For transferring liability, from whom must approval be sought?

For transferring liability, from whom must approval be sought?

• A. Administrative Director (AD)
• B. State Insurance Commissioner
• C. Judicial authority
• D. Employer

Answer: (A)

In California self-insurance plans, the authority to approve transfers of liability rests with the Administrative Director of the Division of Workers’ Compensation. This office oversees self-insured employers and must approve any transfer of liability to ensure the plan remains financially sound and compliant. The State Insurance Commissioner regulates traditional insurers, not SIPs; judicial authority isn’t the mechanism for approving such transfers, and an employer can’t unilaterally transfer liability without this authorization.

In California self-insurance plans, the authority to approve transfers of liability rests with the Administrative Director of the Division of Workers’ Compensation. This office oversees self-insured employers and must approve any transfer of liability to ensure the plan remains financially sound and compliant. The State Insurance Commissioner regulates traditional insurers, not SIPs; judicial authority isn’t the mechanism for approving such transfers, and an employer can’t unilaterally transfer liability without this authorization.