Under which type of automobile insurance arrangement are all automobile insurers in a state assigned their proportionate share of high-risk drivers based on the total volume of automobile business written in the state?
A)automobile insurance plan
B)unsatisfied judgment fund
C)reinsurance facility
D)specialty automobile plan

Question

Quizplus · Accepted Answer

This type of arrangement is known as an automobile insurance plan, which is also commonly referred to as a "shared market" or "assigned risk" plan. These plans are designed to ensure that high-risk drivers have access to automobile insurance coverage, regardless of their driving record or other factors that may make it difficult for them to obtain coverage in the regular market. Under an automobile insurance plan, all insurers in a state are required to participate and are assigned their proportionate share of high-risk drivers based on the total volume of automobile business written in the state. This helps to distribute the risk of insuring high-risk drivers more evenly across the entire insurance market, thereby reducing the likelihood that any one insurer will bear an undue burden of losses.

Under Which Type of Automobile Insurance Arrangement Are All Automobile