Insurer Of Last Resort
What Does Insurer Of Last Resort Mean?
An insurer of last resort is an insurance company that provides a policy to a party considered to be an extremely high insurance risk. Since these applicants are deemed uninsurable by most insurers, they are unable to obtain an insurance policy to cover their risks, especially not at competitive market rates.
Insuranceopedia Explains Insurer Of Last Resort
Insurers of last resort can be private insurance companies that choose to take on heavy insurance risks, often at elevated premiums. For example, they may issue auto insurance coverage to drivers with extremely poor driving records. However, insurers of last resort are often government entities assigned to protect the interests of populations considered uninsurable, such as individuals with serious pre-existing medical conditions or homeowners living in flood zones.
