An self-insured ER has not adequately funded their trust account for over a week, preventing payments on claims. What action is required?

• A. Tell the ER to deposit the funds immediately
• B. Tell the ER to deposit the funds within 14 days
• C. Notify Chief immediately
• D. No action on your part is necessary

Answer: (C)

When a self‑insured employer’s trust fund isn’t adequately funded and can’t pay claims, regulators treat that as an urgent solvency issue. The proper response is to notify the Chief immediately so the regulator can assess the situation, protect claimants, and direct any necessary corrective action. This early notice allows official oversight, potential funding requirements, or other remedies to be put in place before the fund shortfall worsens. Simply telling the employer to deposit funds or waiting a set period does not satisfy the regulatory duty to promptly address financial risk, and taking no action would fail to protect those with valid claims.