Assigned Risk Plan

What Does Assigned Risk Plan Mean?

An assigned risk plan is a type of insurance available to individuals who cannot purchase a standard policy due to factors such as high-risk employment or a history of significant insurance losses. It is also referred to as the “pool.”

Insuranceopedia Explains Assigned Risk Plan

Assigned risk plans are mandated by states to provide coverage for individuals who are denied insurance by standard insurance companies. This can apply, for example, to a motorist with a history of costly claims or a worker in a high-risk occupation.

While insurers are required to participate in these plans, they typically charge higher rates than those offered for their standard policies.