Legal definition of assigned risk
Insurance Litigation Legal Terminology

assigned risk

Assigned risk means a driver of a motor vehicle, or a class of such drivers, who would be denied insurance coverage by insurance companies, but are required to be covered under U.S. state law.
Young drivers and drivers with poor driving record are undesirable customers for insurance companies. But most states have some kind of assigned risk plan to assure that you can get coverage. The cost of insurance under the assigned risk plan may be high, but the plan must accept you. Over the years, the auto insurance industry has found ways to absorb most high-risk drivers into its ranks through "nonstandard policies," where you pay a high premium but secure the liability insurance you must have by law to drive.
The term assigned risk is also used in Workers' compensation law.
Each state has its own eligibility rules for its assigned-risk pool, but typically you must have been declined for a car insurance policy or offered a policy at a rate higher than the pool's premiums within the last 60 days. (Source: Insurance Information Institute)
Find a legal term by clicking on the first letter of a legal word or phrase:
Book of the Day in our Store
Share it on TwitterFacebook
The Fox LSAT Logical Reasoning Encyclopedia: Disrespecting the LSATThe Fox LSAT Logical Reasoning Encyclopedia: Disrespecting the LSAT
by Nathan Fox
  • List Price: $79.95
  • Price: $65.98
  • You Save: $13.97 (17%)
from $55.71
The Blueprint for LSAT Logic GamesThe Blueprint for LSAT Logic Games
by Blueprint LSAT Preparation, Trent Teti, Jodi Teti, Matthew Riley
  • List Price: $64.99
  • Price: $49.99
  • You Save: $15.00 (23%)
from $42.74
William T LehnerAttorney at LawPRACTICE AREA: Administrative Law, Business Law, Animal Law
Stanley H FriedmanAttorney at LawPRACTICE AREA: Personal Injury, Professional Malpractice, Animal Law
Steven W PerbixAttorney at LawPRACTICE AREA: Criminal Defense, Asbestos Litigation, Business Law, Litigation, Animal Law, Workers Compensation
Mondaq News Alerts (registration)But courtroom justice is not always available in insurance disputes. Depending on the provisions set forth in insurance policies and contracts, other options, such as mediation or arbitration, may be available as an alternative to litigation. Mediation ... more »
WKYTThe litigation involves the legality of continued federal payments to insurance companies by U.S. Department of Health and Human Services to fund tax credits to reduce monthly insurance premiums for eligible individuals who purchase polices off ACA ... more »
The MReport“The Department of Justice is committed to ensuring that those who participate in federal mortgage insurance programs comply with requirements essential to the success of its programs,” said Acting Assistant Attorney General Chad A. Readler of the ... more »
It's a free online legal dictionary search engine for definitions of legal terminology and legal words, legal abbreviations, and legal jargon you may meet when reading legal acts, law books, documents, legal forms and other legal content