability to create customized solutions or take advantage of specialized programs such as CEA Process, Coastal Homeowner, FAIR Plan Process and Assigned Risk Auto that bundle services to address common insurance challenges.
According to Cuomo, the bill, if passed, would increase the premium for the average auto insured in the voluntary market by $51 per year and the average premium for those in the Assigned Risk Plan by $96 per year.
Year 2001 saw our first increase in the assigned risk plan rates while experiencing a decrease in the voluntary market," Dan Honey, deputy commissioner of the Arkansas Insurance Department, said.
Supporters argued that even limited insurance is better than no insurance at all, and the riders would prevent some customers from being classified in the assigned risk pool, thereby lowering their insurance cost.
Romney wanted high-risk drivers to be randomly assigned to a particular carrier, a so-called assigned risk plan.
A member of the New Mexico Mutual Group, which the state created to write preferred business to depopulate New Mexico's workers' comp assigned risk pool, wrote personal auto in Arizona and homeowners in both Arizona and New Mexico before state regulators found it was unsound in 2002.
Since workers' compensation is mandatory, when an employer is unable to obtain coverage in the usual insurance market, coverage is available in an assigned risk pool.
This study analyzes the differences between the two major forms of automobile residual market facility used in the United States: assigned risk plans (ARPs) and joint underwriting associations (JUAs).
Prior to the acquisition, AutoOne and AutoOne Select served the automobile assigned risk markets primarily in New York and New Jersey.