Which statement is true regarding disclosures to the manager by self-insurers?

Which statement is true regarding disclosures to the manager by self-insurers?

• A. They must disclose standard policies only
• B. They must disclose standard policies, specific access coverage, and aggregate excess coverage
• C. They need not disclose aggregate excess coverage
• D. They must disclose only aggregate coverage

Answer: (B)

Disclosures to the manager must present the full layering of protection the self-insurer relies on. The manager needs to see the standard policies as the baseline protections the plan uses, plus any coverage that targets specific exposures the organization faces (specific access coverage), and the protective layer that sits above those bases (aggregate excess coverage). This complete picture lets the manager assess overall risk, funding needs, and how losses would be covered across the different layers. If you only disclosed standard policies, you’d miss the extra protections that kick in for particular exposures or when losses exceed the baseline limits. Omitting aggregate excess coverage would hide additional protection against high-severity or cumulative claims. Conversely, reporting only aggregate coverage would ignore the fundamental, everyday protections that the plan relies on. The best choice ensures the manager understands all relevant coverage components together, reflecting how the self-insurer is actually protected.

Disclosures to the manager must present the full layering of protection the self-insurer relies on. The manager needs to see the standard policies as the baseline protections the plan uses, plus any coverage that targets specific exposures the organization faces (specific access coverage), and the protective layer that sits above those bases (aggregate excess coverage). This complete picture lets the manager assess overall risk, funding needs, and how losses would be covered across the different layers.

If you only disclosed standard policies, you’d miss the extra protections that kick in for particular exposures or when losses exceed the baseline limits. Omitting aggregate excess coverage would hide additional protection against high-severity or cumulative claims. Conversely, reporting only aggregate coverage would ignore the fundamental, everyday protections that the plan relies on. The best choice ensures the manager understands all relevant coverage components together, reflecting how the self-insurer is actually protected.