Assigned risk is a term used in the insurance industry to describe a specific type of policy where insurance companies are required to provide coverage to individuals or businesses that are considered high risk. This type of policy is typically assigned by the state or government, and the insurance company is required to provide coverage to the individual or business at a set rate, regardless of the level of risk involved.
Definitions
Assigned risk is a type of insurance policy that is assigned to individuals or businesses that are considered high risk. This type of policy is typically assigned by the state or government, and the insurance company is required to provide coverage to the individual or business at a set rate, regardless of the level of risk involved.
Origin
The concept of assigned risk policies originated in the United States in the early 1940s. The purpose of these policies was to ensure that individuals or businesses that were considered high risk could still obtain insurance coverage, even if they were unable to obtain coverage from traditional insurance companies.
Meaning in different dictionaries
According to the Merriam-Webster dictionary, assigned risk is defined as “a risk that is assigned by an insurance company to an individual or business that is considered high risk, typically due to a history of accidents, claims, or other factors.”
The Oxford English Dictionary defines assigned risk as “a type of insurance policy that is assigned to individuals or businesses that are considered high risk, typically due to a history of accidents, claims, or other factors.”
Associations
Assigned risk policies are typically associated with high-risk individuals or businesses that have a history of accidents, claims, or other factors that make them more likely to file a claim. These policies are often used as a last resort for individuals or businesses that are unable to obtain coverage from traditional insurance companies.
Synonyms
Some synonyms of assigned risk include high-risk insurance, non-standard insurance, and residual market insurance.
Antonyms
Antonyms of assigned risk include standard insurance, low-risk insurance, and preferred insurance.
The same root words
The root words of assigned risk are “assigned” and “risk.” “Assigned” means to allocate or designate something to someone, while “risk” refers to the possibility of loss or damage.
Example Sentences
- John was unable to obtain insurance coverage from traditional insurance companies due to his history of accidents, so he was assigned an assigned risk policy by the state.
- The insurance company was required to provide coverage to the high-risk business at a set rate, as it was assigned an assigned risk policy by the government.
- Assigned risk policies are often used as a last resort for individuals or businesses that are unable to obtain coverage from traditional insurance companies.