iii residual markets the topic december 2006 market exists to ensure coverage is available when insurance companies in regular reject an applicant as too risky a normal competitive insurers are free select from among people applying for those drivers property owners and commercial operations they wish insure do this by evaluating risks involved through process called underwriting applicants who considered high risk may have difficulty obtaining voluntary channels term applies individuals or individual businesses with poor loss record due inadequate safety measures certain kinds of professions where nature work hazardous lawsuits specific locations theft vandalism severe storm damage substantial make basic more readily everyone wants needs special plans known shared involuntary been set up state regulators working industry programs rarely self sufficient rates charged policyholders low support
