What is mandatory for Arizona's auto liability insurers regarding the state's assigned risk plan?

In Arizona, auto liability insurers are required to participate in the state's assigned risk plan. This plan is designed to provide coverage for individuals who are unable to obtain insurance through the conventional market due to high risk factors. By mandating participation, the state ensures that a safety net is in place to allow all drivers access to necessary insurance coverage, which is vital for maintaining financial responsibility on the roads.

Participation in the assigned risk plan helps balance the insurance market by spreading the risk among all insurers, thereby preventing any one company from bearing the weight of high-risk drivers alone. This requirement aims to support public safety and enhance the overall stability of the auto insurance market in Arizona.

The other options, such as the ability to opt-out or participate voluntarily, do not align with this mandatory framework, as they would undermine the plan's purpose of ensuring coverage availability for all drivers. Additionally, the notion of being limited to a maximum number of claims does not apply to the assigned risk plan's participation requirements.