Employers with similar workers' compensation exposure that form a reciprocal for self-funding are known as what?

• A. Reciprocal Workers' Fund
• B. Self-Insurance Pool
• C. Mutual Workers' Comp Association
• D. Group Self-Insurance

Answer: (D)

Group self-insurance means a group of employers with similar workers’ compensation exposure join together to fund and manage their own claims rather than buying traditional insurance. They pool their premiums into a common fund, or reciprocal, and use those resources to pay workers’ comp claims, sharing the risks and costs among members. The arrangement is typically governed by a board or administrator, with reserves, funding rules, and often stop-loss protection to cover unusually large losses. This setup gives the group more control over claims handling and potential cost savings if loss experience is favorable. The other terms are less precise or used less commonly in this context; a group self-insurance is the standard description for this kind of mutual, self-funded arrangement.