Assigned risk pool / residual market
A mechanism that makes workers' compensation insurance available to employers that cannot obtain coverage in the voluntary market.
An assigned risk or residual market is the backstop portion of the workers' compensation insurance market. Eligible employers that cannot secure voluntary coverage may be assigned to a carrier, serviced through a pool, or placed through a state-designated market-of-last-resort arrangement.
The structure varies by jurisdiction. Some competitive state funds also serve as the market of last resort, while other states use assigned-risk plans administered through rating organizations or other mechanisms. It is a coverage-access mechanism, not an owner exemption.
Where this definition comes from
Glossary entries are anchored to a state agency, statute, board, commission, or recognized workers' compensation authority rather than a generalized summary.