States that allow private insurers to offer workers' comp coverage as an alternative to the state workers' comp fund are called?

The term used to describe states that allow private insurers to offer workers' compensation coverage as an alternative to a state-run workers' compensation fund is "competitive states." In these states, employers have the choice to either buy insurance from private carriers or opt into the state system, creating a competitive market for workers' compensation insurance. This competition can lead to a variety of pricing and coverage options, ultimately benefiting employers and employees by providing more choices and potentially lowering costs.

In contrast, monopolistic states do not allow private insurance at all and require employers to obtain coverage exclusively from the state fund. Regulated states typically describe jurisdictions where insurance prices and policies are closely overseen by state regulators, but the term is less commonly used in the context of workers' comp. Closed states generally refer to situations where a state's workers' compensation system is not open to any alternative coverage options, meaning only the state fund is available.

Thus, competitive states are characterized by their ability to foster a market environment where private and state-funded insurers can coexist, providing flexibility in coverage options for employers.