What does Voluntary Market mean? Read on to discover the definition & meaning of the term Voluntary Market - to help you better understand the language used in insurance policies.
A group of insurers that elect to write insurance in a competitive environment retaining the right*- to accept and reject business submitted. More specifically, the term also applies to the two types of mandatory insurance: automobile liability and workers compensation. In these instances, voluntary market refers to the insurers that provide coverage to desirable risks while rejecting the less attractive risks, which must then be afforded coverage through assigned risk markets.
We hope the you have a better understanding of the meaning of Voluntary Market.