Workers Comp Self-insurance Quiz – 10 Questions from 2022/2023 + Bonus
I have likely not written enough articles on self-insureds in 2023. Below is a Workers Comp self-insurance quiz. The questions were taken from clients’ questions. The answers will appear in a rewrite of this article next week. Check out this article on self-insured resolutions for 2023.
After all, almost 15% of workers comp programs are self-insured. That number has been steady for many years.
70% is a passing grade, so let us begin. Feel free to share this article with other self-insureds. Many of the answers can be found in the blog by searching for the subject. There can be multiple correct answers.
Some states may have unique rules for self-insurance. These quiz questions are meant as generic.
Workers Comp Self-Insurance Quiz Questions
- Are large-deductible programs considered self-insurance? Why or why not?
- Do any states not allow workers comp self-insurance? If so, which ones?
- How are claims paid when a self-insured has a bankrupt status?
- What is the most expensive part of a workers comp self-insurance program?
- What is the #1 mistake that J&L sees with companies that are pursuing workers comp self-insurance?
- What is reinsurance? What two main loss values are covered by reinsurance?
- What is the first hurdle that your company must clear to qualify with a state as a self-insured?
- Can a self-insured also have a regular voluntary market workers comp policy?
- Are there any state-imposed penalties for switching back from self-insurance to a large deductible or voluntary market policy?
- How often should a workers comp self-insured perform a claims and reserve level review?
These two questions will increase your score if you can answer them.
Bonus #1 – Which insurance industry personnel become beyond critical for assessing whether or not to become self-insured and to project the incurred costs of the program?
Bonus #2 – Can an employer use an offshore captive for a workers comp self-insurance program?
As I mentioned earlier, state-specific answers are OK even though these quiz questions were meant as generic as each state has its own unique self-insurance rules and regulations.