A Correction on The Number of 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 Monopolistic states.

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 monopolistic state funds count at four. They are:

• Ohio
• Wyoming
• North Dakota
• Washington

As I mentioned in a few earlier posts, North Dakota and Ohio both had severe problems with their monopolistic fund.

Thanks to a CPCU from Missouri for pointing out my error.