Non-assessable Insurance Policy

A Non-assessable Insurance Policy is a policy where the insurer cannot assess the policyholders for any additional capital contributions to compensate for adverse loss or expenses of the insurance company. This type of policy differs from an assessable insurance policy where the insurer can charge policyholders a fee if they are not paid sufficient premiums to pay for their insurance payouts.

Insurance companies may offer both assessable and non-assessable insurance policies to their clients, although non-assessable policies may be limited by the state if the insurance company does not have sufficient "reserve capital" to meet state requirements and protect its policy holders. Non-assessable insurance companies may also be limited in the types of investments they can make, but under some conditions, its members may help decide what financial investments can be made by the company. Many non-assessable insurance companies argue their success is due to their ability to provide conservative management, aggressive claims defense, comprehensive underwriting, and the combination of doctor ownership and governance with a highly experienced management team.