Which of the following statements about Indiana's approach to Workers' Compensation insurance is true?

In Indiana, Workers' Compensation (WC) insurance is indeed compulsory, meaning that most employers are required by law to carry this insurance to cover their employees in the event of work-related injuries or illnesses. This is a fundamental aspect of the state's approach to protecting both employees and employers in terms of liability.

Furthermore, it is accurate to state that Indiana does not have a state Workers' Compensation fund, which contrasts with some states that provide a state fund for those employers who wish to buy coverage through the state instead of private insurers. Instead, employers in Indiana are free to select their insurance providers from the private market, which creates a competitive environment.

This context helps in understanding why the other options cannot be correct. For instance, characterizing Workers' Compensation as elective in Indiana would misrepresent the obligation placed on employers, while suggesting the existence of a state fund contradicts the established fact that Indiana relies on private insurers for these obligations. Knowing these key aspects of Indiana's Workers' Compensation system is essential for anyone preparing for licensing or working in this insurance sector within the state.