What is the definition of Assigned Risk Plans?

Assigned Risk Plans are ways in which drivers can buy auto insurance in case they are not able to buy it in the regular market. The state will assign the auto-insurance to be sold to this group of drivers to an insurance company. Each insurance company that is licensed to operate in a certain state are required to take on the insurance assigned to them. What happens is that when the premium rates for these drivers are too high (because they may have a history of vehicular accidents, or have bad driving records, etc.), the company will have to make up for the difference in the premium by passing on the costs to all of their customers. This means that the insurance company can set their own rate, but the rest of the insurance company's customers will have to shoulder the difference.

• Competitive State Fund
• Excess and Surplus Lines
• Commission
• Businessowners Policy / BOP
• Employer’s Liability