YOU ASK:

What is the definition of Joint Underwriting Association (JUA)?

WE ANSWER:

The Joint Underwriting Association or JUA is a group of insurance companies that is formed in order to cover a unique risk or a very large risk. Such risks are not readily available in the regular market. These kinds of risks include coverage for a big property, such as a jumbo jet, or for insurance like medical malpractice, specific kinds of coverage for homeowners insurance, auto insurance and some commercial coverages.

The members of the Joint Underwriting Association, since they share in the risk, also proportionately share in the premiums, as well as the profits and losses associated with the JUA. JUA generally sets their own rates in premiums and use appropriate coverage forms for the different risks or exposures. But these may still remain subject to the state insurance commission's approval.

Those who get insurance with JUA will pay premiums, plus an assessment fee.

Was this insurance question and its answer useful?
Not a bit
  • Currently 5/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
 Very useful
Have an Insurance Question? Ask For Insurance
Insurance glossary by alphabet:
  1. A |
  2. B |
  3. C |
  4. D |
  5. E |
  6. F |
  7. G |
  8. H |
  9. I |
  10. J |
  11. K |
  12. L |
  13. M |
  14. N |
  15. O |
  16. P |
  17. R |
  18. S |
  19. T |
  20. U |
  21. V |
  22. W |
Link this answer Email to a friend Print Bookmark or Share