Wednesday, August 12, 2009

Assigned risk

Most U.S. states administer an assigned risk program to insure drivers that insurers will not voluntarily underwrite. Assigned risk applicants are distributed by the program to auto insurers in proportion to the amount of their voluntary business. Thus, each insurer underwrites their fair share of assigned risk drivers. New Hampshire was the first state to establish this type of residual insurance system in 1938.
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