A private employer which has secured the payment of compensation pursuant to LC3701 is what type of self-insurer?

• A. Public self-insurer
• B. Private self-insurer
• C. Independent self-insurer
• D. Group self-insurer

Answer: (B)

In California, self-insurance for workers’ compensation means a employer funds and administers its own workers’ comp obligations instead of buying coverage from an insurer. A private employer that has secured payment of compensation under Labor Code section 3701 is operating as a private self-insurer, since they are a private entity funding their own claims rather than using a public program or a group pool. Public self-insurers are government entities (cities, counties, state agencies); group self-insurers are a pool of multiple employers. An “independent self-insurer” isn’t a standard California SIP category, so it doesn’t apply here.