assigned risk


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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 ?
Conversely, policies that a profit-maximizing insurance company expects to be unprofitable would be placed in the assigned risk fund where they share a low percentage of any underwriting gains and losses.
When employers can't find an insurer willing to sell them a policy, they join the assigned risk plan.
A healthy workers' compensation environment is dependent upon adequate rates that employers can afford to pay, a self-funding assigned risk plan, a sound regulatory environment and a viable compensation system that is fair and consistent throughout the system.
Workers compensation assigned risk pools, which exist in 28 states, are presently the high-risk workers compensation insurance facility of choice in states that do not have a monopolistic state fund (Huebner, Black and Webb, 1996).
The best example that New Jersey has is an open car insurance market is the number of insured cars in the state's assigned risk plan (NJPAIP).
Insurers said that riders give consumers a more affordable choice than trying to buy insurance in the assigned risk pool.
Workers' Comp Rates Loss Cost Industry Level Assigned Risk Group Changes Rate Change Manufacturing 1.
Founded in the early '90s through a state reform package, Maine Employers absorbed a bloated assigned risk pool.
Also, specific details such as an assigned risk pool and the transition to the market system are discussed.
Blue Cod offers customers the ability to create customized solutions or take advantage of specialized programs such as CEA Process, FAIR Plan Process, Assigned Risk Auto and Coastal Homeowner that bundle services to address common insurance challenges.