What does Assigned Risk Plan mean? Read on to discover the definition & meaning of the term Assigned Risk Plan - to help you better understand the language used in insurance policies.
Assigned Risk Plan
A method of providing insurance required by state insurance codes for those risks that are unacceptable in the normal insurance market. Every state, with the exception of those that are monopolistic, has a workers compensation assigned risk plan, which is either a stand-alone entity or part of the competitive state fund. All insurers writing workers compensation coverage in the voluntary insurance market must also participate in the plan.
We hope the you have a better understanding of the meaning of Assigned Risk Plan.