State Differences

There are 3 areas that have some slight differences between states. These 3 areas are not enough to cause you to fail your exam. However, you need to research your states guidelines so you are prepared for your particular states material.

Personal Auto Liability Coverage

Most states have split limits of coverage

Check your states guidelines.

There are a few states that utilize personal injury protection (PIP)

The term “no-fault” is sometimes used for this method of coverage.

Watch a webinar to better understand the concepts (coming soon)

Regulation of the Insurance Industry

Some states have an elected public official.

Some state have an appointed public official.

Whether elected or appointed, if they resign, usually the Governor will appoint someone until the next election or term period.

They may be called Director, Commissioner, or Superintendent.

To see the most recent list, click here

State laws regulating insurance may be stated differently in each state also. Some states call them insurance laws, or insurance code, or state statutes.

Purchasing Workers Compensation

There are typically 3 ways to purchase workers compensation.

The first is through a private insurer.

The second is through a state workers compensation fund.

The third is to self-fund or qualify for self-insurance.

In some states workers compensation must be purchased through the state fund or set up a formal program of self insurance. Private insurers are not allowed. This is called a monopolistic state fund.

Monopolistic States: North Dakota, Ohio, Washington, and Wyoming

In other states, workers compensation must be purchased through private insurers since there is no state fund. You may also qualify to self-fund also.

Some state offer all three methods. In this case, the state fund may be called a competitive state fund. That’s because it must compete with private insurers for the workers compensation business.

Texas does not require workers compensation.

Here is a webinar to help you understand the concepts of workers compensation.