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Simple English definitions for legal terms
assigned risk
Read a random definition: non culpabilis
A quick definition of assigned risk:
Assigned risk is a way for people who are considered too risky to get insurance to still be able to get coverage. If someone can't get insurance on their own, they can apply to their state's assigned risk "pool" and be assigned to an insurance company that has to accept them. This is usually for car or workers' compensation insurance. However, the rates for assigned risk plans are much higher than regular insurance, and they usually only cover the minimum required by law. People should try to fix whatever made them too risky for insurance companies and get regular insurance later. Reasons someone might need assigned risk insurance for their car include having too many traffic tickets or accidents, being inexperienced, having a poor insurance record or credit, or living in a high-crime area. Companies might need assigned risk insurance for workers' compensation if they are new, have a history of losses, or have hazardous operations.
A more thorough explanation:
Assigned risk is a way for people who are considered too high-risk to get insurance coverage. If someone can't get insurance through the normal way, they can apply to their state's assigned risk "pool." The state will then assign them to an insurance company within the pool, who must accept and insure them.
For example, if someone has a lot of traffic tickets or has been in multiple accidents, they might be denied car insurance through the normal way. They could then apply for assigned risk car insurance through their state's pool.
However, assigned risk insurance is usually more expensive than normal insurance and only offers limited coverage. It's important for people to try to improve their driving record or other factors that made them high-risk so they can eventually get insurance through the normal way.
Assigned risk is commonly used for car insurance and workers' compensation insurance. New or small companies might struggle to get workers' compensation insurance through the normal way, so they could apply for assigned risk insurance through their state's pool.