Assigned Risk Plan
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.
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.