• Search Search Please fill out this field.
  • Government & Policy

Assigned Risk: What It Is, How It Works

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia.

assigned risk for insurance

What Is Assigned Risk?

Assigned risk is when an insurance company is required, by state insurance law, to provide coverage for risk that may not find coverage in the general insurance marketplace. In order to compensate insurers for the potential losses associated with such mandated coverage, insurers will often pool funds and share the assigned risk.

Common examples include mandating that all drivers obtain car insurance or requiring businesses to purchase workers' compensation insurance.

Key Takeaways

  • Assigned risk is when the law mandates that an insurance company offer certain coverages.
  • In such cases, regulators will require insurance companies to pool together and accept the assigned risk, even if the insurers individually don’t want to provide a commercial policy.
  • Assigned risk allows the state to protect drivers who are able to purchase commercial policies and who may be involved in an accident with a risky driver.

Understanding Assigned Risk

In most cases, insurance companies choose who they underwrite insurance policies for, and this choice to insure is based on the risk profile of the individual or business applying for coverage. These considerations include the likelihood that a claim that results in a loss for the insurance company. The insurer will thus price the cost of the policy it underwrites according to the potential severity of any losses. If a potential insured is deemed too risky, the insurer may not underwrite a new policy.

State insurance regulators recognize that insurers only want to underwrite policies that will be profitable, but also recognize that it is in the interest of the government that coverage is extended to groups that need protection but may not be able to obtain it in the general insurance market. To do this the regulator will require insurance companies that provide a particular line of insurance, such as workers’ compensation or automotive insurance, to participate in a state-sponsored plan that provides coverage.

Example: Motorist Coverage

For example, drivers are required to carry insurance with them in order to legally operate an automobile. This insurance is designed to cover claims made against the driver. In most cases, the driver’s record is in good shape, and insurers are likely to provide coverage.

Some drivers, however, have poor driving records and may not be able to obtain coverage because they present too much of a risk . Insurance regulators will require insurance companies to pool together and accept the assigned risk, even if the insurers don’t want to provide a commercial policy . This allows the state to protect drivers who are able to purchase commercial policies and who may be involved in an accident with a risky driver.

"In some cases, you can apply to an automobile insurance plan or assigned risk plan by directly contacting your state's Department of Insurance," according to the website DMV.org, a private, non-governmental website:

Some states require that you apply to several car insurance companies before you apply for the state's car insurance plan. If each provider has denied you car insurance coverage, you'll be accepted into the plan. Typically, your signature on the application is enough to acknowledge that you have fulfilled this requirement.

assigned risk for insurance

  • Terms of Service
  • Editorial Policy
  • Privacy Policy
  • Your Privacy Choices
  • Credit cards
  • View all credit cards
  • Banking guide
  • Loans guide
  • Insurance guide
  • Personal finance
  • View all personal finance
  • Small business
  • View all small business
  • View all taxes

You’re our first priority. Every time.

We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners .

Denied Car Insurance? Hope Floats in the Assigned-Risk Pool

Beth Buczynski

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

If your driving history is full of transgressions, finding a company that'll sell you a car insurance policy can be difficult.

A couple infractions could cause higher rates, but rack up too many serious convictions or tickets and insurers may prefer not to get involved with you at all. This creates big problems if you own a car and lack the insurance required in your state.

If your application for auto insurance is denied, entering the state assigned-risk pool may be the only way to get the coverage you need to drive legally.

Here’s a look at what car insurance assigned-risk pools are and how to know when it’s time to jump in.

See what you could save on car insurance

Easily compare personalized rates to see how much switching car insurance could save you.

What is an assigned-risk car insurance pool?

Drivers who are deemed too risky may be unable to buy car insurance on the private market. But they still need coverage by law if they own vehicles, so states assign them to insurance companies that operate in the state. This grouping is known as the “assigned-risk pool,” “residual market” or “shared market.” Sometimes it’s called the joint underwriting association.

What problems put drivers in the assigned-risk pool?

Each state has its own eligibility rules for the assigned-risk pool.

Typically, if you've tried to buy auto insurance in the past 60 days and were turned down, you can apply to your state’s assigned-risk pool. Some states may require that you be turned down more than once.

Reasons you may be denied car insurance include:

Major driving convictions (DUI or DWI, hit-and-run)

Multiple accidents, tickets or claims on your driving record

Having little or no driving experience

Insurance prices and coverage options for assigned-risk drivers

Expect your auto insurance premiums to be substantially higher in the assigned-risk pool. Your policy options also may be limited to the state minimum liability requirements. Some states may allow you to earn a discount on your assigned-risk pool insurance plan after a certain amount of time with no accidents or driving convictions.

How to find your state’s assigned-risk pool

Generally, any car insurance agent in your state can help you with an assigned-risk policy. You may be asked to prove, declare or certify that you have no other options for buying insurance, depending on the state.

» MORE: What does car insurance cover?

How to get out of the assigned-risk pool

States require insurers to renew assigned-risk pool policies for a set amount of time, generally three years. Assuming you pay your premiums and your driving record stays clean during your pool time, you'll likely qualify for a regular policy by then. If you don't, you can reapply to the assigned-risk pool.

You may be able to climb out of the pool faster if:

You find an insurance company that is willing to sell you a standard policy

Your assigned-risk pool insurer offers you a traditional policy

» MORE: Best car insurance companies for high-risk drivers

On a similar note...

Free car insurance comparison

Instantly compare top auto insurance companies.

assigned risk for insurance

What’s Assigned Risk Auto Insurance?

Assigned risk auto insurance is state-sponsored coverage for high-risk drivers who can’t secure insurance coverage elsewhere. it usually comes with more expensive premiums..

Aly J. Yale

National Association of Real Estate Editors member

Bylines include Forbes, Bankrate, and CBS News

Aly is a reporter specializing in real estate, mortgages, and personal finance. You can find her work in Hearst newspapers and numerous financial publications.

Read Editorial Guidelines

Featured in

Courtney Mikulski

3+ years producing insurance and personal finance content

Main architect of the Insurify Quality Score

Courtney’s deep personal finance knowledge extends beyond insurance to credit cards, consumer lending, and banking. She thrives on creating actionable content.

Updated January 23, 2024 at 11:00 AM PST

assigned risk for insurance

At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.

We do receive compensation when a sale or referral occurs from many of the insurance providers and marketing partners on our site. That may impact which products we display and where they appear on our site. But it does not influence our meticulously researched editorial content, what we write about, or any reviews or recommendations we may make. We do not guarantee favorable reviews or any coverage at all in exchange for compensation.

Table of contents

  • What is assigned risk?
  • How it works
  • Who qualifies?
  • Standard insurance
  • Leaving assigned risk

Table of contents Compare quotes

Assigned risk auto insurance is an option for drivers who have trouble securing a standard car insurance policy, often due to a poor driving record, a low credit score, or because they live in an area at high risk of theft or vandalism. [1]

States establish assigned risk auto insurance programs and require private insurers to participate. Drivers get coverage by applying to their state’s risk pool, and the state assigns them an insurer. While insurers can’t deny eligible drivers coverage through this program, assigned risk car insurance policies aren’t cheap . [2]

Here’s what you need to know about assigned risk insurance, and why it’s important to compare rates from multiple companies before applying for assigned risk coverage.

Get Car Insurance Online

State-minimum policies start at $22 per month

What is an assigned risk auto insurance pool?

An assigned risk auto insurance pool is a state-supervised insurance market for high-risk drivers who can’t secure private-market car insurance. These are also called shared insurance markets, as they spread the risk of these higher-risk drivers among various insurance companies in the state.

Drivers can apply for their state’s assigned risk pool, and the state will assign them to an insurance company that must provide them coverage.

Pros and cons of assigned risk car insurance

Guaranteed coverage: Assigned risk insurance guarantees all drivers can get state-minimum coverage — regardless of their driving record, credit score, driving history, or other factors.

