BUSINESS & PERSONAL
Insurance Plan: One of several types of "shared market"
mechanisms where persons who are unable to obtain such insurance
in the voluntary market are assigned to a particular company,
usually at a higher rate than the voluntary market. Formerly
called "Assigned Risk".
Liability Insurance: Protection for the insured against
financial loss because of legal liability for car-related
injuries to others or damage to their property
Physical Damage Insurance: Coverage to pay for damage to
or loss of an insured automobile resulting from collision,
fire, theft, or other perils
Reinsurance Facility: One of several types of "shared market"
mechanisms used to make automobile insurance available to
persons who are unable to obtain such insurance in the regular
Shared Market: A program in which all automobile insurers
in each state and the District of Columbia participate to
make coverage available to car owners who are unable to
obtain auto insurance in the voluntary market. Except in
Maryland, which operates a state-funded mechanism whose
losses are subsidized by private insurers, each state uses
one of three systems (an automobile insurance plan, a joint
underwriting association, or a reinsurance facility) to
guarantee the availability of automobile insurance