What is the purpose of the Assigned Risk plan?

• A. Delivers residential property insurance to qualified citizens in under-served areas
• B. Provides auto liability for high-risk drivers
• C. Offers commercial property insurance for large businesses
• D. Provides earthquake insurance for high-risk zones

Answer: (A)

The Assigned Risk plan exists to ensure that drivers who can’t obtain auto insurance in the voluntary market still have access to required coverage. It focuses on auto liability, placing high‑risk drivers—those with prior accidents, violations, or lapses—into a high‑risk pool so insurers share the responsibility of providing coverage. This helps maintain a stable auto insurance system by guaranteeing minimum liability protection for all drivers, even those deemed high risk.

It does not deal with residential property insurance, commercial property insurance, or earthquake insurance. Those areas are separate lines of coverage and aren’t what the Assigned Risk plan is designed to address.