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 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.
Claims adjudication in the personal automobile insurance residual market
And the refusal of voluntary insurance carriers to write small policies has pushed more employers into the assigned risk plan.
Workers' comp rates continue decline
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.
Turning the corner: how the New York State Insurance Department lowered auto insurance rates, slashed loss costs for insurers and reduced fraud
The state Insurance Department is trying to do something to correct the imbalance caused by the assigned risk plan.
Premium price: rising workmen's compensation costs nail contractors
Other states that have gone to less regulated markets have seen their assigned risk plans shrink.
Insurer criteria proposed; Opening market on auto rates
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.
Spitzer calls for end to antitrust exemption
Burnes, however, has said she has seen no evidence to support claims that the assigned risk plans would grow that large.
Danger seen in revamping car insurance; Many may face rate hikes
In a state represented by one association, issues like no-fault and assigned risk plans are discussed with all members and the association's position is based on the decision of the board made up solely of voting members who represent the overall membership.
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