Which statement is true about Director's jurisdiction after revocation?

Which statement is true about Director's jurisdiction after revocation?

• A. The Director retains jurisdiction for 5 years until the next audit cycle.
• B. Jurisdiction lasts until it has been determined no additional claims forthcoming.
• C. Jurisdiction lasts until claim liability has been exhausted pursuant to the law.
• D. Jurisdiction lasts until liability exhausted under the administrator's determination.

Answer: (C)

When a self‑insurance plan is revoked, the Director’s authority isn’t tied to a fixed time or to an administrator’s finding about future claims. The Director remains responsible for winding up any liabilities that arose while the plan was active, and this continues until those claim liabilities are fully exhausted under the law. In other words, payments and settlements must be completed for all valid claims, and the plan’s obligations are considered satisfied only when no further liability remains. This protects claimants and ensures a proper, legal conclusion of the plan’s responsibilities. The other options imply arbitrary time limits or hinges on predictions or administrative determinations, which don’t govern the end of the Director’s jurisdiction.

When a self‑insurance plan is revoked, the Director’s authority isn’t tied to a fixed time or to an administrator’s finding about future claims. The Director remains responsible for winding up any liabilities that arose while the plan was active, and this continues until those claim liabilities are fully exhausted under the law. In other words, payments and settlements must be completed for all valid claims, and the plan’s obligations are considered satisfied only when no further liability remains. This protects claimants and ensures a proper, legal conclusion of the plan’s responsibilities. The other options imply arbitrary time limits or hinges on predictions or administrative determinations, which don’t govern the end of the Director’s jurisdiction.