Which action may be good cause for revocation of a self-insurance certificate?

Which action may be good cause for revocation of a self-insurance certificate?

• A. Failure to comply with statutes governing administration or regulations
• B. Missing a quarterly report
• C. Filing late payroll tax returns
• D. Violating advertising rules

Answer: (D)

Advertising rules are designed to ensure self-insurers present accurate, non-misleading information about their status and obligations. Violating those rules directly undermines consumer protection and the integrity of the self-insurance program, so regulators view it as a strong, justifiable ground to revoke a self-insurance certificate. Administrative lapses like missing a quarterly report or filing payroll taxes late are serious but typically result in penalties or corrective actions rather than automatic revocation, and broader noncompliance with statutes governing administration would usually lead to disciplinary steps rather than immediate revocation unless tied to broader improper conduct.

Advertising rules are designed to ensure self-insurers present accurate, non-misleading information about their status and obligations. Violating those rules directly undermines consumer protection and the integrity of the self-insurance program, so regulators view it as a strong, justifiable ground to revoke a self-insurance certificate. Administrative lapses like missing a quarterly report or filing payroll taxes late are serious but typically result in penalties or corrective actions rather than automatic revocation, and broader noncompliance with statutes governing administration would usually lead to disciplinary steps rather than immediate revocation unless tied to broader improper conduct.