If a self-insured license is revoked, the Director maintains jurisdiction until what condition is met?

If a self-insured license is revoked, the Director maintains jurisdiction until what condition is met?

• A. Five years until the next audit cycle
• B. Until it has been determined no additional claims are forthcoming
• C. Until claim liability has been exhausted pursuant to law
• D. Until claim liability has been exhausted pursuant to the administrator's determination

Answer: (C)

When a self-insured license is revoked, the Director’s authority continues to ensure all obligations tied to that self-insurance program are fully settled. The phrase “exhausted pursuant to law” means that every claim liability—open, pending, and properly arising under the plan—has been paid, settled, or otherwise resolved in accordance with the applicable statutes and regulations. Only after those liabilities are extinguished under the law does the Director’s jurisdiction end. It isn’t tied to a fixed time period, a determination that no more claims will come, or the administrator’s sole decision; it hinges on legal requirements governing the winding down and satisfaction of all claim obligations.

When a self-insured license is revoked, the Director’s authority continues to ensure all obligations tied to that self-insurance program are fully settled. The phrase “exhausted pursuant to law” means that every claim liability—open, pending, and properly arising under the plan—has been paid, settled, or otherwise resolved in accordance with the applicable statutes and regulations. Only after those liabilities are extinguished under the law does the Director’s jurisdiction end. It isn’t tied to a fixed time period, a determination that no more claims will come, or the administrator’s sole decision; it hinges on legal requirements governing the winding down and satisfaction of all claim obligations.