Purpose: the California Automobile Assigned Risk Plan (CAARP) exists for drivers who cannot buy auto liability insurance the ordinary way. Insurance Code §11620(a) calls for a plan to equitably apportion, among insurers admitted to transact liability insurance, applicants for auto bodily injury and property damage liability insurance who are in good faith entitled to it but cannot get it through ordinary methods. All of those insurers must subscribe and participate. Paying claims of an insolvent insurer is a different job, done by the California Insurance Guarantee Association (CIGA).

Who may place business: only CAARP-certified producers may submit applications, use the Plan's electronic application system, or receive commission on Plan business. Per the Plan's producer certification application: - a current Fire & Casualty or Personal Lines license is the starting requirement, but the license is not the certification - the online producer course must be completed within four months of certification and at least once every four years after that - a copy of each renewal license must be sent - there is no fee to become certified Missing the course or the license copy lets the certification lapse.

Applicant eligibility: under §11624(a), the plan's standards may consider the applicant's (or expected driver's) criminal conviction record, license suspension or revocation record, accident record, and age and mental, physical and moral characteristics bearing on safe and lawful driving, plus the condition or use of the auto. A credit score is not on the list. Under §11624.08, a certificate of eligibility goes with the application; it states whether the applicant meets the good driver criteria and, if so, names the insurer and insurer's representative that denied coverage. The applicant signs under penalty of perjury, and the agent or broker signs after reviewing it.

Placement: a certified producer submits the application to the Plan, normally through its electronic system (EASi), and the Plan makes the assignment, so the applicant does not choose the company. Since October 2021, part of the private passenger business goes to the Plan's Private Passenger Pool instead of a designated insurer. Under §11624.5, an agent or broker may not charge the applicant for forms, technical assistance or services needed for a Plan application; the commission is the only pay.