2015S 8a Battlequiz 3
Examiner's report lists • “Losses and operating expenses are apportioned among the insurers on a formula basis.”
Your battlecard says "- losses & expenses are shared by all insurers (spreads risk)"
My question is what other residual market mechanisms don't share loss & expenses by all insurers?
Comments
An ARP (Assigned Risk Plan) doesn't share losses and expenses. Insureds are assigned to an ARP based on written premium market share but then each insurer fully absorbs the losses and expenses for the policies assigned to it.