Helps drivers comply with law: Most state laws require car insurance, and drivers who don’t have coverage can face fines or criminal charges.

Provides legal protection: Beyond ensuring drivers comply with the law, liability coverage also helps protect you if another driver sues you for damages or injuries.

More expensive rates: Because assigned risk insurance is for higher-risk drivers, premiums are more expensive on these policies than on traditional car insurance. [1]

No choice in insurer: The state assigns drivers participating insurers within the pool, so drivers can’t comparison shop for insurance .

Limited coverage: Assigned risk pools typically only offer the minimum coverage the state requires. Drivers may not have access to additional coverages for more protection.

How assigned risk car insurance works

To get assigned risk car insurance, find your state’s assigned risk insurance pool. For example, in Ohio, it’s the Ohio Automobile Insurance Plan (OAIP). High-risk drivers in New York can use the New York Automobile Insurance Plan (NYAIP) for coverage.

You’ll then apply for your state’s pool using an official application. You can often do this online or by contacting a certified insurance broker or agent within your state.

Once the state approves you for the assigned risk pool, it’ll match you with an insurance company. The insurer assesses your driving record, credit score, location, vehicle, and other factors to determine your policy’s rate. Your coverage amounts and any driving convictions will affect your costs. For example, Texas assigned risk plans require a 60% additional charge if you have a driving under the influence (DUI) conviction. [3]

Who qualifies for assigned risk auto insurance?

Assigned risk car insurance eligibility requirements vary by state. In some states, you may need to certify that you’ve applied for and been denied private market car insurance in a certain period. In others, you just may need to be a resident of the state, have your car registered there, and hold a valid state driver’s license.

You also must be up to date on your recent car insurance premiums. For example, in North Dakota, you’re ineligible if you have any late premiums in the past year.

How to Get Car Insurance With a Suspended License

How to Get Car Insurance With a Suspended License

Factors that make a driver “high risk”.

Assigned risk insurance is for high-risk drivers, though this doesn’t mean only drivers with incidents on their driving records. Insurance companies may deny you traditional coverage for many reasons, including: [1]

Having no or a bad driving record: Inexperienced drivers, particularly teenagers , may find it difficult to get traditional car insurance coverage, as they’re at a higher risk of potential accidents. Plus, having speeding tickets , at-fault accidents, moving violations, DUI convictions, and more on your record can make you a high-risk driver for insurers.

Lapses in coverage and payment: If you’ve regularly let your insurance coverage lapse or forgotten to pay your premiums, this also makes you a higher risk to insure.

Bad credit scores: Depending on your state, insurance companies may be able to use your credit score to indicate your risk as a policyholder. Insurance companies believe drivers with poor credit are more likely to file a claim. [4]

Living in a risky location: Some areas have higher chances of theft, vandalism, or accidents. If you live in a high-risk area, you may have trouble securing traditional coverage.

Driving a unique or special car: Driving a custom, high-performance, unique, or classic vehicle could put you at higher risk for theft — and make you a higher risk for insurers.

Compare Top Auto Insurance Companies

Assigned risk vs. standard auto insurance.

While assigned risk insurance plans ensure drivers can secure the minimum required coverage for their state, they’re not the same as standard car insurance policies. Here’s how these policies differ.

How to leave the assigned risk pool

Leaving the high-risk pool depends on why you’re a high-risk driver in the first place. If you have a traffic violation or accident on your record , you may need to wait until the incident falls off your record to qualify for a traditional car insurance policy.

You can work on leaving the assigned risk pool by:

Cleaning up your driving record: In some states, you can take defensive driving courses to dismiss violations or citations. This could help you more easily secure insurance coverage.

Improving your credit score: A better credit score may make it easier to get coverage, too. Paying your bills and debts on time, disputing errors on your credit report, and reducing your debts can help boost your score.

Driving a safer car: If you’re buying a car, consider one with high safety ratings, low theft rates, and anti-theft features. The less likely you are to file a claim, the lower your risk to insurers.

You can also simply wait it out. As you establish a record of driving safely and pay your insurance premiums on time, you become a lower risk to insurers. Some state plans require insurers to provide coverage for an extended period while you work to improve your insurance and driving records. In New York, insurers must cover you for at least three years before they can choose not to renew your policy.

Car Insurance for High-Risk Drivers in New York (2024)

Car Insurance for High-Risk Drivers in New York (2024)

Assigned risk auto insurance faqs.

Assigned risk auto insurance can be confusing, but it’s necessary for high-risk drivers who can’t buy coverage elsewhere. If you need more information regarding assigned risk insurance, see the answers to frequently asked questions below.

What is an assigned risk car insurance plan?

An assigned risk car insurance plan is a state-supervised insurance plan. Statewide insurers must participate in the plan and provide coverage to any eligible driver the state assigns to them. These plans typically come with much higher rates than traditional car insurance policies

What does “high risk” mean in auto insurance?

“High risk” means a driver is more likely to file a claim. High-risk drivers are usually drivers with poor driving records, low credit scores, little driving experience, or a history of not paying previous car insurance premiums.

Who writes assigned risk car insurance policies?

Private insurance companies write assigned risk car insurance policies. The state requires companies to participate in the assigned risk market and assigns these insurers to eligible drivers.

Related articles

  • Tesla Battery Replacement Cost
  • What to Know About Illinois Emissions Testing
  • Can You Legally Drive with an Expired License?
  • What Are the Best Cars for Senior Drivers?
  • How Much Will Insurance Pay for My Totaled Car? (Full Guide)
  • What Is the Difference Between a Real ID and a Driver’s License?
  • How Many Cars Can You Have in Your Name?

Popular articles

  • Best Cheap Full-Coverage Car Insurance
  • OTTO Car Insurance Review: Consumer Reviews, Quotes
  • Can an Insurance Company Force You to Total Your Car?
  • Jerry Insurance Reviews: Consumer Reviews, Quotes
  • Rideshare Insurance in Texas
  • How to Participate in the teenSMART Driver Program
  • Cheapest Car Insurance for International Students
  • III . " What if I can't find auto coverage? ." Accessed January 5, 2024
  • III . " OOPS!! ." Accessed January 5, 2024
  • Texas Automobile Insurance Plan Association . " TAIPA Rules and Rating Manual ." Accessed January 5, 2024
  • National Association of Insurance Commissioners . " Use of Insurance Credit Scores in Underwriting ." Accessed January 5, 2024

Aly J. Yale

Aly J. Yale is a freelance writer and reporter covering real estate, mortgages, and personal finance. Her work has been published in Forbes, Business Insider, Money, CBS News, US News & World Report, and The Miami Herald. She has a bachelor’s degree in radio-TV-film and news-editorial journalism from the Bob Schieffer College of Communication at TCU and is a member of the National Association of Real Estate Editors.

Compare Car Insurance Quotes Instantly

Latest articles.

Farmers vs. USAA: Which Is The Best? (2024)

Farmers vs. USAA: Which Is The Best? (2024)

Compare coverages, rates, and more from USAA and Farmers to determine which car insurance company is best for you.

Allstate vs. Nationwide: Which Is The Best? (2024)

Allstate vs. Nationwide: Which Is The Best? (2024)

Allstate and Nationwide are two of the largest car insurance companies in the U.S. Learn more about both and decide which is the best option for you.

Car Insurance for Self-Employed People (2024)

Car Insurance for Self-Employed People (2024)

Self-employment can affect your car insurance costs. Learn what small business owners and commercial fleet drivers need to know.

How the State Farm Drive Safe & Save Telematics Program Works (2024)

How the State Farm Drive Safe & Save Telematics Program Works (2024)

State Farm customers can reduce insurance premiums through the Drive Safe & Save program, which rewards safe driving. Learn more.

What Is Proof of Insurance?

What Is Proof of Insurance?

Drivers may be asked to provide proof of insurance. Read on to learn what that means, how to get it, and the consequences of not having it.

