If the employee dies with no dependents, to whom is the money paid?

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

If the employee dies with no dependents, to whom is the money paid?

Explanation:
When a California self‑insurance plan pays death benefits, the money normally goes to the employee’s dependents. If there are no dependents, the statute directs the entire death benefit to be paid as a single lump sum of 250,000 to the Department of Industrial Relations. This setup gives the state a one-time recovery rather than ongoing installments since there are no survivors to receive payments. That’s why the correct approach is a lump-sum payment of 250,000 to the Department of Industrial Relations. The other options don’t fit because they imply either installments to someone or a different amount, which isn’t allowed when there are no dependents.

When a California self‑insurance plan pays death benefits, the money normally goes to the employee’s dependents. If there are no dependents, the statute directs the entire death benefit to be paid as a single lump sum of 250,000 to the Department of Industrial Relations. This setup gives the state a one-time recovery rather than ongoing installments since there are no survivors to receive payments. That’s why the correct approach is a lump-sum payment of 250,000 to the Department of Industrial Relations. The other options don’t fit because they imply either installments to someone or a different amount, which isn’t allowed when there are no dependents.

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