What Does State Fund Mean?
A state fund is a financial operation of the state meant to provide insurance to its residents. In the US, it is meant mostly for workers’ compensation. Some states do not allow private insurers to sell the same kind of insurance that the state fund provides.
Insuranceopedia Explains State Fund
Each state has an insurance regulating body that monitors the activities of the insurance companies licensed to operate in that state. That body can also provide insurance as a state fund.
A monopolistic state fund is one that doesn't allow private companies to provide the same insurance it does. There are some, employers in particular, who still supplement the insurance they get from a monopolistic state fund by purchasing policies from private insurers who will cover risks not insured by the state fund.