Allstate vs. Travelers: Which Is the Best? (2024)

Allstate vs. Travelers: Which Is the Best? (2024)

Learn more about Allstate and Travelers to see which insurer is the best company in terms of auto insurance quotes, coverage options, discounts, and more.

  • Search Search Please fill out this field.
  • Car Insurance
  • High Risk Car Insurance

What Is an Assigned Risk Plan?

Definition & Examples of an Assigned Risk Plan

How Do Assigned Risk Plans Work?

Do i need an assigned risk plan, how to get an assigned risk plan, assigned risk vs. voluntary plans.

Manuel Breva Colmeiro/Getty Images

Assigned risk plans provide auto insurance for drivers whom most insurers consider too high-risk to cover. Established by state governments, assigned risk plans offer coverage through ordinary carriers, but cost more than regular car insurance.

Assigned risk plans aren’t for every car owner who’s been rejected for coverage, though. Follow along to learn how an assigned risk plan works, who needs one, and how to qualify for better coverage in the future.

All states require automobile owners to carry minimum levels of liability insurance, and some also require other coverages such as personal injury protection and uninsured/underinsured motorist . But the standard insurance market—known as the voluntary market—can refuse to insure drivers it deems to have too many risk factors, such as a lack of driving experience or a bad driving record.

Some providers specialize in non-standard policies designed for drivers who have trouble obtaining auto insurance due to factors such as poor credit or traffic violations, like a DUI. But not all car owners meet the underwriting standards of companies that offer high-risk auto insurance .

To meet the insurance needs of drivers who have been turned down by insurers, states have created assigned risk plans, which provide coverage through a pool of insurance companies. These programs enable car owners to get insurance, but assigned risk plans charge substantially higher premiums than policies purchased in the voluntary market.

Workers Compensation Assigned Risk Plans

First-time business owners and those with little business experience sometimes have trouble buying workers compensation insurance, so some states also offer assigned risk plans for this type of insurance. In states that operate a workers compensation assigned risk plan, insurers that sell workers compensation policies must participate in assigned risk plans, according to the International Risk Management Institute.  

Imagine this scenario: A driver is arrested, charged, and convicted of drunk driving . The court imposes a stiff fine, sentences her to perform a set number of community service hours, and revokes her license for one year. Unable to drive, she cancels her car insurance policy. At the end of the one-year revocation term, she applies for a new auto insurance policy, but all insurers reject her applications.

This is just one example of why assigned risk plans exist. They are designed to enable high-risk drivers to purchase the car insurance required by law, getting them back on the road so they can work and care for their families.

Assigned risk plans are structured in three ways. In 44 states and the District of Columbia, assigned risk plans operate under an Automobile Insurance Plan (AIP) model. An AIP distributes applications to insurance companies based on each carrier’s market share within the state’s voluntary market. The insurer writes and services assigned risk policies in the same way as standard auto policies.

Florida, Michigan, and Missouri employ a Joint Underwriting Association (JUA) model, in which providers in the voluntary market submit assigned risk applications to a select number of insurers that service the policies. New Hampshire and North Carolina require all auto insurance companies to write and service assigned risk auto insurance policies, but allow carriers to transfer ownership of policies to Reinsurance Facilities (RF). An RF is a nonprofit, unincorporated entity through which auto insurance providers can pool policies to service claims.

Having one or more high-risk factors doesn’t automatically mean you’ll need to buy auto insurance through an assigned risk plan. These plans are designed to provide coverage for people who have been rejected for insurance by the voluntary market. Common factors that may lead insurers to reject an applicant include:

  • Bad credit : Statistically, people with poor credit file more car insurance claims. Many states allow insurance companies to use credit as a premium rating factor. Bad credit can make it harder for you to find auto insurance coverage.
  • Bad driving history : Violations such as reckless driving or driving under the influence can lead to serious consequences for your driving record. For example, a DUI can result in jail time, fees and fines, and a license suspension, and the insurer may increase your premium—or, depending on the severity of the incident, discontinue coverage. State DUI laws vary. For example, the District of Columbia imposes a two- to 90-day license suspension for the first DUI offense, while Georgia imposes a one-year suspension. Serious driving offenses, and the penalties levied by a court, can make it difficult to get auto insurance.
  • Insurance history : Insurance companies like low-risk policyholders. People with a history of filing claims or not paying their premiums may not qualify for insurance on the voluntary market.
  • Location : Insurers shy away from writing policies for vehicles in high-crime areas. If you live in a neighborhood with a high rate of auto theft or vandalism, the voluntary market may not offer you coverage.
  • No driving history : Assigned risk plans may also provide the only coverage outlet for some teen or new adult drivers .
  • Specialty vehicles : Some insurance carriers don’t cover specialty automobiles such as antique or custom cars. Typically, owners can cover specialty vehicles with a classic car insurance policy , many of which cover a wide variety of vehicles, from antiques to street rods. But if you’re denied coverage on the voluntary market, you may need to buy insurance through an assigned risk plan.

Each state has its own assigned risk auto insurance plan, so requirements and procedures vary by location.

Typically, you must search for coverage in the voluntary market before applying for an assigned risk plan. Since assigned risk policies cost more than standard auto insurance, it also makes good financial sense to check the voluntary market first. Only turn to an assigned risk plan as a last resort.

The Automobile Insurance Plans Service Office’s (AIPSO) website provides contact information for each state’s assigned risk plan. On the AIPSO website, you can also register to find out if the organization offers an electronic manual for your state’s assigned risk plan.

Find out if you’re eligible for your state’s plan and which coverages it offers. For instance, Ohio’s plan includes bodily injury and property-damage liability coverage, as well as medical-payments coverage, and is available to both residents and non-residents. However, some states, including North Dakota, only offer assigned risk plan coverage to residents.

The application process can vary by state. The insurer that writes and services your policy depends on the model of assigned risk plan your state uses: AIP, JUA, or RF.

How To Get a Better Plan

To work your way out of needing an assigned risk plan, correct any issue that may have led insurers to reject your application for standard insurance. If you have poor credit, improve your credit score . If you were disqualified for lack of driving experience, drive safely and reapply for a standard policy after you’ve developed a good driving history.

When reviewing auto insurance applications, providers usually consider traffic violations that have occurred in the past three to five years. By avoiding additional violations, you can improve your chances of obtaining a standard, cheaper car insurance policy after a few years.

If you qualify for a standard car insurance policy, an insurer will voluntarily offer you coverage. The involuntary market—which offers assigned risk plans—exists to provide coverage for automobile owners who have applied for standard insurance on the voluntary market but have been rejected because they don’t meet the provider’s underwriting guidelines.

Key Takeaways

  • Assigned risk plans provide auto insurance for drivers who don’t qualify for a standard policy.
  • Factors such as an applicant’s credit rating and driving history can disqualify them for standard coverage.
  • States administer assigned risk plans, and insurance carriers in the voluntary market write and service car insurance coverages.
  • Policies obtained through assigned risk plans cost significantly more than standard auto policies.
  • Over time, motorists covered by an assigned risk plan can try to correct the factor that disqualified them for standard coverage, making it possible for some to purchase insurance for a lower rate on the voluntary market.

Insurance Information Institute. " Automobile Financial Responsibility Laws by State ."

Ohio Automobile Insurance Plan. " Welcome to Ohio Automobile Insurance Plan ."

Insurance Information Institute. " What If I Can't Find Auto Coverage? " see "Options if you're denied insurance."

International Risk Management Institute, Inc. " Assigned Risk Plan Definition ."

Insurance Information Institute. " What If I Can't Find Auto Coverage? " see "Why you might be denied traditional coverage."

State Farm. " The Real Consequences of Drunk Driving ." Accessed Feb. 3, 2021.

Governors Highway Safety Association. " Alcohol Impaired Driving ."

Ohio Automobile Insurance Plan. " Applicant Eligible for Plan ."

North Dakota Insurance Department. " North Dakota Automobile Insurance Plan ."

