In a monopolistic state, employers are required to purchase their workers' compensation coverage from which entity?

In a monopolistic state, employers are mandated to purchase their workers' compensation coverage exclusively from a state-funded plan. This means that the state acts as the sole provider of workers' compensation insurance, ensuring that all employers contribute to and obtain coverage through this designated state mechanism. This system helps maintain uniformity in coverage and helps to stabilize the insurance market within the state.

In contrast, employers cannot opt for private insurers, which are available in competitive states; they cannot self-insure unless they meet very specific requirements that typically do not apply in monopolistic states. Moreover, it's not an option to not provide coverage, as workers' compensation is a legal requirement for most employers operating in these states. By mandating state-funded plans, monopolistic states aim to protect workers by ensuring they have access to necessary benefits in the case of a work-related injury or illness.