Various market mechanisms, such as assigned risk pools and reinsurance facilities, allow employers that are considered uninsurable access to workers' compensation insurance.Employers with large losses, as depicted by high experience ratings, are considered high risk.These employers encounter difficulty in finding workers' compensation coverage.The way to obtain coverage is through these involuntary markets.Identify this market.

Question

Quizplus · Accepted Answer

The correct answer is the residual market, which is designed to provide insurance coverage to those who cannot obtain it in the voluntary (or primary) market due to their high risk or poor loss history. This includes employers with high experience ratings seeking workers' compensation insurance.

Various Market Mechanisms, Such as Assigned Risk Pools and Reinsurance