Alabama Department of Insurance. " Underwriting and Rating, Rating, Driving Record ."

assigned risk for insurance

RateForce is rated 4.7 / 5.0 stars based on 2302 Reviews

We generated 12,100,000+ Quotes (...counting), Helping People to Save Money and Time.

Editorial Guidelines: The above is meant as general information to help you understand the different aspects of auto insurance. This information does not refer to any specific auto insurance policy. Coverages and other features vary between insurers, vary by state, and are not available in all states. References to costs of coverages/repair, average or typical premiums, amounts of losses, deductibles, etc., are indicative and may not apply to your situation. We encourage you to speak to our insurance representative and to read your policy contract to fully understand your coverages.

Randy Luton RateForce CEO

Randy Luton is the Founder and CEO of RateForce. He is passionate about InsurTech services and has in-depth knowledge about the auto insurance sector of the USA.

Featured Posts

Best Cheap Car Insurance After A DUI Guide Image

Cheapest Car Insurance After a DUI: Discover Wallet-Friendly Options

cheap liability-only car insurance

Cheap Liability-Only Car Insurance for 2023: Complete Guide

average cost of car insurance in 2021 guide banner

Average Car Insurance Cost in 2023: Everything You Need To Know

Lower Your Auto Insurance Costs, New Yorkers!

  • Fill Out A Short Form
  • Compare Quotes
  • Start Saving!

Enter Your Zip Code:

New York State Assigned Risk Auto Insurance Explained

Last Updated on September 23, 2020

If you have multiple accidents or traffic violations on your driving record, auto insurance companies may classify you as a high-risk driver. High-risk drivers typically find it very difficult to get insurance. Many companies will not provide insurance to high-risk drivers at all, and the ones that do often charge extremely high rates or don’t provide enough coverage for the policy to be worthwhile.

To combat this, New York State created the New York Automobile Insurance Plan , which is often referred to as assigned risk insurance. This insurance plan matches high-risk drivers with insurance companies to get coverage. While rates for the NYAIP are still higher than average car insurance rates, they provide important insurance coverage for those who may not otherwise have been able to get it. Here’s everything you need to know about New York state’s assigned risk program for drivers.

What Is Assigned Risk Auto Insurance and Why Is It Necessary?

New York isn’t the only state that offers assigned risk auto insurance. Many other states throughout the country offer this type of insurance policy to ensure that every driver can get at least the minimum insurance coverage required by law. New York is a no-fault state, which means that your insurance company is required to cover medical payments and other costs that may result from an accident, regardless of who is found at fault. It’s extremely important for every driver to have the personal injury protection coverage that is required by New York state law, as well as liability insurance, which pays for property damage if you are found at fault in an accident.

In New York, all insurance providers are required to participate in the assigned risk auto insurance program. High-risk drivers are put into a pool and are assigned to car insurance companies based on their market share. For example, if an insurer currently offers 20 percent of the car insurance companies in New York, they would be assigned 20 percent of the drivers in the assigned risk pool.

Who Qualifies for Assigned Risk Auto Insurance?

To qualify for assigned risk car insurance, you’ll need to be able to prove that you cannot get car insurance on your own. In New York, you’ll to specifically prove that you cannot find car insurance in the market (usually by proving that at least three insurers have turned you down). You can also get assigned risk car insurance by proving that you haven’t been able to get a policy for less than what the New York Automobile Insurance Plan offers over the last 60 days.

The easiest way to apply for assigned risk auto insurance is to work with a licensed insurance agent, who will be able to handle the application process for you. Make sure to save any emails or paper documents that prove that you’ve been turned down for insurance, as this will make it much easier to qualify for assigned risk insurance. If you can’t find an insurance agent to work with, you can apply directly through the NYAIP website or over the phone.

Once you’ve been assigned an insurer, they are required to cover you for three years. If you are unable to find coverage on your own at the end of this three year period, you can reapply for assigned risk coverage, at which point you will be assigned a new policy. If you can find your own insurance policy for a better rate at any point during the three year period, you can cancel your assigned risk coverage with no penalty. If you keep a good driving record and make your payments on time through that three year period, your assigned risk insurer may also offer to continue providing you coverage at their normal rates.

How Much Coverage Will I Get With New York’s Assigned Risk Insurance?

New York’s assigned risk insurance program will provide you with the minimum insurance required by law. They also will give you the option to purchase additional coverage if you want it. Drivers in New York much have at least $10,000 of property damage coverage , as well as personal injury protection, bodily liability , and death coverage of $25,000/$50,000 for one person and $50,000/$100,000 for two people. New Yorkers are also required to carry the same amount of uninsured motorist coverage .

Through the NYAIP, you’ll get the minimum required amount of insurance, but you’ll also have the option to purchase additional bodily injury and property liability coverage. You’ll be able to purchase up to $100,000 in property damage coverage and $250,000/$500,000 in bodily injury. Even though it isn’t required by state law, you’ll also be able to purchase collision and comprehensive insurance . Collision insurance pays for your damages if you are involved in any kind of collision, including one car collisions. Comprehensive insurance pays for other damages, including vandalism, weather damage, and more.

How Much Does It Cost to Get Assigned Risk Insurance?

Assigned risk insurance is much more expensive than the average policy you’d find on the market. However, for high-risk drivers, it may be the only option. Currently, the average cost of car insurance in New York is $1582 per year, but assigned risk car insurance policies can cost well over $2,000. However, the NYAIP does offer payment plans, so you do not have to pay the entire premium at once.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I have not had a car registered in my name for 10 yrs. Prior to that I had an excellent driving record. Am I considered an assigned risk

i have been cancelled by my insurance company for late payments. i also have a restriction against my license due to civil litigations pending. i cannot get the auto coverage i need to operate a vehicle in nys. what can i do? Am i entitled to assigned risk with these issues.

I cannot get insurance because i am a high risk driver in new york, can i get insurance, do i qualify

Lower Your Insurance Costs Now

Ready to lower your insurance costs right now? Enter your zip code in the field below:

  • 154 Grand St. New York, NY 10013
  • (347) 960-6520
  • [email protected]
  • Laws and Requirements
  • Insurance Types
  • Terms And Conditions
  • Privacy Policy

Automated page speed optimizations for fast site performance

Policygenius does not allow the submission of personal information by users located within the EU or the UK. If you believe this action is in error, or have any questions, please contact us at [email protected]

Assigned Risk Insurance

Consumer Services And Help

Commercial Assigned Risk Insurance for Business Owners

Get hard to place commercial insurance. Get commercial property, transportation and liability insurance coverage for your company now (855) 554-6321.

Having trouble finding a company to insure  your business? Call us for Commercial Assigned Risk Insurance including commercial property, transportation, workers comp and liability insurance coverage for your company now (855) 554-6321.

Commercial trucking, commercial auto, workers comp and commercial property assigned risk insurance quotes are currently available (855) 554-6321  also try (833) 604-1348 .

For the business owners that need help use the form below.

Get free rate quotes, help and no obligation guidance for obtaining Commercial Assigned Risk Insurance coverage for your company (855) 554-6321 .

Or you could use our partners below for direct access to top companies if you prefer.

Contractors General Liability Insurance high risk or assigned risk business types (855) 554-6321.

We will work with specific commercial lines carriers or Specialty Insurance Providers, licensed agents and agencies that may issue a business lines policy themselves or grant underwriting authority to a program administrator who are typically a recognized expert in a niche class of Commercial Assigned Risk Insurance or sometimes called non standard business like long haul trucking, crane operations, contractors, commercial property, gasoline transporters  and many more types in order to offer policies for business types of customers with consistent characteristics or needs.

We will try and find coverage for hard to place transportation, commercial property, casualty, liquor liability, products liability, umbrella and excess accounts. We have binding and or quoting authority for top rated insurance companies and several brokerage markets. With access to write over 1000 classes of property, casualty and many more risks.

Most requested Commercial Assigned Risk Insurance Classes include, but not limited too;

TRANSPORTATION – trucking and busing always lead the pack due to stringent federal and state laws.

