A device used to provide insurance to those who cannot obtain insurance in the voluntary market. Certain companies (called carriers) issue policies at one rate level and handle claims, but the ultimate costs are borne by all companies writing insurance in that state.
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An association comprised of insurance companies, which exists to provide a type of insurance to the general public. The individuals who insure under this kind of association pay the usual premiums as well as assessments. The money generated by the assessments funds the association’s operating costs.
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One of several types of “shared market” mechanisms used to make automobile insurance available to persons who are unable to obtain such insurance in the regular market. JUAs also have been created in some states to help alleviate availability problems in the fields of medical malpractice and commercial insurance.