State Funded Workman's Compensation means the state offers to provide coverage to employers even if commercial insurers refuse to sell WC insurance to them.

• A. Only for small businesses
• B. True
• C. False
• D. Only for hazardous industries

Answer: (B)

State-funded workers' compensation provides coverage when private insurers won’t issue a policy. This is the last-resort option—a state-backed fund steps in to insure employers who can’t obtain coverage from commercial carriers, ensuring workers still receive the medical care and wage-replacement benefits they’re entitled to. Depending on the state, this fund may be the only option or just one choice in a residual market. So the statement is true: the state offers coverage even if commercial insurers refuse to sell WC insurance to them.