What term describes private insurers that insure only those applicants they willingly accept in accordance with underwriting guidelines?

• A. Private Insurers
• B. Assigned Risk Plans
• C. Competitive Fund
• D. Monopolistic State Fund

Answer: (A)

In workers’ compensation, private insurers operate in the voluntary (standard) market, underwriting and issuing policies only to applicants they choose to accept according to their guidelines. They assess risk, decide whom to insure, and can decline coverage if the applicant doesn’t meet the insurer’s underwriting criteria. This selective approach is what characterizes private insurers in this context. The assigned risk plan, by contrast, is the residual market that provides coverage to employers who can’t obtain it in the voluntary market, not a description of insurers that willingly select their risks. State funds (monopolistic or competitive) describe government-run options, not private carriers choosing whom to insure.