What does Residual Market mean? Read on to discover the definition & meaning of the term Residual Market - to help you better understand the language used in insurance policies.
Insurance market systems for various lines of coverage (most often workers compensation, personal automobile liability, and property insurance). They serve as a coverage source of last resort for firms and individuals who have been rejected by voluntary market insurers. Residual markets require insurers writing specific coverage lines in a given state to assume the profits or losses accruing from insuring that state's residual risks in proportion to their share of the total voluntary market premiums written in that state.
We hope the you have a better understanding of the meaning of Residual Market.