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Assigned Risk Plan

Last updated: September 8, 2017

What Does Assigned Risk Plan Mean?

An assigned risk plan is a type of insurance that is available to people who cannot purchase a standard insurance policy due to factors like high-risk employment or having a record of remarkable insurance losses.

It is also known as the pool.

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Insuranceopedia Explains Assigned Risk Plan

Assigned risk plans are mandated by states to cover those who are denied insurance by standard insurance companies. It can apply, for example, to a motorist who has amassed records that have been very costly to their insurer or a worker in a very high-risk job.

While insurers can be compelled to participate in this plan, they will charge higher rates than those they offer for their regular policies.

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Synonyms

pool

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