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Workers Comp Self-Insurance Quiz – From Clients’ Questions

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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

  1. Are large-deductible programs considered self-insurance? Why or why not?
  2. Do any states not allow workers comp self-insurance? If so, which ones?
  3. How are claims paid when a self-insured has a bankrupt status?
  4. What is the most expensive part of a workers comp self-insurance program?
  5. What is the #1 mistake that J&L sees with companies that are pursuing workers comp self-insurance?
  6. What is reinsurance? What two main loss values are covered by reinsurance?
  7. What is the first hurdle that your company must clear to qualify with a state as a self-insured?
  8. Can a self-insured also have a regular voluntary market workers comp policy?
  9. Are there any state-imposed penalties for switching back from self-insurance to a large deductible or voluntary market policy?
  10. How often should a workers comp self-insured perform a claims and reserve level review?

Bonus Questions 

These two questions will increase your score if you can answer them.

pic of light bulb workers comp self-insured quiz idea
Stefan Krause, Germany, FAL, via Wikimedia Commons

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.

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James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications

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