A method of providing insurance required by state insurance codes for those risks that are unacceptable in the normal insurance market. Every state, with the exception of those that are monopolistic [..]

Definition Type of auto insurance plan that gives the ability to obtain insurance from a pool of insurers to individuals that have previously been denied insurance coverage based on risk factors. All [..]

The workers' compensation insurer of last resort, which insures employers unable to insure themselves in the voluntary market

Assigned risk plan refers to the auto insurance facilities that are available in all the U.S. states. These facilities can be used by drivers to obtain auto insurance if they are unable to buy from re [..]

A risk that must be insured by state law or otherwise.

State-managed auto insurance plan for individuals who cannot obtain conventional liability coverage because of their poor driving records. These drivers are placed in a residual market with insurance companies assigned to write policies for them at higher prices. Assigned risk plans also exist for health insurance.

A state-managed auto insurance plan for individuals who cannot obtain conventional liability coverage because of poor driving records.  Such drivers may get coverage through a state assigned-risk plan, which requires that each insurance company must accept a proportionate share of these individuals.

Also known as “The Pool.” This is a risk-sharing mechanism set up by states to provide insurance for employers where no standard insurance company is interested. The problem may be with the risk (poor loss experience) or with the state’s workers’ compensation system (the state insurance has set up a system where insurers feel that they cannot make [..]

A cooperative enterprise that all insurance companies doing business in the state must join. The plan constructs a policy (again, usually expensive and limited) for people whose driving records or loc [..]