Some drivers cannot buy insurance through the usual channels because, as a group, their losses are excessive.This problem can be solved by charging higher premium rates for such drivers, as is the case of insurers providing coverage to this market, in which some companies offer limited auto coverage to high-risk drivers at high premium rates.Identify the market.
A)Residual market
B)Shared market
C)Reinsurance market
D)Substandard market
E)Voluntary market

Question

Quizplus · Accepted Answer

The substandard market provides insurance to high-risk drivers who cannot obtain coverage through standard channels, often at higher premium rates due to their increased risk.

Some Drivers Cannot Buy Insurance Through the Usual Channels Because