assigned risk

A poor risk that an insurance company is compelled to cover under state laws.

In automobile insurance, a class of persons to whom insurance companies will not issue policies voluntarily, usually because their record of prior accidents has made them a high risk, and who therefore are assigned by state law to insurance companies and must pay higher rates.

A danger or hazard of loss or injury that an insurer will not normally accept for coverage under a policy issued by the insurer, but that the insurance company is required by state law to offer protection against by participating in a pool of insurers who are also compelled to provide coverage.