What must an employer do if their self-insured certificate is revoked?

• A. Reapply immediately for a new certificate
• B. Continue operations without changes
• C. Ensure compliance with ongoing claims until liability is exhausted
• D. Transfer all claims to a licensed insurance provider

Answer: (C)

If an employer's self-insured certificate is revoked, it is essential for them to ensure compliance with ongoing claims until liability is exhausted. This means that even though their self-insured status is no longer valid, they still have an obligation to manage any existing claims that were incurred while they were self-insured.

This requirement stems from the idea that the employer is still responsible for fulfilling financial obligations related to claims that arose during the period they held the certificate. Thus, they must continue to handle these claims properly, including paying benefits to workers or compensating for medical expenses until the claim is fully resolved or the liabilities are settled.

The other options suggest actions that do not adequately address the employer's ongoing responsibilities. For instance, simply reapplying for a new certificate may not be possible until compliance issues are resolved, and continuing operations without changes could violate regulations governing workers' compensation. Additionally, transferring all claims to a licensed insurance provider is typically not a straightforward option and involves various legal and contractual considerations. Therefore, ensuring compliance with current claims is the most appropriate and responsible course of action for an employer in this situation.