YOU ASK:

What is the definition of Competitive State Fund?

WE ANSWER:

A Competitive State Fund is a state-established facility that competes with private insurers by selling workers' compensation. This workers' compensation are written for risks that are too great that private insurance companies would rather not cover it or would cover it for a very high premium, so high that the persons to be covered could hardly afford it.

The workers' compensation being written by a Competitive State Fund is designed for the needs of the workers in a specific state and the coverage is only for those who live in that state. There is usually no out-of-state coverage for this kind of funds.

Some states that offer a Competitive State Fund are Louisiana, Utah, Arizona, Hawaii, Kentucky, Maine, Idaho, Montano, New York, Oklahoma, New Mexico, Oregon, Rhode Island, Pennsylvania, Texas, Minnesota, Maryland, Colorado and Missouri.

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