A nonsubscriber is an employer that elects, by filing appropriate notices
required by state insurance authorities, to pay work-related injury loss
through some method other than statutory workers compensation. Three
states—Texas, New Jersey, and Oklahoma—allow such an election. Note that the
purchase of workers compensation insurance is elective in Texas. In New Jersey,
employers are required to purchase either workers compensation coverage or
employers liability coverage. In Oklahoma, employers must either purchase
workers compensation coverage or become a qualified employer under the Oklahoma
Employee Injury Benefit Act (OEIBA).