Following revocation of a certificate, the manager may determine the need for which action to secure future liabilities?

• A. Audit payroll
• B. Deposit adjustment
• C. Increased premium
• D. Reinsurance

Answer: (B)

When a self-insurer’s certificate is revoked, the authority must still ensure there are funds available to cover future workers’ compensation liabilities. The tool designed for this is adjusting the security deposit on file. By performing a deposit adjustment, the amount held as security can be increased (or adjusted to reflect current exposure), guaranteeing there are sufficient resources to meet future claims even after the revocation. This directly ties the posted security to the employer’s ongoing liability risk, which is why deposit adjustment is the appropriate action. Auditing payroll, increasing premiums, or using reinsurance do not directly secure future liabilities in the context of certificate revocation in the SIP framework.