The Facility Association (FA) is a backup insurer for high risk insureds that other automobile insurers do not want to insure. This needs to exist because automobile insurance is legislated for a driver to legally operate a vehcile on a public roadway, and particularly high risk insurers may otherwise not be interested in writing the policy. In Alberta, all automobile insurers 'participate' in the FA by paying any insured losses that exceed the premiums collected by the FA. The participating insurers would pay the excess claims in proprotion to the total amount of automobile insurance they write in the jurisdiction that the FA exists.
