What best describes a "competitive" state in terms of workers' compensation coverage?

A competitive state in terms of workers' compensation coverage is characterized by the presence of both private insurers and state-run coverage, allowing employers to choose between them. This system encourages a variety of insurance products and pricing options, giving employers the flexibility to select the coverage that best meets their needs.

The existence of private insurers alongside state-run options fosters competition in the market, which can lead to better rates and services for policyholders. Employers benefit from having multiple choices instead of being limited to one source of insurance, enhancing the overall effectiveness and efficiency of workers' compensation in the state.

In contrast, states that are not competitive may restrict insurance options, leading to limited availability of coverage or a lack of competitive pricing. This is why the other options do not accurately represent a competitive state, as they imply a monopolistic or restricted insurance environment.