Assigned risk is a government-required method of providing
insurance
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...
coverage to an individual by compelling
insurance companies
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...
to service them when such companies would ordinarily not do so due to perceive risk of insuring the individual as a customer.
United States
Within the United States, several state governments have laws compelling insurers to provide
automobile insurance
Vehicle insurance (also known as car insurance, motor insurance, or auto insurance) is insurance for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage or bodily injur ...
and
workers' compensation
Workers' compensation or workers' comp is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue his or her emp ...
policies to individuals listed in assigned risk pools.
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Motor vehicle insurance
In the United States, a state government, usually the Department of Motor Vehicles, assigns the risky motorist
Driving is the controlled operation and movement of a vehicle, including cars, motorcycles, trucks, buses, and bicycles. Permission to drive on public highways is granted based on a set of conditions being met and drivers are required to fol ...
s to automobile insurance
Vehicle insurance (also known as car insurance, motor insurance, or auto insurance) is insurance for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage or bodily injur ...
companies.
High risk drivers are often undesirable to insurance companies, and may not be able to purchase insurance through conventional means. They are considered high-risk because of numerous speeding
Speed limits on road traffic, as used in most countries, set the legal maximum speed at which vehicles may travel on a given stretch of road. Speed limits are generally indicated on a traffic sign reflecting the maximum permitted speed - expres ...
or other traffic ticket
A traffic ticket is a notice issued by a law enforcement official to a motorist or other road user, indicating that the user has violated traffic laws. Traffic tickets generally come in two forms, citing a moving violation, such as exceeding ...
s, or a recent history of motor vehicle accidents, or in states that have a point system, accumulation of so many points. The state DMV point system may be different from the insurance companies' point system.
Several states in the U.S. have such assigned risk systems. New York is a typical system. The MVAIC, or Motor Vehicle Accident Indemnity Company, may assign high-risk drivers, and pays for victims of uninsured or underinsured
Underinsured refers to various degrees of being insured for some real risks and uninsured for others, at the same time.
Health care
Johns Hopkins University professor Vicente Navarro stated in 2003, "the problem does not end here, with the uninsu ...
motorists. Uninsured means the driver or owner of a motor vehicle has no insurance at all, while an underinsured person has insurance, but the coverage is insignificant compared to the potential damages
At common law, damages are a remedy in the form of a monetary award to be paid to a claimant as compensation for loss or injury. To warrant the award, the claimant must show that a breach of duty has caused foreseeable loss. To be recognised at ...
accrued from a tort
A tort is a civil wrong that causes a claimant to suffer loss or harm, resulting in legal liability for the person who commits the tortious act. Tort law can be contrasted with criminal law, which deals with criminal wrongs that are punishable ...
lawsuit.MVAIC forms
/ref>
See also
* Insurance
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...
* Insurance companies
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...
* Motor vehicle
* Surety
* Underinsured
Underinsured refers to various degrees of being insured for some real risks and uninsured for others, at the same time.
Health care
Johns Hopkins University professor Vicente Navarro stated in 2003, "the problem does not end here, with the uninsu ...
References
External sources
Tort law
Insurance law