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.