assigned risk


Also found in: Dictionary, Legal, Financial, Wikipedia.

assigned risk

A higher-than-average (actuarial) risk that insurance companies are required by law to assume, such as insuring cigarette smokers, or malpractice insurance for doctors with “prior experience” (a euphemism for a history of prior claims).
References in periodicals archive ?
Year 2001 saw our first increase in the assigned risk plan rates while experiencing a decrease in the voluntary market," Dan Honey, deputy commissioner of the Arkansas Insurance Department, said.
2 for the assigned risk fund but represents an ex ante choice variable for the insurance company with respect to the commercial and developmental funds.
For want of a better solution, the state of New Mexico runs an assigned risk pool, because on the market itself, CFRP's can't get private insurance.
A member of the New Mexico Mutual Group, which the state created to write preferred business to depopulate New Mexico's workers' comp assigned risk pool, wrote personal auto in Arizona and homeowners in both Arizona and New Mexico before state regulators found it was unsound in 2002.
Since workers' compensation is mandatory, when an employer is unable to obtain coverage in the usual insurance market, coverage is available in an assigned risk pool.
Those employers, mostly small businesses, obtained workers' compensation insurance from what's called the Assigned Risk Pool.
The dollar impact in 1989 of the assigned risk pool that companies contributed to amounted to $2 billion," he said.
government-sponsored agencies are assigned risk weights of 0 and 20 percent respectively because of the low degree of credit risk.
Prior to the acquisition, AutoOne and AutoOne Select served the automobile assigned risk markets primarily in New York and New Jersey.
The CLCA program is brought to you by the California Department of Insurance and is administered by the California Automobile Assigned Risk Plan (CAARP).
Insurers said that riders give consumers a more affordable choice than trying to buy insurance in the assigned risk pool.