What term is used for the groups formed by employers to help find economical ways to insure WC obligations, typically retaining a TPA?

• A. Assigned Risk Plans
• B. Self-Insured Groups
• C. Monopolistic State Fund
• D. Competitive Fund

Answer: (B)

Self-Insured Groups involve multiple employers pooling resources to self-insure their workers’ compensation obligations, often with a third-party administrator to handle claims and administrative tasks. This arrangement lets members share costs and manage risk collectively, gaining economies of scale while keeping the funding for claims self-directed rather than purchasing from a private insurer. Because the group actively self-funds its WC obligations and relies on a TPA for claim administration, this term best fits the description.

Assigned Risk Plans are state-backed pools for employers who can’t obtain coverage in the voluntary market, a Monopolistic State Fund refers to a state-run WC fund, and Competitive Fund isn’t a standard term for employer groups in this context.