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 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 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.

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 A vehicle (from la, vehiculum) is a machine that transports people or cargo. Vehicles include wagons, bicycles, motor vehicles ( motorcycles, cars, trucks, buses, mobil ...

s to automobile insurance 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 t ...

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 New York most commonly refers to: * New York City, the most populous city in the United States, located in the state of New York * New York (state), a state in the northeastern United States New York may also refer to: Film and television * '' ...

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 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 a ...

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 punishabl ...

lawsuit.MVAIC forms
/ref>

References

External sources

Tort law Insurance law

United States

Motor vehicle insurance

See also

References

External sources