Monopolistic States Number Correction Removes Nevada
I had posted incorrectly earlier on monopolistic states.
I posted a blog a few months ago that indicated there were six Workers Compensation Monopolistic states. At the time, I had included Nevada. Nevada had already become an open market system. That would leave five in total.
A monopolistic state for Workers Compensation does not allow any insurance carriers to cover the employers in their respective states. The Workers Comp claims are handled by a state agency or a quasi-state agency.
West Virginia became an open market state as of 7/1/08. The removal of West Virginia leaves the count at four. They are:
- North Dakota
As I mentioned in a few earlier posts, North Dakota and Ohio both had severe problems with their monopolistic funds.
The likelihood that any of the remaining four monopolistic states will switch to an open competitive marketplace is, in my opinion, very low. That is regardless of whether these four states are actually helping their employers or not.
Thanks to a Chartered Property Casualty Underwriting Designee (CPCU) from Missouri for pointing out my error. I received an email from her correcting my previous article.
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