What Is Assigned Risk Auto Insurance? 
Most States require proof that Liability Insurance be in force in order to register a car and maintain that registration . Primary Auto INsurance providers operating within such States , of course file their own underwriting rules and standards along with the rates that that they charge to the INsurance Department , which approves these for their direct insuring operations . However , in States where insurance is required , these states can not also obligate an insuring company to alter it 's underwriting standards in order to accomidate all situations . In most cases , the licensed insuring companies are required to form a `` pool '' of sorts which have commonly over the years becme known as the `` Assigned Risk Pool '' . An applicant completes a general application for coverage and that is submitted to the Assigned Risk Administration , which then proceeds to transfer that risk -LRB- assign -RRB- it to a particular participating carrier who then issues the policy on their paper and based upon the filed rates of the Assigned Risk Plan in that State . 