Assigned Risk

A programme normally legislated by government, which is designed to provide an insurance market for risks that are considered undesirable or otherwise uninsurable. The legislation requires all insurers in that particular state to participate in the Assigned Risk Plan, usually on a proportionate basis to the amount of conventional business they underwrite. (An example is the automobile insurance plans in the USA for drivers that cannot obtain it through conventional means – California Automobile Assigned Risk Plan and the Connecticut Automobile Insurance Assigned Risk Plan are two examples).