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Apparent Authority

n. essentially assigned risk is a poor risk that an insurance company is compelled to cover under state laws. If the state does not allow a person to drive without a insurance, and if the insurance companies do not accept the person, then the insurance is placed by the state. The state plan assigns the application to a licensed insurance company for issue of insurance to the concerned person. The purpose it serves is to provide automobile liability insurance to those who "in good faith" are entitled to but are unable to procure such insurance through ordinary methods.

 
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