Phabbyfundz
Active member
The mechanism used to handle the workers compensation residual market varies from state to state. In the four remaining states with a monopolistic state workers compensation fund all businesses are insured through that fund. in most states with a competitive state fund, the funds accepts all risk rejected by the voluntarily market thus eliminating the need for an assigned risks plan.
In states without a competitive risk fund, the insurers and insurance companies may be assigned applicants based on their market shares and service those employers as they would employers that come to them through the existing voluntary market through a system know as a direct assignment. They also actively or constantly participate in the residual market through a reinsurance pooling arrangement or scheme.
In states without a competitive risk fund, the insurers and insurance companies may be assigned applicants based on their market shares and service those employers as they would employers that come to them through the existing voluntary market through a system know as a direct assignment. They also actively or constantly participate in the residual market through a reinsurance pooling arrangement or scheme.