An employer may satisfy workers' compensation insurance on their employees by all of the following methods, EXCEPT

• A. Purchasing coverage from a private insurer
• B. Self-insurance program
• C. The Monopolistic State Fund
• D. Group self-insurance

Answer: (C)

In Maryland, you have multiple ways to obtain workers’ compensation coverage: you can buy coverage from a private insurer, you can self-insure if you meet the financial and administrative requirements, or you can participate in a group self-insurance program. The reason the Monopolistic State Fund isn’t a valid option here is that Maryland does not operate a state-run monopoly fund for workers’ compensation. In other words, employers aren’t required or able to obtain coverage through a state monopolistic fund, whereas private insurers, self-insurance, and group self-insurance are the actual pathways available.