General insurance Workers compensation assigned risks plans and pools

Phabbyfundz

Active member
The mechanism used to handle the workers compensation residual market varies from state to state. In the four remaining states with a monopolistic state workers compensation fund all businesses are insured through that fund. in most states with a competitive state fund, the funds accepts all risk rejected by the voluntarily market thus eliminating the need for an assigned risks plan.
In states without a competitive risk fund, the insurers and insurance companies may be assigned applicants based on their market shares and service those employers as they would employers that come to them through the existing voluntary market through a system know as a direct assignment. They also actively or constantly participate in the residual market through a reinsurance pooling arrangement or scheme.
 

Wisdom01

Valued Contributor
Then that means without a competitive risk funds the workers would obviously have to cover the insurance premium individually ,and incase there is compensation it would be shared individual and not at the expense of the company to cover the risk for them and protect them against any form of issues
 

Mandy96

Valued Contributor
I do not know if these workers compensation do exist in nigeria because I could see it being mentioned in the analysis. Besides the states you were referring to was not clear to me enough. Well I am glad to know about this but you should have made some points more clearly and understanding.
 
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