What best describes the insurance offered by residual market insurance programs?

Residual market insurance programs are designed to provide coverage for individuals and businesses that cannot obtain insurance through traditional markets due to high risk or other factors. This type of insurance serves as a safety net, often referred to as a "last resort" because it is available when all other options have been exhausted.

These programs exist to ensure that all individuals have access to necessary insurance, protecting both the insured and the broader community by preventing gaps in coverage that could lead to uninsured losses. For those considered high-risk, typically due to their claims history or the nature of their business, residual market programs become the viable or only option they have left.

This understanding distinguishes residual market insurance from other types of offerings. For example, while specialized high-risk insurance focuses on a specific niche of the market, and standard business insurance provides conventional coverage for typical business practices, residual market insurance specifically targets those unable to secure coverage elsewhere. Additionally, comprehensive coverage insurance aims at offering broad protection, but may not cater to the specific needs of high-risk individuals who require a fallback when standard options are unavailable.