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 ?
"Procedurally, filing the Notice of Appeal is the only way to ensure that we obtain the Commission's analysis in setting the advisory base rates and assigned risk market rates," Kinietz noted.
We assigned risk values from 1 to 5 corresponding to the delineation of the geological features and soil texture, as outlined in Jorgenson et al.
Accidents and disabling injuries continued, OSHA showed up unannounced and General Construction stayed in the assigned risk pool.
Special Disability Trust Fund was abolished; the Division of Safety and the Department of Labor and Employment Security were eliminated; attempts were made to make the Assigned Risk Pool financially self supporting; benefits payable to injured workers were reduced; managed care was mandated as an effort to reduce or control medical costs; new selection criteria was created for the workers' compensation judiciary; and caps were placed on costs associated with the regulation of workers' compensation matters.
Last year, Kingsway acquired the assigned risk business of the Robert Plan Corp.
Insurance companies must place each policy into one of three funds: assigned risk, developmental, or commercial.
"Other states that have gone to less regulated markets have seen their assigned risk plans shrink."
For want of a better solution, the state of New Mexico runs an assigned risk pool, because on the market itself, CFRP's can't get private insurance.
An assigned risk system handles the residual market in another way.
"The existence of this exemption allows companies to exchange critical data regarding losses and other factors, facilitates the development and operation of assigned risk plans, facilitates participation and oversight of state guarantee funds, permits state control over liquidations of insurers, and promotes competition in the marketplace," Gackenbach says.
Assigned Risk Pool Employers who lose workers' compensation coverage should have options for new insurance through assigned risk pools.
This company had been told by SAIF's competitor that it would have to enroll in the high-cost assigned risk pool for two years in order to establish its credit rating before this private insurance company would provide insurance.