Assigned Risk Legal Meaning and Definition

Here is a simplified definition of the legal term Assigned Risk.

Assigned Risk (noun)

An Assigned Risk is a situation in which a person or entity, who would typically be denied an insurance policy due to high risk, is assigned a policy by the state. The policy is provided through an insurance company, and the liability associated with it is transferred along with the premium. It is often utilized in relation to car insurance or workers' compensation.