Voluntary market refers to coverage offered by private insurers.

• A. Monopolistic fund
• B. Assigned risk plan
• C. Voluntary market
• D. Self-insured pool

Answer: (C)

The voluntary market is where private insurers actually offer and sell workers’ compensation coverage to employers. This market operates on underwriting and rating carried out by private carriers, with employers choosing to buy coverage from those insurers through standard policies. It’s distinct from the residual market, which includes programs designed for employers who can’t obtain coverage in the voluntary market—such as assigned risk plans and state funds—where coverage is provided by a non-private mechanism. A self-insured pool, on the other hand, involves employers paying and managing their own risk, sometimes pooling resources for stability, rather than purchasing a policy from a private insurer. So the statement matches the idea that the voluntary market is the coverage offered by private insurers.