Close medical only claims should be included on the annual report.

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Prepare for the California Self‑Insurance Plans (SIP) Exam with our interactive quiz. Benefit from multiple-choice questions, detailed explanations, and essential tips to enhance your knowledge and succeed in your exam!

Multiple Choice

Close medical only claims should be included on the annual report.

Explanation:
In the annual report, you show the current liability position—open claims and the corresponding loss reserves (including IBNR). A medical-only claim that has been closed no longer represents an ongoing obligation, so it does not carry a reserve to report. Including closed medical-only claims would inflate the reported liabilities and misrepresent the plan’s current risk exposure. Thresholds for reporting apply to which claims are reported based on severity or potential impact, not to resurrect closed claims into the current liability picture. Therefore, closed medical-only claims should not be included on the annual report.

In the annual report, you show the current liability position—open claims and the corresponding loss reserves (including IBNR). A medical-only claim that has been closed no longer represents an ongoing obligation, so it does not carry a reserve to report. Including closed medical-only claims would inflate the reported liabilities and misrepresent the plan’s current risk exposure. Thresholds for reporting apply to which claims are reported based on severity or potential impact, not to resurrect closed claims into the current liability picture. Therefore, closed medical-only claims should not be included on the annual report.

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