When a self-insured certificate has been revoked, the Director retains jurisdiction for what period of time?

When a self-insured certificate has been revoked, the Director retains jurisdiction for what period of time?

• A. 5 years until the next audit cycle.
• B. Until claim liability has been exhausted pursuant to the administrator's determination.
• C. Until it has been determined no additional claims are forthcoming.
• D. Until claim liability has been exhausted pursuant to the law.

Answer: (B)

When a self-insured certificate is revoked, the Director’s oversight continues to cover any remaining claim liabilities. The period lasts until the plan’s administrator determines that all claim liability has been exhausted, meaning every known and potential liability has been paid or adequately funded and there is no remaining obligation. This ensures claimants are protected and funds are properly managed even after revocation. This is why the option stating exhaustion of liability pursuant to the administrator’s determination is correct. It ties the end of jurisdiction to a formal, administrator-led finding that there are no outstanding or future claims, not to a fixed time or to an undetermined notion like “no more claims forthcoming.”

When a self-insured certificate is revoked, the Director’s oversight continues to cover any remaining claim liabilities. The period lasts until the plan’s administrator determines that all claim liability has been exhausted, meaning every known and potential liability has been paid or adequately funded and there is no remaining obligation. This ensures claimants are protected and funds are properly managed even after revocation.

This is why the option stating exhaustion of liability pursuant to the administrator’s determination is correct. It ties the end of jurisdiction to a formal, administrator-led finding that there are no outstanding or future claims, not to a fixed time or to an undetermined notion like “no more claims forthcoming.”