Monopolistic State Fund — Insurance Claims Definition
Workers Comp
States where workers compensation insurance must be purchased only from the state fund, not private carriers.
Ohio, North Dakota, Wyoming, and Washington are examples of monopolistic or near-monopolistic systems for most employers. Multi-state employers must buy separate policies or obtain out-of-state endorsements carefully.
Examples
An employer expands into a monopolistic state and must obtain coverage from that state's fund rather than the national carrier used elsewhere.
Common Mistakes
Assuming a master policy covers all states automatically. Failing to register as employer in fund states.
