A Study of the Size of an Assigned Risk Plan

Assigned Risk Plans are thought to expand or contract in volume according to whether or not a prospect of profitable insurance operation is lacking. In order to develop a quantitative first estimate of an Assigned Risk Plan volume, it will be assumed that underwriters relate this prospect of profitable insurance operation to expected claims occurrence, and such expectation is sufficient to reject the request for voluntary coverage. It is also assumed that property damage liability claims will not be separately considered because many of such occurrences are already reflected in bodily injury liability claims 1 and others reflect environmental factors rather than the individual's susceptibility to accidents.