Insurance market systems for various lines of coverage (most often workers
compensation, personal automobile liability, and property insurance). They serve
as a coverage source of last resort for firms and individuals who have been
rejected by voluntary market insurers. Residual markets require insurers writing
specific coverage lines in a given state to assume the profits or losses accruing
from insuring that state's residual risks in proportion to their share of the
total voluntary market premiums written in that state.
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