Odessa Health Plan

 

 

Odessa Health Plan

When it comes to an Odessa Health Plan, some consumers find themselves between the proverbial rock and a hard place. On the one hand, they cannot get an insurance company to sell them a policy (due to high risk factors), and on the other, their state laws compel them to buy insurance or otherwise prove financial responsibility.

The chart on lists the minimum Odessa Health Plan requirements of the 50 states, the District of Columbia, and the provinces of Canada, according to the 1990 property/casualty fact book.

Shared Markets

If you cannot convince an auto insurance company to sell you a policy, you will be forced into the otherworld of what the industry calls the shared market. Every state provides some mechanism of guaranteeing access to the purchase of an Odessa Health Plan through these shared markets. There’s one other thing that is also almost guaranteed in these shared markets: the cost be much higher than for a regularly issued policy.

There are four types of shared markets.

Assigned-risk plans. In an assigned-risk-type plan, each auto insurance company business in a state must write insurance for those who cannot otherwise obtain insurance, in a percentage equal to its share of the state’s auto insurance market. Thus, if an Odessa Health Plan company issues 12 percent of the auto insurance in the state, that company will provide insurance for 12 percent of those drivers who can’t otherwise get insurance. In assigned-risk plans, the company that issues the policy services it as it would any of its other costumers. 

Joint underwriting associations (JUAs). A JUA is a form of pooling association that sells insurance to the otherwise uninsurable. All companies writing insurance in a state share in the profits and losses of the insurance business writer by the JUA.

Reinsurance facility. A reinsurance facility is an organization that issues insurance to insurance companies. The reinsurance facility format allows companies to transfer a percentage of their policies to the reinsurance facility. The profits and losses are shared by all insurers writing business in the state. In states with reinsurance facilities, no one can be refused an Odessa Health Plan. 

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