A monopolistic state fund provides the only workers compensation insurance available in a given state.

• A. True
• B. False
• C. Only for government employers
• D. It is optional

Answer: (A)

In a monopolistic workers compensation system, the state runs the sole insurer for workers’ compensation, and private insurers aren’t allowed to issue policies. Employers must obtain coverage through that state fund, so there is no private market option. That makes the statement true: the monopolistic state fund provides the only workers’ compensation insurance available in that state. It’s not optional or limited to government employers; coverage is required for all employers, but through the state fund rather than private carriers.