What must a self-insured employer do to indicate financial stability?

• A. Only provide cash deposits
• B. Obtain a Certificate of Consent
• C. Limit the number of employees
• D. Reduce insurance coverage

Answer: (B)

To indicate financial stability, a self-insured employer is required to obtain a Certificate of Consent. This certificate demonstrates that the employer has met specific financial requirements set by regulatory authorities, which may include sufficient assets or reserves to cover potential claims. Having this certificate confirms to regulators and stakeholders that the employer is financially capable of managing the risks associated with self-insurance.

Obtaining a Certificate of Consent not only fulfills legal obligations but also instills confidence in employees and possible claimants regarding the employer’s ability to cover workers’ compensation claims. It serves as an official recognition that the self-insured employer is financially sound enough to stay solvent and meet its obligations without relying on traditional insurance mechanisms.