Who issues certificate of intent to self insure?

Who issues certificate of intent to self insure?

• A. Department of Insurance
• B. Director of Industrial Relations
• C. Governor
• D. Labor Commissioner

Answer: (B)

In California, the authority to authorize self-insurance for workers’ compensation rests with the state agency that administers the workers’ compensation program, specifically the Director of Industrial Relations. A certificate of intent to self-insure is issued after the employer meets financial and managerial requirements and submits a plan for funding and handling claims. This official acts as the gatekeeper to ensure an employer can responsibly take on the financial risk of self-insuring rather than buying a traditional policy. The Department of Insurance handles insurers and their licensing, not self-insurance authorizations; the Governor and the Labor Commissioner do not issue these certificates.

In California, the authority to authorize self-insurance for workers’ compensation rests with the state agency that administers the workers’ compensation program, specifically the Director of Industrial Relations. A certificate of intent to self-insure is issued after the employer meets financial and managerial requirements and submits a plan for funding and handling claims. This official acts as the gatekeeper to ensure an employer can responsibly take on the financial risk of self-insuring rather than buying a traditional policy. The Department of Insurance handles insurers and their licensing, not self-insurance authorizations; the Governor and the Labor Commissioner do not issue these certificates.