As an out-of-state self-insurer where must the claims files be kept and maintained?

• A. In CA
• B. In CA unless the Manager has given written approval to administer from a location outside CA
• C. In the state where the self-insured is located
• D. In the state where the TPA is located

Answer: (B)

The rule being tested is where California requires claims files for a self-insurer to be kept. For an out-of-state self-insurer, those claims records must be maintained in California so regulators can access them and oversee the self-insurance program. The only exception is if the SIP Manager provides written approval to administer from a location outside California. In that case, administration can occur elsewhere, and the files may be kept outside California with that approval. Without such written authorization, the files must stay in California.