What characterizes the 'assigned risk plan' structure in a shared market?

The assigned risk plan structure is designed to ensure that high-risk drivers can still obtain automobile insurance coverage when they cannot secure it through standard markets. Option C accurately describes this system, where insurance companies in a shared market are required to accept a certain percentage of high-risk drivers based on their market share. This approach spreads the financial risk among different insurers, allowing them to collectively cover individuals who might otherwise be denied insurance due to their driving history or other risk factors.

By assigning these high-risk drivers to companies proportionately, the plan aims to maintain accessibility to insurance for those who may not qualify for regular policies while also ensuring that no single insurer has to bear the entire burden of insuring these higher-risk individuals. This contributes to a more equitable distribution of risk in the insurance market and helps prevent the exclusion of high-risk drivers from obtaining necessary coverage.