Which statement best describes who qualifies as a 'self-insurer' in California workers' compensation?

Which statement best describes who qualifies as a 'self-insurer' in California workers' compensation?

• A. An employer who self-insures workers' compensation obligations.
• B. An insurer who insures themselves.
• C. A government agency.
• D. A hospital group.

Answer: (A)

In California workers’ compensation, being a self-insurer means the employer takes on the obligation to pay and fund all workers’ comp benefits for its own employees, rather than buying a policy from a private insurer. This status is granted by the state and requires meeting financial, solvency, and administrative requirements, either directly or through a self-insurance plan that pools multiple employers. The key idea is who bears and funds the risk—the employer themselves—not a traditional insurer or another type of organization. So, the best description is the employer who self-insures obligations; the other options describe entities or arrangements that don’t define who qualifies as a self-insurer.

In California workers’ compensation, being a self-insurer means the employer takes on the obligation to pay and fund all workers’ comp benefits for its own employees, rather than buying a policy from a private insurer. This status is granted by the state and requires meeting financial, solvency, and administrative requirements, either directly or through a self-insurance plan that pools multiple employers. The key idea is who bears and funds the risk—the employer themselves—not a traditional insurer or another type of organization. So, the best description is the employer who self-insures obligations; the other options describe entities or arrangements that don’t define who qualifies as a self-insurer.