Principles of Risk Management and Insurance 13th Edition by George Rejda,Michael McNamara

Exercise 4

Compensating innocent victims of high-risk drivers is problematic for society. An automobile insurance plan (assigned risk plan) is one approach to the problem of providing auto insurance to high-risk drivers.
a. What is an automobile insurance plan?
b. Describe the eligibility requirements for obtaining insurance from an automobile insurance plan.
c. Explain the process for assigning high-risk drivers to individual insurers.
d. Explain the disadvantages of automobile insurance plans.