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Two Monopolistic State Funds Strike Again Recently


Ohio And North Dakota Monopolistic State Funds

I do not wish to pick on any of the monopolistic state funds. I have passed over commenting on quite a few articles referring to Ohio and North Dakota. However, these two news items were too major to ignore.

North Dakota – A Monopolistic State 

The State Fund’s (WSI) reserve levels topped out at $174 million. The Attorney General of North Dakota had commented that WSI is figuring the surplus figures incorrectly. The WSI has refunded quite a large amount of the surplus to the policyholders by way of dividends.

Dividends are another name for refunds to policyholders.  They are not to be confused with dividends on investments that are not refunds.

Vector of hands with dollar sign Monopolistic State Funds Concept

I believe that a large surplus indicates that the WSI or any carrier is charging too much premium to their policyholders. Instead of receiving a multi-year free-interest loan from the policyholders and then refunding it back, it is best to set premium levels at a fair rate. As I see it, there should be a very small amount of surplus in a government-backed agency.

I will cover Ohio tomorrow, as I have to research the situation a little more. A judge has made a ruling against the BWC.

2020 Update – Ohio and North Dakota remain as two of the last monopolistic state funds.  North Dakota’s WSI and Ohio’s BWC have not allowed any type of private market competition.

One has to wonder how long they will remain completely monopolistic.  Both have experienced extreme difficulties in administering one-source workers compensation insurance.

Also Read: Monopolistic Workers Comp States Examined Further

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James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications


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