Hospitality Bars and Taverns Restaurants Nightclubs One Day Events and any more!

Commercial Assigned Risk Insurance: Real Estate Apartments Hotels and Motels Lessors Risk Vacant Buildings Builders Risk Coastal Property Condominiums Warehouses

Commercial Assigned Risk Insurance: Contractors Artisians Commercial General Contractors Roofers Homebuilders Welders Alarm Contactors Tree Removal Machinery Equipment- Sales, Service and Repair Swimming Pools- Sales, Service and Repair Demolition Contractors

Commercial Assigned Risk Insurance: Products Nutraceuticals Pharmaceuticals Manufacturing Products Recall Food & Beverage Manufacturing and Distribution Importers Distributors Discontinued Products Sporting Goods Vitamins and Drugs Beauty and Cosmetics

We welcome any business owner that needs help with Commercial Assigned Risk Insurance from our large network of assigned risk insurance agents.

  • Personal assigned risk insurance – Personal Auto or Car insurance, HO-3 Coastal homes, coastal homes flood insurance, Mobile Homes , Recreational Vehicles (Boats, Jet Skis, ATVs), Vacant Properties, Inner City Dwellings, Personal Umbrella Policies and many more.
  • Commercial assigned risk insurance – General Contractors , Vacant Commercial/Industrial Properties, Habitational, Professional Liability, Liquor Liability, Bars/Restaurants, Commercial Property , Local Trucking, Busing, Intermediate Trucking, Long Haul Trucking , Taxis & Transportation, Roofing-Roofer, Excess Liability, Errors & Omissions, Medical Malpractice and many more.

MotorBiscuit

10 Confusing Car Insurance Terms That You Should Know

H aving valid car insurance is mandatory when buying and operating a car. Fortunately, there are plenty of different car insurance companies to purchase a policy from. However, some of your car insurance policy terms can be confusing. Check out the definitions of the most common terms that you may come across when purchasing car insurance .

1. Accident forgiveness

Accident forgiveness is additional coverage you can add to your insurance policy so that the rate won’t go up in the event of an at-fault accident. With some insurance companies, you’ll be able to qualify for this type of insurance after five years of accident-free driving, notes Life Hacker.

2. Actual Cash Value (ACV)

The actual cash value of your car minus the depreciation. The insurance company won’t replace your actual car, but it will reimburse you for its value at the time of the loss.

3. Assigned Risk Plan (AIP)

If a car insurance company deems you to be too high of a risk to insure, you may need to be covered by a state-issued risk plan, which can cost more than regular insurance.

4. Collision coverage

Collision coverage pays for any damages to your vehicle, no matter who is at fault. This type of coverage is typically mandatory for a new car that’s financed. However, it’s not necessary on an older car, but it is recommended.

5. Comprehensive coverage

Comprehensive coverage covers your car in case of a collision with something other than another vehicle. Some examples include a hail storm, fire, hitting a deer, etc.

6. Deductible

A deductible is the amount you pay out of pocket on a claim before the insurance company covers the rest. The higher the deductible, the lower the monthly payments.

7. GAP Insurance

In the event of a total loss, this type of insurance covers the difference, or the gap, between what your car is worth and what you owe on it. Thanks to depreciation, there’s a good chance that your car’s value will be less than what you owe on the financing loan you took out for it. Gap insurance, which stands for Guaranteed Asset Protection, is typically included when you lease a car. But if you finance a car, you must buy it separately.

We suggest purchasing gap insurance from an outside lender or credit union as the one sold at a dealership will cost around three times as much, maybe more.

8. Liability Insurance

Liability insurance covers the damages or injuries to the other party when you’re at fault in an accident. Life Hacker reports there are two different types of liability coverages: property damage liability and bodily liability. This is the minimum type of insurance coverage you need; it’s often referred to as “liability only” insurance.

9. Total loss

A total loss is when a vehicle is beyond being repaired and must be junked.

10. Underwriting

Does Car Insurance Actually Cost More For Women?

Underwriting is when an insurance company evaluates whether or not it will approve an applicant for coverage.

The most common car insurance terms can be confusing

There are plenty more car insurance terms that you can come across when purchasing a policy, but these are the most common and confusing ones. If you’re currently shopping around for a policy, check out “ How to Save Money on the Rising Cost of Car Insurance .”

The post 10 Confusing Car Insurance Terms That You Should Know appeared first on MotorBiscuit .

A car insurance claims adjuster | Getty Images

  • Pre-Markets
  • U.S. Markets
  • Cryptocurrency
  • Futures & Commodities
  • Funds & ETFs
  • Health & Science
  • Real Estate
  • Transportation
  • Industrials

Small Business

Personal Finance

  • Financial Advisors
  • Options Action
  • Buffett Archive
  • Trader Talk
  • Cybersecurity
  • Social Media
  • CNBC Disruptor 50
  • White House
  • Equity and Opportunity
  • Business Day Shows
  • Entertainment Shows
  • Full Episodes
  • Latest Video
  • CEO Interviews
  • CNBC Documentaries
  • CNBC Podcasts
  • Digital Originals
  • Live TV Schedule
  • Trust Portfolio
  • Trade Alerts
  • Meeting Videos
  • Homestretch
  • Jim's Columns
  • Stock Screener
  • Market Forecast
  • Options Investing
  • Chart Investing

Credit Cards

Credit Monitoring

Help for Low Credit Scores

All Credit Cards

Find the Credit Card for You

Best Credit Cards

Best Rewards Credit Cards

Best Travel Credit Cards

Best 0% APR Credit Cards

Best Balance Transfer Credit Cards

Best Cash Back Credit Cards

Best Credit Card Welcome Bonuses

Best Credit Cards to Build Credit

Find the Best Personal Loan for You

Best Personal Loans

Best Debt Consolidation Loans

Best Loans to Refinance Credit Card Debt

Best Loans with Fast Funding

Best Small Personal Loans

Best Large Personal Loans

Best Personal Loans to Apply Online

Best Student Loan Refinance

All Banking

Find the Savings Account for You

Best High Yield Savings Accounts

Best Big Bank Savings Accounts

Best Big Bank Checking Accounts

Best No Fee Checking Accounts

No Overdraft Fee Checking Accounts

Best Checking Account Bonuses

Best Money Market Accounts

Best Credit Unions

All Mortgages

Best Mortgages

Best Mortgages for Small Down Payment

Best Mortgages for No Down Payment

Best Mortgages with No Origination Fee

Best Mortgages for Average Credit Score

Adjustable Rate Mortgages

Affording a Mortgage

All Insurance

Best Life Insurance

Best Homeowners Insurance

Best Renters Insurance

Best Car Insurance

Travel Insurance

All Credit Monitoring

Best Credit Monitoring Services

Best Identity Theft Protection

How to Boost Your Credit Score

Credit Repair Services

All Personal Finance

Best Budgeting Apps

Best Expense Tracker Apps

Best Money Transfer Apps

Best Resale Apps and Sites

Buy Now Pay Later (BNPL) Apps

Best Debt Relief

All Small Business

Best Small Business Savings Accounts

Best Small Business Checking Accounts

Best Credit Cards for Small Business

Best Small Business Loans

Best Tax Software for Small Business

Filing For Free

Best Tax Software

Best Tax Software for Small Businesses

Tax Refunds

Tax Brackets

Tax By State

Tax Payment Plans

All Help for Low Credit Scores

Best Credit Cards for Bad Credit

Best Personal Loans for Bad Credit

Best Debt Consolidation Loans for Bad Credit

Personal Loans if You Don't Have Credit

Best Credit Cards for Building Credit

Personal Loans for 580 Credit Score or Lower

Personal Loans for 670 Credit Score or Lower

Best Mortgages for Bad Credit

Best Hardship Loans

All Investing

Best IRA Accounts

Best Roth IRA Accounts

Best Investing Apps

Best Free Stock Trading Platforms

Best Robo-Advisors

Index Funds

Mutual Funds

Insurers such as State Farm and Allstate are leaving fire- and flood-prone areas. Home values could take a hit

thumbnail

Some insurance companies are pulling back coverage from fire- and flood-prone areas, leaving homeowners with limited affordable options. This trend may even affect the property value of American homes, experts say.

