A facility, owned and operated by a state government, that provides workers compensation insurance and that does not permit any other insurers to sell workers compensation insurance in that state.

• A. Monopolistic State Fund (exclusive state fund)
• B. Competitive Fund
• C. State Guaranty Fund
• D. Self-Insured Group

Answer: (A)

An exclusive state fund, also called a monopolistic state fund, is a state-owned and operated workers’ compensation insurer that is the only permitted provider in that state. That means private insurers cannot sell workers’ comp coverage there. The state runs the fund to provide coverage, often aiming for uniform benefits and pricing and direct control over the system. This differs from a competitive fund, where private insurers compete for business; from a self-insured group, where employers fund their own coverage (typically with a third-party administrator); and from a state guaranty fund, which is not a insurer itself but a safety net that kicks in if an insurer becomes insolvent.