JUA: Does Insured Know

There was a forum question about whether an insured is aware when their policy has been forwarded to a Joint Underwriting Association. The source text does not comment, but there are 2 old exam questions where this came up:

E (2018.Spring #6)

E (2015.Spring #8)

The first sample answer for part (b) of the 2018 problem is:

• If a high risk applicant applies, a broker forwards the risk to the JUA. Servicing carrier writes and services policy and handles the claims. The consumer doesn’t know that he/she has been rejected. Premium and loss is allocated based on market share in voluntary market.

The fourth sample answer for part (b) of the 2015 problem is:

• “In both the insured may not be aware of placement.”   ← refers to similarity between a JUA and RF (Reinsurance Facility)

I am assuming that these answers were given full credit. Even though this point was not discussed in the source text, it's the policy of the CAS to give credit for any correct answer. There are often situations where candidates have knowledge beyond the syllabus reading because of their work experience.