The nation's largest homeowner's insurance company, State Farm, stopped accepting new applications for policies on property in California in May. Allstate announced in November 2022 that it would "pause new homeowners, condo and commercial insurance policies in California to protect current customers," the Associated Press reported in June.

This trend will likely continue across the insurance industry, said Jeremy Porter, head of climate implications research at First Street Foundation, a nonprofit research organization that compiles comprehensive climate risk data.

“They know the risk is just too high to be actuarially sound for their business," he said.

In its announcement, State Farm said too many buildings are being destroyed by climate catastrophes, inflation is making it too expensive to rebuild, and it can't protect its investments any longer.  

More from Personal Finance: Why a 'death note' is as important as having a will, advisor says Economists say the labor market is strong, but job seekers don’t agree Amid FAFSA delays, what to do if your financial aid letter is late

The problem is not just in California, where wildfires are prevalent. Louisiana and Florida homeowners are also contending with a lack of access to insurance , due to flood risk.  

"Losses are increasingly related to climate risk," said Sean Kevelighan, president and CEO of the Insurance Information Institute, an insurance industry association. "As that risk increases, so does the cost of insuring those assets that people have on hand."

Even though there wasn't an increase in major disasters in 2023, he said, the industry is still expecting to see $50 billion in losses just because of "severe convective issues" such as flash flooding and the implications of heavier everyday storms. 

What happens when a homeowner can't get insurance

Without insurance, many homeowners can find themselves in big financial trouble. 

Darlene Tucker, 66, and Tom Pinter, 68, are longtime homeowners in Sonora, California. The couple bought their "dream home" 18 years ago and have been enjoying their retirement from their respective jobs in manufacturing.

Tucker also cares for her horses and a rescued 100-pound tortoise on the property, and runs a dog day care center to help make ends meet. She said Pinter also works as a delivery driver to help out.

The couple received a nonrenewal notice from Allstate in November. Tucker told CNBC she has been working with her Allstate agent to find another insurer.

"I had one company step up and said they'd do it for $12,000 a year," she said — that's roughly six times her previous annual premium under Allstate of about $2,000.

She said there was no way the couple could afford that new policy, and they would likely have to move. 

But Tucker and Pinter may find that selling their home also comes with a steep cost.

Porter said First Street Foundation's research in California concluded that "the moment that an individual gets a non-renewal letter from the private insurance market, they essentially lose 12% of their property value."

Insurance costs 'should be an alarm' for homebuyers

Experts say the insurance landscape in California is particularly tricky because, in addition to the wildfire risk, the state has a law that adds extra approval measures, including board approval and review by the insurance commissioner, if an insurance company wants to raise the rate of insurance by more than 7%. That's been in effect since the 1980s.

Kevelighan, of the Insurance Information Institute, said that law, called Proposition 103, creates a regulatory environment in California that restricts the industry from adequately including climate risk in its forecasting and is one of the reasons the industry is being forced to pull back coverage in the state.

"Risk management does not come into play until it's entirely too late when it comes to individual personal property purchasing," Kevelighan said. "It comes into play when the mortgage provider needs you to go get it."

"And that's the first time when a consumer even begins to think about where they're living and what the risks might be," he said. "The cost reflects that risk. That should be an alarm to tell them that they're living in a risky place and then ask themselves: How could I reduce that risk? Or do I need to think about living somewhere else?"

'Give me something to work with'

With just days remaining until Tucker and Pinter's Allstate policy expires, on Feb. 15, the couple is still looking for more options. Tucker told CNBC that a recent quote they received was three times what they were originally paying, with a $10,000 deductible.

Of the whole situation, she said she feels frustrated.

"We're doing everything we can," Tucker said. "You know, we worked hard, we retired. We take good care of our house. I'm never late on my bills. I paid that [policy] for 18 years ... And you just give me no choice. That's the part that bugged me the most, I think. Give me a list. Give me something to work with. Raise [the price] if you need to, reasonably. But don't just give me no choice. That's not right."

Tucker's insurance agent from Allstate told CNBC that "most insurance companies are not currently writing polices in high fire prone areas," and confirmed the company was trying to help her find other options.

A spokesperson for Allstate said the company is "working with the California Department of Insurance to improve insurance availability in the state. We'll be able to offer home insurance policies to more Californians with the use of our advanced wildfire modeling and reinsurance."

State Farm did not respond to CNBC's requests for comment.

Watch the video to learn more about why some American homeowners are losing their property insurance and the changes the insurance industry would like to see to be able to offset some of the mounting risks.  

Clarification: This story has been updated to clarify when Allstate announced it would pause accepting applications for new insurance policies in California.

How floating cities and amphibious homes may help coastal towns adapt to sea-level rise

assigned risk for insurance

World’s Best Hedge Fund Bet Bumps Up Against a New Era of Risk

By Gautam Naik and Sheryl Tian Tong Lee

Sheryl Tian Tong Lee

As the best hedge fund strategy of 2023 becomes a magnet for mainstream investors, the risk models it relies on are getting a lot tougher to crack.

The strategy in question is tied to insurance-linked securities, which are dominated by catastrophe bonds (often dubbed cat bonds). In 2023, no other asset class produced a better-performing bet for hedge funds, with firms including Fermat Capital Management and Tenax Capital booking their biggest-ever returns .

Cat bonds have been around for more than 25 years and are used by the insurance industry to shield itself from losses too big to cover. That ...

Learn more about Bloomberg Law or Log In to keep reading:

Learn about bloomberg law.

AI-powered legal analytics, workflow tools and premium legal & business news.

Already a subscriber?

Log in to keep reading or access research tools.

Logo

  • Critical Risks
  • Risk Management
  • The Insurance Industry
  • Claims & The Law
  • Workers’ Comp Forum
  • Risk Insiders
  • Sector Focus

Risk Central

  • Power Broker
  • Risk Matrix
  • Risk Scenarios
  • Risk All Stars
  • Teddy Award
  • Sponsored Content
  • Branded Webinars
  • Digital Issue
  • Issue Archive
  • National Comp
  • National Ergo & Ergo Expo
  • Award Applications

Newsletters

  • &BrandStudio
  • Privacy Policy
  • About R&I

The best of R&I and around the web, handpicked by our editors.

White papers, service directory and conferences for the R&I community.

Go to Risk Central.

Digital edition.

Web replica of the print magazine.

View Digital Edition.

9 people on the move.

assigned risk for insurance

CFC Brings on Dan Trueman, Jason Hart 

In January, specialist insurer CFC announced the hiring of Dan Trueman as chief underwriting officer and Jason Hart in a newly created role as head of proactive cyber.

assigned risk for insurance

Dan Trueman, chief underwriting officer, CFC

assigned risk for insurance

Jason Hart, head of proactive cyber, CFC

Trueman is replacing Andy Holmes, the current CUO as he is stepping into the role of CEO at the company. He came to CFC from AXIS Insurance, where he served as Global Head of Cyber.

“Dan has also been a key figure in cyber for many years and his experience in this sector will clearly prove invaluable given our position as one of the world’s leading cyber markets,” Holmes said in a press release. “I have no doubt that he will play a pivotal role in helping CFC identify new niche areas where we can add value and work with our underwriters to ensure we write profitable and sustainable business.”

Hart will continue the development of CFC’s cyber threat analysis, vulnerability and threat detection service. He comes to the role from Rapid7, a cybersecurity platform, where he was chief technology officer – EMEA.

​​“Jason combines his technical skills with a pragmatic view on security, the ability to build teams, and to drive innovation and disruptive offerings at a global scale. I can’t think of a better person to help us accelerate the evolution of our proactive cyber service with new cutting-edge proprietary technology,” Jonathan Fletcher, chief technology officer at CFC, said in a press release.

