In a monopolistic state for workers' compensation coverage, employers are required to do what?

In a monopolistic state for workers' compensation coverage, employers are mandated to purchase coverage from the state-funded plan. This means that employers do not have the option to select private insurers for their workers' compensation insurance needs. Monopolistic states are characterized by a single entity providing coverage, which usually results in a streamlined process for obtaining necessary insurance.

This arrangement is designed to ensure all employers have access to required workers' compensation coverage, thus providing consistent protection for employees injured on the job. The state commonly manages the compensation fund, allowing it to set rates, manage claims, and regulate coverage effectively to meet the needs of both employers and injured workers.

In contrast, the other options involve mechanisms that would be found in competitive insurance markets, where multiple insurers operate and employers can choose their providers, which is not applicable in monopolistic states.