In most states, an ____ can meet its financial obligations by purchasing workers compensation insurance from any private insurer that is licensed to write workers compensation coverage in that state.

• A. Employer
• B. Employee
• C. Insurer
• D. Government agency

Answer: (A)

The main idea is who is responsible for providing workers’ compensation coverage. In most states, the employer is the one obligated to secure and fund this coverage for its employees. The employer meets that obligation by buying a workers’ compensation policy from a private insurer licensed to write this coverage in the state. The insurer handles the policy and pays benefits as claims arise, while employees receive the benefits but don’t purchase coverage themselves. A government agency isn’t the typical payer in private-sector workplaces, and the option of the insurer is the seller of the policy, not the one responsible for funding the obligation. So the employer is the correct answer.