Carrier of Last Resort (Fall 2018 Q9)

ddaugherty18ddaugherty18
edited March 25 in Germani.GovtIns

(c) Identify one similarity and one difference between a state-administered workers'
compensation fund and a workers' compensation residual market.

From examiner's report - Both are considered the market of last resort

Is the state fund always a carrier of last resort? In the wiki, under the heading State WC Programs & Evaluation of WC Programs, it says that some state funds can deny coverage, so they aren't carriers of last resort. Is the examiner's report just generalizing here?

I am wondering if I would get credit for saying that the residual market is always the final stop, but that state funds may or may not be.

Comments

  • Staff - ACStaff - AC

    In a public-private partnership, it may be that the state fund is the last resort after private. In public-private competition, this is not the case. In a state-only market, it doesn't make sense to say it is last-resort.

    They were loose in accepting this particular answer. The other answers are pretty solid. They may well have accepted your approach.

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