Plan vs. Pool Explanation
Brief description of the distinction between the assigned risk plan and pool.;
The assigned risk plan is a mandatory arrangement (in most states), established to provide insurance for those employers who are unable to secure workers compensation coverage in the voluntary market. The Indiana plan calls for assignments of these employers to a few of the ICRB insurance company members (servicing carriers - currently Berkley (Riverport), Liberty Mutual, Technology Ins. Co. and Travelers). Participation is mandatory for all insurers who write voluntary workers comp insurance.
The assigned risk pool is a voluntary arrangement of carriers who write workers compensation insurance. Through this arrangement, the servicing carriers manage all of the policy writing and claims handling. They retain a portion of the premium to pay for expenses and to compensate them for servicing the business. The remaining portion of the premium is shared among all insurers participating in the pool. They use this premium to cover the losses experienced by the business handled by the servicing carriers. Losses that exceed this premium are allocated in proportion to the insurers' voluntary market share.
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