A US term to describe a risk that is not ordinarily acceptable to insurers and therefore by law is assigned to an insurer participating in an assigned risk pool or plan. Each insurer in the pool accepts its share of all of the pooled risks.
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A risk not generally acceptable to any insurance company but for which the law says that insurance must be acquired. Personal auto liability is one such necessary coverage. Insurance companies doing personal auto business in a state can be required to accept assignment of a portion of the state’s unacceptable drivers as insureds.
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A risk that may not be generally acceptable to any insurance company but for which the law says that insurance must be acquired. Motor Third Party is one such necessary coverage.
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MEDCIAL, US: Uncertainty (risk) that insurance underwriters do not want to insure but because of state laws are required to insure. For example, individuals who may be within a certain young age group, may have had an automobile accident, heart condition, diabetes, or hypertension. Most assigned risks are issued insurance through a system of proportional assignment chosen from a group of insurance companies. This is more commonly seen in casualty insurance.