Ascot Group Promotes Elizabeth Johnson to Group COO

Elizabeth Johnson, formerly COO of North America Insurance with Ascot Group, is ascending to the role of Group Chief Operating Officer, the company announced in January.

She came to Ascot in 2020 as chief underwriting officer for North America and quickly rose through the ranks, becoming COO of North America Insurance in 2022. She worked as a managing director at Nationwide, prior to joining Ascot, and before that held various senior underwriting and management roles at AIG, where she worked for nearly two decades.

“Since joining the company nearly four years ago, Elizabeth has consistently demonstrated the strategic vision and execution skills needed to drive and support our Group’s success,” Jonathan Zaffino, Group CEO and President at Ascot, said in a press release.

“Her efforts have been instrumental in enhancing our operational efficiencies and underwriting discipline, and in delivering advancements in our IT capabilities. Elizabeth is a strong advocate of our authentic culture and embodies the Ascot Way through collaborative engagement, strong leadership, and a commitment to exemplary execution in all areas of the business.”

Beazley Names Patricia Kocsondy Hea d of Global Cyber Digital Risks

assigned risk for insurance

Patricia Kocsondy, head of global cyber digital risk, Beazley

Patricia Kocsondy has been promoted at Beazley from head of U.S. cyber and technology to head of global cyber digital risks. In her new role, she will set the global product and distribution strategy for cyber businesses with less than $250 million in revenue.

Prior to working at Beazley, she was employed as a cyber underwriter for more than a decade.

“Beazley’s cyber underwriting continues to grow,” Paul Bantick, global head of cyber risks at Beazley, said in a press release.

“Today we underwrite more than $1 billion of cyber premium globally and expect significant growth in the sub $250 million market in the coming years, making now the right time for a cyber leader of Patricia’s experience and skill to head the ongoing development of our cyber offering for this important segment of business.”

Phil Johnson to Lead APAC expansion at Price Forbes

Price Forbes, a division of Ardonagh Specialty, is continuing its expansion into Asia and the Pacifics with the hiring of Phil Johnson as chief executive designate of Asia Pacific. The plan is for him to move into the position of CEO, when the current CEO, Stephen Britten becomes executive chairman of Price Forbes Asia. These changes are subject to regulatory approval. He will be based in Singapore.

Johnson will be responsible for broadening the company’s ’ (re)insurance broking platform, linking trading throughout the region, working closely with the wider Ardonagh Specialty teams in London and continuing the company’s expansion through Asia.

“We are delighted to have Phil join our business. His knowledge and drive in building and scaling broking teams and his experience in both wholesale and facultative (re)insurance will be key to fuel our ambitious growth targets in the APAC region. His joining further demonstrates our commitment to provide our clients with the best practitioners in the market,” Britten said in a press release.

Johnson comes to Price Forbes from Miller Insurance LLP. There, he set the company’s strategy for wholesale property, casualty and financial lines as head of casualty and chair of the Australasian territorial group. Prior to that, he worked in politics.

“I have spent my career providing specialist solutions to clients looking for an alternative to the big 3 brokers. Ardonagh’s unparalleled London growth journey means it has the unique breadth of talent, scale, and entrepreneurial zeal to be the broker of choice for independent clients seeking competitive advantage,” Johnson said in a press release.

“Asia is the fastest growing major insurance market in the world and with the strength of the London and Bermudan businesses supporting us, I’m looking forward to working with the teams in Singapore, Hong Kong and Australia to achieve explosive growth in APAC.”

Leadership Changes at World Insurance Associates

At World Insurance Associates, John Peterson has been named chief growth officer, Frank Costa as national growth leader and Joe Klein as an executive vice president in the national accounts practice.   

Peterson is stepping into the role vacated by Costa. He will be in charge of driving revenue growth and offering clients visibility into World Insurance Associates’ resources and will oversee the retail sales infrastructure, among other responsibilities. “John brings a tremendous amount of experience to World, and I am thrilled to have him on the team,” Tom Fitzgerald, president of World Retail, said in a press release.

Costa will drive revenue goals across the business in his new position.

“We are delighted to have John join World and oversee our organic growth initiatives and to have Frank support John and the broader sales team as our new national growth leader role,” Rich Eknoian, chief executive officer of World, said in a press release. “Having this level of expertise in both roles will lead to an improved experience for our clients and partners, which of course is our main goal.”

In separate news, Klein assumed his role in January. He will leverage his 35 years of brokering experience to create tailored risk solutions for clients across industry sectors. His experience ranges across education, heavy manufacturing, energy, power, retail and aviation risks.

“The expertise that Joe brings will not only drive efficiencies across the organization but will drive innovation for our clients, ultimately fueling our next stage of growth,” Jeff Kroeger, EVP and head of World’s commercial lines, said in a press release. “We are confident our clients will benefit from his extensive industry knowledge and dedication to going above and beyond to help them.”

Clyde & Co Expands Chicago Operations with Hiring of Danny Worker

assigned risk for insurance

Danny Worker, firm partner, Clyde & Co

Clyde & Co’s North America and global insurance practice continues its expansion by bringing on Danny Worker as a partner in the firm’s Chicago office.

Previously a managing partner at Lewis Brisbois’ Chicago office and a partner in its Phoenix office, Worker’s principal practice areas encompass insurance coverage and bad faith litigation across a number of different sectors, including construction, aviation, transportation, hospitality, marine and energy.

“With this breadth and depth of knowledge in handling complex cases, Danny is uniquely positioned to provide legal counsel on a national basis in liability and coverage litigation, and we are very excited to have him on board,” Eileen King Bower, partner and chair of Clyde & Co’s North American Board, said in a press release.

Eight other attorneys from Lewis Brisbois came with Worker. They are: Senior Counsel Siobhan Murphy, Senior Counsel Lindsay Bowman, Senior Counsel Dawn Johnson, Senior Counsel Charlotte Kormendy, Senior Counsel Michael Roman, Senior Counsel Vince Tomkiewicz, Of Counsel Mary Sitko and Associate Caroline Kim.

“Clyde & Co is a major name in insurance law in North America and globally, and our clients will benefit hugely from our move. Clyde & Co offers an incredible opportunity for my colleagues and me to expand access to global expertise and representation for our clients. I am looking forward to linking up with colleagues across the firm’s insurance group to help clients navigate an increasingly complex and interconnected risk landscape,” Worker said in a press release. &

Share this article!

Trending stories.

assigned risk for insurance

The Insurance Communicators: 9 Questions for Sally Roberts of Marsh

assigned risk for insurance

2024 RIMS President David Arick Shares How COVID and AI Have Changed the Risk Management Space

assigned risk for insurance

Three Benefits and Three Challenges of Implementing AI in Claims Management

Portrait of Hemant Shah

7 Questions for Archipelago’s Hemant Shah

More from risk & insurance.

assigned risk for insurance

No Need for a Clipboard to Record Data. Let Spot the Robot Dog Fetch Those Numbers

This transformation of risk data accessibility equalizes information access, enabling individuals and businesses to preemptively address potential issues.

assigned risk for insurance

Can Long-Term Care Providers Still Recovering from COVID Pivot to Face Natural Disasters?

As every community contends with its share of natural catastrophes, structural fortifications and business continuity planning can help today’s long-term care operators bolster their resilience.

assigned risk for insurance

Predict & Prevent™: How Technology Will Play a Crucial Role in Natural Catastrophe Property Loss Prevention

When it comes to predicting and preventing natural catastrophe property losses, risk professionals are finding tech solutions rooted in resiliency. 

assigned risk for insurance

3 Progressive Housing Initiatives That Could Prompt a Greater Need for E&S Market Solutions

Here are the key ongoing legislation trends likely to impact the functionality of the E&S market, from AmTrust's Erich Bublitz. 

assigned risk for insurance

COMMENTS

  1. What Is Assigned Risk Pool For Auto Insurance?

    In New York's assigned risk plan you're limited to $250,000 in liability coverage for bodily injury to one person in a car accident and you can add collision and comprehensive coverage. But if...

