Facility Association

The Facility Association makes legally required automobile insurance available through the Residual Market Mechanism and through the Risk Sharing Pools as well. The Facility Association also administers the Uninsured Automobile Funds where required by legislation and authorized by the Board.The Residual Market Mechanism: The Facility Association contracts with a few member automobile insurance companies to act as 'Servicing Carriers'. Servicing Carriers issue and endorse policies, receive premiums and adjust claims on behalf of the Facility Association. They are reimbursed from the Residual Market pool for losses paid, an allowance for adjusting claims and a fee for policy handling. All policies written through the Facility Association by the Servicing Carriers are subject to the rules, rates and classification of the Facility Association. All Rules and Rates require regulatory approval for all jurisdictions the Residual Market serves.