Society has the problem of providing auto insurance to high-risk drivers, including irresponsible drivers, drunk drivers, and drivers who habitually break traf- fic laws. An automobile insurance plan (assigned risk plan) is one approach to the problem of providing auto insurance to high-risk drivers.

a. What is an automobile insurance plan?

b. Describe the eligibility requirements for obtaining insurance from an automobile insurance plan.

Explain the process for assigning high-risk drivers to individual insurers.

d. Explain the disadvantages of automobile insurance plans.