  2. Assigned Risk: What It Is, How It Works

    Assigned risk is when an insurance company is required, by state insurance law, to provide coverage for risk that may not find coverage in the general insurance marketplace. In order to...

  3. How State-Assigned Car Insurance Works

    What is an assigned-risk car insurance pool? Drivers who are deemed too risky may be unable to buy car insurance on the private market. But they still need coverage by law if they own...

  4. Assigned risk

    The assigned risk market, also known as the residual market, provides workers compensation coverage to businesses that are unable to obtain coverage from the traditional, or voluntary, market.

  5. What's Assigned Risk Auto Insurance?

    Assigned risk auto insurance is an option for drivers who have trouble securing a standard car insurance policy, often due to a poor driving record, a low credit score, or because they live in an area at high risk of theft or vandalism. [1] States establish assigned risk auto insurance programs and require private insurers to participate.

  6. What Is an Assigned Risk Plan?

    Assigned risk plans provide auto insurance for drivers whom most insurers consider too high-risk to cover. Established by state governments, assigned risk plans offer coverage through ordinary carriers, but cost more than regular car insurance. Assigned risk plans aren't for every car owner who's been rejected for coverage, though.

  7. What assigned risk means for your car insurance

    Fri, Dec 15, 2023 4 min read If you have a spotty driving history, you may find it difficult to get car insurance. Multiple violations for things like driving under the influence, reckless...

  8. Assigned Risk Auto Insurance: Coverage for Risky Drivers

    Fill out the application: Fill out the application for assigned risk auto insurance that the insurance provider provides. The application may ask for personal data, information about your car, and facts on your driving history. Pay the Premium: Due to the higher risk involved, assigned-risk auto insurance policies sometimes have higher rates.

  9. What is a JUA or an assigned risk pool for high-risk drivers?

    JUA stands for Joint Underwriting Association. Some states have created a Joint Underwriting Association, which will insure drivers who cannot secure car insurance from an insurer on their own, usually high-risk drivers. Instead of having a JUA set up in other states, there is an assigned risk pool. This is to ensure all motorists can find ...

  10. Assigned risk

    Assigned risk. Assigned risk is a government-required method of providing insurance coverage to an individual by compelling insurance companies to service them when such companies would ordinarily not do so due to perceived risk of insuring the individual as a customer. [1]

  11. assigned risk plan (AR)

    An assigned risk (AR) plan is a method of providing insurance, especially those required by state statutes, for those risks that are uninsurable in the normal insurance market. All insurers that write that coverage in the state will be "assigned" a share of applicants from the AR plan.

  12. What is Assigned Risk (AIP)?

    Assigned Risk (AIP) Definition: Assigned Risk, also known as the Auto Insurance Plan (AIP), is a term used in the insurance industry to refer to a driver or a business that insurance companies consider too risky to insure due to a high likelihood of filing claims. This could be due to a poor driving record, a high-risk occupation, or a poor ...

  13. What is an Assigned Risk Insurance Plan?

    An assigned risk insurance plan is one that you obtain by being added to the assigned-risk insurance pool, a state-directed program designed to help people that might not otherwise be able to get car insurance get insured. It was created for high-risk drivers who have a history of driving infractions, auto-related crimes, or other issues that ...

  14. Assigned Risk

    Assigned risk workers' compensation is designed to ensure that coverage is available to anyone who requires it, even those risks who are not accepted in the voluntary, or standard, market. Some employers may be considered high risk and are limited to the assigned risk business insurance market for reasons such as:

  15. New York State Assigned Risk Auto Insurance Explained

    Assigned risk insurance is usually used as a last resort when a driver cannot get a policy from any other provider. Insurance companies determine the cost of their insurance policies based on risk. However, drivers with particularly bad records are statistically too risky for many insurance companies, so they won't offer policies for them.

  16. Assigned Risk Auto Insurance

    At the most general level, assigned risk insurance, also known as the "assigned risk pool," is a state- or regionally-run program that allows people who can't otherwise qualify to get legally required insurance due to get insurance. The assigned risk concept is most commonly associated with workers compensation and auto insurance.

  17. Trouble Getting Coverage

    However, if you cannot find an auto insurance company that will sell you an auto policy with the required coverages you need or want, the New York Automobile Insurance Plan (NYAIP), commonly known as the Auto Plan or Assigned Risk Plan, is a special insurance facility established under New York State law to assure that coverages are provided.

  18. What is the California Assigned Auto Risk Plan (CAARP)?

    The California assigned Auto Risk Plan, also known as CAARP, is the state's non-standard car insurance market that offers coverage to high risk drivers. By Rachael Brennan Edited by Anna Swartz Published January 23, 2023 | 3 min read Policygenius content follows strict guidelines for editorial accuracy and integrity.

  19. Pennsylvania Assigned Risk Plan (PA ARP)

    The Pennsylvania Assigned Risk Plan allocates an auto insurance carrier to high-risk drivers who have been unable to find an insurer in the voluntary market willing to cover them. The PA ARP is a last resort and facilitates insurance for high-risk drivers.

  20. Assigned Risk Solutions

    Assigned Risk Solutions provides superior coverage to businesses who need it, even those not accepted in the voluntary market, including high risk insurance policies. Learn More Services Medical Management Claims Fraud Detection & Prevention Loss Control Premium Audits PPO Provider Search Our Services Resources

  21. Assigned risk customer service

    If you are an assigned risk customer, our Assigned Risk Customer Service Center is available by phone at 1-800-653-7893 or email at [email protected]. Professionals are available Monday through Friday, 7 a.m. to 7 p.m. CT and can answer your questions related to: General inquiries regarding your coverage. Policy review.

  22. Commercial Assigned Risk Insurance for Business Owners

    Commercial Assigned Risk Insurance Help For Business Owners. Commercial Assigned Risk Insurance for Business Owners Get commercial property, transportation workers comp and liability insurance coverage for your company now (855) 554-6321. Having trouble finding a company to insure your business?

  23. 10 Confusing Car Insurance Terms That You Should Know

    Assigned Risk Plan (AIP) If a car insurance company deems you to be too high of a risk to insure, you may need to be covered by a state-issued risk plan, which can cost more than regular insurance ...

  24. Navigating Innovation: The Intricacies of Insuring Emerging Exposures

    That included revamping the product-manufacturing program to expand the risk profile into several additional classes; introducing a remodeling program tailored to meet the needs of residential and commercial contractors performing non-structural, non-ground up work; and a miscellaneous-tools inland-marine bundle offering on the contractor ...

  25. HUB International Launches Builder's Risk Insurance Solutions

    Chicago, IL, February 22, 2024 - Hub International Limited (HUB), a leading global insurance brokerage and financial services firm, announced today the launch of HUB Builder's Risk Insurance Solutions, a turnkey insurance and risk mitigation solution for project owners, general contractors and developers of frame and non-frame projects to ...

  26. What homeowners need to know as insurers leave high-risk climate ...

    Experts say the insurance landscape in California is particularly tricky because, in addition to the wildfire risk, the state has a law that adds extra approval measures, including board approval ...

  27. World's Best Hedge Fund Bet Bumps Up Against a New Era of Risk

    Insurance-linked securities drove best 2023 hedge fund bet; Market faces new loss risks as 'secondary perils' upend models; As the -bsp-bb-link state=" ... the risk models it relies on are getting a lot tougher to crack. The strategy in question is tied to insurance-linked securities, which are dominated by catastrophe bonds (often dubbed ...

  28. 9 People on the Move : Risk & Insurance

    Patricia Kocsondy has been promoted at Beazley from head of U.S. cyber and technology to head of global cyber digital risks. In her new role, she will set the global product and distribution strategy for cyber businesses with less than $250 million in revenue.