State Fund
What Does State Fund Mean?
A state fund is a state-operated financial program designed to provide insurance coverage to its residents. In the United States, state funds are primarily used for workers’ compensation insurance. In some states, private insurers are prohibited from offering the same type of insurance coverage that the state fund provides.
Insuranceopedia Explains State Fund
Each state has an insurance regulatory body responsible for overseeing the activities of insurance companies licensed to operate within the state. In some cases, this regulatory body also administers a state fund to provide insurance.
A monopolistic state fund is one that prohibits private insurers from offering the same type of insurance. However, some employers supplement the coverage provided by a monopolistic state fund by purchasing additional policies from private insurers to cover risks not included in the state fund’s coverage.
