West Virginia Adjusters Practice Exam 2026 - Free Adjuster License Practice Questions and Study Guide

The correct term for when states require employers to buy coverage from a state-designated workers' compensation program is called "Monopolistic." This arrangement means that the state provides the sole source of workers' compensation insurance, and employers must purchase coverage exclusively from this state-operated program.

In this context, "Exclusive Remedy" refers to the principle that workers' compensation is the only legal remedy available to injured workers against their employer for job-related injuries, but it doesn't denote the requirement for purchasing insurance from a specific source.

"Open Market" describes a system where employers have the choice to buy workers' compensation insurance from various private insurers, which is quite different from a monopolistic approach.

"Voluntary Program" implies that employers can choose whether to obtain workers' compensation coverage, without a mandate from the state, contrasting with the compulsory nature of monopolistic systems.