Self-Insured Funds (Workers Compensation)

Providing the group is only operating in a single state, it can issue policies to its members without the need for an insurance carrier (although it will still require specific and aggregate insurance to protect it from large losses).

Groups that wish to issue policies in several States are required to obtain support from a licensed insurance company in each State. In order to assume risk either a high deductible policy is purchased from the company or a group captive is formed to act as a reinsurer of the insurance company.