The standard workers' compensation and employers liability policy, as written by private insurers in most states, is covered in the national Workers' Compensation guide. North Dakota is different. It is one of four monopolistic (exclusive state fund) jurisdictions, along with Ohio, Washington and Wyoming. Workers' compensation in North Dakota is provided only by Workforce Safety & Insurance (WSI), under Title 65 of the North Dakota Century Code. State law doesn't allow private insurers to underwrite it.

What "monopolistic" means for a producer

• A North Dakota employer can't buy workers' compensation from a private insurer. Every employer that hires in the state must secure coverage through WSI.
• A P&C producer doesn't sell North Dakota workers' comp. Exam questions test that you know WSI is the sole provider.
• Guaranty association. WSI claims aren't covered by the North Dakota Insurance Guaranty Association (26.1-42.1-02(5)(d)).
• Commercial cancellation rules. North Dakota's commercial cancellation law (chapter 26.1-30.1) excludes WSI coverage.
• Out-of-state work. WSI's all states coverage applies to temporary and incidental work outside North Dakota for up to 30 consecutive calendar days. It doesn't apply in the other monopolistic states (Ohio, Washington and Wyoming).
• Premium deductions. It's unlawful to deduct any part of the WSI premium from an employee's wages. An employee's agreement to waive rights isn't valid.

Exclusive remedy and its exceptions

• If an employer has secured coverage by paying premiums, the injured employee has no claim against the employer or coworkers. The employee looks solely to the fund (65-01-08).
• The only exception to employer immunity, apart from the uninsured employer chapter, is an injury caused by the employer's intentional act done with the conscious purpose of inflicting the injury (65-01-01.1).
• An uninsured employer sued by an employee can't use the defenses of the fellow-servant rule, assumption of risk or contributory negligence (65-09-02).

Penalties for not securing coverage

An employer that fails to secure coverage faces a penalty of $5,000 plus three times the difference between the premium paid and the premium it should have paid (65-04-33(2)(a)).

Claim deadlines

Benefits

No disability benefits are paid for a disability that lasts less than five consecutive calendar days (65-05-08). The benefit categories (medical, wage loss, permanent impairment and death benefits) follow the general structure in the national guide.

How this ties into auto insurance

North Dakota's no-fault auto law subtracts WSI benefits paid for the same loss from basic no-fault benefits (26.1-41-13(1)). UM/UIM damages are also reduced by WSI amounts (26.1-40-15.4).

Common exam traps

• Workers' comp in North Dakota is written only by WSI. There is no private market.
• The four monopolistic states are North Dakota, Ohio, Washington and Wyoming.
• Notice to the employer and the employer's first report are each due in 7 days. The claim is due in 1 year.
• Disabilities of less than 5 consecutive days get no disability benefits.
• WSI isn't covered by the P&C guaranty association.