When the self insured ER has their certificate to self administer revoked who handles their claims?

Study for the California Self-Insurance Plans (SIP) Exam. Utilize flashcards and multiple choice questions, each question features hints and explanations. Prepare effectively for your exam!

Multiple Choice

When the self insured ER has their certificate to self administer revoked who handles their claims?

Explanation:
The key idea is that when a self-insured employer loses the right to self-administer, the state takes over responsibility for the open workers’ compensation claims. The Director (of Industrial Relations) reclaims jurisdiction and keeps control until all claim liabilities are resolved. This arrangement ensures that benefits continue to be paid and claims are properly managed under state oversight, rather than by the now-unlicensed self-insured employer. The WCAB handles disputes and hearings, not the day-to-day administration of ongoing claims, and the insurer would only be involved if there were a separate insurance Arrangement.

The key idea is that when a self-insured employer loses the right to self-administer, the state takes over responsibility for the open workers’ compensation claims. The Director (of Industrial Relations) reclaims jurisdiction and keeps control until all claim liabilities are resolved. This arrangement ensures that benefits continue to be paid and claims are properly managed under state oversight, rather than by the now-unlicensed self-insured employer. The WCAB handles disputes and hearings, not the day-to-day administration of ongoing claims, and the insurer would only be involved if there were a separate insurance Arrangement.

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