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Assigned Risk

What Does Assigned Risk Mean?

An assigned risk is a risk that a state government assigns to a group of insurance companies. These are typically risks that the insurance providers would not take on voluntarily.

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Insuranceopedia Explains Assigned Risk

To better understand assigned risks, imagine a group of drivers with horrible driving records. Most insurers would refuse them auto insurance coverage due to the high risks and the likelihood of them filing claims. If the state, however, deems it necessary for these drivers to have insurance, it may force auto insurers to take on insuring this risk. Since it is imposed by state law, this would be an assigned risk.

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